When reading a Real Estate Listing Synopsis, there are verbiages regarding short term & long term rentals. Are there differences between the two?
Maui has divergent types of condominium projects. There are vacation rental properties & residential complexes. When looking deeper, there are similarities and great variances between them.
Typically, on the ocean front, these are vacation rental properties. The condominiums allow nightly and weekly rentals. Most, if not all, have resorts like amenities including; pool, tennis courts, concierge, and a front desk. In addition, they allow short term rentals, which are lodging under 180 days or 6 months. Almost all vacation rental friendly condos require a minimum of 30% down when purchasing, due to it being an investment property. The amenities & luxuries attributes to higher maintenance fees and expenses being on the water.
When looking across the street from the beach, you will see residential condos. With a smaller scale of accommodations & comforts, residential condos are in condensed setting. These properties have a minimum of 6 months or 180 day rental. There are no nightly or weekly renting permitted. These projects are often as low as 10% down to Finance and have reduced or curtailed monthly association dues.
If you are considering purchasing in the area, it is best to review the, M-1 of the Purchase Contract, Association Docs. These PDFs will clarify Minutes, Financials, By-Laws, and House Rules. It will specify whether the property allows short term or long term rentals.
In need of a real estate professional? Contact Kimberly Gurgone, your favorite Maui real estate pro will analyze and resolve any objections while proceeding through the process.