Looking for Hawaii Island Income Producing Vacation Rental Property?

Be careful not to blink or wait too long on your purchase decision. You probably just missed out on another great property now under contract in just days from hitting the market for sale. Opportunities to purchase a great Hawaii vacation or primary home is way up with great interest rates but the inventory is very low creating a literal frenzy of offers on great properties. This is not an understatement our current local real estate market in the Kailua-Kona and South Kohala Gold Coasts areas are

HOT AS LAVA!

CONDO-TELS AND RESIDENTIAL PROPERTIES WITH STVR IN SHORT SUPPLY FOR BUYERS

Once the State of Hawaii reopened the doors to the visitor industry with the opportunity of no quarantine this is when the mad rush of travelers to Hawaii began. Owners at this time who either had to sell or was talking advantage of a upward climbing market knew this was the time to move whether to sell. Spring break had any available condo or conforming residential vacation rental booked. Visitors were either extending stays onlooking for other accommodation in order to continue their stays. The sheer number of available condos and residential homes with Short Term Vacation Rentals or STVR’s is extremely limited because many owners and or their guests are now using vacation rentals as their primary residence during COVID. This drove the inventory way down and there is no doubt that the upcoming summer season will not be slowing down anytime soon. More than likely the busy season may stick around all the way through the winter season December through April.

There are 16 oceanfront condo and residential listings available in Kailua-Kona

649884 CND ACTIVE 27 DOM  $199,0003-7-5-21-7-52 LEASEHOLD GEM IN ALII VILLAS Alii Villas #218615

647968 CND ACTIVE 42 DOM  $289,000 3-7-5-21-4-70 LEASEHOLD 2 bed condo with large wraparound lanai Kona Makai #4201

648967 CND ACTIVE 20 DOM  $300,000n3-7-5-21-7-45 LEASEHOLD OCEANFRONT COMPLEX-VACATION RENTAL Alii Villas

647956 CND ACTIVE 76 DOM $389,000 3-7-5-20-11-40 FEE SIMPLE Kona Isle C-25

650006 CND A 16 DOM $525,000 3-7-5-18-71-130 FEE SIMPLE Beautiful top floor unit with ocean views and STVR Permit Kona Reef

649357 CND ACTIVE 38 DOM $550,000 3-7-5-19-3-58 FEE SIMPLE Almost ocean front 2/2 condo with stunning ocean views Sea Village #3207854

646173 CND ACTIVE 6 DOM  $299,500 3-7-6-15-23-3 FS KONA BALI KAI 1-BR Kona Bali Kai #227586

649349 CND ACTIVE 24 DOM  $549,500 3-7-6-15-23-27 FS ABSOLUTE OCEANFRONT 1-BR CONDO ON ALII DRIVE!Kona Bali Kai #216586

642512CND ACTIVE 241 DOM  $459,000 3-7-8-20-28-33 FS TURNKEY VACATION RENTAL WITH GOLF COURSE VIEWS Kanaloa At Kona #803

645199 COM, LND, MTF, RES ACTIVE 165 DOM  $5,250,000 3-7-7-4-25 FEE SIMPLE Iconic Lyman’s Point Oceanfront77-6300 ALII DR33,979

632322 RES ACTIVE 629 DOM $1,995,000 3-7-7-10-8 FS Classic Beach House – Right on the Ocean!77-6580 ALII DR

650382 RES ACTIVE 13 DOM  $2,200,000 3-7-7-4-40 FS Oceanfront Alii Drive just north of White Sands Beach77-6414 ALII DR7,500 sqft 2,018

650068 RES ACTIVE 7 DOM  $3,975,000 3-7-8-14-50 FS Stunning Oceanfront Estate In Kona!78-6616 ALII DRIVE 

640616 RES ACTIVE 304 DOM  $5,999,000 3-7-8-12-41 FEE SIMPLE Rare He’eia Cove Ocean Front 78-109-A HOLUA RD

649077 RES ACTIVE 46 DOM  $29,425,0003-7-8-12-51 FEE SIMPLE Private Residential Estate and Family Compound in Kona Hawaii

 

In 2018 the County of Hawaii imposed major changes to any owner wanting to have a vacation rental business int he islands. It was time for more regulation in our industry as many were simply not doing to right thing and the State and County wanted their unpaid tax dollars in the bank. This elicited many illegal vacation rental operators forcing owners to sell the assets that couldn’t be held onto as a long term rental simply because they could not qualify their application to become a new legal vacation rental.

On the other hand if vacation operators were doing the right thing were able to provide the application and retrieve their $500 operation permit. New owners are able to retain the permit as a vacation rental by transferring it with the county. New permits are no longer being issued if the property you are purchasing exits OUTSIDE a permitted VACATION RENTAL ZONE. Most condo complexes along Alii Drive in Kailua-Kona are within the NODE as all the resort properties Mauna Kea, Mauna Lani, Waikoloa Beach Resort, Hualalai Resort, and Kukio. Those owners who own a single family residence with a STVR are considered gold as the county is no longer issuing permits to non-conforming residential areas OUTSIDE the permitted NODES.

When buyers interested in vacation rental properties inquire about the alluring combination of maximum rental income potential also may be interested to have their rental available for personal use. Most of my clients simply want their expenses paid and everything else is cherry or a hot lava cake on the purchase for their needs! Short term rentals allowing for stays less than 30 days fetch considerably more income than those of 30 day minimum stay requirements.

WHAT IS CONSIDERED A PREMIUM VACATION RENTAL?

–OCEAN VIEW

–2 BEDROOM MINIMUM WITH TWO BATHS

–RESORT TYPE AMENITIES (ADULT AND CHILD)

Its typically not a good idea to pay a premium $$$ for a property that the rental numbers and profit and loss statements don’t justify the purchase. As I always say don’t purchase with your emotions as this leads a Buyer possibly regretting the purchase later. Before purchasing balance the facts and always ask a ton of questions of your Broker to allow yourself your ease of mind in an educated purchase.