Vacation rentals are big business in Hawaii and while it might seem like a dream business owning a vacation rental is more work than you think. This week George Steinberg from Hawaii Vacation Rentals Inc. was kind enough to write a guest post about some of the ups and downs of the industry. Here are George's top 3 pieces of advice for anyone looking to get into the business:
Location Is Your Best Friend
In this industry location is key. It can either make or break your business. Ideally you want to have a vacation rental in an area that allows your tenants to get away from the hustle and bustle of the resorts. The trick is not to be so far away that they can't find your rental property. From my experience the perfect vacation rental is no more than 1 hour away from the airport as well as shopping and dining. Fortunately most places in Hawaii are within an hour of the airport but if you have a vacation rental in Historical Kalapana town on the Big Island be prepared to not get many guests from out of town.
Insurance Is The Best Assurance
Vacation Rental insurance is by far more important than other form of insurance if you're a property owner. It is safe to say that you will be getting a lot of use out of your insurance policy if you own a vacation rental. From my experience the majority of tenants who are on vacation do not respect the rental property and are more likely to damage it for whatever reason than a typical hotel guest. Make this small investment in your property and the results will pay dividends.
Track Everything
Unfortunately in this business your income can be at the mercy of a million different factors such as the economy among others. Tracking the ups and downs makes you a responsible business owner and allows you to make strategic business decisions so that you can plan accordingly for the future. Start by comparing year occupancy year to year and even down to the day. Keep notes of everything from the weather, hotel occupancy rates (which you can get from the tourism authority), and currency exchange rates. Tracking this data will help you to better predict demand for your units so that you can market or price accordingly.
