You Purchased an Investment Property on Maui! Now What?
4 Important Steps to Follow Immediately After You Close on Your Rental Property
1. Apply for a General Excise Tax License, Transient Accommodation Tax License, and Maui County Transient Accommodation Tax License
2. Maui County Transient Accommodation Tax (MCTAT) which is 3%. These payments are due concurrent with State TAT returns and payments. Once your property is registered with the State and you have a valid TAT number, you do not need to register separately for the MCTAT with the County of Maui.
2. Interview Property Management Companies
Vacation Rental Property Management Fees average around 25% of the rental income:
- Marketing and listing the vacation rental
- Managing reservations, payments, and security deposits
- Coordinating departure and deep cleaning services
- Maintenance and repairs
- Accounting services such as paying vendors and direct deposit of rent income
- Collecting Guest Reviews to build a book of business
- Transferring listings and guest reviews from a previous owner or property management company
- GET, TAT and MCTAT mentioned above are all paid upfront by the guests along with departure cleaning fees. This income is still collected by the property management company and disbursed to owners. *Pro Tip, ask your property management company if they offer to pay taxes for an additional fee.
Long Term Rental Property Management Fees average around 10% of the rental income:
- Listing and marketing the property
- Screening and securing qualified tenants
- Managing lease agreements and lease renewals
- Coordinating repairs and maintenance
- Accounting services to pay vendors (cleaners, carpet cleaners, window washers, cesspool pumping, etc.) and direct deposit of rental income to owner/payee account
3. Purchase Homeowners Liability Insurance
4. Pay for Professional Photos and a 3D Matterport Tour
2. Hire a Property Manager
3. Purchase a minimum of $500k comprehensive liability insurance coverage and add your property manager as a co-insured contact.
4. Pay for professional photos and a property video tour
Contact me for more information about purchasing an investment property on Maui, property management services, and to inquire about competitive rental rates for your investment property.