If you’ve been thinking about getting your home or condo into the vacation rental marketplace, then there’s no time like the present—with well over six million visitors coming to Hawai’i in 2021 (and more on the way as the pandemic’s impact hopefully recedes), short-term rentals are a great way to turn your Hawaii investment property into a true investment to accommodate all the travelers looking to spend their vacation here in the Aloha State.
Hiring a property manager can bring significant value, including typical fees for their services, which can save you time and ensure your property is well-maintained.
That’s where we come in: Midway Vacations is Hawai’i’s #1 destination for discerning property owners to make their homes available in the destination vacation rental marketplace—but how much will it cost a property owner to start making income on their home or condo?
We’ll see that further in this article and learn about how much does a property rental company charge!
How are Properties Priced?
To determine your home’s market value, your agent will conduct a thorough analysis of recent comparable sales activity. This process, known as a Comparative Market Analysis (CMA), involves a detailed evaluation of several key factors.
First, your property manager will compare your home to other similar properties that have recently sold in your area, providing a baseline for current market trends and pricing. This comparison helps to establish a realistic value based on what buyers have been willing to pay for comparable homes.
Next, they will look at properties that are currently listed on the market. By analyzing these active listings, your agent can assess the competition and understand how your home fits within the current market landscape. This step is crucial for setting a competitive yet attractive listing price.
Lastly, your agent will consider any unique features or extraordinary improvements your home may have. Adjustments will be made for enhancements that add value, such as modern upgrades, high-end finishes, or exceptional amenities. These factors can significantly impact your home’s market value and will be carefully evaluated to ensure an accurate and comprehensive assessment.
By considering these three factors—recent sales, current listings, and unique home improvements—your agent will be able to provide a precise market value for your home, helping you make informed decisions in the selling process.
How Much Do We (Midway) Charge in Property Management Fees?
To begin with, every one of our managed properties is assessed a Linen Start-Up fee, which provides your home with all the towels, bedsheets, and other linens it requires, and also includes things like mattress pads and blankets. The start-up fee will vary depending on the size of your unit:
- Studios: $250
- 1-bedrooms: $300
- 2-bedrooms: $350
From there, Midway will have your home professionally photographed for maximum exposure and a high-quality presentation across the web, which will cost between $150 and $300, depending on the total size of your unit.
Finally, Midway makes sure to provide a thorough, deep cleaning of the entire unit at least 1-2 times per year (and may also request that your property be deep cleaned before your first guests arrive):
- Studios: $250
- 1-bedrooms: $300
- 2-bedrooms: $375
Some different property management companies may charge various property management fees, including a lease renewal fee when a tenant wants to renew their lease. Additionally, property management companies may also charge an early termination fee if the contract is ended prematurely. Another common charge is the tenant placement fee for securing new tenants.
Property managers charge different types of fees, such as tenant placement fees, early termination fees, and routine inspection fees.
All in all, property owners are thus looking at anywhere from $650 to $1,025 to list their home with Midway Vacations. Midway is proud to offer rates that are highly competitive within the short-term rental field while also delivering the very best in high-quality service and presentation to all our owners in Hawai’i.
The best of all the rest
From there, Midway collects an 18% property management fee of the gross rent from the total revenue, leaving you with the lion’s share of the profits and the kind of first-class management services that will have your property making you money in no time.
The monthly management fee is typically a percentage of the monthly rent and can vary among property management companies.
Midway Vacations utilizes in-depth market research and sophisticated pricing models to maximize your rental income, giving you top-tier placement with the best booking platforms on the web.
Our dedicated team of professionals keeps your unit sparkling clean and up to date for all your guests, offering you peace of mind as your visitors enjoy an unparalleled experience in the Hawaiian Islands.
There are never any restrictions on how often you get to use your own property, and our responsive, dedicated team of customer service professionals is standing at the ready to attend to each one of your traveler’s queries, day and night.
Midway Vacations provides various property management services, including tenant placement, lease renewal, and maintenance.
Property management firm may have different fee structures, such as percentage-based or fixed fees. Understanding the property management contract, including any additional fees and charges that may apply, is crucial.
FAQs
What are the costs associated with listing my property with Midway Vacations?
When you list your property with Midway Vacations, the costs generally include a management fee ranging from 8% to 12% of the monthly rent collected. There may also be additional fees for services like marketing, tenant screening, and maintenance costs.
Are there any additional fees for marketing my property, such as a tenant placement fee?
Marketing costs are typically included in the management fee. However, any special marketing campaigns or premium advertising options might incur additional charges.
Are there any hidden fees I should be aware of, such as an early termination fee?
Midway Vacations aims for transparency in their fee structure. All potential fees and charges will be clearly outlined in your property management agreement, so you know exactly what to expect.
How do I get started with listing my property with a property management company?
To get started, simply contact Midway Vacations to schedule a consultation. They will walk you through the process, answer any additional questions, and help you prepare your property for listing.
Get Your Properties Listed ASAP!
Simply stated, Midway has you—and your guests—covered every step of the way. Property managers handle routine inspections, maintenance, and tenant issues, and they charge various property management fees for their services, including the standard property management fees and additional expenses.
The responsibilities of a property management firms include supervising the daily operations of rental properties and ensuring tenant satisfaction. When you hire a property manager, you bring significant value to property owners.
PS: And if you’re not yet a member of our ‘ohana but wish to turn your home into a true investment, then click here to sign up for our free rental evaluation by our property management team, and let’s get going on growing your bottom line today!
