3 ways to find the average nightly rate?

1. If the unit is already being used as a vacation rental, request the actual figures from the list agent or rental manager. 

2. Find the online booking website and see if you can find the average nightly rate. (See below)

3. Request a rental proforma from a 3rd party vendor that is not in the best interest of the current owner (see sample below)

Proforma Example

VRBO

Occupancy Rate
Tourism in Maui fluctuates seasonally, with occupancy rates typically averaging around 85% in normal years. However, unforeseen events, such as the 2023 wildfires, can lead to significantly lower occupancy. Resorts in Kapalua may experience lower average occupancy rates, while properties like The Whaler in Kaanapali often maintain consistently higher rates. Numerous online resources and rental management companies provide valuable insights into occupancy trends.Short-Term Rental Management Fees
Management fees for short-term rentals vary by company, typically ranging from 20% to 30% of gross income. Full-service management companies handle bookings, check-ins, cleaning schedules, emergency calls, installation of smart door locks, decorating, and sourcing inventory such as linens and glassware. Consult your real estate agent for trusted referrals to reputable management companies.What Is Commonly Included in Condo Maintenance Fees?

• Water

• Master insurance policy

• Exterior maintenance

• Amenities (e.g., pool, grounds, common areas)

• Cable and internet

• Electricity (occasionally included in some maintenance fees)

What Is Typically Not Included in Condo Maintenance Fees?

• HO6 unit insurance policy

• Electricity (unless specified)

Common Types of Loans for Vacation Rental Condos

1. Investment Loan (Short-Term or Long-Term Rental Property)

   • Lenders typically require a minimum down payment of 25% or more.

   • Properties with litigation, condotels with front desks, buildings with timeshares, or units without stoves may require larger down payments.

2. Second Home Loan (Condo for Personal Use)

   • Typically requires a minimum down payment of 20%.

   • Lenders often require borrowers to sign documents stating the property will not be rented out.

   • Interest rates are generally slightly lower than investment loans.

   • Condos with HOAs or AOAOs may have slightly higher rates compared to single-family homes.

3. Home Equity Line of Credit (HELOC)

   • If you have equity in a primary residence, a HELOC can provide funds for a second home loan at a better rate with lower closing costs than a new loan.

   • It may help cover the 25% or higher down payment required for an investment property.

4. Cash-Out Refinance

   • When interest rates are low, this option allows you to leverage your buying power, access funds, and compete with other investors.

Vacation rental check list:

• Would you like to stay in this unit while visiting Maui? Will it accommodate your family/guests?

• Is this unit currently being used as a vacation rental? Can you find the

• booking website? Can you read existing reviews that maybe helpful? Can you see how booked the calendar is? What are the current sellers’ nightly rates?

• Is the unit being sold furnished?

• Can you advertise an ocean view, garden view, or a parking lot view?

• Is there any road noise? Nearby trash chutes or dumpsters?

• Will the golf course landscapers wake up your guests early?

• Is the complex oceanfront, across the street, or a few blocks from the beach?

• Does the complex have a spa + pool? How big? How is the view at the pavilion?

• Is the unit at garden level or a higher floor? Views tend to be better the

• higher you go but garden levels are convenient.

• If the unit is located on the 3rd level or higher, make sure there is an elevator!

• Are you looking for a small boutique complex that is low density with off-site rental management or are you looking for a resort style unit with full inhouse rental management, front hotel desk, and high-density number of units?

• Does the unit get good natural light through all times of the year?

• Is there storage for beach items?

• Can you section off a personal owner’s closet for cleaning supplies and your personal linens?

• What are the nearby beaches like? Are they considered good swimming beaches vs rocky or windy beaches?

• How is the location on the unit within the complex?

• Check the site plan. Figure out the name of the complex. Google the name + site plan. For example, google “pacific shores site plan. Now you can see where the unit is placed within the complex.

• Are you looking for a small boutique complex that is low density with off-site rental management or are you looking for a resort style unit with full inhouse rental management, front hotel desk, and high-density number of units?

• Are the restaurants nearby?

• Can you advertise A/C vs ocean breeze?

• What are the maintenance fees?

  Does the seller expect you to honor the future bookings? What are the rates were booked by the current owner?

• What is the transfer process like?

• Does the unit get good natural light through all times of the year?

• Is there storage for beach items?

• Can you section off a personal owner’s closet for cleaning supplies and your personal linens?

• What are the nearby beaches like? Are they considered good swimming beaches vs rocky or windy beaches?

• How is the location on the unit within the complex?

• Check the site plan. Figure out the name of the complex. Google the name + site plan. For example, google “pacific shores site plan. Now you can see where the unit is placed within the complex.

• Are the restaurants nearby?

• Can you advertise A/C vs ocean breeze?

• What are the maintenance fees?

  Does the seller expect you to honor the future bookings? What are the rates were booked by the current owner?

• What is the transfer process like?