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Seeking advice on renting out WKORV - unit size/combos, taxes in ads

cindylou

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Colorado
Resorts Owned
WKORV - 2 DOF, 2 OF
Sheraton Lakeside Terrace Villas at Mountain Vista - 2 winter, 1 summer, 1 shoulder
We find ourselves needing to rent out multiple prime weeks at WKORV in 2022 (preferably for top dollar) and are seeking past experiences from others regarding:

1) Ads. Do you put ads out as 2 bedroom units, or 1 BR and studio, or all 3 unit types? I'd rather not spend $45 for each Redweek ad x 3 per week x 6 weeks = $540 just to get them listed, but I understand if that's really what I should do. Do you find that 2 BRs rent out less frequently than separating them as a 1BR and a studio? Also trying VacationCandy since it's free to list (but not happy about their contract so we'll see if we end up actually committing with them). Will also try TUG Marketplace.

2) Taxes. Does anyone list a (lower) rental price and then have the guest pay the GET + TOT + new Maui 3% TAT, or do you list one (higher) price, and you as owner pay for all those taxes after receiving your gross proceeds? I'm aware many don't bother with the tax aspect at all, and I get it, but as new partial year Hawaii residents we don't want to draw their ire, so we are properly registered with our GET and TAT IDs. Now I'd like advice for the wording and pricing on the ads to not lose money but also manage renter expectations.
 

daviator

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Location
San Francisco, CA
Resorts Owned
WKORV, WDW, Westin FLEX
We find ourselves needing to rent out multiple prime weeks at WKORV in 2022 (preferably for top dollar) and are seeking past experiences from others regarding:

1) Ads. Do you put ads out as 2 bedroom units, or 1 BR and studio, or all 3 unit types? I'd rather not spend $45 for each Redweek ad x 3 per week x 6 weeks = $540 just to get them listed, but I understand if that's really what I should do. Do you find that 2 BRs rent out less frequently than separating them as a 1BR and a studio? Also trying VacationCandy since it's free to list (but not happy about their contract so we'll see if we end up actually committing with them). Will also try TUG Marketplace.

2) Taxes. Does anyone list a (lower) rental price and then have the guest pay the GET + TOT + new Maui 3% TAT, or do you list one (higher) price, and you as owner pay for all those taxes after receiving your gross proceeds? I'm aware many don't bother with the tax aspect at all, and I get it, but as new partial year Hawaii residents we don't want to draw their ire, so we are properly registered with our GET and TAT IDs. Now I'd like advice for the wording and pricing on the ads to not lose money but also manage renter expectations.
As a former full-time Hawaii resident and rental property landlord, I know that it's "normal" to add GET to the rental cost and charge it to tenants when doing monthly rentals of homes and apartments. You gross it up so that the tenant is charged the full amount (because it's not a sales tax, it's a gross receipts tax, so you will have to pay "tax on the tax." So a 4% GET becomes something like 4.166% when you compute the gross amount.)

Now I don't know what's commonly done for short term rentals but I'd probably suggest doing the same and just adding it on, or just build it into your asking price. Unlike a sales tax, it really doesn't matter whether you tell the renter about it or break it out separately... you have to pay the tax based on the gross amount you receive. So you can just as easily add a rough figure for the taxes to what you hope to clear, and then advertise a bottom line price that includes everything, for simplicity. You are responsible for the tax, not the tenant. But from a marketing point of view, it might make your listing more competitive to say $X plus local and state taxes, and then add them on to the total. Most renters aren't going to know the difference and it makes your listing LOOK cheaper.

I would look to see what other listing are advertising and see what your competition is doing. My suspicion is that those which are owned by out-of-state owners may be ignoring their local tax obligations, but others are probably either building taxes into the price or stating that they'll be added.

I'm interested to see how others answer your first question.

Edit: after reading your second question again, it's pretty clear that you understand most of what I said above, at least about how the tax works, so please forgive me for any unintentional "mansplaining" – that was not my intent!
 

The Colorado Kid

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Resorts Owned
Westin Riverfront
Christie Lodge
Apollo Park
Grand Timber Lodge
Indian Palms
Massanutten
Park Regency
Valdoro Mountain Lodge
Marriott Surfwatch
Koala might also be an option to consider as they charge you only when your units are rented. I think it’s 8% but do verify.
 

ocdb8r

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1) I have not rented WKORV, but for the 2 bedrooms I own that I have rented, I have never bothered splitting them up. I am not sure if this results in a potentially lower overall rental income, but in my experience most demand for timeshare properties is in 1-bedroom or larger (and as such I find it a better approach to just rent the whole 2-bed at once).

2) I have never seen a Hawaii rental ad indicating the guess will pay the GET and TAT on top of the rental rate (and to me it makes sense that owners who properly handle this, do so out of the proceeds). Almost every Hawaii rental ad I have seen makes clear the guest will pay the TOT directly to the hotel (as this is charged to the staying guest's folio).
 
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Resorts Owned
Westin KORVN and Lagunamar
Don't split it up as it's unlikely you'd rent out the studio. Even for the 2BR, if you are just using Redweek then I'd assume only a 50/50 chance you'll rent it out so don't count on it. Just because it's Hawaii and just because it's a Westin does not automatically mean you'll get 'top dollar' and you might have to be flexible on price. It's not normal to have any reference to taxes in the listings (except the ones the buyers will pay at the resort) so I wouldn't muddy the waters there so just roll them into your price.
 
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