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Vacation Rentals for dummies - PaulW - 02-25-2009
We're thinking of geting into the vacation rental business.
Yes, I know, economic downturn, but this is a long-range plan.
I saw the post by twinfallspuddle on another thread.
What I'd like to know, first of all, is what are the unavoidable costs? I intend to advertise on vrbo.com, where the rate is from $249 per year.
I'm not sure about getting an agent. But apart from that, is there anything else, some sort of state licence?
Thanks for any help
RE: Vacation Rentals for dummies - Rob Tucker - 02-25-2009
There is, I believe, a rather hefty bed tax that you will be responsible to collect. Perhaps Excise tax too.
I'm not in the B&B business but have known some who are.
RE: Vacation Rentals for dummies - John S. Rabi - 02-25-2009
If you don't live on-island than you have to have a property manager, that's the law. You need to register your vacation rental business with the state and get a tax ID number. (It could be under your name or a business name, you can do it on-line at http://businessregistrations.com) You have to collect 4.1666% General Excise Tax and 7.25% Transient Accommodation Tax on all rentals. You have to file with the state monthly/quarterly/bi-yearly/yearly, depending on your rental income. Make sure you set up a credit card account, most people are not willing to just send a check for a rental. I have lots of clients with vacation rental properties, most have a rental agent and advertise by themselves too. If you have questions feel free to e-mail me.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: Vacation Rentals for dummies - EightFingers - 02-26-2009
Coming at this from the other side: We're going to be on island in March and using a VRBO. I'll lete everyone know about our experience from the renter's side!
+1 on taking credit cards - I won't prepay ANYTHING unless it's on a credit card.
RE: Vacation Rentals for dummies - Hotzcatz - 02-27-2009
Aren't there restrictions on which areas & which houses can be vacation rentals? Isn't there a requirement for getting the neighbors to approve the application, too?
Kurt Wilson
RE: Vacation Rentals for dummies - Laughing_girl - 02-27-2009
I manage one property here for a person who lives in Alaska, and she is finding that with being legal (all the taxes, ins, etc), her costs require $100/night at 100 rental nights a year rentals to break even. 100 days was used as a basis because that was the rental nights for last year and since it was her first full year, she is using the actual for 08 to project 09. If she gets more than 100 this year and they are consistently longer than her 3 night minimum, the per night costs will go down.
At this time, she is considering her options for vacation rentals or long term rentals and the drawbacks to both.
You do need a property manager and if that person has 2 or more properties to manage, it must be a licensed RE property manager. (John can tell you lic RE or broker or ?)
RE: Vacation Rentals for dummies - John S. Rabi - 02-27-2009
quote:It has to be a property management contract with the licensed real estate company the agent works for and supervised by its Principal Broker. A real estate agent can't manage properties just by himself.
Originally posted by Laughing_girl
You do need a property manager and if that person has 2 or more properties to manage, it must be a licensed RE property manager. (John can tell you lic RE or broker or ?)
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
RE: Vacation Rentals for dummies - Seeb - 02-27-2009
a lot of them out dont have a bit of paperwork, some aren't even permitted houses
RE: Vacation Rentals for dummies - Fishboy - 02-27-2009
quote:We've used VRBO a couple of times and have had good experiences in all except one. I'm critical that VRBO doesn't have a "Comment" capability for people to either post their good and bad experiences, or recommendations to improve the facility. Wouldn't take much to allow that, and it would have allowed me to rant about the one bad experience.
Originally posted by EightFingers
Coming at this from the other side: We're going to be on island in March and using a VRBO. I'll let everyone know about our experience from the renter's side!
Aloha pumehana,
Brian and Mary
Lynnwood, WA\Discovery Harbour
RE: Vacation Rentals for dummies - Laughing_girl - 02-27-2009
quote:
Originally posted by Fishboy...I'm critical that VRBO doesn't have a "Comment" capability for people to either post their good and bad experiences, or recommendations to improve the facility. Wouldn't take much to allow that, and it would have allowed me to rant about the one bad experience.
Aloha pumehana,
Brian and Mary
Lynnwood, WA\Discovery Harbour
There is a comments section in VRBO. Here's an example: http://www.homeawayconnect.com/guestbook.cfm?cid=5&pid=150394 Check out 1/30 and 2/17/08 - the guests posted something that was negative and the owner had a chance to respond. Did you try posting a comment on the one you disliked (or the others you liked?) - I believe though that the owner is able to delete a comment but it does show up as a negative without the info.