All Forum Posts by: Bryan Vukelich

Hi Christopher, yes, Kailua is beautiful and you are right about gov't attempt to limit STRs outside the resort zoned areas.  At this time, 30 day rentals are legally allowed for any property in Kailua (unless the association has stricter rules), and I know some people who do quite well renting their SF homes on a 30 day basis.  However, the state legislature is currently reviewing a bill to eliminate 30 day rentals.  We should have clarity on the situation within a few weeks.

Are you familiar with Turtle Bay?  There are 2 nice townhome communities there where it is legal to do nightly rentals, and it is possible to find something around the $1M range.  It has a much different vibe than Kailua, but it often appeals to people who also like Kailua.  There is a 5 Star Resort there, golf course, beach, and some tasty restaurants.

Wow - that's a deal.  Thanks again for the heads up.   

My pleasure @Christopher Jordan - and since it is a dream second home, I definitely recommend you acquire a property in the area that appeals to you most. I don't track the STR market closely on Big Island, but I have had clients look on that island and think you should find something there that cash flows pretty well.

If you think I can ever be of value to you, you're welcome to contact me any time.  Wish you well 

Thanks for sharing that @Andrew Steffens - I'm interested.  Do they offer any discount on shipping costs? 

Aloha @Christopher Jordan  - congrats on selling your business.  And just an fyi -  you are not required to have on-island management.  If you own investment real estate in Hawaii but do not live here and want to self manage, you are "supposed" to have a "point of contact."   I have quite a few clients who self manage their vacation rentals from the mainland.

Here is info directly off state of Hawaii website pertaining to vacation rentals (bold in mine):  

If you’re off-island, you’ll need to designate a local contact who resides on the same island as the transient accommodation. The local contact may be an individual or an entity with a principal place of business on the same island as the property. Because they are on the same island as the transient accommodation, the local contact may be able to assist with issues which may arise relevant to the transient accommodation. The on-island local contact doesn’t have to be a licensed real estate professional, unless he/she is also involved in real estate activities, like renting or offering to rent the property.

And I've had at least one client do cost seg - if you'd like a couple referrals, you're welcome to contact me directly. 

Lastly, have you considered O'ahu for a vacation rental?  I have a couple clients that own 2 BR units at Waikiki Sunset - one of them recently told me he is grossing close to $15k next month.  The other client has told me he consistently does $10-$14k/mo.  Units have recently been selling in $900-$950k range. 

Haha @Carlos Ptriawan - true dat

Hi,

I have a client under contract to buy a 1 BR unit in one of the most popular vacation rental buildings in Waikiki.  However, his near term real estate goals have changed and he is looking to assign the contract.   Here is brief overview.  Contact me for more details if you are interested.

Purchase price (including assignment fee):  $280,000

Lease expires in Nov 29th 2035 - fee not being offer at this time.

Unit grossed about $80k in 2023 

Aloha,

Bryan 808 354-5772

Hi all,

That is definitely a misleading headline and to be clear I just scanned the article but the past few weeks I've been reading numerous other articles about the proposed bills as well as the proposed bills themselves.

The main goals of the proposed legislation is to give counties the ability to disallow 30 day rentals.   I am a member of O'ahu Short Term Rental Alliance (OSTRA). Here is their summary of the bills:  would allow counties to phase out transient accommodation rentals as a type of residential use and asserts that any future "residential" use shall not include transient accommodations.

They add:  Creates many definitions including classes of dwellings, but specifically excludes all hotels, lodging houses, rooming houses, boarding houses, boarding schools, furnished room houses, lodgings, club houses and university and school dormitories. Also excludes all short term rentals that were regulated by any county before the effective date of this bill, and all timeshares.

Honolulu county tried to eliminate 30 days rentals a couple years ago with Bill 41.  Honolulu City council passed the bill but a federal judge quickly issued a temporary injunction and later a permanent injunction stating that the bill was unconstitutional.  At the time the judge issued the injunction, the mayor of Honolulu was furious and had a press conference where he stated he would try to change the law at the state level to allow the county to outlaw 30 day rentals.  So that is big reason why we dealing with this now.  

From what I am reading and being told, there is no threat to any existing legal vacation rental units located in the resort areas of O'ahu.  And based on my business, and from what I am seeing with market activity, it is still very much a sellers market for those type of properties so many investors don't seem concerned about these proposed regulations.  

Happy to answer any questions  

Many thanks @Todd Miller and @Sarah Kensinger for the suggestions.  And love your company name Sarah and website.  

Hi, I'm in the process of starting a vacation rental management company (already have clients ready to signup) and would love feedback from other property managers on best management software to use.  Many thanks