Overview of Waikiki

Waikiki condos are located in Hawaii s tourist mecca, easily its most popular resort district. The neighborhood lies along a 1.5 mile stretch of world class beach on the sunny southern shore of Oahu with some of the best and most consistent weather on the planet. Waikiki is bordered by Kapiolani Park and Diamond Head to the south-east and Ala Moana to the west, making for the ideal central location. Here is a video flying over Waikiki.

The condos in Waikiki is part of a dense high-rise neighborhood - a mini Manhattan - with many hotels and about 130 condos, almost completely surrounded by water with the ocean to the south and the man-made Ala Wai canal to the north. Waikiki condos for sale range in price from about $150K for a 200 sq ft studio to more than $20M for the most stunning penthouse at the to-be-built Ritz-Carlton.

Several Waikiki condos offer spectacular ocean views and, best of all, every condominium is within 0.5 miles to the beach. Condos directly on the beach in Waikiki are very rare. In fact, there is only one the Waikiki Shore. which is also zoned for hotel use. All other beachfront properties are almost exclusively major hotels.

Most condos in Waikiki were built during the 1970 s construction boom with only a few built since 2005, including Lanikea At Waikiki. Loft at Waikiki. Trump Tower Waikiki. The Watermark and the Allure Waikiki. A new 5-story, 117 unit boutique condo, the Cove Waikiki. was completed early 2015.

Some owners want the flexibility to stay in their unit while vacationing in Waikiki and otherwise rent out as a short term rental (just like a hotel), maximizing potential rental income. Here is a comprehensive guide to all the condos in Waikiki that allow for such short-term vacation rental.

Guide to Condotels (hotel condos) in Waikiki

The majority of Waikiki condos that allow short-term vacation rentals (less than 30 days) are referred to as condotels (or hotel condos), which are individually owned units with a fully functional hotel operation within the building (besides condotels, there are a few other condos where all or a good number of the units allow short-term vacation rentals, described in the condotel short-term vacation rental condo guide ). Almost all Honolulu s condotels are located in Waikiki, the only exception being the Ala Moana Hotel Condo.

Below is a list of Waikiki s more popular condotels. First, however, a few important points, which the condotel guide addreseses in greater details:

• Most banks do not lend on condotels for a variety of reasons, including: Low owner occupancy rate, lack of a full kitchen the fact there are short-term rentals within building. A few banks will - from time to time - lend on condotels (if the unit has a full kitchen), requiring a minimum 30% down payment.
• Taxes: Condos run as a short-term vacation rental business - with less than 30 day rentals - are subject to property taxes of $12.40 / $1,000 in assessed value per year. All rental income is subject 2 separate tax components, which are GET (general excise tax) of 4.5% and TAT (transient accommodation tax) of 9.25%. TAT applies for rentals less than 180 days and GET applies for all rentals.
• Hotel operators will typically charge

50% on your gross rental income. Most condotels also allow owners to use a 3rd party vacation rental agency, which may charge owners

20 - 25% on gross rental income. Despite the potential gap in charges, it isn t always clear-cut, which offer may the best cash flow for an owner.

List of Popular Waikiki Condotels

Size: Studios,

180 - 390sqf. Full Kitchen: No.

Hotel Operator: Aqua Aloha Surf Waikiki Hotel (Phone: 808-954-7410).

Tenure: Fee simple.

Size: Studio - 2BR, 500 - 1,00sqf. Full Kitchen: Yes.