The rules are ever-changing for Hawaii vacation rentals, and now it’s the Island of Oahu’s turn. It means that areas like Lanikai seen in the lead photo will no longer be hosting short-term guests. This started when the Honolulu City Council approved a controversial new bill that extends the minimum booking period for some rentals to at least 90 days. That is unless the federal court sees things differently.
What this ordinance will do, in effect, is to eliminate almost all short-term vacation rentals on the island, except for those that are in specific resort zones.
The areas that remain permitted, with rules unchanged, include Waikiki. Also, there are some areas in a number of other Oahu towns that also continue to qualify for short-term rentals. Those are Ewa, Kahala, Koolina, Kuilima, Laie, and Makaha.
So this answers a question posed by one of our readers. Regular commenter Gloria asked, “I believe the 3-month rule is only for new condos…others have been grandfathered in. Beat of Hawaii, can you enlighten us please?” Here’s what we know.
The ordinance is due to go into effect starting October 23, 2022.
1. Those units that previously qualified as minimum 30-day rentals may continue to be rented as-is until April 23, 2023. At that time, all such rentals must either convert to a 90-day minimum or stop renting.
2. Rentals to which this new ruling applies must state: “this property may not be rented for less than 90 consecutive days. Rental prices will not be reduced or adjusted based on the number of days the rental is actually used or occupied.”
3. Vacation rental occupants are required to park on-site and not on public streets near the rentals.
4. The areas in Honolulu where no-minimum stay, true short-term vacation rentals remain permitted, with their rules unchanged, are listed below in purple.
STR_WaikikiThe bill’s language describes the issues being addressed.
“Short-term rentals are disruptive to the character and fabric of our residential neighborhoods, [and] are inconsistent with the land uses that are intended for our residential zoned areas and increase the price of housing for Oahu’s resident population by removing housing stock from the for-sale and long-term rental markets. The City Council finds that any economic benefits of opening up our residential areas to tourism are far outweighed by the negative impacts to our neighborhoods and local residents.”
So not only are rentals being severely limited, but language is mandating that each such extended-stay vacation rental has its own private parking.
It isn’t only some residents that are happy about the planned legislation, but so too are the powerful hotels that are seeking to curtail competition from Airbnb and VRBO.
Towns most affected by the ruling.
Kailua, Lanikai, and North Shore towns, among others, will be among the most impacted and are set to require that visitors stay in authorized hotels and B&Bs. So the rental where President Obama stayed in Kailua during his time in office is no longer going to be short-term. And the Airbnb your editors stayed at once in Kaimuki is the same. Then there was a fall wedding editor Rob performed at a North Shore rental that can no longer do short-term under this law.
Not so fast: Hawaii vacation rentals move to U.S. District Court.
An association formed by rental property owners has gone to federal court to block the enforcement of the new ordinance.
In a lengthy complaint filed in Honolulu’s U.S. District Court, the Hawaii Legal Short-term Rental Alliance claims that the City and County of Honolulu has violated the rights of its members who have been legally renting their properties “for years, and in some cases, decades,” under laws and protections afforded under the Hawaii and U.S. constitutions. The organization says that it represents at least 1,000 rental properties.
The case contends that any legal rental that existed before April 2022 should be “grandfathered,” permitting it to continue operating in perpetuity, as before. “The right to own and rent property is a fundamental right under the United States and Hawaii Constitutions and Plaintiff’s members and others similarly situated have property interests in the ownership and use of their properties, for purposes of vested rights, takings, and due process.”
30-day minimum Hawaii vacation rental law started in 1985.
The law previously established in 1985, sought to ban those Oahu vacation rentals located in non-resort areas, for any rental less than 30 days. The problem was that these units allegedly became unenforceable, with the proliferation of online booking portals like Airbnb and Vrbo. The new law claimed that based on those websites, up to 10,000 new rental units arose on Oahu. These were largely in areas that had very limited hotels.
While a cottage industry started that benefitted renters, homeowners, and others employed in the businesses, there were problems that surfaced as well. Those opposed to these rentals claimed that residential neighborhoods were turned into resort towns, which reduced the already limited local housing stock and eliminated hotel jobs. HTA estimated that 25% of North Shore homes had, for example, been converted into vacation rentals. Influential Hawaii hotels tried to pressure Honolulu into enforcing the 30-day ordinance, which the city said it was incapable of doing.
There may be some exceptions.
Regular commenter Lanell pointed out that there is a list of possible non-conforming exceptions to the new ruling. Those locations are found here: https://www.honolulu.gov/dppstr/approved-strs.html. Thanks Lanell!
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Resorts are expensive for a big family you need two rooms just to fit everybody.so its gonna cost double. And not only that the time share harassment that you may go thru is and can be a true money gauging challenge they wont you to go through. And the restaurants around resorts are expensive. vrbo is fun to explore and reasonable prices. and the family stay together and not in separate rooms.
I love this! But know tourists won’t, and short term rental owners won’t be happy. ! I applauded Tahoe for doing this recently (they went to minimum of 30 day rentals for a lot of residential short term rental homes) and my friends who live there have seen a lot of housing open up for residents now (affordable because they are no longer competing.) This will push all the tourists on the islands back to the hotels (where they should be), instead of in residential areas…freeing up streets, parking and traffic on the already poorly maintained roads and potentially freeing up housing at affordable costs for locals.
If they can’t enforce 30 days how are they going to enforce 90 days? Granted the volume is likely smaller.
If we did t have family on Oahu we’d never come because its too expense to stay in your hotels. Especially when you have a large family.
Nice to know Hawaii is being run by big hotels but whatvekse is new. Good luck with that.
Well, mahalo, this may explain why I’m having such difficulty securing a place in Oahu this November! I’ve had the strangest experiences on Airbnb, like hosts ignoring my request to book, ignoring messages, and sometimes upping the price after the 24 hour window expires, but not even offering it to me at the higher price. It seems like a zombie apocalypse hit! LoL I usually I get a positive response within an hour of requesting to book! But the past 5 days I’ve been looking everywhere on the island, hoping someone will respond. I even looked into a treehouse, but that was a 30 day minimum, and the owner told me I could book it for a week on another site, but then he ignored my request there!! Oh I hope this broken system gets fixed.
Another crazy idea brought to you by the Hawaiian Government.
I’m staying tuned to the real estate & housing rental costs becoming affordable for residents when this all goes into effect. Not sure who will be able to purchase them since the majority of families have members earning their salary from the visitor industry. Managing tourism for sustainability of the land & reefs is important. Also, important is the sustainability of the people preserving their incomes to achieve the goal of buying these affordable houses that are to hit the market.
New, Ordiance. Reduce, Travel. To, Hawaii
There are still plenty of lovely places to stay short term.
It just keeps getting better and better.
If I pay Thousands of Dollars to go on a vacation, the last thing I would want to do is have any of those funds being used for me to work while on vacation. Look up the definition of the word “Vacation”!
At what point are these rentals no longer considered tourist stays and no longer subject to hotel taxes? Many years ago, I had a friend who owned a condo in Florida. There, if a rental was for more than 181 days, it was not subject to hotel taxes. He rented it to someone for 181 days, with the condition that they could only really stay there for 90 days, when he would go. There are other residency related concerns, such as when someone needs to get a Hawaii driver’s license and to be subject to Hawaii income tax. If people rent for 90, but only stay for 30, is this really increasing local housing stock or causing a wastage?
I really don’t think lying is ever the good choice.
Amen Peggy! Using “creative” ways to get around rules, or laws, is always a bad idea.
Good Point! Powers that be only care about votes, not common sense
We are going to Oahu in July of ’23 for 1 month. Been promising our 14 year old granddaughter since she was 2! We stayed in Hauula for 1 month back in ’04 & fell in love with Hawaii! I love condos/vacation homes. Refuse to do Airbnb’s! This will make tourism all but vanish, which is what I think locals want. Be careful what you wish for! What person goes on vacation for 3 months at a time? No one I know can afford that or has a job that offers that! Not all of us tourists are rude. I love the islands!
Apparently, they think most of us do.
I’ve had a rough time with Airbnb lately, where do you look for condos and vacation homes? 🙂 Mahalo
Your paragraph 1 says those with valid 30 day rentals can continue to April. Do you have any support for that? I thought the entire bill goes into effect October 23.
I’m loosing my rented condo that’s on the ocean side of Kuhio Av. Good luck finding anything close to the beach in Waikiki. You can’t blame the owners because it was a business decision ! Greed fuels everyone, Airbnbs ought to be outlawed completely. Give local people a place to stay. If you own a one bedroom condo in the purple zone, you can now retire on that income alone. I’m just an old guy who loves the beach
Wow, I can’t believe the people that say none of the air bnb owners don’t live in Hawaii. Do you think the Hotel owners live in Hawaii?
It’s a different argument altogether, apples vs. oranges. Hotels employ people who live on the islands, generate tax revenue, and don’t take away housing stock. They contribute to the economy in many ways and always have. They can also be relatively easily limited by law. Losing limited resources like homes is not good for the islands now that investors have figured out the schemes they’re using (Pacasa is another really bad example, and look at the monster STR “hotel” being built in a residential neighborhood on Maui). If they aren’t stopped, this is going to be nothing but bad for Hawaii residents. A few less billionaires buying up thousands of acres wouldn’t hurt, either – I’m looking at you, Zuckerberg.
90-day minimum is over reaching, especially in condo buildings and especially throughout Honolulu. Who drew the lines around Waikiki? The condos between the Prince and Hyatt are ok to be shorter term, but the condos across the street on Ala Moana Blvd can only advertise for 90 days. Across the street! Same style of building.
Whatever happened to month-month rentals? Long standing tradition.
Many older owners make ends meet with short term rental income.
Many Mainlanders want to use their condo some of the time,but cannot afford the HOA fees and property tax on 2 homes, unless they rent at least one out part time.
The tenants must obey parking, HOA and city laws; not fair to blame the owners for a few rude vacationers. End 90-day minimum!
I’m unable to shed a tear for owners of “two homes” that can’t afford mortgage & HOA in their luxury condo unless they rent it on Airbnb. When so many locals are 3 generations or more deep in one house. I mean these business operators don’t even want to have annual renters
The only people griping about this are the people destroying the communities with airBnBs. The normally aren’t from the islands and they just want their money no matter who they affect. If we cut out the airBnBs it solves overtourism as well as the housing crisis.
Hope this goes through, and spreads to the Big Island. We need more long term rentals for long term residents.
This problem is happening throughout the country. I know Lake Tahoe had the same problems. What it gets down to are zoning laws. Why should residential neighborhoods put up with people running a business out of a home next to them. You can get 20 college kids who rent home next to you and they party all night long, that didn’t fly up at Lake Tahoe either.
Aloha Guys
As a homeowner with a Ohana unit – I refuse to rent full time – it takes an act of God – to evict problem renters – they have more rights than owners do – my property – I should decide who and how long
Kim P, I would think exceptions could be made for owner operators who rent an ohana, or a room, the way AirBnBs used to be when they started. Maybe a limit to how many days can be rented in a month, the owner has to be present on the property, something of that type. It’s the commercial operators who don’t live on the islands who need to go, the ones with multiple units, etc.
Amen! government has made it hard for homeowners to manage their own properties! can’t convict someone for not paying the rent, still have to make a mortgage payment, and property taxes, governments just don’t want to get it, basically because it doesn’t affect them, easy to say do what I want, not as I do. Never own a rental in Seattle! UGH
The Government at its worst!
As a property owner and resident of Hawaii, I think property owners should be able to rent their homes however they want. It’s the renters that must comply with rules and assimilate into a neighborhood…nobody likes loud parties late at night in an otherwise quiet neighborhood. It’s always a few bad apples that spoil the pie for everyone.
I get this. If I had purchased a home in a residential neighborhood, I wouldn’t want a constant influx of new “neighbors.”
The use of the homes was totally within the confines of the rules. However, if you did purchase a home in Hawaii, it would be up to you to do your due diligence and see what the rules were prior to making the purchase.
Ed
What about families that have had homes for years before these rules? Many island homes have been in the family for generations.
Why should these people have transient neighbors?
One of the many wonderful things in my Maui neighborhood is that we know each other so well. It’s like a large ohana. We look out for one another.
Short term rentals kill that. Little to no respect for neighbors. They are only there for a good time.
Chris, it is unfortunate that the ones that have been there for generations have to be subject to these rules. But what happened that allowed these rules to be instituted in the first place? Didn’t any of the people who have lived there for generations attend the council meetings that no doubt led to these rules being established in the first place? That question needs to be answered. Why did the Locals allow these rules?
Depending on where the house is located you may find that Zoning could become a legal issue.
Hawaii is once again going to shoot itself in the foot. Where are people traveling for work going to stay? I am not talking the week or so with a conference but people staying 30-90 days such as contracted travel hospital employees? As a travel nurse, I can tell you the pay in Hawaii is wayyyy below the mainland. The hotel prices are WAY above compared to the mainland. I don’t mind breaking even or losing a little but I will stop taking contracts if I am going to lose too much.
Chris R., Your comment is a very legitimate concern for you and yet there are down votes to it.
Chris, FYI, I just read an article on the Hawaii Living website about this bill and it said there may be exceptions for temporary workers like traveling nurses, as well as other circumstances. Here’s what it says: “ Will The City Allow Special Rental Term Exceptions?
Some rental terms shorter than 90 days in residential neighborhoods may be allowed for temporary contract workers, traveling nurses, buyers and sellers waiting to close on new homes, others whose homes are undergoing renovations, and other special cases e.g., off-island family members who care for loved ones. This is subject to an application and approval process which the city will clarify before 10.23.2022.”
Well, Hawaii is doing its best to dissuade tourists. Its just one more straw that will make people realize that Hawaii does not want their business and will take it elsewhere. Actually if you are even half sane you will be looking to go anywhere else but Hawaii. The people there hate anyone not Hawaiian and it shows. Even though they say it isn’t true. You can literally hear the grumblings almost everywhere in Hawaii, and many Hawaiians are quite vocal about it. I got married on Kauai 11 years ago, but will more than likely never go back again after the last encounter with a Hawaiian girl yelling at us to get off the beach and to go home. I had to laugh because she was driving a Chevy from the mainland…..
You bully people long enough….
” The people there hate anyone not Hawaiian and it shows.” Looking at demographics, I draw another conclusion. I’d say it’s an I-got-mine attitude.
Wikipidia: The racial makeup of the county was 43.9% Asian, 20.8% white, 9.5% Pacific Islander, 2.0% black or African American, 0.3% Native American, 1.1% from other races, and 22.3% from two or more races. Hispanic or Latino of any race were 9.1% of the population. The largest ancestry groups were: 15.7% Japanese.
Amazing how you had 3 down votes when I wrote this reply. I guess the truth hurts if you are a Hawaiian! Fortunately, we have never received any negative contacts, or run-ins with any of the locals. But that does not mean they do not happen. No matter where any of us go, we should always be respectful of the Locals and they should, in turn, be respectful to the Tourists!
Words to live by!
Here we go again…….Hawaii why don’t you just stop all visitors from coming to Hawaii…..problem solved !!!!! Hawaii you lost your Aloha.
Hawaii wants government to control everything
I guess history will repeat itself and they didn’t learn 100 years ago not good to give up control to tyrants
This is good news. Hope it is enforced. Too many locals can’t afford housing due to investors. Hopefully this will make more homes available on all the islands and lower home values to a more realistic level
I agree with you 100% Chris S!!! I hope this is precedent-setting for the entire Hawaiian islands and for the mainland. I live near Nashville, TN and we have the same problem here – investors and huge companies have bought up so many houses in residential neighborhoods for STRs that prices have risen astronomically due to low inventory. This is not sustainable for any tourist city, and particularly a place as environmentally fragile as Hawaii. As has been discussed here many times, cheap airfares + cheap rental accommodations also bring problems Hawaii hasn’t seen in the past. Balance needs to be restored so Hawaii residents, particularly those in the middle and lower class salary-wise, can afford to purchase homes and live on the islands.
I’m confused – what in Hawaii is not tied to tourists- everything is – Hawaii has nothing to sell the world to justify any commerce to the outside – long boat ride to sell a 12pak of Pepsi to Hawaii and have an empty boat back –
I stayed at a timeshare that was on the “non Resort Mixed Use Precinct” of Kuhio last November. How are these timeshare’s on that side going to comply with this new ordinance? I’m not sure if that timeshare had full time residents or not.
Hopefully there will be some reasonable outcome for this.
I had seen a list of buildings, or maybe units in those buildings, that are excepted from the rule but I cannot find it now! We used to stay in a timeshare in Ala Wai, which was in the list. Another building is Waikiki Banyan, near the zoo, which was excepted. I’d be interested in seeing how these will be handled. They’ve been STR for decades.
As someone else said, quite a complex issue.
BOH, thanks for another interesting article!
Lanell
Hi Lanell.
Thanks! Please let us know if you find that list.
Aloha.
I believe this was it:
honolulu.gov/dppstr/approved-strs.html
I can’t say I understand exactly what is being said on the website, I think it is a list of exceptions. I would have expected it to be much larger. The building I mentioned, Fairway Villa, appears to only have two units listed and it is a huge building.
As always, I’ll be reading your articles and looking forward to more info on this topic.
Lanell
Thank for looking into this issue. It’s an important development for tourists because now most of us will be limited to hotel stays… which, of course, are more expensive and don’t include cooking facilities. (Many don’t even have mini fridges these days) Please keep us informed on the future of this lawsuit. I’m wondering if they will postpone enforcement while this is under legal questions.
Hi Sue.
Thanks. Yes we will update this as soon as there’s any additional information.
Aloha.
This is a very complex topic. I’m not for changing the rules on existing rentals unless they were started illegally, in which case it’s not changing them it’s enforcing. I do understand how it might effect the neighborhoods. I wouldn’t like it. Ruins the feel of the neighborhood. Getting to know your neighbors and in sone cases, I would expect, feeling safe in your neighborhood. I am curious about the line regarding pricing. I wasn’t understanding that. To change to long term rental, price has to come down in many cases or doesn’t help locals much in my opinion. Mahalo, enjoy Beat of Hawaii
What this means is that some owners attempt to get around any minimums by advertising, say, a month minimum, but then actually renting their place out for a shorter period of time, giving the guest a discount for the shorter stay. So, for instance, they would advertise for a month for $4000, but actually rent it out for 3 weeks for $3000. That verbiage you see attempts to prevent that practice.
Wasn’t the 1-month minimum for these same short-term rentals passed previously? Is that being fought as well?
Hi Pat.
The 30-day rule for these same rentals is years-old. But Honolulu says that it wasn’t enforceable. We aren’t aware of any disputes regarding that.
Aloha.
I wonder how they think 90 days will be easier to enforce? I think it will send more people renting illegally. Meaning not paying their taxes on rentals. I’m not against protecting the neighborhoods and prices so families can afford to live on the islands, as I said before it’s a very complex topic.
Your local government at its worst.