OWN A HAWAII PROPERTY? TALK TO OUR MANAGEMENT TEAM
Thinking about turning your Waikiki or Kihei condo into a vacation rental? One of the first questions owners ask us is simple: what does it actually cost? Here is a clear breakdown of Midway Vacations’ property management cost, what is included, and what is billed separately, based on our current Property Management Agreement.
Property Management Cost: Our 20% Management Fee
Midway Vacations charges a management fee of 20% of the rent collected from guests. This covers:
- Advertising and marketing: listing creation, professional photography, editing, descriptions and translations
- Booking management: your property is listed on Airbnb, VRBO, Expedia, Booking.com and the Midway Vacations website
- Guest communications: our local team handles guest questions before, during and after every stay
We set your rental rates based on market conditions and competition, with the goal of maximizing your rental income and occupancy. As with any rental, no specific income level is guaranteed.
Getting Started: What You Need
The only one-time start-up cost is the initial deep cleaning at the start of management, billed at $50 per hour. Before your property can be rented, you will also need:
- The unit fully furnished to Midway Vacations’ quality standards, with a complete inventory
- A valid State of Hawaii GET license and TAT Certificate of Registration (and CTAT if required)
- A homeowner’s insurance policy with at least $1,000,000 in general liability coverage, naming Midway Vacations as an additional insured
- Working high-speed WiFi and cable TV service
Ongoing Costs Billed to Owners
Beyond the management fee, these property management costs are deducted from your monthly Owner’s Distribution:
- Third-party platform fees (Airbnb, VRBO, Booking.com and others) and credit card processing fees
- Maintenance and repairs: any single charge over $300 requires your prior approval
- Inventory and supplies: household and maintenance items needed to keep your unit guest-ready
- Semi-annual deep cleaning: Studio $290, 1 Bedroom $390, 2 Bedroom $450. When the deep clean follows a guest stay, the cleaning fee that guest paid is credited toward it, so you only pay the difference.
- Preventive maintenance: performed every six months for a flat fee based on unit size, including AC cleaning, drain cleaning, battery and light bulb replacement, minor repairs and a property inspection report
- Optional Accounting Services ($50/month): if you elect this service, we file and remit your GET, TAT and CTAT returns for you
What’s Included at No Charge
- Guest checkout cleanings: paid directly by guests, not billed to you
- Quick maintenance tasks: any task taking 1 hour of labor or less
- Upholstery and carpet cleaning: twice a year, aligned with preventive maintenance
- Small maintenance supplies: glue, caulking, screws, wall anchors and similar hardware
- Damage Protection Plan: each guest pays a damage protection fee covering unintentional damage up to $1,000 per booking, and replenishment of plates, glasses, mugs, bowls, cutlery and beach mats is always covered
Owner Stays and Monthly Payouts
You can enjoy your own property for up to 60 nights per calendar year at no charge, apart from a $229 checkout cleaning after each personal stay. Your Owner’s Distribution is paid by the 15th of each month for the prior month’s activity, by direct deposit or check from our trust account.
Thinking about upgrades? Midway Vacations also coordinates full and partial renovations through our project management team, and our licensed brokerage, Midway Realty, can support you when buying or selling.
FAQs
What is the property management cost with Midway Vacations?
Our management fee is 20% of the rent collected from guests. It covers marketing, professional photography, listing creation, booking management and guest communications.
Are there any hidden fees?
No. Every part of your property management cost is outlined in your Property Management Agreement, and any single maintenance charge over $300 requires your approval before the work is done.
How long is the management agreement?
The agreement has no fixed end date. After the first 12 months, you can end it without an early termination fee by giving at least 60 days’ written notice.
Can Midway Vacations handle my Hawaii taxes?
Yes. With Optional Accounting Services for $50 per month, we file and remit your GET, TAT and CTAT returns on your behalf. You can find official tax information from the Hawaii Department of Taxation, and learn more about the rules in our guide to legal short-term rentals on Oahu.
How do I get started?
Request a free rental evaluation from our property management team. We will review your property, walk you through the agreement and answer your questions.
Get Your Free Rental Evaluation
Midway Vacations manages over 170 properties in Waikiki and Kihei, with in-house housekeeping, a local maintenance team and an office at Waikiki Banyan. If you own a condo on Oahu or Maui, request your free rental evaluation to see your property management cost in detail and how our full-service management can work for you.
This article summarizes Midway Vacations’ standard Property Management Agreement. Your signed agreement is the final reference, and rates are subject to change.
