Vacation Rental Management

HAWAIIAN ISLE REAL ESTATE
Vacation Rental Management

Our goal and object is to provide the best possible experience for you as an owner by caring for your property as if it were our own.
Our other goal is to provide an experience for our tenant that is one we would ourselves want to have.
Hopefully this synergistic relationship we are creating will benefit all of us in an area that is known for contentious and conflicting goals.

We are looking for a few well cared for and maintained properties for our vacation rental management division.  Should you have a property that you are considering placing in a vacation rental pool, please contact us to discuss your property!

Property Condition:

  • All annual maintenance must be done on mechanical equipment, air conditioning, solar panels, hot water heaters, plumbing, etc.  If it has not been done recently it will need to be completed prior to taking the property in our inventory. These items will then be set up to check on an annual basis to keep them in the best condition.
  • Maintenance of the property will be by our vetted vendors unless you have a long standing relationship with yours. We want to know who is working on our properties for your financial safety, your property’s well being, as well as the guest’s physical safety and security.
  • Units should be professionally cleaned and rent ready upon entering the rental pool unless a previous arrangement (i.e. project management for renovations) between the owner and managing agent has been agreed upon.
  • As an owner you will be responsible for all paying and maintaining utilities as it is not a guest expense.
  • If your rental property has an AC system, our office will give guests an option to use the AC for a daily fee (fee to be determined by the managing agent and will be paid to the owner less the 22% management fee). It is recommended that all central AC systems get a clear lockable box (which can only be opened by a key) and that all wall AC systems get a cord and plug lock (again, only can be opened by a key). In the event, that the lockable boxes get damaged by a guest trying to break it open, they will be charged an additional fee plus the daily AC rate for the duration of their stay.

Management Fees:

  • Our professional fee is 22% on every reservation for North Kona properties. In the event that your property is vacant more than 14 days, a $50/bi-weekly fee will be charged as we require that the property is inspected (checking the appliances, flushing the toilets, checking for water leaks, etc) at minimum twice a month when unoccupied.
  • Should you have a South Kohala property, please call for pricing.

Owner’s Reserves:

  • We will require a minimum $750 owner’s reserve from you to cover any ancillary expenses for repairs that might occur during the duration of this agreement.  It is refundable if not used and if used, will need to be replenished from time to time (if you have a renter in place it will be reimbursed from rent revenues collected). You may think that it is a large amount but the reality is, by the time an appliance goes out, a new one is purchased, the old one is disposed of, the new one is installed; the reserve can easily be depleted.

Inventory:

  • If your property is furnished we will create both a written and photo inventory of all large pieces, however, the kitchen will be only a generic list of major appliances and general utensils.  This is a tough area to police and we can’t focus on these smaller items so if there is something there you really can’t do without, please remove it now. There is a one time $75 fee to create the inventory for you.

Advertising:

  • We require a $1000 annual advertising fee. This fee includes placing your unit on  VRBO (a highly visible website for vacation rentals), our website, obtaining a virtual tour, and miscellaneous print ads. The VRBO level will be at the Bronze Level unless determined otherwise by the managing agent. We have found with past experience that this level is sufficient as people often email everyone on the list no matter what level is selected.
  • We will also have professional photos taken of the property (at the owner’s expense; approximately $200 and up depending on square footage) so that we can market it efficiently in order to obtain the highest caliber of guest possible. We will also assist with staging (may be an additional expense) to gain the maximum benefit from these.

Reservations:

  • All inquiries will be answered within 24 hours (both emails and calls). Depending on where they live (different time zones), calls may have to wait until the following day.
  • If a prospect emails or calls in, we may place a 24 hour courtesy hold on the property however they will need to provide their deposit within the 24 hours in order to confirm the booking.
  • Reservations will require a deposit of 50% to confirm the booking. Final payment will be collected 60 days prior to arrival.
  • Owners will be emailed about new bookings once we have collected the initial payment from the guest.
  • As an owner, you are entitled to utilize your property when you’d like however if the property is already booked with a reservation, the reservation will take precedence.
  • Owners who allow free guests stays to friends and family will be charged a minimum $50 owner guest fee and a departure cleaning fee.
  • A non-refundable reservation fee will apply to each booking and will be paid to HIRE to help offset credit card fees. This fee is charged regardless if a credit card it used of not.  The fees are tentative and may be changed if necessary by the managing agent.

$50 fee for bookings up to $1 – $2999

$100 fee for bookings between $3000 – $4999

$150 fee for bookings $5000 and over

Guest Payments:

  • Guest payments can be made by credit card, personal check, cashier’s check or money order. Our office does not collect cash for payment. We will encourage guests to pay by check since in the event that they cancel or dispute a charge with a credit card; it is immediately removed from our account, with a check, that is not the case. This is actually better protection for our owners.

Security Deposits:

  • Our office will collect either a security deposit or damage waiver from all guests to help offset any costs due to guest’s negligence.
  • Security deposits will be refunded within 14 calendar days from departure via check only.

Travelers Insurance:

  • Travelers insurance is an optional expense for the guest and though it is preferred, it is not required.

Charges:

  • Guests whom need an early or late check out will be encouraged to book an extra night. Should they not, we will try to accommodate their requests if it does not interfere with another booking. A $50 fee may apply (payable to HIRE) and will be determined by the managing agent.
  • In the event that a guest changes their reservations, our office reserves the right to charge them a fee for this service.
  • There is a daily service fee for AC access. This fee will be determined by the managing agent.

Cancellations / Refunds:

  • Cancellations made 60 days prior to arrival will be refunded less a $100 cancellation fee and any other non-refundable fees (reservation fee, damage waiver, travelers insurance, etc). HIRE reserves the right to keep the fees collected to cover work provided during the reservation process.
  • Cancellations made within 60 days of arrival will be considered a forfeit of funds unless deemed otherwise by the managing agent (serious illness, natural disasters, etc). It will be recommended that the guests obtain traveler’s insurance for such events. Should the property be rebooked HIRE will refund the guest 100% of funds collected less any applicable fees. Should the property not get rebooked, HIRE will retain the agreed upon 22% and the remaining portion will be paid out to the owner.
  • All refunds will be mailed out by company check.

Cleaning:

  • We want to keep your property in the best condition possible. To do so, deep cleanings will be required twice a year (April and October). Deep cleanings will include cleaning all cupboards, cleaning out light fixtures, moving furniture to clean behind and under them, pulling out the refrigerator to clean behind and under it, etc. The cost will be approximately twice the regular cleaning fee.
  • Pre-Cleans will need to be ordered whenever a house or condo stays vacant for more than 7 – 10 days as it can get dusty, etc. This will be determined by the managing agent. Pre-cleans are at the owner’s expense.
  • Guests to pay for departure cleans (included in the reservation costs).
  • Guests that have WD in the unit, should start any towels and wash rags before they depart, then the cleaner can come in and finish it up (this gives the cleaner a head start and then they would only have to strip the beds and wash the linens (which is very helpful during back to back bookings).
  • Units without a WD inside, may need a higher cleaning fee to cover the cost of the cleaner doing estimated coin laundry. This will be determined between the managing agent and the cleaner assigned to the unit.
  • All owner stays are free, however, a departure cleaning fee will be charged upon check out (unless waived by the managing agent).
  • Cleaning schedules will be sent out weekly to all cleaners to ensure that they have current and up to date booking information.

Inspections:

  • Prior to the guest check in, our agent will do an inspection to ensure that there are no existing damages to the condo and that it is clean and rent ready. The agent will then check the property again after the guest departs to ensure that there was not any damage done during the guest’s stay. A final check will be performed after the cleaner has finished at the property.

House Rules:

  • Owners are to provide a copy of current House Rules and CC&Rs provided by their complex and association management.

Statements / Owner Payments:

  • Statements and revenue payments will be generated monthly. Though we do not have a set date that they must be out, we do our best to have them processed by the 10th of the month.
  • Reservations will be paid out the following month of guest occupancy. If an owner has a guest that comes in June, the owner will be paid in July. If an owner has a guest that comes between months (example June 28 – July 12), the owner will be paid the following month (August). The reason for this is that we need to ensure that there aren’t any issues that arise with the guest’s stay.

Tax Filings:

  • Our office can file your GE & TAT taxes on your behalf. It must be checked on the management agreement that you are signing up for that service. The fee for this service is $75/annually. We file the taxes semi-annually. The first semi-annual filing will be done in July and then the second semi-annual and year end filing will be done in January.

Misc:

  • We carry a $2 million Errors and Omission policy for our office that also covers our property management division.  Many offices do not.