Vacation rental markets Hawaii versus Oregon

[Christina Brown]

Hi, looking to get some insight on vacation rental markets. We have been looking in multiple areas, and have been looking into Hawaii versus Oregon coast . We were looking at Portland/Bend/San Diego but the prices are getting too high for us there. Anyone have properties in these areas? As far as Hawaii we are looking at Big Island (Kona area) or Kauai. But mainly looking for an area with a good occupancy rate. Thanks all!

[Isi Nau]

Aloha @Christina Brown

For Hawaii vacation rentals, there are a few primary things to be aware of.

General Excise Tax (GET)

Transient Accommodation Tax (TAT)

Nonconforming Use Certificate

We have seen noticeable increases in tourism (arrivals and spending) since 2009/10, hitting new records recently.  Local economists are predicting mild growth over the next 2-3 years.

A safe assumption for current occupancy rates on Oahu is 80%, but a number of places are seeing more than that.  We have a client who recently purchased a vacation rental in Waikiki.  We touched bases with her three months after closing and she informed us that her unit was rented 27 days per month since closing.

There are other things to take into consideration as well.  Personal use, target clients, duration of ownership, etc.