Income Predictability With Your Maui Vacation Rental Investment Continues to mainstream into a virtually untapped traveler market, which is discovering that the experience of large.
Maybe you’ve seen one of those glossy, expensive, warm-and-fuzzy TV commercials promoting the perfect VRBO and AirBnB vacation experience? Both platforms are spending tens of millions over the next five years, spearheading the ongoing movement to integrate individually-owned vacation rentals into Expedia’s global hotel inventory, and that’s great news for buyers of Wailea real estate and Kihei vacation rentals.
The Maui vacation rental industry continues to mainstream into a virtually untapped traveler market, which is discovering that the experience of large, uncrowded vacation accommodations with kitchens creates more memories than a cookie-cutter hotel experience. That has spiked interest in condos for sale in Wailea/Kihei, and owners are taking advantage of that trend with higher nightly rates and consequently a stronger ROI.
That was the motivator when Expedia, the world’s largest purveyor of vacation accommodations, bought VRBO a few years back. Many of us look back on that on that day as one that quietly rocked the vacation rental business model.
Immediately, Expedia set about to assure a guest expectation and booking experience that aligns with booking Hilton, Hyatt or any of their other luxury brands. They’ve selectively integrated VRBO inventory into their mix, opening the doors for those properties that have proven worthy, via reviews and management performance. Owners of Kihei/Wailea condos were prompted to step back and analyze their guest experience.
As a management company with more than 70 units in our portfolio, we viewed the move as an opportunity that dovetailed with our efforts toward more sophisticated rate structuring and income predictability and more consistency in the Maui vacation rental guest experience. Our units now combine for an aggregate occupancy rate of more than 80%, across all of our pricing thresholds, from $200 to $1800 per night. That takes into account both Kihei condos and Wailea investment property, which both perform well.
Maui is like a lot of extremely desirable destinations from an investor standpoint, with the added appeal of owner-use on and around the world’s most spectacular beaches. With the ongoing rollout of remote work, my Maui real estate investor clients aren’t waiting until retirement to purchase – they’re buying now, knowing that they’re able to use their properties for extended periods when the opportunity presents itself. That’s a driving factor in our vacation rental investment market.
Many of the Wailea condos sit alongside or in close vicinity to the luxury ocean front hotels that were once the go-to choice for family visitors.
Most owners of these Maui vacation rentals are relatively hands-off investors. Our business model caters to the property owner who not only wants absolute full-service, but also assurance that his Maui real estate investment is being properly maintained and aggressively marketed on a global scale. Vacation-Maui.net has earned over 2,000 5-Star reviews across our platforms, with a 4.8 average out of 5.
Vacation rental software has kept pace with Expedia’s elevating standards. We recently went through the painful but ultimately rewarding experience of integrating Streamline software, the most sophisticated in the industry. Guests see our Maui vacation rental condos on an array of booking platforms (including VRBO and AirBnB), make a reservation, and pay a deposit that immediately flows to our client trust account, triggering the booking process and an ongoing series of email communication.
Prior to arrival, our system automates directions from the airport and a unique door code for our guests. Our team does a visual inspection of every unit a few hours before check-in to make sure everything is perfect. The unit has been professionally cleaned either that day or the day before. The guest checks in, and we receive an email and a text letting us know. Into the stay, guest gets another email, making sure everything is great.
If we do hear from the guest with issues our response is purposeful and immediate. If it’s after hours, we have a 24 hour team that handles everything and assures issues are addressed. Upon checkout our cleaner starts the process all over again. We also act as an on-demand concierge, offering local knowledge on the best restaurants in Wailea and Kihei, best Maui golf courses, and Maui activities.
Around the 7th of the month, we post owner statements to our Owner’s Portal on our website, and also send an email. Owners see details on bookings, daily rates, line item expenses, and so on. On or around the 15th we deposit your funds directly into their bank accounts.
Kevin Spaise is an expert on Maui real estate, with a particular focus on Kihei/Wailea vacation rental condos. He’s the author of The Maui Condo Book, the ultimate reference guide on Maui condos.
