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RE: Vacation Rental Today, Retirement Home Later... - jerry - 01-06-2008
If you need the income to pay the mortgage I would think twice. Check out VRBO.com to see the competition. Look at their calenders to get an idea of occupancy rates.
On the plus side, it can be a great tax write off.
Jerry
Art and Orchids B&B
http://www.artandorchids.com
RE: Vacation Rental Today, Retirement Home Later... - jdirgo - 01-08-2008
It is true that it takes time for a vacation rental to get a "following". Since many vacation rentals are dependent on repeat visitors, it can take a year or more for a vacation rental to get steady visitors and therefore, steady income.
John Dirgo, R, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com
RE: Vacation Rental Today, Retirement Home Later... - JerryCarr - 01-08-2008
I may be wrong about this, but are there not licensing, inspection, and excise tax requirements for vacation rentals? Back when Bear and I were using them for visits, I seem to remember being charged tax. Like many things, such regulations may not be strictly enforced, but should be considered in the bigger picture.
Cheers,
Jerry
RE: Vacation Rental Today, Retirement Home Later... - Guest - 01-08-2008
quote:
Originally posted by JerryCarr
I may be wrong about this, but are there not licensing, inspection, and excise tax requirements for vacation rentals? Back when Bear and I were using them for visits, I seem to remember being charged tax. Like many things, such regulations may not be strictly enforced, but should be considered in the bigger picture.
Cheers,
Jerry
FYI -
Hawaii is one of 18 states that don't have home inspection regulations.
I was just reading this today.
-----------------
Coming home soon!
RE: Vacation Rental Today, Retirement Home Later... - JerryCarr - 01-08-2008
Thanks, Damon, that's an interesting article, but I was specifically referencing inspections relating to the health and safety factors of vacation rentals. And FWIW, I'm not completely sure we have those in Hawaii, either.
Cheers,
Jerry
RE: Vacation Rental Today, Retirement Home Later... - missydog1 - 01-08-2008
No Jenny, only B&B's are inspected by the health department before being licensed, specifically the kitchen because they serve food. They also require a use permit from the County.
On the Big Island, there are no vacation rental permits, but the State levies transient accommodations tax in addition to general excise tax on all rentals less than 30 days. (Long term rentals, just GE tax.)
In Hawai`i, anyone can go to the State office and get a GE and TAT (transient accommodations tax) license. You collect your tax from guests and pay the state. This does not in any way "license" your accommodations the way a use permit would do. You can be perfectly legal paying all your taxes and be totally in violation of the zoning. County and State don't yet communicate.
If neighbors complain about zoning violations, I presume you can be shut down, but the County is not going to take an interest otherwise.
So, to sum up, it is not a scam when they collect tax, but you can ask for the tax ID number if you don't trust them to pay the taxes. But neither does it mean anything more than they pulled a tax license. No one comes out and looks at the rentals; consumer beware, do your homework.
This is why word of mouth is important, people tell other people that the place really is good and the owners are not just posting pictures on the net that don't match the reality.
RE: Vacation Rental Today, Retirement Home Later... - John S. Rabi - 01-09-2008
Kathy, the TAT is supposed to be collected on all rentals less than 180 days. (Isn't that ridiculous?)
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,RB
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: Vacation Rental Today, Retirement Home Later... - missydog1 - 01-09-2008
oh, of course you're right, John. My bad. I guess they get taxes from that for people on short assignment at UHH, the observatories, the hospitals, etc..
RE: Vacation Rental Today, Retirement Home Later... - hpp4me - 01-09-2008
Thanks for all of your insights! It sounds like we should have bought in Kona (just kidding!).