The Hawaii Legislature has approved game-changing vacation rental legislation. As a result, each island county in Hawaii ha gained significant control over short-term vacation rentals. That follows the successful passage of Senate Bill 2919. The bill, which encountered fervent debate, was approved in the state Senate by a nearly unanimous vote and now awaits Governor Josh Green’s signature, which he has already promised is forthcoming.
Previously highlighted by us as a pivotal development amid simultaneous and escalating housing and tourism crises, this legislation is a decisive shift in moving vacation rentals from state to local control. It allows counties to choose to phase out vacation rentals in Hawaii entirely for the first time.
The move purports to address the critical housing shortage and the displacement of residents and claims that the decades-long surge in Hawaii vacation rentals has exacerbated these issues.
The bill’s passage represents a significant victory for community groups like Lahaina Strong, who have advocated for converting vacation rentals into local housing. Governor Green has expressed his support for the bill, emphasizing that it will enable people to access housing again, a sentiment he reiterated during a recent meeting with members of Lahaina Strong in Honolulu.
Despite very strong backing overall, it was not without any dissenters. Three senators voted no, as did five representatives in the House. Their concerns included, as others have indicated, potential unintended consequences. Opposition to the bill underscores the complexities of balancing local housing needs with those of a waning Hawaii tourism sector, which has historically relied successfully on short-term rentals as one of its key features.
Those in favor of the bill have argued successfully that empowering counties to regulate these rentals will allow for more appropriate and nuanced local approaches to housing and tourism.
Others, however, include our readers who expressed opposition vehemently in well over 200 comments on the topic state adverse effects on tourism and upcoming legal challenges regarding the measure’s constitutionality will abound.
As we await Governor Green’s imminent signing of the bill into law, Hawaii is again poised to begin a new era. This legislation has the potential to transform both Hawaii’s tourism and housing. It promises relief for residents but will signal a period of unknown, legal contention, and ongoing adjustments.
As we continue to monitor this landmark change, we invite you to share your perspective and experience. How will these changes affect you? Please join the conversation as we follow the implications of this historic change in Hawaii.
Beat of Hawaii lead photo at Poipu Beach, Kauai, where many Hawaii vacation rentals are located.
Get Breaking Hawaii Travel News
Imagine that. A progressive legislature attempting to take property rights away from the very people they’re elected to serve. California just passed a law basically outlawing the first amendment. That’s already been struck down by the first court to hear the arguments. Seems like this is headed in the same direction. I get trying to solve the problem of housing costs. This won’t work for those whose livelihood is serving the hotels and (what may be shortly gone) STR’s. It’ll be their problem. Where will the TOT taxes be replaced from? Say hello to higher property taxes and sales taxes. And they’ll be right back where we are now. Predictable and avoidable.
This is a joke, our association fee is $3460 a month, plus property taxes of $1,500 a month, electric bill of 300 plus $100 insurance and the associations has just announced a $23,000 special assessment per unit for new roofs. Who is going to rent a condo for 6 or 7k a month, it only works as vacation and has been a vacation rental since built 51 years ago.
We live in pukalani, our rental condo is 500 sq’, 1 bed, 1 bath, small closet, beautiful views. No mortgage, cost/mo. Is $1,825, excluding all utilities, and another $300. 32 mi drive to kahului, prohibitive for a worker, and if passed, no local tourist jobs, maui will become a welfare state. I just dropped a $12,000 job for a local because of this. This is not made for long term or a family. Hundreds of other units present the same problem.
Poorly thought out plan, for a good cause.
I boughr my condo in 1993 while living and working on Maui. Upon leaving we decided to rent long term to a local resident. For 15 years we subsidized our mortgage payment by this rent. After the tenant moved out we still had 10 years on the mortgage but wanted zo begin to make Maui our second home but had to renovate to get the income through short term rentals so we could come out a few months a year. If this legislation passes after 25 years we will have to abandon our dream to retire in Maui or sell our beloved second home. I am only one of many stories of how short term rentals evolved but elimination will be destroying lives of those who have heavily contributed to Maui’s tax base and economy.
With depressed tourism numbers taking hold and the uncertainty around STRs, the Maui economy will enter a historical recession in 5…4…3… while places like Kauai may continue to hold their own in the months and maybe years ahead since they seem unlikey to support an STR ban. When will Green and these legislatures pay the political price for this destruction (including the incompetence that helped cause the Maui wildfires – no land mngt etc)? The answer is never since the voters will continue to put these incompetent fools in office.
Green is just listening to his constituents. You have a squeaky wheel problem.
Given that Hawaii has two main economic assets, tourism and its also a natural stopping point for shipping between Asia and the us mainland. The jones act has plugged up the vitality of Hawaii as a transit port since 1920. Now the State seems to want to put tight controls on tourism. This will make Hawaii, the Lebanon of the Pacific, a place with nearly no export economy.
If Hawaii wants an economy that is vital, its best chances are to modify tax rules to make Hawaii a world center for R@D. This would require drastically reducing the top income taxes and not requiring amortization of R@D expense on state income tax, a fix California has made.
Yeah a little pixy dust and a magic wand and poof all the housekeepers etc become research and development people.
Rich people leave their 2nd homes and condo’s vacant. If well paid working people could afford to live in Hawaii full time, they would use many services that employee locals. Hawaii is one of the 3 states with the highest income taxes(CA, NY, HI). Dropping income tax rates would be one of the few things that could improve the economy. The work from home types are the best substitute for tourist who would come if the tax rate were lower.
Its likely Hawaii kills tourism, the politicians will raise taxes to and drive out more of the rich who pay the most tax. As welfare state ends the workers will leave even faster than they do now.
It’s almost as if the economy here was spiraling down the drain before short term rentals and airbnb saved the day. All the agonizing over the loss of a service that is less than a decade old really has people clutching at their pearls. Hilarious.
The consensus on this issue seems to be that the STR ban will be tied up in court for years. This does seem reasonable. The question I pose asks how many travelers will risk making advance reservations with so much uncertainty involved. I know I would not but others- who knows.
We should remember to differentiate the short term rentals in the different areas. Not all short term rentals will be gone. The ones that are in hot hotel zones will remain. I think there is a lot of confusion around this… There are a few that I know of for sure in Kihei that are in hotel zones. This information can be found on the Maui county website.
It matters little that there would be a few STRs left standing when 60% of STRs are targeted to be removed, along with all of the businesses dependent on those STRs. The fallout from this would be massive.
Additionally, the nightly prices of the remaining STRs would rise dramatically, since the supply would be gutted while the demand would remain the same. That’s just Economics 101.
Visitors are already struggling to afford recent increases on STRs and hotels alike on Maui. A 60% reduction in supply and resulting price increases would be a death knell for most visitors.
Well said, as most of these comments are. One of my would be renters said it best, hawaii is killing the goose that lays the golden egg. Too bad the makers of this didn’t actually listen to us before, and actually make housing more affordable. We have been priced out by taxes upon taxes, upon taxes, for their pet projects, not the peoples.
Mainlander here,
Moving forward we won’t be spending any time or money in Maui. The resort costs were already high and once you take out any form of competition in the form of STR’s the prices will only continue to soar. When the local economy is based primarily on tourism, you are welcome to continue to dig your own poverty holes.
Before everyone get’s in a tizzy I found the Hawaii Government’s definition of a STR:
“Short-term rentals (STRs) are also known as vacation rentals, and are lodgings that provide guest accommodation for less than 30 consecutive days. In order to preserve housing for long-term residents, STRs are only permitted in resort-zoned areas and a couple of specific apartment-zoned areas.”
honolulu.gov/dpp/permitting/short-term-rentals.html#:~:text=Short%2Dterm%20rentals%20(STRs),of%20specific%20apartment%2Dzoned%20areas.
So those of you staying for 4 weeks, you’re good. Those of you staying in the “resort-zoned area and a couple of specific apartment-zoned areas” you’re good.
The length of stay has nothing to do with it. It’s going to be the property. Basically, if you have something that’s not permitted, they’re going to shut it down. If you were in an area that the government says you cannot have a short term, vacation rental, even if you put somebody in it for 30 days or longer, it’s still classified as a short term vacation rental. If I put somebody in for three days and then I have somebody come in and stay for five weeks and then I have someone come in and stay for six days. It’ll all be looked at the same.
In the case you are describing, the problem is the Landlord. If the landlord writes a contract for less than 30days, that’s a landlord problem.
No one says they have to Stay in the unit for the full 30days, but the landlord can’t have 2 contracts for a given unit at the same time. So if someone only wants to stay for 3 days, that’s their choice, but the landlord would have to write up the contract for at least 30days and would not be able to rent the place again until the contract it up.
I hope that landlord charges a lot to that 3 day customer, because they’ll be out a lot of money.
Only the rich can stay 30+ days so forget making Hawaii affordable to middle class families, who are what the employees of Hawaii are most like. STR are the only affordable options for a once in a lifetime family of 4 vacation experience.
So does this mean we cannot book vacations to hawaii?? Such as resorts, airbnb ,hotels home? We are wyndham by worldmark owners will that affect us??
Nope. Do not worry about this as they are a business owned by Wyndham and that’s one of the companies supporting the removal of competition.
Theoretically outside investors could buy entire zones. But banning rentals denies residents from participating in the #1 source of outside money. Either way 100% of Hawaii’s hospitality income goes to outside owners.
Should be limited, one STR, on the property of an owner-occupant, with a minimum of 5 years at that property. Either we also get to profit from our Hawaii RE investments, or raise hotel taxes to 35%+ and lower the GE and property tax.
I remember going to Hawaii in the 1990s, 747s everywhere. Planes had to stop for gas so eveyone spent a couple of days to a week in Hawaii. The planes fly right over the islands. People now have to make the state the destination they want to go to. But now you could rent a condo and have your own place, like your home. You can cook your own meals, people are vegitarians, people have food allergies and intolerances. Most people dont want to be stuck in a room with a bed and eat greasy food for a week. Thats what the hotels and resort want you to do. Stay in Waikiki for a week. Now you can rent a car and explore the islands. I have been to all of them. Price of real estate will drop. I guess I am done with Hawaii.
Luckily, saner heads prevailed. Summary from an on-island organization working to help residents.
“The Windward Planning Commission gave Heather Kimball’s signature Short Term Rental bill a thumbs down today by sending an unfavorable recommendation to the Hawaii County Council.
Chairman Lin cited several serious reservations about the bill, but his chief reservation was the lack of a comprehensive, independent economic impact study.
Multiple members viewed the bill as ‘government overreach.’ Other concerns: regulating what homeowners can do in their own home.
The Commission’s reservations about the bill mirror the concerns of the hundreds of testifiers who showed up to oppose it.
I was talking to several friends who live on Maui. They are not happy with what’s going on on the island. They feel that this proposal was not well thought out and that it’s going to make their tourist numbers more ugly than what they have.
Ok, so I will cancel my July – Five day Maui rental at $890 a night to be sure I get my deposit back now while the renter still has cash. Between car rental, golf, tours, dining, I was planning to spend about $7000 on the trip, now Zero. Good luck with that Maui. Cabo San Lucas here I come !
Looks like it’s time for another sequel to ‘Dumb & Dumber’ starring none other than the Gov and his cronies… and we wonder why the bridges & roads are falling apart, teachers can’t afford to live here, airports have close runways, etc, etc…
It’s unbelievable how these incompentant politicians get elected and set policies to destroy their own economy. There simply isn’t enough rich travellers to sustain Hawaii’s economy. Hawaiian citizens have no one to blame but themselves when their state becomes bankrupt.
Please know that most of us are disappointed and ashamed of our government. Even when so many of us vote against their ignorance we lose on these bills. Now we’re doing our best to get the word out. Thanks to media corruption was uncovered. We need to keep fighting. Politicians have caused the fighting between locals and directed it to tourism. Distracting us from whatever they’re doing next- more hotels. We need help & solutions not judgement.
Ha ha ha ha, when will they learn , government control never works. Try and fix one problem create 10 more!!
The new legislation will not affect Kauai at all. In an extensive interview with Hawaii Public Radio on March 19 he said he is satisfied with the island’s handling of STVR’s and that there are agreements in place with ABNB, VRBO and others to ensure that Kauai properties comply with its ordinances. This has been ongoing since the pandemic. No changes coming.
No changes coming on Kauai until a new mayor and a new group of council members is in charge.
I guess I have been to Hawaii for the last time after visiting 10+ times over the last 20 years. I cannot afford the the high cost of hotel rooms and fully anticipate that eliminating vacation rentals will cause those remaining to rent at a premium.
So if your goal was preventing middle class mainlanders from your island paradise, I think you have succeeded.
A nice deep recession will do far more to eliminate the housing hoarders in STVR’s than any government intervention. Real estate has a long history of boom-bubble-busts. This is the biggest bubble of them all.
26 States are already in recession, and the Fed signaled the other day that they are going to ease off on their quantitative tightening. Every month the jobs numbers are getting revised down greatly.
Last month 43% of All small businesses in the USA that rent could not make their full rent payment. 43%!! And the federal government is spending crazily with huge deficits to prop it all up.
Where STVR’s should be allowed and banned:
1. Areas zoned Resort – allowed. (It’s zoned that way for transient visitors)
2. Areas zoned Residential – banned. (It’s zoned that way for…RESIDENTS).
3. Areas zoned AG – banned. (It’s zoned that way for AG use)
The very first hotel condominium timeshare in Hawaii was built on Apartment zoned land in Maui and called the Hilton Hale Ka’anapali. Apparently the lack of zoning enforcement was an issue from the very start. Whose fault is that and does that mean it should now be banned from short term rentals as it was originally intended for?
Thank you Bill. This would make more sense but they still included properties in the hotel zone while some similar neighbor properties are safe. It seems the ones that fall under a hotel brand name are protected. Then again the Royal Kahana is Outrigger and is on the cut list. 7000 is drastic and will make a negative impact. Getting rid of the ones on your list and the illegals should give us what we need without causing the least amount of harm. Then put restrictions on new STRs.
Reminder, AirBnB has never existed through a jobs recession.
Airbnb and Vrbo charge both travelers and hosts high fees which appears as rent to the traveler. I saw guests Vrbo and Airbnb fees around 1000. For a week stay. I always encourage return guests to book direct to save fees on both sides. Airfare is still looking good. Even during a recession, even after Covid Hawaii has visitors. They are more careful spending money but they will still come. Return visitors keep your hosts contact info. You can pay via PayPal for your protection, and sign rental agreement via DocuSign. We still need and appreciate your support. There is no place like Hawaii. The visitors I meet each day are happy to be here. The negativity we read is scary
Bill, “remember”, short-term rentals have existed through MANY job recessions.
In addition, “remember” Airbnb was started in 2007 and went through the 2009-2012 recession.
I’m sure, myself and many others are Thankful for the memories of a Maui family vacation, pre- Lahaina fire. I have returned, post fire, in a vacation rental condo.
A relaxing visit but the obvious evidence of the horrific tragedy. We had already booked and paid for the trip. I was ready to cancel the trip if was going to cause any inconvenience or offense to the Hawaiian community.
I certainly understand the need to manage the whole ecosystem.
It’s a reality!
Best Regards,
Aloha
Managing the eco system includes locals doing their part. I refuse to put the blame on tourism and visitors after living here 30 years and seeing what happens here first hand. Almost all visitors I have met are respectful. This isn’t Las Vegas. We get visitors that appreciate the beach, sun and nature. We don’t have much else so of course that is who we draw. You will have the party people but most live here.
Why not just build more affordable housing instead taking away Vacation Rentals from Owners who already pay high taxes property taxes, insurance, TAT, GE and County TAT plus County Permits on STVR’s. This new rule is so backward!!!
So many comments here from visitors and STR owners who don’t understand how residents feel about STRs.
Too many non-residents only care about what they can get out of their trip and their investment. Too many tourists breaking rules every day, climbing over fences, parking in no parking zones, posing for selfies with protected wildlife, doing reckless things and trashing trails.
When you’re only here a week or two out of the year you don’t see the heavy toll overtourism takes on the islands.
The islands were coping quite nicely in the early 2000’s. If the visitor numbers drop back down to the levels at that time, 35% fewer, the Hawaii economy will be just fine, and the islands will be better place to live for residents.
I’ve lived here for 30 years. The message of trashing the island should be given to locals. Visitors aren’t bringing their old appliances and rusty cars, construction supplies and rubbish from the mainland. They’re not leaving in on the trails only 35” inch tires on lifted trucks can get to or bringing a dozen kids that are jumping on coral. I’ve seen more respectful visitors than locals especially the last decade. Druggies living in trees are locals.
Aloha,
I find it very interesting that you have lived in Hawaii for 30 years but obviously don’t consider yourself a “local”. The last census I saw showed about 10% of Hawaiian residents were of Polynesian descent. I would assume that the other 90% are transplanted mainlanders. When does one become a local; when they start abusing the place?
Mahalo
Gerry I do consider myself a local and you are absolutely right. I also have made friends with mainland owners and visitors than have been coming here every year for decades that love Maui. I believe that banning 7000 rental homes will hurt our island, will decrease jobs for us locals & blaming tourists & STR owners for all the problems is wrong. I believe the “locals” fighting for this law believe they are doing the right thing. I disagree with them & have tried explaining. I defend all our rights as a US citizen.
Sorry to break it to you, Peter, but it’s no longer 2000–this economy has put even basic necessities out of reach for many. Reducing or eliminating revenue for all ancillary services will not result in the economy ‘being just fine’.
This ‘I got mine’ nimby attitude will result in a major degradation of the quality of life on the islands. Citing a few outliers and painting all str tourists as miscreants is narrow minded and disingenuous.
Hate to break it to you Steve but I think there are enough locals, and their now off island family members, who are so fed up with the status quo that they will elect like minded politicians who will bring about significant changes to STRs.
Nobody can predict how those drastic changes will affect the local economy. But I think the locals are willing to take that risk. And I sense that mainland STR investors are scared, and painting doomsday scenarios, because they think that there is a real possibility that gheir precious STR investments might be actually be outlawed some day.
Its not only STR investors that see the writing on the wall. It is us local residents that see what this will surely do to our entire economy. It already is doing damage. Living off the state will not pay rent, utilities & food. We need jobs! All we have is tourism. Bring in other job opportunities first. Our savings disappeared with the Covid shutdown. Now jobless since the fire. We are now in debt & many of us need & want to work. Hotels will not work for families or stays over a week. They need space & kitchens. Many love & consider HI their 2nd home.
The land itself is expensive (it’s in very limited supply) then add in the cost of shipping building materials from the mainland. What would be your definition of “affordable housing”? A small house in Oahu can easily go for $1million+. I’ve really never understood the economics of living on the islands and have no idea how (unless you have a generational family home already) most people can afford to live there? 50Year mortgages?
This is a little off topic. But you are 100% correct about the cost of shipping building materials over from the mainland. I wonder why there’s no company considering 3-D printing homes over in Hawaii? The materials needed are sand, gravel and water. A lot cheaper than lumber, tile, and steel. Would be cool to have a house built of concrete that is composed of crushed up lava rock. The cost of printed homes are a fraction of conventional ones. Maybe this would lead to more affordable homes in Hawaii.
Great idea and business opportunity! Thank you for contributing to a solution and giving hope rather than adding to the problem. Thank you so much!
Thank you so much for your comment above regarding, “Hotels will not work for families or stays over a week. They need space & kitchens. Many love & consider HI their 2nd home.” You are right, anyone who is not a millionaire cannot afford to stay in a hotel for more than a week. I was blessed to discover Hawai’i in 2016 and I fell in love. I’ve been coming for 4 months each year ever since. My husband and I are working hard to make it our 2nd home, and I really appreciate that you don’t mind that I love your aina so much. Thank you for the welcome. It seems that anyone who “discovers” Hawai’i too late is left out in the cold, even by other transplants. Luckily, I stay in the same home every year, and my “neighbors” welcome me.
I’m not a speculator. I’m a long time resident homeowner. Maui is almost solely dependent on tourism. Banning STRs in residential areas is understandable but there is a reason for the bill to rezone. Banning in areas zoned for STRs will devastate the economy & reduce tourism in areas locals don’t want to live in. Fire victims are turning down condos bc lack of space, closets & tiny kitchens. Priorities are different. Young adults are driving 40-80k trucks no wonder they’ll never afford a home. This will leave us hardworking, educated locals that saved to buy a home paying for the losses.
Not all ,but many Hawaii locals inherited their home debt free through generational wealth. They too are contributing to the long term rental crisis by renting their homes as short term rentals
No one I know is switching to long term. They’re planning on a court fight or selling. This will hardly affect home prices and some condos that are in hotel zones will most likely be safe. Watching the housing sale and rent prices does not show a downward movement at all. Homes and condos that sell will most likely to go to those that can afford to wait it out. This was not a well thought out plan. Just a waste of time and in the meantime the decrease in tourism will screw us all. Very sad. I pray there is a karma!
I agree and I can’t help but think Green understands this… as others have commented, I think he is just trying to shift any real blame or decision making from himself to counties and at the same time appease locals. The long term negative effects may not be fully recognized for awhile and he may end up keeping voters happy in the meantime.
I suspect all that will happen is that if a percentage of STRs end up back on the market, they will just become second homes and will be out of reach for locals to purchase.
i own a condo on west side of the big island. It’s in the (V)vacation zone. There are 32 units in less than an acre and not any extra storage or parking at all. These units were designed and have always been used as vacation rentals, and they would make lousy residence, especially for couples with two cars.
It would be a big mistake to try to convert the units in the vacation zone to normal residences.
Hoping the counties can do a better job than the Governor- he needed a dirty sock stuffed in his mouth a long time ago. I’m hoping the mayors will be more in touch with community needs which means jobs! Visitors will still come even if they feel unwanted by the government, just like they did during the Covid shutdown. There’s no place like Hawaii. Good luck to those turning their backs on us and headed to Caribbean, Mexico and Tahiti. Also expensive, unsafe and more… Hawaii is still a US state. Mahalo to the loyal compassionate visitors. There are many of you! Timeshare sales are exploding. Better than hotel costs. Sheraton just raised rates 50% last week. They must know something.
An unintended consequence is that there will be a dramatic reduction in vacation rentals which equals less tourists and less tourist’s dollars being spent. Goodbye, to the local economy and jobs for locals. So, there’s a potential for increased housing but how will the locals pay for this rent once they get laid off because of a decline in tourism. I can see some STVR owners filing a lawsuit while others will just sell their properties. Governor Green took the coward’s way out and put it on the counties knowing full well the law stinks, yet he’ll be able to say that he tried to solve the housing crisis while the counties will bear the brunt of the lawsuits and egg on their face while Green keeps his hands clean.
Very true. Timeshares and condotels should be safe because most are owned by hotel companies which have been safe and benefitting all along.
Darin,
No foreseeable consequence is unintended. To the extent reduced tourism is a negative (not everyone thinks it is), then is just a trade off. Sure, less tourists = less jobs and less tax collections. But also less traffic and less demand for housing, since less people can live here because of the lost jobs. It’s genius when it think it through.
We are renting a condo at Kihei Bay Vista. We have done that many times. Is that going to be banned? It is hard to understand the terminology here.
Linda W.
So far the only thing that has passed is the state giving each county the ability to regulate STR through rezoning and/or current zoning enforcement. The information iñ this article only presents what’s been proposed, but not passed yet.
To answer your question, yes Kihei Bay Vista is on the list, it is zoned A1 (Apartments) and designed Mf (Multi-family).
Aloha.
Finally!
This is a sad day for Hawaii. Just wait until all the proponents see that passage of the bill does absolutely nothing to change the housing affordability crisis. All they had to do was to look at every single other community that tried to do this, and they can see what the end result was…. No change in affordability. The only winners here are the hotels which are all owned by mainland and foreign corporations. I’m just shaking my head at how shortsighted people can be.
Don’t forget the lawyers….those bottom feeders always cash in during these conflicts.
Ok Everyone: This sounds like a riddle but it’s a real question:
We rent condos on Maui for approx. 58 nights per year.
It’s difficult to find a single condo for 58 nights. We rent condo #1
in south Maui for 29 nights. We rent condo # 2 in west Maui for 29 nights.
Assuming that a STR is define as 30 days or less, my question
is: If I continue to rent for 58 nights per year, all 58 nights in
sequence, but in two different locations, am I a short term renter
or not, using 30 days or less as the definition of short term renter.
Chris
Seriously, this is a real question.
It wasn’t clear by your post whether you are the person renting or if you are the person that owns the condo. That being said, the owner could be required to change their booking policy so that people have to stay 30 days or longer. However, what we really are going to see is a whole development of an underground rental system so that the county won’t know what’s going on. it’s just like the Internet, how did he get going? How did it proliferate? You can’t stop it it’s gonna happen and it’s what drives the market and it went more underground to continue to make it available.
If the property you are renting is a minimum 30 day rental, then you are renting for less than the allowed period of time.
Note: All rentals less than 180 days are required to pay the TAT.
In your position, I would not worry about it.
If a landlord signs a lease for more than a month, the tenant magically has as all sorts of tenant’s rights, and it could take a long time and be very costly to evict them. So you are essentially a short term renter, because you don’t get the long-term rights.
Short term is anything less than 6 months. Hopefully you have the hosts contact info for an update.
Does this have any effect on Time Shares?
Initially, I would have said doubtful, but with the stupidity of our legislative body here on the island, it might at some point. What I really see happening is that timeshare values will go up because they’re gonna be the only legitimate alternative the counties really start working to ban short term vacation rentals
No, because timeshares are part of resorts and not condos and houses.
We just sold our timeshare weeks. I’m already regretting that. I dont understand how the government can tell people what to do with their own property. Is the government going to start making their mortgage? Or is the government going to subsidize these people the money they will lose? A VRBO can be thousands a month and now they’ll get hundreds? Or will they be forced to sell? I see a lawsuit in the making.
I was just thinking that timeshare owners should hang onto those units at least for now. I think it’s possible that they will see a bump in value. vacation rental property owners are not going to sell them for pennies on the dollar. They are still going to get market value and it’s still going to be more money than a local buyer can buy. If they can’t afford it and need to sell, I do see lawsuits happening. But the buyer of the property is going to be a mainland buyer.
There won’t be lawsuits until the counties actually start revoking permits. Speaking with the RE broker who manages our Kauai STR, she believes the county council will take a conservative approach to “amortize” NCU TVRs, such as not allowing permits to be transferred to a new owner whenever a property sells. But, who knows until it happens. There are only a little over 400 permitted NCU TVRs (meaning outside the VDAs) island-wide, and half of those are in expensive Hanaeli-Haena, so unless they also reduce VDA TVRs, there will be zero impact on the Kauai residential housing market. Maybe things are different on Maui?
The government can control your property under zoning laws. I remember when there were not many short term rentals in Hawaii and it was easy for a person to find a long term rental.
Goverment interference in the marketplace. Let the rolling disasters commence. Maybe Green will mandate EVs, Wind Turbines and Unicorns next to “fix” Hawaii’s other problems.
He needs to be recalled. He’s not doing what’s best for Hawaii. He is doing what’s best for his pocketbook and the hotels.
The Airbnbust is already underway. I see articles with quotes like this in places globally:
“In Palm Springs, a cap on short-term rentals in specific high-demand neighborhoods has all but frozen the market in those communities.
Sales are down. Homes languish on the market for months. And investors who bought up Palm Springs properties during the COVID-19 pandemic are facing hundreds of thousands of dollars in losses.”
Austin, Texas is getting blown up as we speak. Tons of speculation there. South Padre Island, TX, unbelievable amount of speculative STR’s coming to market and sitting empty.
And for every market that you post, that’s having an issue, there are 10 markets that are doing better. Hawaii is not Palm Springs. Hawaii is not Texas. Hawaii is not South Padre island.
You probably don’t live here
I have a hosted Vacation Rental on the big island, If I am forced to rent my house out rather than STVR, my self like mini will be selling their homes, not renting them. Unfortunately, the people that need to rent will not be able to afford to buy these homes so this new act will probably do nothing more than Exacerbate the housing problem, as the saying goes, if it ain’t broke don’t fix it, The key is to build more affordable housing not have more houses go up on the market for 6, 7, or $800,000 that locals cannot afford
You are like many others. With the county ignored (because they totally know it) is that locals here aren’t making money handover fist on vacation rentals. Sure, they invested wisely when they could. The economy of today is much different and the reality is, more than 58% of the population surveyed have stated that they could not buy the home that they own today, if they were looking to buy a home today I am with you, I won’t ever get along term tenant because most of the times they are awful and don’t take care of the property only short term rent
BOH should do an article on long term renter nightmares. There are so many, enough to scare any owner. It is happening right now. Properties are being destroyed and rents not paid for months. Then it takes forever to get them out. There will be more selling than renting. Even if prices drop, the average buyer here will not qualify or afford even low income housing. They will need to be subsidized.
Long Term Rentals is anything greater than 30days in HI. I’m sure you can find landlords with STR and LTR to talk about the damage when renters move out for both. It doesn’t take long for significant, expensive damage to occur.
I have both LTR and STR (none on the islands) and my experience is the longer someone stays there, the less likely they are to destroy a place they are living in. If getting people that don’t pay is a problem then that’s something the Sheriff is for (it becomes trespassing if the contract is written well)
I’ve been a STVR host since 2013. Because I vet my guests very well (I actually wouldn’t stay in my place if I were a guest with how strict and restrictive I am).
Before I began STVRing, I had annual renters.
The annual renters absolutely tore up my home and I ended up spending half of the yearly rent making repairs.
Suing in small claims court never got me anywhere. Because of this, I started STVRing. Airbnb charges guests if there is damage. Luckily, in all the years I’ve hosted, none of my guests ever damaged my home.
Unfortunately a 6, 7 or $800,000 house in Hawaii is at the lower end of the price range. Here on Oahu, houses in Mililani are starting to push over $1m for a regular house.