You never know how many friends and relatives you have until you own a home in Paradise on the Big Island of Hawaii!
We often hear questions around which homes have the best ROI (return on investment) when making a lifestyle investment in Hawaii. We always recommend first looking at what type of personal usage you want so you can make sure the investment will meet your family’s needs.
That said, there are some differences when purchasing a 2-bedroom, 3-bedroom or 4-bedroom vacation home on the Big Island. There are many factors that influence performance of vacation rentals, including:
- Supply and Demand – How many comparable properties are available for rent? The higher the supply the more work you have to do to stand out from the crowd. For example, there are far fewer 4 bedroom homes than 2 and 3 bedroom homes.
- Location – How close is the home to the pools and beaches? How are the views from the Lanai? These details are huge factors in attracting the best renters.
- Quality of Condo development – How new is the development? How are the amenities? How are the pools? Is there a beach close by? Some of these features really stand out and attract premium vacation renters.
- Other factors – Construction next door to your home can be a big detractor for most vacation renters.
Gourmet Kitchen in one of our Vacation Rental Homes
We have extensively tracked vacation rentals on the Kohala Coast and have found that most homes will rent at the peak times. The real trick when maximizing ROI is to drive occupancy without sacrificing nightly rates.
Hawaii enjoys remarkably consistent and pleasant weather year round. We have found that if you work diligently and have a superb offering that stands out, you can rent homes for 300-330 paid nights a year. There are many things that go into driving that level of success in a vacation home rental investment.
We have worked hard over the years to drive those levels of occupancy. We have also developed detailed financial models for our 2-, 3- and 4-bedroom homes that we can share with clients. If you are interested in learning more, please contact Jeff for a discussion how we can help you drive those kinds of levels of success.
Jeff Seifert
Realtor, R(S)-78074
Paradise in Hawaii Luxury Homes, LP
808-270-1900
vacationrental@paradiseinhawaii.com
