Hawaii is a highly sought after destination for short-term rental investments, attracting tourists with its stunning beaches, luxurious resorts, vibrant cultural and arts scene, and scenic vineyards. This guide lists the best Airbnb property management companies in Hawaii by city.
Top Hawaii Airbnb Management Companies
The best Airbnb management companies in Hawaii include:
- Awning: Best Overall Short-term Rental Management Company
- RedAwning: Best Half-Service Airbnb Management Solution
- KoKo: Best Luxury Short-term Rental Management Company
- Kona Coast: Best For Kona Properties
- Maui Paradise: Best for Maui Properties
Top Hawaii Airbnb Management Companies by City
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How We Researched the Top Hawaii Airbnb Management Companies
The criteria we used to select and rank the top Airbnb management companies in Hawaii include:
- Services: We looked at whether a company is a half-service or full-service provider and whether it covers all expected services within each category.
- Pricing: We considered whether an Airbnb property manager has a clear pricing structure covering all services. We also looked at what additional fees hosts will need to pay.
- Value for money: We evaluated whether the provided services and the expected fee offer the best value for money.
- Business model: We investigated whether a company uses the latest real estate technology while retaining human touch, which is crucial in property management.
- Reviews: We took into consideration whether companies have a strong online presence and whether reviews are positive or negative.
- Number of listings: We searched for the Airbnb management companies with the most active listings in the market.
To maximize your vacation rental investments in Hawaii , connect with an Awning property manager now.
How to Choose a Hawaii Airbnb Management Company
Finding the right Airbnb management company is crucial for the success of your rental business in Hawaii, where several cities enforce strict short-term rental regulations.
Consider the following factors when making your decision, similar to our ranking criteria for the top Hawaii Airbnb management companies:
- Services: Determine your level of involvement in the property management (half-service or full-service). Consider the services you need and expect from the Airbnb manager, such as property preparation and guest welcome.
- Pricing: Determine your budget for a passive investment experience or extra management help.
- Value for money: Compare services and fees offered by different property management companies, including monthly fees and additional charges.
- Business model: Decide if you prefer a local or nationwide property manager, and consider their honesty and transparency.
- Reviews: Read online reviews by both property owners and guests, and talk to local investors who have experience working with the companies you are considering.
- Number of listings in Hawaii: Choose a company with a strong presence in the Hawaii market, but not one that is overburdened or understaffed.
When interviewing potential Hawaii short-term rental property management companies, ask the following questions:
- Is the company local or nationwide?
- How long have they been managing short-term rentals?
- How many properties are currently under their management?
- What is the size of their local team?
- Do they have an in-house team or work with vendors?
- What is their track record for increasing revenue in the local market?
- Do they provide property preparation and assist with licensing and permits?
- Who handles the financials, such as collecting money from guests and remitting to owners?
- Do they offer cleaning, laundry, and restocking services?
- Do they handle property inspections, maintenance, and pool/hot tub management?
- What is their management fee and what does it cover? Are there any additional fees?
- Can you review a copy of the management agreement?
- How can you cancel their services and what happens to your property reviews?
Having the answers to these questions is essential in selecting the best Airbnb management company in Hawaii to meet your specific needs.
How Airbnb Management Works
There are two broad types of Airbnb property management companies: full-service and half-service.
Full-service property managers are those that take care of all the aspects of owning and running a short-term rental business. They help:
The best full-service Airbnb management companies help investors achieve passive income while boosting performance.
Half-service Airbnb property managers usually focus on listings, marketing, revenue management, guest communication and support, and taxes. Some of them offer to connect property owners with vetted local vendors for the services they do not cover.
Vacation rental property management companies can be national (covering most US markets) or local (focusing on a specific city). Both come with their own advantages and disadvantages.
Property management fees range widely in the US market: between 10% and 50% of revenue, with 20-25% of revenue being the average for full-service providers. Some companies charge different rates for different markets and different property types. Property managers frequently charge extra for services outside the core package, like interior design, furnishing, insurance, linen, etc.
The top vacation rental management companies have flexible terms and do not require long-term commitment on behalf of property owners. However, some expect quarterly or annual commitments.
Some Airbnb property managers focus on specific property types, like luxury rentals, group travel rentals, apartments, etc., while others work with most residential properties. Different companies have different eligibility requirements; for example, half-service property managers work with furnished short term rentals, while some full-service companies prefer to be directly involved in design and furnishing.
One thing property owners should keep in mind is that most Airbnb management companies list rentals under their brand name, so hosts lose the reviews and rankings once they leave. A noticeable exception is Awning, which allows properties to keep reviews.
How to Start an Airbnb in Hawaii
To launch an Airbnb venture in Hawaii, potential investors must:
- Identify the ideal Hawaii real estate location for investment (where Airbnb is permitted and yield is high)
- Locate a property with high growth potential
- Ensure the zoning allows for short-term rentals
- Employ a real estate agent to assist in property acquisition
- Undertake renovations (if necessary)
- Equip the rental with furnishings
- Determine the appropriate business structure
- File tax and employer identification papers
- Obtain a vacation rental condo or dwelling license from the Hawaii Department of Business & Professional Regulation (DBPR)
- Acquire the necessary local short-term rental licenses and permits by city (many cities in Hawaii require local licenses or permits)
- Determine whether to manage the property independently or through an Airbnb management company
- List the property and commence rentals
- Provide ongoing guest services, property maintenance and upkeep
The choice between self-managing the Hawaii vacation rental or using a property manager will impact whether rental income is passive or not.
Hawaii Airbnb Laws and Regulations
Hawaii has different laws and regulations regarding short-term vacation rentals in different counties, so it is important to pay attention to the specific location when renting.
For Hawaii County (also known as the Big Island), short-term vacation rentals (STVRs) are regulated by Ordinance 2018-114, or Bill 108, which was adopted in November 2018. This law defines where the use will be allowed, establishes provisions and standards to regulate this use, and provides an avenue for an existing STVR to comply with the new regulations.
In Honolulu, the Land Use Ordinance, as amended by Ordinance 22-7, regulates short-term rentals. The ordinance includes maps of the apartment-zoned areas where STRs are permitted. Anyone selling real property must provide the buyer with a short-term rental disclosure form stating whether the property may be legally used for STRs. The STR must be registered to be in compliance with law.
Oahu has recently passed a law that requires a minimum stay of 90 days (about 3 months) in short-term rental contracts. These are terms of accommodation negotiated on platforms such as Airbnb, among others.
In terms of taxes, if you rent out real property located in Hawaii to a transient person for less than 180 consecutive days (short-term rental), you are subject to the transient accommodations tax (TAT) in addition to the Hawaii income tax and GET (general excise tax).
Takeaway
Starting an Airbnb business in Hawaii is a great way to invest in real estate and make money. However, Hawaii's regulations regarding short-term rentals and the intense competition from other investors make it crucial to have an effective vacation rental property management strategy. The best way to achieve this is by hiring a professional Airbnb manager.