Koloa Kai Kiahuna Special Program


*Operational cost estimates include expected, cyclical expenses for routine service, maintenance, re-stocking, etc. of the rental property.
Description of Services & Fees

  • Services Included: Advertisement on up to 5 marketing channels, quotes, inquiries, booking, scheduling with onsite service provider, monthly owner’s statements, and routine maintenance coordination.
  • Requires service contract: (Castle – $500/month, Outrigger – $500/month) for check in / out, housekeeping, laundry. 
  • Rental Fee Commission: 20% (Comprised of 15% rental fee commission plus 5% advertising fee.)
  • Rental Fee Commission reduced to 10% for Owner Referrals and Owner placed reservations
  • Optional: collection and payment of GET and TAT for owner: $50/month

How do we arrive at the numbers in the infographic?
Let’s look beneath the hood and check out how this will work for you.

Owner’s Net = Gross Rents – Operating Costs

  • Gross Rents = The total amount of rents collected from your rental (tax not included – that is calculated separately for reporting purposes.)  This figure is generated by taking the Average Daily Rate (ADR) for the period and multiplying it by the number of occupied nights in that period.  A typical period is one month. 
  • Operating Costs are broken down into the following areas:
    • Owner Expenses = about 3% of Gross rentals on average.  These are the basic costs associated with maintaining the property so that it can be used as a vacation rental.  This includes routine maintenance, cyclical upgrades to appliances & fixtures, etc.  
    • Service Contract = $500 through Castle or Outrigger.  The Kiahuna Special program allows for the existing on-site service providers to operate in a service capacity to provide housekeeping and routine maintenance labor.  
    • Management Fees = 20% of gross rentals.  This is comprised of 15% rental fee commission and 5% for advertising channel booking fees.  Advertising booking fees range from 3%-8%, so Koloa Kai just charges a set rate of 5%.  

Let’s put it all together in an Example:

  • Average Daily Rate (ADR): $165
  • Occupancy: 65%
  • Period: 30 days

Gross Rentals = ADR X Occupancy X Period = $165 X 65% X 30 days = $3,217.50
Gross Rentals = $3,217.50

Next, let’s calculate the Operating Costs:

  • Owner Expenses = 3% of Gross Rentals = 3% X $3,217.50 = $96.53
  • Service Contract = $500.00
  • Management Fees = 20% of Gross Rentals = 20% X $3,217.50 = $643.50

Operating Costs = Owner Expenses + Service Contract + Management Fees = $96.53 + $500.00 + $643.50 = $1,240.03
Operating Costs = $1,240.03

Now from Above, Owner’s Net = Gross Rentals – Operating Costs = $3,217.50 – $1,240.03 = $1,977.48
Owner’s Net = $1,977.48

To Calculate Owner’s Net (%), just divide the Owner’s Net by the Gross Rental.
Owner’s Net (%) = Owners Net ($) / Gross Rental ($) = $1,977.48 / $3,217.50 = 61%
Owner’s Net (%) = 61%