All Forum Posts by: Mike V.

@Jared Friedman perhaps in your market 60 days seems excessive.  My market is a fly to market and is typically booked 9-12 months in advance. Last-minute reservations (Anything under 3 months) are very rare.  How fare in advance do you typically book your family vacations to Hawaii?  60 days is the market standard as a result.  I am not sure you read my post completely.  I lost $5,000+ by virtue of the banks taking the money out of my checking account, by virtue of a chargeback.  The money was there one day, then gone the next.  

I am glad $5,000+ isn't enough of an incentive for you to dispute and fight for.  I will fight for that amount every day of the week.  

@Billy Zhao I believe it is not legal to purchase insurance on behalf of someone else.

@Luke Carl I only took it this far because I’ve won every chargeback dispute I received except this one. The only reason why I lost this dispute is because she lied to the credit card company and told them I specifically told her I would issue a refund, then didn’t.

I showed this documentation to the judge and the judge agreed it was under false pretenses.

Since she lived nearby, I figured it was worth my time in attempting to recover the funds.

I understand it’s within the judges powers to do what was done, but I am having a hard time understanding why. I can only assume that the defendant was sympathetic (she was a grandma- didn’t know at the time) and basically kept saying she didn’t know this, she didn’t know that, etc.

It just hurt when she said I’ve proven my case and she actually said I was ‘100% correct’ but decided against me anyways. It feels like the law doesn’t mean what it used to...

I wanted to briefly share my experience with a COVID related cancellation I had.  

I had a guest cancel their reservation made through VRBO a few weeks prior to check-in due to COVID.  I have a 60 day cancellation policy and an iron-clad rental agreement which my lawyer put together.  It specifically and unequivocally states that I am not responsible for COVID related cancellations and recommend a specific 'cancel for any reason insurance policy' which covers COVID related cancellations.  

The guest didn't buy the insurance and issued chargebacks through their credit card.  

This guest happened to live relatively close so I decided to file a lawsuit and try my luck. We both explained our sides, and when the judge asked why she didn't buy the insurance the guests stated she didn't think it would be necessary.

Fast forward 20 minutes of testimony and the judge said this is a simple contract case, and that the guest signed away her rights specifically pertaining to COVID and she should have purchased the insurance. The judge said I am 100% correct.

I'm feeling like I won and it's over until the last 30 seconds where the judge said she couldn't 'in good conscience enforce the contract'. Case closed.

I appreciate the situation this guest was in, as well as the 1000s of others affected, however, my argument was why am I responsible and expected to eat the $5000+ losses when the guest decided to save $129 on insurance at the time of booking which would have reimbursed her costs.  The contract was clear and the guest decided to roll the dice.   

I'm not upset at the ruling but am disappointed that even when we, as landlords, do everything correctly and prove our case, judges simply toss our legally binding contracts out at their discretion. The only thing I can think of that I could do differently going forward is to require travel insurance at the time of booking (through VRBO) which would force them to purchase it.  However, that very well may turn off guests as there's already enough fees as it is.  

File a complaint with the BBB and everything will be fixed.

@Kyle J. I own and self manage several properties exclusively in Kauai.

Your instincts are spot on about deals being had. The longer the quarantine continues the more people are looking to dump them and move on. These rentals can make great money but they also have very high carrying costs which many didn’t set aside funds for this type of event.

In Kauai you want to be near Poipu Beach. Larger units rent MUCH better than 1 bedrooms, which seems to be opposite of the poster above me.

I only purchase 3 bedrooms, unless the 1 bedroom is too good of a deal to pass up. I’m actively looking to purchase new units even during this pandemic.

The numbers in Kauai will be far superior to any of the other islands, and I would challenge anyone who says otherwise.

Your biggest issue will be the management. If you decide not to self manage expect to pay 35-45% in management fees, and you won’t make any money. There are a few independent managers who will charge 15-20% and you will do quite well.

Feel free to shoot me a PM if you decide on Kauai and I’d be happy to answer your questions.

@Tinwin Wang, the best returns will be found in Kauai. Kauai also has the simplest rules and as long as you buy in the VDA zone (basically the tourist area) you’re legally allowed to short term rent it without permits or other hurdles.

I own and self manage several and prior to covid they were all cash cows. Hawaii has basically shut the door to tourism so business isn’t good, but it creates a good buying opportunity as many people want to walk away from their investments. When things reopen we project a huge influx of demand from people waiting to visit, so we just need to get through the quarantine restrictions.

I never pulled the trigger on any other islands because they numbers are far inferior. If you’re interested in Kauai shoot me a message and we can chat

@Rohin Dhar month to month violates the law in Kauai. Need a minimum of 6 months to be in compliance unless they’re Hawai’i residents renting. Shoot me a PM if you’d like to see the flier they mailed me.. I own several there.

Tell them to put it in a Wendy’s chili bowl and then complain to Wendy’s. Worked great for the last guy that tried.

If it’s possible I respond saying,

Hi, I am able to accommodate (early check in / late check out). There’s normally a $100 fee but I’d be happy to waive it for a nice 5 star review. :)

This drives my reviews up because people who typically won’t leave reviews do, and if anything bad happens during their stay it offsets it.