Most everyone dreams of owning a home in paradise. Not only does it provide a lovely second home for a blissful vacation but it can also bring in a steady income through rentals.
The ins and outs of property management can be complicated and difficult to handle on your own. Here are 5 things you need to know about Hawaii property management.
1. Property Management in Hawaii
So, you've found the perfect Hawaii property for sale and decide to rent it out. Simple? Not quite.
For Hawaiian properties, you will need a real estate broker's license and have a working knowledge of the real estate laws in Hawaii. The law also requires that you reside on the same island as your property in order to act as the property manager. For these reasons, many choose to hire a company to manage their property.
2. Pricing the Home
Before you begin to list and market your Hawaii rental property, you will need to assess the home for any repairs or upgrades that need to be done. Having a home in tip-top shape draws in quality tenants.
Once your home is ready to rent, you can calculate the rent based on the current market, taking into account the Hawaii property tax rate. Even though you want to maximize profit, pricing too high could leave you without tenants. Be flexible!
3. Tenant Screening
One of the most important things you can do to protect your investment is to thoroughly screen prospective tenants. Processing a rental application includes conducting credit checks, background checks, and verifying tenant income. You'll want to make sure your tenants are able to pay their rent and will be respectful of your property.
4. Rent Collection
Your lease agreement should state clearly when rents are due and the penalties for late payments. A property manager will collect the rent and communicate with the tenants if the rent is late.
In the case of continued late payments, you may choose to evict your tenant. Many homeowners prefer the services of a property management company when handling stickier situations. They can also handle issues like the Hawaii real property tax.
5. Property Maintenance
Though someone else is living in your home, it is still your responsibility to make any necessary repairs to the home or replace broken appliances. You will need to coordinate with the tenant for these maintenance requests, schedule the repairs, and arrange for the workers to access the home. If it's determined that the repairs are due to tenant abuse and neglect, you will need to decide who will be paying for the repair.
A property manager will also need to conduct regular maintenance inspections to make sure any issues are resolved before they become larger and more expensive to fix.
Hawaii Property Management
Managing a property in Hawaii can be complicated and requires attention to detail. If you don't live on the same island as your property or would rather leave the whole process to the professionals, a Hawaii property management company can do all the work for you. The Homeriver Group Kona can take care of it all, so contact us today!