All Forum Posts by: Bryan Vukelich

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 

Hi @Billy Walker - I recommend you contact Convectus (cvlending.com).  They have consistently offered the best terms.  Good luck 

Hi @Edward Acker - I also recommend self management.  Waikiki is a great spot for data as there are so many similar units in buildings either managed by the hotel operator, the owner, or a 3rd party management company.  From many conversations with investors and financial statements I've reviewed - a quality, self managed unit will greatly outperform units managed by hotels, and consistently outperform (sometime by significant margins), units managed by 3rd party management companies.  

But I also second the comment by @Collin Hays - best to have a contingency plan in place if self management doesn't work for you.

Wish you well  

Aloha Adhirai,

What type of property are you looking to invest in as your first vacation rental?  I have clients and know other investors who own vacation rentals in Hawai'i and self manage from both East and West Coasts and it was worked out well for them.  Yes, saving the management fee certainly helps the numbers.

To your main question, first, planning and preparation goes a long ways.  I recommend having multiple handymen, plumbers, cleaners, etc. on your vendor list that you can call if an urgent issue arises.  When you are vetting service providers, ask them if they will be able to deal with urgent issues, if they work holidays, do they charge extra etc.  If you have enough vendors on your list, good chance one will be available to quickly deal with the issue.  Worst case, call a 24 hr emergency service provider if they are available in your area.  

However, if your vacation rental is in a condo or townhome, you might be able to find someone onsite or in the neighborhood who will agree to deal with any urgent issues.  I have one client who befriended a person who works in the building that he owns a unit in, to help him if he is ever in need.  So once you decide where to buy, perhaps ask your real estate agent for service provider recommendations, or someone who can serve as a local point of contact, and also network on your own try to find people who can assist you in such an event. 

But since this is will be your first STR and you and your husband both work full time and you have a child, I highly recommend you talk to other STR owners to get a better understanding of what it is like to self manage a unit from long distance so you can determine whether this is the best course of action you want to take.

Wish you luck.  If you have any other questions, I'm happy to be of service to you.  Aloha  

Hi @Keith Allen

As @Kasey Sulheim said, a quality investor friendly realtor is an option. Also, are you familiar with Meetup.com?  Depending on where you live, there might be some real estate investor meetups and in my experience, it is possible to come across deals that way.  But in the past, I've had the best luck calling off market properties and finding owners interested in selling.   

Good luck 

Hi @Elena C. - I work with many vacation rental investors and know one you would likely be happy to chat with you.  Please message me directly and I'll send you his contact info.  

Hi @Matthew Brown - I messaged you directly. Happy to answer any other questions you have.