Things to Consider When Purchasing Investment Property Far From Home
Things to Consider Before Becoming an Out-of-Town Landlord in Maui
Maui has long been a beautiful vacation destination for millions of people. It is a lucrative place to own a short-term vacation rental investment property. Because of this, real estate investors living in other states consider the purchase of an investment property on Maui. Maui definitely provides the opportunity to keep a vacation rental booked throughout the year. But before you start shopping for Maui investment properties it is good to consider what it might look like to be a landlord from far away.
You Will Need the Help of a Local Agent
Even if you have visited Maui several times before, it is still best to talk over your investment property plans with an agent local to Maui. They can help you to determine the best areas to purchase properties with a short-term rental mindset. They can also help you to find properties that are within the short-term rental zoning areas of Maui.
Talking with a local Maui agent is important in finding properties that are ideal for the investment plans you have. Knowing the market well is crucial to purchasing investment properties where you live, and especially important to purchasing them far away.
You Will Need to Find a Management Company
All rental properties need management of some kind but short-term vacation properties need just a bit more attention. One of the rules to owning investment short-term vacation rentals on Maui is that there must be a local management company in place to take care of any issues that need in-person attention. This is a good rule to know when considering the purchase of an investment property for short-term vacation purposes. You want to make sure that you factor the costs of having a property manager into your business plan.
Finding the right team of helpers
Short-term vacation rentals on Maui are going to require consistent cleaning between guests, and a team of contractors or handymen as well as landscapers if you purchase a property where the owner is responsible for the upkeep of the land around the house. In some cases, this can be handled by a property manager but it is a decision that you want to make as to whether you want to invest a little bit more in property management to have them oversee these extra duties.
There are tax credits that help landlords owning rental properties outside of the state where they reside avoid being taxed twice on rental income. It is good to note in addition to this however that property investors are required to file non-resident state income tax returns for the state where the rental property is located. Having a talk with a financial advisor or tax advisor in your area and the area you plan to purchase an investment property is a good call.
You want to make sure that you are well aware of all of your tax responsibilities with a possible purchase of investment property on Maui. This of course will need to be factored into the cost of business and should be accounted for to get a more realistic idea of profit from your investment.
Making sure you know all of the landlord laws
There are some basics to landlord laws on a federal level. There are also additional requirements of landlords for each state and even on a local municipality level. Most local landlord laws are guaranteed to be the most detailed and hold the most requirements. You want to make sure you know all of your legal responsibilities for owning a short-term vacation rental and that you are up to the responsibilities.
If you are searching for great investment property opportunities on Maui please contact us anytime. We are local real estate experts that make it our job to know your needs and wants and help you find a property on Maui that best matches your goals.