Rents Keep Rising as Our Maui Market Changes
In a new article by MONEY.CNN.COM it talks about how renting use to be cheaper than buying a home in most areas of the country. It states that only 2 markets are bucking that trend right now. You guessed it, Hawaii and San Francisco.
However, here on Maui, we have seen our rental rates continue to rise and get much stronger along with demand. I have friends and clients almost daily ask me about places to rent. There just isn’t anything out there right now.
Because of this trend, and the fact that our home prices have not started to climb yet, there is a certain segment of our market that might be attractive to some investors – properties with more than one rental on them. I’m showing you one such property today.
Maui Property With Multiple Houses and Rental Income
This property (MLS# 351843) is listed at $479,000 in Kihei. This property boasts a 3 bedroom house, an attached studio apartment, and a detached studio cottage in the back for 3 total rentals totaling $3,400 per month in rental income. These are average rates for the Kihei area. The main house is renting for $1,800 and the 2 studios are renting for $800 each.
This is a very nice property with custom kitchen cabinets and tile floors. There is A/C in the 3 different rentals for your comfort. It is also located within walking distance to the Kukui Mall, theaters, shops, and restaurants.
Hawaii Regulations on Rentals
The rates are higher on the West Side of Maui because the demand is higher. Our Hawaii law states that if you own rentals here but do not live here, you must have an in-state property manager. Long term property managers charge an average of 10% of your gross and insure your tenants are paying on time, and that the property is in good working order. Of course, there are a number of property managers and some are better than others.
I have several other rental properties on the island. Email me for more information for those and for more pictures of this one.