Do-it-yourself rental management in Maui
We know a handful of brave souls who are do-it-yourselfers. Of course, in Hawaii, unless you are a resident, you can’t legally do-it-yourself. You must have a representative, either a licensed real estate agent or employ a caretaker. A caretaker is someone who is not licensed, but is hired as an employee to care for your property. There are some companies that will agree to act as your management company to cover you legally and help you out in case of emergencies.
The other thing you have to have is a reliable housekeeping service.
To get renters, many owners run ads in the Maui News, some Magazines like Sunset and Hawaii, and set up websites with links to on line portals like VRBO, Vacation Rental By Owner.
The benefit of managing your property yourself is that you have control and you get to keep most of the rental income. Of course, the other side is that you are now a small business owner. You are responsible for getting your condo rented, dealing with customers and complaints, repairs and maintenance and don’t forget to get liability insurance.
Of course, if you are experienced, go for it.
A word on taxes… first you have to pay them. “Them” include Hawaii’s general excise tax, transient tax (TAT) and income tax. Your accountant needs to file a tax return for you in Hawaii. I can’t tell you home many owners I’ve counseled who tell me they’ve never filed a return in Hawaii and it has to be dealt with when you sell.
If you missed any of the previous articles about owning on Maui, here's what we covered and where you can find it. We described condominium associations in Maui http://activerain.com/blogsview/2403151/3-must-knows-for-buying-maui-real-estate
How much your association fees should be http://activerain.com/blogsview/2404863/3-things-you-must-know-before-you-buy-a-condo-in-maui-part-2
What to look for in your association’s documents during your due diligence http://activerain.com/blogsview/2408558/3-things-you-must-know-before-you-buy-a-condo-on-maui-part-3
What your rental options are http://activerain.com/blogsview/2411793/3-things-you-must-know-before-you-buy-a-condo-on-maui-part-4
And what do you need to know about AOAO outsourced rental management companies? http://activerain.com/blogsview/2419518/3-things-you-must-know-before-you-buy-a-condo-on-maui-part-5
In the final installment we'll explain the differnce between leasehold and fee simple property here in Hawaii. You don't want to miss that.
Or read the entire article 3 things you must know before you buy a condo on Maui.
And visit our website for other information about owning real estate in Maui and Hawaii, www.AlohaPotts.com.
Lahaina Lee Potts