Anyone tried Hawaii Air BNB? Any thoughts?

[Cory Spitznagel]

Hello all! I am considering purchasing a property in Maui and renting it out short term via Air BNB. I've been studying all the "entire home" rentals available in Maui near the beach and each go for about $110-$200 a night. If all goes well and you're property is rented out all month that's some serious money. Even if you only rent out 10 nights of the month you're more than likely covering your mortgage. Has anyone tried this? The numbers seem to make sense and can even be amazing given the right circumstances. I of course have considered my costs for paying someone to clean up and get the room ready after each previous guest has checked out but I'm assuming just $50-$75 per visit. This seems like a good opportunity to have a nice retirement spot all paid for in 30 years (ugh, I have a long way to go). Would love feedback good or bad or any thoughts or experiences any of you may have had. Cheers!

[Patrick Franta]

Cory,

You are on the right track with many of your assumptions.  Turnover will be slightly higher in the $100-150 range for a cleaning.  I have several clients that own and manage vacation rentals here in Maui from afar, so it is definitely doable.  If you hire a full service management company they will charge a minimum of 25% of your gross rental income.  My wife runs a vacation rental management company here in Wailea and she would be more than happy answer any questions you have.

Basically it comes down to how hands on you would like to be.  If you are willing to put in the time and effort to maximize your returns, self management is very doable.  If you are looking for a hands off solution you can still make decent returns in the 3-5% range and you won't have to deal with much at all.  

The key is to make sure you buy right and run the numbers thoroughly when looking at each option.  I have a pro forma I send to my clients to analyze deals.  Let me know if you would like to use it and I can send it over.  Mahalo.