Owning & Operating Vacation Rentals in Hawaii : what a newbie should know?

[Miki M.]

Hi BP!

I have a strong interest in owning & operating vacation rental property(ies) in Hawaii... in Kailua-Kona / Hawai'i County, to be more specific. I have a few question to other BP members who have experience with VRs. In addition to sharing your competent opinions and experiences, it would be awesome to add also some links to useful information available online on the given topic.

1) What are the good and bad aspects of owning a vacation rental in Hawaii? Anything you would like to warn me about?

2) I reside in Texas, so I will be an absentee VR owner. Are you aware of the specific requirements for absentee owners? For example, I can think of... hiring a local property manager? Business license or tax related documents? Etc? 

3) Would you recommend registering a company for this type of real estate property? Should I purchase the VR under an LLC? Or as a private person? Which is better, and why- what are the differences in the two approaches?

4) Any other tips and links that you would like to share on the topic? For example, some tax-related info / tips can be very useful. Many thanks in advance for your time and thorough responses!

Best regards, M.