Understanding the Cost of Running a Vacation Rental
Our goal is to generate revenue while protecting your investment. It’s important to understand that there are risks and costs involved when operating a vacation rental.
There are three categories which will cost you money at one time or another.
Repairs - for the items that break down which can be fixed.
Replacement - for the items that break down and can not be fixed.
Preventative Maintenance - to prolong the life of your assets.
There is no crystal ball to know what the maintenance expense will be for your property; however, here are some helpful rules of thumb:
A. Cooling systems - Quarterly cleaning for maintenance.
B. Linens and Towels - You can expect to replenish sheets often. Any stained item will not be kept in the inventory.
C. Supplies - Paper products, soaps, trash bags, sponges and cleaning supplies are owner expenses.
D. Appliances - When appliances fail, fixing them can be costly especially if it occurs while it’s occupied. If possible, we recommend back-up appliances stored in the garage. Our remote destination causes delays with supply.
E. Trash - The home must be free of all trash prior to any arrival resulting in trash collection fees.
F. Damages - There may be situations in which a guest or a tenant may not agree to damages or dispute the charges. In the event that Hawaii Life does not win the dispute, the owner is liable for the damage costs.
G. Carpet Cleaning/Deep cleaning
H. Painting
I. Window Cleaning - Quarterly or as needed. Beachfront homes require cleaning more often.
J. Powerwashing
K. Gutter cleaning
L. Palm tree trimming - Every six months
M. Smoke Detectors - Set on a quarterly schedule
N. Pool and Hot Tub Upkeep
O. Pest control - Quarterly
P. Fines and Fees - Some neighborhoods may assess fees. In the event, the association does not notify us of a fee before the guest's deposit is returned, the fee becomes the responsibility of the homeowner.
Q. Kitchen Appliances, garage door openers, water heaters, roof repair or replacement, interior paint and flooring replacement.
R. Pool maintenance and equipment replacement.
Real Estate is a superb investment and each month the income from an investment pays down debt service while the asset generally increases in value! We take your trust in us seriously and want to provide the best advice possible for a long and prosperous future. The maintenance and care of your asset will help increase its value.