For starters, the article's headline reads: "Honolulu will require 90-day minimum stays for Airbnbs and short-term rentals outside resort areas in October." Honolulu is one of four counties in Hawaii, so the comment about it being applicable to Hawaii was incorrect and very off-base.
Each county regulates short term rentals differently. Honolulu has been very aggressive in their efforts to limit the available inventory of short term rentals. In my opinion, even without this new law, it is not a great market because the numbers don't pencil out. There are way too many hotels on the island.
Maui, Kauai and Hawaii Island each have their own regulations. Maui's is all about how the property is zoned and what the HOA by-laws allow. If both are aligned, then you can close today and start doing overnight rentals tomorrow. The other two islands have designated visitor destination areas where STR's can operate so long as they have a valid permit.
I agree with @John Underwood - we had managed about a dozen lease arbitrages in specific buildings in Waikiki, HI that allowed for it, but ended up turning them back to the lessor earlier this past summer. As one of the biggest travel-destinations in the world, the Hotels win.
Maui seemed to provide a different perspective on the regulations, however.
Essentially attempting to wipe out the people who would party or be a nuance to the neighborhood. I think it will wipe out a lot of people's airbnb business
Typical of a state like Hawaii.... Makes no sense to even call it a STR anymore. I'd either move my assets to another state, or turn it into a traditional rental...
Typical of a state like Hawaii.... Makes no sense to even call it a STR anymore. I'd either move my assets to another state, or turn it into a traditional rental...
That’s where your knowledge about STRs needs sharpening. Not all of Hawaii is like Waikiki. As in any market, know the local regulations. Each county in Hawaii regulates them differently.
90 days it too long and I would fine markets that are cheaper than can allow 3-7 day stays. That's where you make the bulk of your money in peak seasons.
90 days it too long and I would fine markets that are cheaper than can allow 3-7 day stays. That's where you make the bulk of your money in peak seasons.
This is NOT a new law in Hawaii. Do your homework, don’t always believe what you read that others put out there. Some areas on Oahu have minimum stay requirements but there is a lot more to Hawaii than just Oahu.
Typical of a state like Hawaii.... Makes no sense to even call it a STR anymore. I'd either move my assets to another state, or turn it into a traditional rental...
That’s where your knowledge about STRs needs sharpening. Not all of Hawaii is like Waikiki. As in any market, know the local regulations. Each county in Hawaii regulates them differently.
I wasn't talking about STR regs. I was talking about the general 'Blue State' attitude. Y'know, long-term vs short-term tenant rights....? Don't assume things.....
Hey @Mark Waite, so explain it to us. You seem to have the knowledge about what is going on. Break it down. Better than just telling everyone they are wrong and should sharpen their knowledge. That is the whole point of this forum. Share what we know. So, share.
For starters, the article's headline reads: "Honolulu will require 90-day minimum stays for Airbnbs and short-term rentals outside resort areas in October." Honolulu is one of four counties in Hawaii, so the comment about it being applicable to Hawaii was incorrect and very off-base.
Each county regulates short term rentals differently. Honolulu has been very aggressive in their efforts to limit the available inventory of short term rentals. In my opinion, even without this new law, it is not a great market because the numbers don't pencil out. There are way too many hotels on the island.
Maui, Kauai and Hawaii Island each have their own regulations. Maui's is all about how the property is zoned and what the HOA by-laws allow. If both are aligned, then you can close today and start doing overnight rentals tomorrow. The other two islands have designated visitor destination areas where STR's can operate so long as they have a valid permit.
That's what I am talkin' about @Mark Waite. Thanks for the clarity. We started looking in various areas in Hawaii, but no matter what, I never found one that looks great. The pandemic rules in HI were among the most restrictive so I am glad we didn't put any $$$ there.
That's what I am talkin' about @Mark Waite. Thanks for the clarity. We started looking in various areas in Hawaii, but no matter what, I never found one that looks great. The pandemic rules in HI were among the most restrictive so I am glad we didn't put any $$$ there.
You should have purchased. My rentals in Kauai have easily 2x'd since covid hit. Its counterintuitive but wealthy work from home techies used Kauai as an escape from Californias draconian lockdowns and purchased all the inventory at insanely high prices. Now comps are through the roof and if you add in the recession and state of the economy and a lot of wealthy people are paying top dollar to move their assets to luxury real estate.
Even if you had to float your payments during the lockdowns youd be waaaaaaay up today. And you could have done what I did, and enjoy the beaches in Kauai basically to yourself while enjoying the down time.
For starters, the article's headline reads: "Honolulu will require 90-day minimum stays for Airbnbs and short-term rentals outside resort areas in October." Honolulu is one of four counties in Hawaii, so the comment about it being applicable to Hawaii was incorrect and very off-base.
Each county regulates short term rentals differently. Honolulu has been very aggressive in their efforts to limit the available inventory of short term rentals. In my opinion, even without this new law, it is not a great market because the numbers don't pencil out. There are way too many hotels on the island.
Maui, Kauai and Hawaii Island each have their own regulations. Maui's is all about how the property is zoned and what the HOA by-laws allow. If both are aligned, then you can close today and start doing overnight rentals tomorrow. The other two islands have designated visitor destination areas where STR's can operate so long as they have a valid permit.
Go hit up the Navy Base Housing, have your place listed (they’ll need to inspect) and switch to MTR/LTR for personnel waiting for Navy Housing in the area.
It may get a little confusing to some. Honolulu County is all of the island of Oahu. Hawaii county is only "da big island" of Hawaii. Originally everyone and their mother had an STR wherever... Then, Oahu (honolulu county) limited STR's to only resort zones such as Turtle Bay, Waikiki, and a couple other spots. Similar things happened on the other islands, but to what extent I don't know. I think it's still this way. A friend built a place (for STR) near Hilo (on da beeg island :) ) and with a flick of a pen, a politician made his STR useless. Oh well. I think he uses it now to dry his fish on the roof.
More regulations hurting STR's on Hawaii. Not all that surprised, I hear the locals aren't really a big fan.
The locals love it. easy money renting out a bedroom. especially since Hawaii really has no jobs otherwise. Its more the snobby wealthy areas that don't like the added activity.
Hi @Yna P. - overall, most of the feedback on Bill 41 that effects STR's on O'ahu seems to be very negative and the only ones who truly support it is the hotel industry. For the "local little person" who is having a difficult time keeping ahead of the rising costs of living, as well as an employment market that overall has mostly low paying jobs, operating STR's was a nice way to supplement their income - plus is also helped increased property values. So having to do 90 days rentals now outside of resorts areas is a detriment to many people.
Other issue is that if you own a STR within a resort area on O'ahu where STR's have operated legally for years, now with Bill 41, effective Oct 23rd, 2022, owners are required to register their unit with the Department of Planning and Permitting and obtain a registration number before they can legally operate as an STR. There is a lot of uncertainty whether DPP will have the registration in place by Oct 23rd, and if they don't, what will happen then but more lawsuits against the bill wouldn't surprise me.
U.S. District Court Judge Derrick Watson issued a preliminary injunction stopping the city from preventing anyone from renting a property for less than 90 days. What are your thoughts?
Just a couple of comments. First, please make sure you fully understand that STR market in Hawaii. Each county (and there are four) handles them differently. Second, the 90 day minimum stay to which you are referring has been successfully challenged in the courts by opponents of the change. It is a contentious issue on Oahu and still very much in flux.