Running a Successful AirBnB on Maui
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While some visitors to Maui still prefer to stay in a hotel, more and more visitors each year are looking for a more affordable and more intimate experience on their Maui vacation by looking for AirBnB’s in smaller short term rentable communities.
It’s no secret that Maui has a large variety of short term rentable communities, particularly in Kihei, Wailea, Ka’anapali and Kapalua, where owners utilize their units as investment properties and list for nightly rentals on AirBnb and VRBO.
In addition to being a second home for the owners, these units produce considerable rental income and allows owners to continue building equity and working toward their financial goals.
However, not all of these units provide a comparable return on investment and there are many things to consider ,not just in the purchase process, but also in the week to week operations of the unit. Making a great return on investment with these units requires attention to detail at every turn along the way.
Many owners choose to hire a professional property management company to run their operation while others choose to manage the unit themselves to save the 25% management fee that most property managers charge.
Being Proactive As An Owner
There are many things you can be doing pro-actively as an owner to ensure that you are giving yourself the best opportunities to succeed through creating a lasting experience for your guests.
After many years helping clients buy and sell a large variety of Airbnb properties around Maui here are the ten things I believe can set your unit apart from the competition and help you land solid bookings and those 5 star reviews that lead to more business in the future.
You will also want to be proactive with staying on top of the short-term rental rules on Maui and make sure that you are always in compliance to avoid any disruptions in business.
Purchase Your Maui AirBnb Wisely
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The first question to ask yourself when purchasing an Airbnb on Maui is how you personally plan to use the unit. Is this purely an investment or do you have an affinity for a particular complex/area that you see yourself enjoying with your family regularly throughout the year in the future?
In either event, during the search we will gather pro formas for predicted future rental income along with past rental data, calculate annual property tax costs, add HOA fees, if a mortgage is involved we will factor those costs, and get as clear a picture as possible of monthly carrying costs vs. expected income.
Proposed STR Ban in Apartment Districts on Maui
Right now, it’s extra important to consider the zoning of the unit, hotel vs. apartment, as the proposal to ban apartment zoned short term rentals has not been voted on. We are expected to know more about the direction of this unpopular proposal in the first quarter of 2025. Hotel zoned short term rentals on Maui are not affected and is believed that Wailea, Kapalua, and Ka'anapali may be exempted by their resort designations.
If the decision is purely for investment purposes, then crunching the numbers is critical for success as not all condo communities with units for sale on Maui can reliably cash flow.
Looks can be deceiving with how well a unit will do and contrary to what many initially believe, oceanfront units will not cash flow as well as non-oceanfront units. Many Maui visitors are looking for that big oceanview experience and book oceanfront condos, however, the list prices of these units carry premiums that non-oceanfront condos do not and they typically also carry higher HOA fees that quickly consume profit.
The average occupancy rate of oceanfront units isn’t reliably higher than non-oceanfront or ocean view units and the deals I’ve seen where owners are outperforming are in non-oceanfront/non-oceanview units, particularly in complexes like Maui Banyan where the 2bd units have lock offs allowing owners to rent them as 2 separate 1bd units.
Short Term Rental Condos For Sale on Maui
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Lifestyle vs. Pure Invesment
When buying for your lifestyle is a bigger factor than buying for investment purposes, you can still make a good investment in a condo on Maui, even if it doesn’t produce as much profit as others might. Happiness isn’t always measured by return on investment and being near a certain beach you love, having the community experience you desire, and feeling at home is very important when you’re planning to spend significant time at your unit.
Fortunately, Maui has a variety of complexes to choose from in this category and you’ll still be able to cover most of your costs through running a successful rental operation.
Finding and closing on the right unit for you is the first step, after taking ownership you’ll have several things to do immediately to get your Airbnb listing up (Airbnb doesnt allow the previous listing of the unit to stay after the sale, you’ll need to start a new one with 0 reviews.)
Creating Curb Appeal Online
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Aesthetics are critical when marketing a short term rental. Your unit needs to do more than look charming, it needs to sell an amazing vacation experience. Your potential clients are only able to compare your unit against others through the listing photos, reviews, price, and how well your description is written on the booking website.
Decorate the interior with a relaxing island style design scheme, update any older furniture, appliances, art, along with kitchen items and bedding. Outdoor living is essential for the ultimate Maui experience.
After you have created the updated aesthetic, make sure to hire a professional photographer to take the photos. I'm happy to provide referrals for this as well. This will have a significant impact to the marketability of your unit and signals to potential clients that you’re an owner who takes pride in their unit and in their guests’ experience.
Browse Condos For Sale Around Maui
Be an Exceptional Host
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As an Airbnb host, you should be communicative and accessible from booking through checkout and beyond. One of the reasons why travelers prefer to stay in an Airbnb is the personalized touches they will receive from their host. Provide a list of top restaurants and tour companies to contact for reservations before the guests arrive.
Consider making a special events calendar for your guests’ specific travel dates. Look for other fun ways to infuse your operation with the spirit of Maui.
Be OCD About Cleanliness
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Travelers want to feel like they are the first ones to stay in your Airbnb. They definitely don’t want to see signs of previous guests, such as crumbs on the kitchen counter or hair in the shower.
Even a single missed detail can result in a negative review, and bad reviews impact your ability to turn a healthy profit. Having a trusted and reliable cleaner is pivotal for self-managers who don’t live on Maui.
Set Expectations For Your Guests Gracefully
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Establishing house rules and check out tasks is essential for running an Airbnb, but you should set the expectations as gracefully as possible. After all, you want your guests to feel welcome and relaxed.
At the same time, you might not want guests to throw a big party, disrupt your neighbors or leave you with a big mess that you can't clean up before the next guests arrive. Make your list of do’s and don’ts short and sweet. Consider incorporating a touch of humor in the rules to keep the vibe light.
Adopt Eco-Friendly Practices
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One of the main attractions for Maui visitors is its natural beauty. In addition to focusing on kindness and compassion, the Aloha Spirit centers on living in harmony with nature.
Establish eco-friendly practices in your unit and let your guests know the steps that you are taking to protect the health and beauty of the natural environment. This includes such things as using eco-friendly cleaners as well as encouraging guests to use refillable water bottles and mineral sunscreen.
AirBnB Guidelines to Attain Super Host Status
- Host at least 10 reservations or 3 reservations of a total of a minimum 100 nights
- Have at least a 90% response rate
- Keep cancelations low with a less than 1% cancellation rate
- Have a review average of at least 4.8 stars
- Super Host status is evaluated by AirBnb every 3 months
Go Above and Beyond in Your Online Description
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As an Airbnb host, you’re doing more than selling a stay at your vacation unit. You’re selling an amazing Maui trip. This means that you need to sell all of the attributes about your unit that make it the ultimate vacation destination, such as impressive sunsets, tropical flowers in the garden and an amazing location.
In addition, you must sell the local attractions. Don’t just list popular spots nearby. Talk about what guests will experience at these attractions, such as the most popular meals at restaurants and activities at beaches.
Provide local resources in your listing description and follow-up communications. Give them your personal favorite recommendations and let them know they are staying with a Super Host!
The Best Things To Do on Maui By Area
Run Your Business Like a Business
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An Airbnb isn’t a set-it-and-forget-it business. The hospitality market is both seasonal and fluctuating. Stay on top of key data points like pricing and occupancy to remain competitive without leaving money on the table. There is a variety of software available, such as AirDNA, to help you set your nightly rates dynamically with the market and increase your occupancy rates at the same time.
Monitor your expenses, and continually look for opportunities to save while also delivering the best customer experience. In addition, keep up with tax changes to take advantage savings through great tax deductions.
Continue Making Improvements
Your Airbnb stands in competition with all other comparable vacation rentals. To optimize profits and maintain a high occupancy rate, your unit should have superior amenities and modern finishes and features.
Things like linens, furnishings and décor can wear out quickly in a heavily used Airbnb unit. Replace worn items immediately, and make upgrades and improvements so that your unit continues to be appealing.
Get Those 5 Star Reviews and Stay in Touch with Former Guests
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The fortune is in the follow up. The most successful Airbnb hosts stay in touch with guests throughout their stay to ensure they are happy and then after the stay as well.
After checkout, ask your guests to leave a review. Provide a special incentive, such as 10% off their next stay. Use Constant Contact to create a fun monthly newsletter highlighting the unit and things happening around Maui to stay in front of your guests year round. Ask guests to opt in to a monthly newsletter to learn about the latest newest and special events on the island.
Address all of your clients questions quickly and professionally to ensure those 5 star reviews, they are as much about the host as they are about the unit!
Getting Started with Owning an Airbnb on Maui
Running an Airbnb on Maui can be lucrative with effort and the right strategy. In addition, helping others enjoy all that Maui offers and introducing them to the local way of life is infinitely rewarding.
I would be more than happy to help you find the perfect unit for you and help guide you along the way to being a super host. Please give me a call at 808-214-4799 with any questions!
Evan Harlow ranks among the best real estate agents on Maui annually and is in the top 1% of Coldwell Banker agents worldwide in production. Evan has the expertise,
experience, and work ethic to help you achieve your real estate buying and selling goals. We promise
exceptional service and support from the beginning of the process through closing and beyond. See what Evan's clients are saying on Google. Get In Touch With Evan!
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Posted by Evan Harlow R(S) on
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