What is a Hawaii Long-Term Rental & Is it a Good Investment for You?

Are you looking for an opportunity to generate some passive income? Well, investing in a long-term rental in Hawaii may be worth considering. But what exactly is a long-term rental, and is it a wise real estate investment for everyone?

Long-term rentals are properties that are leased out to tenants for an extended time. They are different from Hawaii vacation rentals or other types of short-term rental properties that are typically rented for a couple of weeks or even days.

What is a Long-Term Rental?

A long-term real estate rental property is rented out for six months or more. The types of properties that can be rented out as long-term rentals include single-family homes, apartments, duplexes, and townhomes. As a landlord, you can benefit from a consistent stream of rental income, which can help offset mortgage and other costs associated with property ownership.

For reference, see our current list of long-term rentals in Oahu, Big Island of Hawaii, and Maui & Kauai.

Benefits of a Hawaii Long-Term Rental

There are several benefits to investing in long-term real estate rental properties that make them an attractive option for investors. Here are some of the main benefits:

Steady Source of Income

One of the primary benefits of long-term rental property in Hawaii is that they offer a steady source of income for landlords. Unlike short-term rentals that may see fluctuations in occupancy rates or demand, long-term rentals offer reliable, consistent rental income.

Tax Deductions

Long-term rental properties also offer the benefit of tax deductions on mortgage payments, property maintenance costs, and property taxes, among others.

Property Appreciation

Long-term homes or condos for rent in Hawaii can appreciate significantly over time, which means that the property itself can be worth more at the time of a possible sale.

Stable Tenants

Long-term tenants are typically more stable than short-term tenants, which can mean fewer turnovers and less time spent on finding new tenants. This stability can lead to more consistent rental income and less stress for landlords.

Fewer Management Responsibilities

Another advantage of long-term house and condo rentals is that they require fewer management responsibilities than short-term rentals. Since long-term tenants typically sign a lease for a more extended period, there’s less need to constantly market and update the property to attract new tenants.

Risks of Long-Term Rentals

While investing in long-term real estate rentals has many benefits, there are also several risks to consider. These include:

Tenant Turnover

Tenant turnover can be a significant disadvantage of long-term rentals. When tenants leave, landlords may incur expenses such as marketing and cleaning the home or condo to prepare for new tenants. More turnover means more time and effort spent on finding and acquiring new tenants.

Longer Repair Times

Long-term tenants may be less likely to report problems as they arise, leading to longer repair times and increased maintenance costs.

Unresponsive Tenants

Long-term tenants can sometimes be unresponsive to landlord inquiries and requests, which can be frustrating and time-consuming for property owners.

Property Damage

Over time, Hawaii condos and houses are susceptible to aging, wear and tear and may require repairs or upgrades to remain rentable.

Vacancy Periods

If there are no tenants, there is no rental income. Landlords should be prepared to cover a mortgage or other property expenses during any downtime.

Factors to Consider When Investing in Long-Term Rentals

Before investing in long-term rentals in Hawaii, there are several critical factors that you should consider to ensure a successful investment.


The success of rental property investment is significantly impacted by its location. Investing in an area with high demand for rental properties, a growing population, and a strong job market can lead to a reliable income stream.

Conversely, purchasing a home or condo in an area with declining population growth, a weak job market, or high crime rates can lead to increased vacancy rates and lower rental income.

Condition of the Property

Investing in a well-maintained and good-conditioned property is crucial for determining its value and rental income. Before purchasing a Hawaii condo or house, conducting a thorough property inspection and considering any necessary repairs or renovations to increase its value and rental income is necessary.

Financing Options

Long-term rental investments can require a significant upfront financial investment. It’s essential to evaluate your financing options before purchasing to ensure that you can secure the best possible terms.

Be sure you are comfortable handling the costs associated with owning a rental, such as mortgage payments, property taxes, and maintenance expenses.

Tenant Quality

High-quality tenants are crucial for long-term rental real estate investments, ensuring a consistent stream of rental income. Landlords should conduct thorough background checks on potential tenants, including evaluating their rental history, employment history, credit score, and income stream.

By carefully selecting quality tenants, landlords can reduce the risk of rental income loss due to non-payment or damages caused by the tenant.

Property Management

Hiring a property management company can help landlords successfully manage a long-term rental home or condo by reducing the stress and workload associated with it. Property management companies can assist with tasks such as rent collection, tenant screening, property maintenance, and eviction proceedings.

Although there may be fees associated with these services, a reliable Hawaii property management company can help landlords mitigate any issues that may arise and significantly reduce their workload.

Entrust Your Long-Term Rentals with AA Oceanfront Rentals & Sales

At AA Oceanfront Rentals & Sales, we understand the challenges and responsibilities associated with investing in long-term rental properties. We have years of experience in managing rental properties and can help landlords maximize their return on investment.

We offer a full suite of Hawaii property management solutions to suit your needs, including:

  • Marketing. Our marketing strategy involves actively promoting our client properties to more than 30 websites and conducting thorough nationwide tenant screenings to secure the best tenants.
  • Property inspections. We conduct photo inspections for move-ins, move-outs, and also mid-lease inspections.
  • Maintenance and remodel. We assist with inventory replacement and coordinate reliable contractors, handymen, landscape maintenance, and housekeeping while under our supervision.
  • Tenant screening and background checks. We offer fast online credit and background screening services. All tenants are approved by our brokers.
  • Rent collection and owner statements. Access your owner statements easily every month and make tenant payments online hassle-free.
  • Accounting and taxes. We can process your General Excise and Transient Accommodations taxes for a small fee.
  • Landlord-tenant code. We adhere to the regulations outlined in the landlord-tenant code to ensure that all leases are handled effectively for everyone involved.
  • Evictions and collections. Help with handling evictions and collections in compliance with local, state, and federal regulations.

Our experienced team of professionals will handle all your rental property needs so that you can be confident that your investments are secure and producing returns.

Bottom Line

Investing in a Hawaii long-term rental property can be a great way to generate steady income streams. However, it is important to carefully evaluate all the factors involved before committing to such an investment. Research your financing options, select quality tenants, and consider hiring a property management company in Hawaii to help manage your rental properties.

With AA Oceanfront, you can rest assured that your investments are in good hands. Let us help you make the most out of your Hawaii rental real estate investments today! Contact us for more information on how we can assist with all your long-term rental needs. We look forward to hearing from you!

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