If you like staying at Hawaii vacation rentals, there are more big changes upcoming.
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106 thoughts on “Hawaii Vacation Rental Proposal | Sweeping Changes, $10K Fines”
If you like staying at Hawaii vacation rentals, there are more big changes upcoming.
I’ve read the entire proposal and think you misinterpreted info. You wrote “At this time, it appears the county intends to ban some or all such “hosted rentals.”
The bill actually states on the first page “Transient accommodation rental shall be permitted when the rented dwelling is hosted.”
What Should happen is that there are more fees for people who don’t actually live or work in the community where they bought and rent out a vacation home. Why is the county overreaching and taking away from vpeople actually working, serving, hosting here in Hawaii and are giving people depth of an actual island stay outside of a resort? It’s ridiculous .
I’m curious how this will apply to my favorite rental property on the Hamakua coast, a 1 bedroom cottage on the property of a larger owner- occupied home. I would be very sad if it was no longer available due to this change…
Interesting news thank you Guys. Looks to me like the state is trying to get a better understanding of what’s going on within its tourist market.
Aloha
It seems that the resort industry is applying its leverage anyway it can with the legislature to curb short term rentals. Maybe the resort industry needs to focus on competing rather than influencing the legislative machine in Hawaii Not all proposals were bad but most seemed to be impeding an industry that does have a little room for growth while still maintaining respect for the island’s traditions and culture
It makes sense to regulate hosted- and non-hosted vaca rentals together.
Apart from that, the current bill draft is complicated, its goals and purposes are one sided, and the suggestion to open the last remaining residential areas on the island (via “vacation nodes”) to even more rentals means that these areas will completely be hollowed out. For example, in one typical Big Island beach neighborhood of about 150 TMKs, less than 50 are now owner occupied. This is a huge change over 10 years.
I invite council members Kimball and Kirkewicz to make a quick informal tour of Honolii, Keaukaha/Leleiwi, Waikoloa Village, Milolii beach lots, and Volcano and simply look for themselves how many houses have actual residents left.
Yes, and I have to wonder how many of those home aren’t even owned by individuals? for example, Vacasa owns/manages over 1,200 vacation rental in Hawaii. All that money that is generated by those vacation homes flows off the islands and into the corporate coffers.
That is a distinct possibility but remember that they are a Full Service property management company. They enlist Owner’s to provide a multitude of necessary services from collecting rents, cleaning and landscaping services, dealing with maintenance issues,etc. Do they own fixed assets as in realty? I’m not certain but would be surprised if they didn’t have some. Their Forte is in Management Services though. Money from that business is used throughout the entire business locations, some to continue expanding just like any other Sales/Service Oriented Business. I have contracted with a few property managers over the years, in Pa. they must be Licensed Real Estate Professionals which is very important for the Owner and Potential Renter.
Aloha BOH, thank you for another interesting article.
As a 23 year vacation rental
owner on Maui, I can say we have very similar rules. I think it’s to make owners collect and pay the taxes (GET and TAT), so I would not get too excited about it. The other taxes mentioned must be property taxes.
In Maui County vacation rental owners pay way higher property taxes than residents or those who long term rent.
We also wonder where all the tax money goes, but it is still a pretty excellent place to be.
Hope it all works out.
Mahalo
Lanall Hawaii County in my belief is offering a watered-down version of Oahu’s for reasons. Oahu and Property Owners will be headed to Court over the New Rules, Regulations and Fees which are completely out of line and entirely biased against all STR’S. As you have pointed out STR Owners pay Substantially Higher Property Taxes compared to other property owners. Oahu is the same, however, much Higher before any additional Cruelty from Council. This is all about eliminating every bit of Competition to the Resorts and Hotels in every County within a short period of time. There seems to be a solid Alliance between that Industry and Hawaiian Politicians that benefit themselves but not residents or the entrapped Tourists who pay heavy prices.
Hi,
We are just completing a delightful 3 plus week Thanksgiving vacation on your beautiful Garden Isle. The good news: as we expected, after 30 plus years of visiting many of the islands, we again experienced only warm aloha spirit when we went to local farmers markets, ate at restaurants, shopped at Foodland, enjoyed the many parks and beaches and toured sugar plantations and irrigation canals by inner tube!
The bad news: what is up with the abandoned and burned out cars along the road to Hanalei? We noted at least a half dozen between Kapaa and Hanalei Bay, one of which was burned out in the parking lot for the beach north of Kapaa…
Aside from the environmental concerns, what kind of message does this send about law enforcement?
It seems like it’s a multi-faceted Failure with Law Enforcement being a part of the problem. Why are the vehicles still there? Are eyesores better than the Island’s beauty? Possibly someone could ask the County Council. Law Enforcement should be patrolling that area, they should also be investigating who owns the vehicles and how they became abandoned and in there current state. Poor job all of the way around!
I think the County is well on the way to killing the goose that laid the golden egg.
We have been coming to the Islands for years. We have been to just abt all the islands. Loved each and every one for their uniqueness.
Change is for the most part good, but given the changes that are being enforced, questionable!
That Goose along with the gaggle of Geese working behind the scenes were recently discovered by authorities in what they are describing as a Horrendous Scene of Carnage the likes they have never before encountered. What had been thought to be a massive Murder/Suicide Pact has now turned to an inventive Murder Scene. The Goose has been sending the golden eggs to deserving countries and giving the Hawaiian Government simple Pyrite. The Governor refused to comment! The remains will be disposed of After Christmas Dinner in Hefty 2-ply “carcass bags!”
A laugh at individuals taking these new rules seriously.
Hell Hawaiian authorities already don’t enforce most current short term rental rules. In time when the heat dies down you’ll see short term rentals go under ground cash only transactions circumventing the system and paying no taxes.
He’s the enforcement you’ll see….Enforcement officer “Aunty we been getting complaints about your on the side vacation rental just keep it down I don’t want to do all the paper work. By the way we still on for Uncles big party this weekend”
Tell me that ain’t how it will go down.
It seems as if they are attempting to work their way around any, and all, objections that could arise from the February 2023 court case in Oahu County. Without any surprise to most anyone they will be adding to the already ridiculously high Fees and Taxes already charged to STR Property Owners. The limitations on the amount of occupancy does make plenty of sense, will there be Enforcement? Ultimately Hawaii is using this to line their coffers while penalizing the STR Market.
The way I look at every tourist brings major income to islands,groceries,car rentals etc.
If we get taxed to heavy I am vacationing back to Mexico a lot cheaper. hopefully you get it.
Tourists bring income. True. “Every tourist brings major income.” Totally untrue.
What a Profound comment. Reality is that was the original approach, ideally every tourist would bring vast riches to spend but reality stepped in the way and they all were aware that “Collectively” the wealth would appear. Everything went well for a while. The formula reaped immense wealth but now the greater problem which was addressed quickly, quietly, Power! Now they need more, Eliminating All Competition. Thanks to all of Their advantages in Political Circles they will decimate the STR Market then every Buck will come to Their Pockets. No reasonable options will be left for tourists. That’s the plan and it’s well under way.
This will adversely affect people such as I with family living in towns like Kailua where there are no hotels and only rentals.
Aloha Beat of Hawaii!
I read through all the nonsensical documentation issued by individuals that are supposed to be there to represent all of the people.
I have one question, did I miss the bathroom rules?
I have a suggestion for the vacation rental bathroom rules.
One bathroom, 2 people plus two more people, if the owner is there nobody uses the bathroom.
Sorry, I can’t help myself.
You’re such good humans, to put up with me like you do.
Stay safe and blessed 🌺
To conserve precious resources, water, are they suggesting eliminating the “courtesy flush” and subjecting oneself to the carcinogens in certain airfresheners? Do they regulate the fragrance?
We don’t need anymore restrictive laws and giving local government power to disproportionately harm local people affected by this proposed bill. Agricultural farms, low and middle income families relying on these rental income will be subjected to unnecessary fees and procedures. I hope the people of Hawaii rise up and kill this bill before any traction is made. A fiefdom is being created here to have power over the have nots and more money for the rich hotels and resorts.
I would request that the council consider allowing a resort/use fee be added onto TAR rental agreements which would be collected by the rental agent or the individual owner. This would offset expenses to the HOA’s for any wear and tear done to the shared facilities by the rental guest.
It seems the powers that be are determined to price an island vacation out of most peoples budget.Between the tax increases and the ever increasing number of Fees that the private rental outfits are charging it doesn’t feel sustainable. In the couple weeks I’ve been here I’ve never heard Mexico mentioned in so many conversations. We’re heading down there in January 😎🤙
When Vacationing in a Beautiful place like Hawaii, whichever County, the last thing one would expect to hear from so many tourists with any consistency is a different Vacationing spot. This is the problem that Hawaiian Council’s and Governments have brought to the forefront with the Ever Increasing Prices and Fees along with how the immediate Climate has become towards Tourists from the “other 49.” To hear that “we don’t want You here” in so many ways will spill over to tourists from other countries. Hawaiians want Everything except what they Need, without money Everything will Grind to a Halt, the State cannot Afford to Pay for Hawaiians out of work and allowing them to “Play in the Sand and Surf” all day for very long.
I definitely agree with the new rules thank you.
This new proposal is awful. People have a right to rent space in their hosted homes without overbearing government overreach. Many, if not most here do or are indirectly supported by the income generated directly to residents here. Think about who gets the money from these hosted rentals (it is the people in our community that we should be supporting with more income instead of off-island hotel corporations). Legalize locals making money and put more regulations on the hotels and individuals siphoning off the tourism revenue to off shore places. Any politicians associated with it’s potential passing should expect to be removed from office!
Maty D this problem, along with many other, should have been a deciding factor when citizens voted, instead people voted for the same thing as they have so many times. IF a change occurs, every dozen years or more, it’s out of Desperation, and the Newly Elected ina term or two get everything running correctly then get voted out. The Reality is that Hawaiians Vote to Destroy Themselves. There’s a Two Party System for a reason and Alternating back and forth has Benefits, allowing it to survive as they do really doesn’t in the long run. I’ve Never seen Islands Sink, will the Hawaiians keep sinking in Red Ink until they can’t float anymore? To be Determined by Hawaiians.
I’m holding back laughter while writing, those who should have been defeated over this were just re-elected! Issues really don’t matter to Hawaiians when Voting. Much needs to happen for the betterment of the residents, Culture and Islands but isn’t happening with the current leaders. Maybe one day it will occur but I wouldn’t hold my breath waiting. I’m for Good Governance and will vote for the Best Candidate and it’s time for Hawaiians to do the same for their own good, their children’s too.
Eighteen Percent! Oh well, more gouging by the government. Of course they will allow it in private neighborhoods if it gives the county cronies more money in their coffers!
Ever Increasing Taxes and Fees, surely the Local and State Governments must be using all of these windfalls of Cash to build Affordable Housing. I’m beginning to imagine Sherwood Forest and Robin Hood but the Hawaiian version has the Sheriff of Nottingham Winning and Robin in shackles. Two Thieves but One has the Authority to be, certainly Hawaiian Authenticity. There’s Many Lessons to be learned from this but will they be, or just people mocking, laughing and deriding?
I believe there will be exceptions for owner’s primary residence. I listed to the zoom call twice and believe the speaker emphasized that if an owner rents part of their primary residence as AirBNB, they can still apply for non-conforming use permit. However if someone owns a second home on the Big Island with a “caretaker”/ property manager on site (also known as “hosted” rental) as some homes have, then the new rules will apply.
AirBNB on ag land will also be banned, but those in residential areas allowed. Many ag land properties have several buildings, all used as Airbnb’s with a caretaker on site, thus falling under the formerly protected group of “hosted rentals”.
Having someone Act in your Best Interests as a Property Manager is a Requirement in the case of a Part Time Residence/Part Time STR. The Property Manager doesn’t live at the property but the Owner will now be subjected to additional costs beyond what they already pay, how “Special” is that? Following the Money needs to be done, an Excellent Forensic Audit from a Top Mainland Firm would be the Best way to Start. The “Squirming Worm” gets eaten first! Make them squirm.
Hawaii County needs to take a close hard look at the preliminary injunction issued by a federal court preventing Honolulu County from implementing most of its new anti-short term rental law. Hawaii County’s proposed law won’t survive a constitutional challenge.
So, by most you mean one, right? “The injunction focuses on one aspect of the law that increases the minimum amount of time a unit can be rented without a permit from 30 to 90 days.” It’s also a preliminary injunction, which means they just paused implementation of that single aspect of the new law. Honolulu is still moving ahead with all of the other aspects of the new law.
Actually you have either misread or have been misinformed as to what is being challenged as well as the portions. The 30 to 90 day Rental change would Force STR’S to be Rented to people for 90 days straight. Currently it is 30 days to the same people. The Increases in Fines, Fees, etc. are Also being challenged in Court. Why are None of these Laws and Changes effecting the Entire Rental and Timeshare Market in Hawaii to the same extent? Imagine how None of this would be happening. They All are a part of the Same Industry.
Hawaii County is attempting to circumvent what may be the end result after the trial. Attempting to be more reasonable in their approach they are hoping to squirm their way through. Yes it is more reasonable yet should it be wholly implemented, eventually governing the entire Hawaiian STR Market? Leaving this question to Council’s and State Government has already shown Hawaiian Political Greed, maybe the Courts should examine other alternatives that are more beneficial to Property Owners without giving them Free Reign! I Know that there are Better Ways!
Ernie, you seem to feel strongly about this. Where in Hawaii do you live that this will effect you?
I have Family that lives part year on Oahu, they bought the property about 15 years ago. It is a STR the balance of the year, where it is located and the size of the home would definitely make it out of the reach of most people because of the price if it were for sale. I think about them and all Hawaiians, how it effects everyone negatively in the end. I think about the need for, and lack of, Affordable Housing that should be plentiful with all of the Money coming in. I Vacation in Hawaii but live in N.E. Pennsylvania. Other than Caring I have no skin in this, hopefully this answers what you should know. Take Care, God Bless You!
I asked, because I’m trying to get a handle on your perspective. We all have different ideas depending on our own circumstances. I think that if you own an STR property in Hawaii, that’s one perspective. However, it’s not the only one. For example, I don’t currently own property in Hawaii, but plan to retire there in a few years. What I’ve be interested in hearing in the perspective of people how live in Hawaii. I know that the affordable housing issue is real based on some conversations I’ve had with people who live there. I’m not sure making it easier/cheaper to rent out your property would help since, quite frankly, most of that money ends up going to the big companies like Vasaca and flows off the islands.
Reducing prices for affordability to others won’t make that much difference and will simply take a small number of people off of the search. The losses incurred by doing so will hurt the individual owners more than anyone realizes. I know many that live on Oahu but primarily in more exclusive, expensive, areas. They truly love living there but remember that everything does cost much more. It’s a more laid-back lifestyle, despite being a smaller island It’s amazing how much there’s to do. Due diligence when looking at properties will serve you well and help you enjoy your retirement years. Most people are friendly enough and soon you’ll find friends who share interests with. Staying out of politics may be best, if you can.