Potential Rental Information



TWO CHOICES

1. Join the Island Colony Hotel Limited Partnership

     The Hotel Offers Two Possible Plans:
  • Join the Hotel Limited Partnership = "Hotel Pool"
    • "Give" your condo to the Hotel Partnership to use as a hotel room
    • Can use your condo TWO weeks per year at no extra cost to you
    • For more than two weeks use, you must rent the extra days from the Hotel
    • Six (6) months notice is required to pull out of the plan
    • The revenue is "pooled"
      • Every month you get a disbursement check
      • Amount calculated by taking the hotel gross revenue, subtracting the hotel operating costs & expenses as well as the GET & TAT taxes, then dividing what is left by the number of condos in the entire pool
      • One Bedrooms get a porportionate amount more than Studios or Lodgings
    • You pay your own monthly Matinenance Fees & Property Taxes separately
    • The Hotel pays some normal repair / wear & tear costs, but not renovations
    • The disbursement calculation gives no additional value or distinction to:
      • A Studio, which has a legal Full Kitchen over a Lodging, which is zoned to have only a Partial Kitchen with no burners.
      • A Condo on a High Floor with a Better View over a Condo on a lower floor with little or no view.
      • A Renovated Condo over a non updated, non renovated condo.
  • An Indivitual Rental Agreement (IRA) =
    A private contract with the Hotel General Partner
    • Two Weeks use at no cost to you NOT INCLUDED
    • You Pay your own GET & TAT taxes
    • Your Monthly Revenue is NOT pooled but is based on whatever revenues your unit itself generates
    • Otherwise same as the Pooled plan

2. Hire A Management Company or Self Manage

  • Hire An Independent Management Company
    • Fee = 10% - 20% of Gross Revenues
    • Use your condo whenever you want
    • 30 days notice to cancel the agreement
    • You separately pay your own:
      • monthly Matinenance Fees
      • Homeowners Insurance Premium
      • Property Taxes
      • GET & TAT taxes based on your rental revenue
    • Revenues reflect the value of having:
      • A Studio (with a full kitchen) rather than a Lodging (with only a partial kitchen)
      • A Condo on a High Floor with a Better View
      • A Totally Renovated Condo
    • Can Maximize Revenue During the:
      • "High Season" = December, January, February, March, & April
      • Summer months = June, July, August
    • Several Management Companies have estimated #4210's potential revenue:
      • High Season = $3500 to $4000 per month
      • Summer = $2800 to $3000 per month (higher rate mid-summer)
      • Rest of Year = $1750 to $1950
  • Self Manage
    • The same as hiring an Independent Management Company without paying the 10% fee, but you do all the managing yourself!

    • According to the Hawaiian Real Estate Statutes, you may NOT LEAVE Oahu for MORE than 30 days without hiring a Manager if you are self managing

    • We have chosen to Self Manage the Leasing of Both Condos - See Below for Actual Rental Income We have been consistently earning

      • NOTE: We hired an on island Manager, but only pay on an as needed basis, which we seldom use.




Current Rental Information



#4210 Current Rental Info & Income:

*FOR ONE PERSON (1 year lease):
  • RENTAL FEE:
    		• $1850 per month
  • GET TAXES (4.712%):
    		• $87.17 per month
  • TOTAL RENT / MONTH:
    		• $1850+$87.17=$1,937.17
  • SECURITY DEPOSIT:
    		• $1,937.17


    *FOR TWO PEOPLE (1 year lease):
  • RENTAL FEE:
    		• $1,950 per month
  • GET TAXES (4.712%):
    		• $91.88 per month
  • TOTAL RENT / MONTH:
    		• $1,950+$91.88=$2,041.88
  • SECURITY DEPOSIT:
    		• $2,041.88


    *FOR ONE or TWO PEOPLE on AirBnB with 30 day minimum stay:
  • RENTAL FEE:
    		• $114.00 / night = $3,420/month
  • GET TAXES (4.712%):
    		• Included in Rent
  • SECURITY DEPOSIT:
    		• $1,500


    *CURRENTLY CONDO NOT IS LEASED:
  • BUYER CAN HAVE POSSESSION UPON CLOSING


    • *INCLUDED IN RENTAL FEE:
  • UTILITIES:
    		• Water, Garbage
  • BASIC CABLE TV:
    		• Basic Cable Channels
  • HIGH DEF (HD) CABLE TV:
    		• Premium HD Channels
  • HD CABLE DVR BOX:
    		• Records cable programs
  • DSL HIGHSPEED INTERNET:
    		• With Modem + WiFi
  • MAID SERVICE:
    		• Every 2 week or so
  • FULLY/EXPENSIVELY FURNISHED:
    		• Natuzzi Sofa, HDTV ...
  • ELECTRICITY for AirBnB Rentals ONLY:
    		• Included in Rent


    *NOT INCLUDED IN RENTAL FEE:
  • PARKING STALL (TENANT PAYS):
    		• $170 EXTRA/month
  • ELECTRICITY for non-AirBnB Rentals:
    		• Tenant Pays Monthly


    *AVAILABILITY & TERMS:
  • NO CURRENT LEASE --> Condo
    		• Is VACANT or Rented Monthly
  • WE ALWAYS REQUIRED A SIGNED LEASE:
    		• Minimum 1 Year*
  • NOW THAT WE ARE SElLING, THE CONDO:
    		• Is VACANT or Leased Monthly

                  *We chose to lease by the year for our own convenience.
                    However, income could be maximized by renting shorter
                    term to take advantage of the higher rents that can be charged
                    during the 5 month Winter High Season & the Summer Months or using AirBnB.


    *FOR MORE DETAILS ABOUT:
  • THE #4210 STUDIO ITSELF, GO TO:
    		•  About #4210
  • COST OF OWNERSHIP, GO TO:
    		•  Fees, Costs, + Sq. Feet

    #4210 ASKING PRICE:

  • ASKING PRICE
    		•  $348,000 FEE SIMPLE
       
  • TO UTILIZE A BUYER'S REALTOR ADD:
    		•  1% x $348,000 = $3,480
    2% x $348,000 = $6,960
    3% x $348,000 = $10,440
       
  • FOR MORE DETAILS ABOUT a FSBO SALE:
    		•  Go To: FSBO Info






    Return On Your Investment (ROI)






    POTENTIAL ANNUAL INCOME:


    NOTE: Because this Studio is so expensively and tastefully renovated & furnished it fetches one of the HIGHEST rental income in the building for a 1 year leased Studio...

       
  • ONE TENANT with a ONE YEAR LEASE:
    		•  $1,850/mon=$22,200/yr
          o NET INCOME:
    		 $22,200-$6,095**=$16,105
          o RETURN ON INVESTMENT:
    $16,105/$348,000 = 4.63%
       
  • TWO TENANTS with a ONE YEAR LEASE:
    		•  $1,950/mon=$23,400/yr
          o NET INCOME:
    		 $23,400-$6,095**=$17,305
          o RETURN ON INVESTMENT:
    $17,305/$348,000 = 4.97%
       
  • RENTING BY THE SEASONS:
    		•   
          o HIGH SEASON: 5 MONTHS (11/15-4/15)
    		$3,500/month = $17,500
          o SUMMER: 3 MONTHS (6/15-9/15)
    		$2,800/month = $8,400
          o REMAINDER OF YEAR: 4 MONTHS
    		 $1,850/month = $7,400
          o TOTAL ANNUAL INCOME:
    		 $33,300/year
       
          o NET INCOME:
    		 $33,300-$6,095**=$27,205
          o RETURN ON INVESTMENT:
    $27,205/$348,000 = 7.82%

                  **$6.095 = Yearly Cost of Condo Ownership (as a Rental Unit)
                      (For an itemization of this figure go to: Fees, Costs, + Square Footage)



            NOTE -- THESE RETURN OF INVESTMENTS (ROIs) ARE:

                    o MUCH HIGHER than one would get at a BANK, and

                    o A LITTLE LOWER than one would get investing the same
                      amount of money into the STOCK MARKET, but

                    o A LOT LESS RISKY and a LOT MORE RELIABLE and
                      CONSISTANT than the Stock Market!!!







    Info & Details You Should Know






    Important Information and Details You Should Know:

    • Since we began leasing #4210 (and #4211 until we sold it), we have had no trouble or delay in leasing both condos with one year leases. #4210 fetches top dollar and there is a high demand for a condo such as #4210.

    • We have been paying GET tax (4.712%), but not TAT tax (9.25%) because we have always leased both condos over the required 30 days.

    • NOTE: If any condo is leased / rented less than 30 days, then:
      • TAT tax must be paid on all collected rents in addition to the GET tax.
      • The Property tax category for the owner goes from being classified as a rental property to being classified as a hotel property, which triples the owner's property tax bill.
    • According to the Declaration Document of the Island Colony, owners not limited partners in the Hotel Pool (ICP) are NOT allowed to rent their condos for periods of time less than 30 days.
      • This insures that individual owners will not be competing with the hotel pool.
      • However, many owners seem to ignore this rule and so far there have been no consequences. On principal, we do not rent under 30 days.
        • Lately many owners are renting their condos short term on AirBnB with no consequences so far, and thus seem to be doing quite handsomely financially!
      • At present this no under 30 day rental restriction is being challenged in court by the Island Colony AOAO. It will soon be decided if this restriction will be lifted.
    • Occupancy has been 100% for this Studio since we began leasing it with a minimum of a 1 year lease. This Studio should continue to be in demand given that it:
      • Is on the 42nd / 44 floors, a very high floor with unobstructed views
      • Has a gourmet, full kitchen with lots of amenities and storage space
      • Is expensively renovated AND furnished (very unique for the Island colony
      • Has a Mirrored Queen Murphy Bed with Mirrored Closets
      • Has a custom made Futon Storage unit with lots of storage plus plenty of other storage space
      • Is one of the best units in the entire building given its total, extensive, expensive ($127k), quality renovation.
      • Quality, high class people are willing and can afford to pay for a quality, high class place to lease.
    • $127k was spent renovating and furnishing #4210.
      • Island Colony Studio units on high floors with NO or very minimal / cheap renovations have recently sold for $280k to $350k.
      • If one purchased and then renovated such a unit to the same quality as #4210, it would cost at least another $127k.
      • If one purchases #4210 for $348k, then one is spending only an additional $0k to $68k while getting a $127k renovation!
      • Therefore #4210 is truly a bargain!








    #4210 LANAI VIEWS





    Iolani High School

    Iolani High School Just Before Sunset

    Ala Wai Canal
    After Glow Dusk Pearl Harbor

    Night Lights Ala Wai Canal

    Fort DeRussy
    #4210 Lanai View - Ala Wai Canal at Sunset




    #4210 KITCHEN DETAILS





    Right Side of Kitchen - Granite Countertop / Bar

    Sink / Glasstop Burners / MW / Grohe Fixtures

    Diamond Tiled BackSplash

    Glass Cook Top Burners

    Left Side of Kitchen - SS French Door Fridge

    Red Stoneware Dish Set (& Cutlery) Included

    Crystal Wine Glasses & Glassware

    Quality Flatware & Knives

    #4210 Comes with Crock Pot, Rice Cooker etc.

    The Stainless Steel Dishwasher is Full Size

    Eat Inside on this Quality Glass/Chrome Table

    Or on the Lanai's Larger Glass/Chrome Table!

    Lots of Storage in this Solid Wood Classy Armoire




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