Visitors have asked us multiple times to follow up on what may be right around the corner on Hawaii Island. New vacation rental rules being put forward were just unveiled. These would affect more than 150k rental units there, beginning in 2023.
There is also a range of new fees and fines being proposed for all Hawaii County vacation rentals, while the county is seeking to have a registration for every unit on the Big Island. Any unit advertised without a registration will be subject to a $10,000 fine, as proposed. For the first time, too, new rules will impact what is called “hosted” accommodations.
Interestingly, the Big Island is also looking at new vacation nodes, which would be short-term rentals in some areas where they are not currently permitted.
The bill was unveiled online last week at a forum and will be followed by another one in January. It will then proceed through various processes, including committees, and is expected to land at the full council by February if it all goes to plan.
The county council plans on intentionally including all interested parties in the process. One council person said, “We wanted to make sure we were walking everyone through these proposed changes, so we’re going to take our time with it.”
For the first online session, about five hundred people attended virtually of the nearly 900 who had completed the registration process.
Current vacation rental rules only apply to standalone (“non-hosted”) accommodations.
Those are vacation rental units now rented for from one to 30 consecutive days. The new law is set to have a broader scope and will move to regulate all vacation rentals of less than six months.
Hosted rentals with an owner residing on the property may be banned.
Previously, hosted accommodations were not subject to vacation rental regulations. There will now, however, be a series of rules and fees for those owner-occupied properties, including properties with guest houses, second dwellings, and farm dwellings. It also sets up rules and fees for those hosted rentals where the property owner also resides.
At this time, it appears the county intends to ban some or all such “hosted rentals.”
Limits on the number of vacation rental guests per unit.
The new ruling proposes to limit the number of guests per vacation rental as follows.
- One bedroom – two occupants, plus two extra occupants.
- Two bedrooms – four occupants, plus two extra occupants.
- Three bedrooms – six occupants, plus two extra occupants.
New rules for parties held at Hawaii vacation rentals.
In the event of a party, a vacation rental will be permitted to have up to twice as many rental occupants as is usually allowed. A party at the unit that includes those staying there could contain no more than double the number of people allowed to stay overnight (we assume that to mean for one night only). So the two-bedroom unit, with six sleeping there, could have a gathering of no more than 12 people, under the proposal.
More vacation rental owner fees to bolster county income beyond the current taxes.
Vacation rental owners will undoubtedly be paying more in fees going forward too. The county is looking at options for increasing its vacation rental-related income. You’ll recall that the county charges a 3% tax in addition to the state’s vacation rental tax, currently yielding nearly 18% in total taxes.
Vacation rentals in non-vacation rental zones.
It is being proposed that certain areas where vacation rentals are otherwise prohibited have vacation rental approval. Those include Hawaiian Paradise Park, Kona Bay Estates, Puako, Volcano Village, and Volcano Golf and Country Club.
From reading your comment it seems to say everyone has to bear your burden of incompetence that you never accomplished anything in your life. McDonalds and fast food restaurants were supposed to be for students/Teenagers to have an income, not to make a career working at McDonalds. I am born and raised in Hawaii and grew up poor but I said to myself, I will never live like that again. So please think before you write.
Please don’t respond, I wont read it.
Its our given right to do as we see fit with our properties.
Did any of you consider that maybe the County is trying to squash the plethora of vacation rentals because us locals can’t find a place to live? I have a friend, been in Hawaii 20 years, has to move to the mainland because she cannot even find housing, much less is it affordable. Do the right thing, turn your vacation rental into housing for those of us who live here otherwise you won’t have any local resources to work in the stores, restaurants, McDonalds, etc….then don’t complain when you try to go to McDonalds and it’s closed because no can find enough workers to keep open. COVID brought too many moved here, rents went up, gas went up, food went up…our salaries did not go up.
It looks like the county and or state of Hawaii is trying to capture as much money as they can in the way of fees and taxes. Since tourism is their number one industry I can understand why. However Hawaii needs to identify and make transparent how that money is being used and it should improve the infrastructure and services offered that benefit residents and tourists alike.
I was just informed by my STR owner that our reservation that we made 4 months ago for Maui must now be cancelled. Why? Because my family of 8 (my wife of 24 years, 6 children and me) is now considered persona non grata by the government of Maui. This is the second time our vacation to Maul has been cancelled (our 8 year-old tested positive for COVID the day before departure last year…of course, she never had a symptom but we had to cancel all of our plans at the last minute and some very disappointed children and frustrated parents…) So sick of the lunacy and corruption. This decision is short-sighted and has poisoned me against visiting HI ever again. Unless the Tourism Board can convince me otherwise I’ll take my money elsewhere.
I’m not sure I understand. Did they say Why you were now persona non grata?
If the state and counties want to make it vacation rentals illegal (but they can’t, that’s against our rights as an American citizen) then they should give us landlords the right to evict when people after the 30 day notice to leave and be able to have the cops remove the people from the residence at the end of that 30 day notice expiration date.
Also if taken to court for damages and back payment the county where the property resides on should give us landlords the power to secure our homes against long term damages resulting in loss of money per month and go after these individuals to force payment, I had to chase down a person that I won the case but the court told me I had to chase them down and the county won’t. Why are paying taxes
I think some of the reason for legislation was because many (not all) STRs were not paying any TAT or GE taxes like they were supposed to and therefore could rent at artificially lower rates. We’ve always paid the appropriate taxes on our unit for all rental income. It was included in the cost so we appeared to be charging more than the ones that weren’t. The STRS that aren’t paying TAT and GE taxes are the ones referred to as illegal STRs and I believe we’re the impetus for the hotels (who also paid taxes) to look to the government. And, yes, the hotel industry and government seem to be connected in nefarious ways, in my opinion.
Currently the County cannot enforce it’s building codes, building permits are difficult to get in under 6 months. What kind of intrusive enforcement will they use to enact this overbearing ‘State Control’ of our homes. This looks like Big Brother is living in your home telling what you can and cannot do. Bad Idea, Terrible, And bad for our economy
First, is Hawaii State taking away our right to see fit to do with our property? Last I noticed, we are United States. My property is on private land and none of my taxes are being paid to upgrade my area and when I complain about bad roads, the county tell me that they can’t do anything for me so why the increase when none of the funds will fix my roads, street lights or anything else. I feel that my rights are being stripped because Hawaiis politicians has interests in the hotels. I’m sorry but isn’t this progress to better visitors stays???? They don’t care about anything but what they can put in their pockets. This bill needs to be voted on by the public and not a handful of bias politicians to hurt people. M
Clay isn’t it amazing that despite an enormous influx of Monies from many sources that Council and County Departments can’t/won’t perform the needed work to Infrastructure? The Main Goal of Council currently is to destroy the STR Market by Legislating it to death while picking through the Bones for every Dollar that they can find. Collusion seems to be the driving force of Council, how are they compensated for their deviant behavior? Voters need to change Council, until then Attending Sessions and Challenging them is what’s left.
I have been running a legal hosted short term rental for years and paid all the taxes that my property, which i built from the ground up, generated for the state. Without my hard work and diligence to offer a safe and educational space, there would not be another affordable option for young couples and families.
I will probably not opt to pay more fees as that would mean i would need to raise my rates and I also feel it won’t continue to be worth it.
It’s a lot of work to take good care of travelers.
If this bill passes as written to charge hosted homes more fees, they can consider me closed and miss out on the $$$ thousands my place generates. Not worth all the hassle.
Elizabeth the Craziness that Council has forwarded hopefully will be slapped back into their very faces by the Judge in this upcoming case. The fact that Council is performing the dirty work for the Resort/Hotel/Time Share Industry is inexcusable. Another simple fact that Council Had To Lie to the Public as to It’s Motivation, cause and effect upon the populace, to generate support for the Legislation is in itself very telling. Why are these people on Council, what’s their purpose other than to Coddle and Forward the Profits and Future Profitability of the Rich and Powerful Resort/Hotel/Time Share Industry? At What Point does this Benefit the average Resident? 🤔 I just don’t see it happening! If it goes as planned, Elizabeth, it’s over.
The state, county are cutting their own throat by implementing more fees. This action will only stop the small business to bow out of doing the vacation rentals. They are the ones that bring the economy up in the small and large communities, plus they see what our Islands are all about. Hawaii is more than being advertised of white sand beach, swinging on a hammock drinking Mia tias
The Loss of neighborhood STR’S will have a ripple effect on the small businesses that gain revenue from the tourist/vacationing families which tend to shop more locally. Council in their bid to Abolish the Legal STR Market will be causing the damage without any consideration to Anyone. Unilaterally they’ve decided to take up the cause of Lost Revenues by the “Fragile and Decrepit” Resort/Hotel/Time Share Industry that can’t compete with the STR Market. Okay, We All Know Better than That! That, however, is how They and Council would like to have everyone believe. Attend meetings and Challenge Council to work for You and No Other Entities! Replace them all at the end of their terms with people that work for You only!
It’s going to make it harder for people to visit this beautiful island. But se Islanders it’s exactly what they want.
I hope everyone comes to a reasonable agreement. We are planning to visit the islands in 2024 hope e erupting is sorted out.
Mahalo
By the way, Why was this document ever sent to all Vacation Rental Owners so we could view what’s on the table and have the right to disagree with the terms, we already pay big taxes.
Guess my right is being ignored?
If it came from an official government agency it was meant to alert you of the upcoming changes, not for the opposition of it. If it came as part of the upcoming February Court Date it’s meant to make you aware of it and possibly join the parties forcing the litigation (other STR Owners). Council is used to doing what it wants and without any real opposition, therefore, defending this in court isn’t what they wanted. I’m not in the legal profession but still I am encouraged that Council will be walked back in these efforts by the Judge. Then I would attack the previous rules, fees,regulations where they are significantly over burdening. Can’t hurt but let’s see what happens. Council needs a slap down.
I am a registered vacation rental owner and I was never notified by the County of any meetings about Vacation Rentals? 2nd time.
The County failed to notify me on any issues about any Vacation Rentals issues so how can you vote for anything without all the Vacation Rental Owners, as stated in this web page over 900 Owners didn’t show for that meeting, Probably County never notified them as well?
I keep a clean and safe place for all my Guests that stayed at my rental and I have a Superb rating, better than a hotel, I do not offer food but I offer a full kitchen for my Guests as well as a Clothes washer and dryer. I started legal with the State and County and I feel like your punishing me for the illegal rentals? I have never been illegal
Are short term rental property owners voting? Seems like property owners have no say and it’s only up to the politicians to vote. Seems unfair.
In “Typical” Hawaiian Voter Fashion the Voter’s Ballots seated Council and then wonder why many things happen. Council is the deciding factor and seems to, in many cases, not only go against the wishes of the voters but they unproportionately support the Resort, Hotel and Time Share Consortium. No one other than Council decides, they are the only voters once elected and seated.
The County “should have” sent the notices via certified mail return receipt. If they didn’t then that is a good reason why so many owners didn’t show up, it was never sent! Council can elaborate all that they want, we have seen how they have previously lied to achieve their goals. Walking their “statements back” doesn’t change what they accomplished by saying that, it simply can’t because the damage is already done. Council Is the Ultimate Cause of the Problems and Must be Replaced as their Terms Expire, New and Trustworthy People need to be Elected. Good Luck.
Only corporate hotels are allowed to make money. This is another kick in the gut for the little guy and a boost to large corporations.
We frequent Oahu they have stricter regulations there trying to push tourists to the resort areas which then cuts out a lot of families from travelling and increases the cost significantly as they limit the number of legal short term rentals. A lot of tourism dollars will be lost if they don’t open up areas more, similar to what’s proposed here. I certainly wouldn’t have done as many trips if we had to stay in resort areas every time. We love supporting, spending time and our money in the smaller local areas (for me being a kiwi living in Canada is more real culture in smaller communities) vs the higher more expensive tourist hubs.Regulation is needed but balanced.
Tourists and Vacationers speak with Their Dollars and Preferences, If none of them Voice Fully and Forcefully let Council and the Court know that they Oppose this Enmasse, their silence will be heard as additional support for Council. Speak, Write and Be Heard!