Short-Term Rentals on the Big Island: Waikoloa Village or Waikoloa Beach Resort?

Rental properties are often on people’s minds when they visit Hawaii. Many people ask themselves, “Can I buy a property on the Big Island, rent it out, and stay in it a couple of times a year?”

Recently, I was asked about the differences between Waikoloa Village and Waikoloa Beach Resort and their potential among rental properties in Hawaii. Even though the two communities are very different, they are only a 20-minute drive from one another. Here on the Big Island, a 20-minute drive is like your next-door neighbor since many popular places are spread across the Island and can seem rather far away when driving. Each of these offers something unique when considering investment properties on the Big Island.

Location

Waikoloa Beach Resort

This area is located along the coast of North Kohala, with easy access to some of the best beaches on the Island. You can enjoy true paradise with perfect weather. Not only does this area have great beaches, but there are three shopping centers, regular restaurants and resort restaurants, and many entertainment options. You can find all of your vacation needs in one area.

Waikoloa Village

This area is located 20 minutes up the hill from Waikoloa Beach Resort and 20 minutes to the best beaches on the Island. The community is filled mostly with residents and a smaller number of visitors. The weather can be slightly windier and dustier than in the resorts.

Rental Potential

Waikoloa Beach Resort

Thousands of people visit Waikoloa Beach Resort each year. The resort area comprises eight condo complexes and one single-family home community (Ainamalu). These Big Island communities allow for short-term rentals (less than 30 days). When you purchase a condo within Waikoloa Beach Resort, you can legally convert the condo into a short-term rental with an approved county permit.

This area is very popular with visitors because it features:

• A large beach area – Anaeho’omalu Beach, known as “A-Bay”
• Two shopping centers – Queens and Kings Shops
• The weather is what you imagine in your dreams – 72 degrees and sunny
• All the condo communities have their own pools and fitness rooms
• Great restaurants to choose from
• Two golf courses (an 18- and a 9-hole)

Some people don’t even need a car for this area; they rent electric vehicles or use the trolley. With A-Bay being so large, it feels like there are multiple beaches to choose from within Waikoloa Beach Resort. It rarely rains in this area, and it is considered the Big Island desert. With ideal climate patterns, you have great weather year-round with only minor temperature fluctuations.

Waikoloa Village

With approximately 7000-8000 people living full-time in Waikoloa Village, you will find mostly residences in the community. Out of 12 condo complexes, only four allow for short-term rentals, so there is a much smaller rental potential in this area.

Waikoloa Village currently has one grocery store – KTA – and one gas station. A new shopping center is being built, and we look forward to having another gas station and a Food Land Grocery store. While this complex is being built, the area is being used for Saturday night markets which are super fun! There are food trucks, local vendors, and live music. Come check out the Waikoloa Night Market!

When you buy a home or condo in Waikoloa Village, you must purchase a membership for approximately $930 a year. This allows you access to the community pool, a discount at the community restaurant called Johnny’s, tennis courts, golf, and much more! You will find a community here filled with friends and gatherings.

Price

Waikoloa Beach Resort

The average condo within Waikoloa Beach Resort at the time of this writing (August 2022) is $1,000,000. Visitors who rent in the area typically stay for approximately 5-7 nights. Nightly rates typically start at $150 a night and can go up to $6,000 a night, depending on the size of the home and views.

Waikoloa Village

The average condo within Waikoloa Village is $500,000. Those who rent in the area typically stay for approximately 19-30 nights. Nightly rates typically start at $100, and I’ve found for long-term stays on the island, the rates decrease the longer you stay.

Your Waikoloa Real Estate Agent

If you’re looking for a Big Island real estate agent with knowledge and experience with investment properties in both areas, give me a call. We can review which options might suit you best and set up some showings. Short-term rentals on the Big Island can be a lucrative investment that allows you to make money and enjoy the beautiful area for yourself.

Mahalo,
Leeana