Unfortunately having just wrote a blog about avoiding being ripped off...within two days of that, my childhood house, that I was fixing up, was indeed ripped off. They only got away with a brand,
All Condos In Kona Are Not Created Equal
A very important question is whether you wish to live in the condo full-time or want to rent it out. Many folks from the mainland find that purchasing a vacation rental condo is a fabulous way to obtain their very own piece of paradise where they can stay on their vacations and rent it out for additional income at other times. But not all condo projects allow short term rentals. Some have restrictions on the length of rental stays of a minimum of 7 or 30 days and in some cases even longer than 30 days. Restricting the rental term to 30 days or longer can have a significant impact on the occupancy rate of the rental and thus reduce your cash flow on the investment. I have the local knowledge of these restrictions and can point you to the ones that meet your desired rental terms.
The maintenance fees can also vary greatly between projects. Some have ridiculously high monthly fees, others are much more reasonable. Some include electricity, some do not. This can be a major consideration, as the electricity rates are much higher on our island than mainland folks are used to paying. Some of the projects have special assessments and/or loan repayments for common area improvements. Some projects have deferred maintenance of the common areas, others have a strong history of excellent management and upkeep. I have the knowledge as to which projects have those crazy fees to be avoided. There are plenty of projects with reasonable fees that will provide a positive cash-flow under the right circumstances.
Some of the projects also have restrictions on the management company you are allowed to hire to manage the rental for you. This is important because, per Hawaii law, if you do not live on the island full-time, you must have an on-island representative to deal with the renters, whether it be short term guests or long term tenants. You can have a friend or relative that lives on the island 'manage' the unit for you, but if your on-island representative manages a rental for more than one principal, they must be licensed by the State of Hawaii. Management fees can vary greatly from around 20% - 50% of the gross rents, so it pays to shop around and find the one that you are most comfortable with representing you.
These points are just the beginning. Let me help you through the maze. I have vast knowledge and experience with the condos on the Kona Coast, whether it be in Kailua-Kona, Keauhou or Waikoloa.
I look forward to helping you find the condo that is just right for YOU!
Internet Professional (e-PRO),
Island Home Realty, Inc.
75-5744 Alii Dr. #168
Kailua-Kona, HI 96740-1740
cell: (808) 443-7289 eFAX: (808) 443-0237
Martha grew up in a small northern Indiana town where strong moral and ethical values shaped her character from an early age. She learned that if you work hard every day, take pride in what you do, a....
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