Tiny Home BUT!! Structure is not permitted. Should I get invested or not?

Question

I found a Tiny Home on 0.5 acres in Hawaiian Paradise Park, On a Big Island. BUT!!! -  Structure is not permitted. Should I get invested or that's a red flag? Also, getting a permit for short-term rentals in Hawaii is getting more complicated every year. Does anyone have any insides on this one?

Henry T. · Answer

An old friend had a place in Leilani estates (just below Paradise), when the 2019 lave flow happened it took out the main highway near his house. Lava surrounded his house, I dont think he suffered much damage. But to get in or out he has to climb up a 12 foot ladder, get on top of the lava, and hike out. No cars will ever get to that place again. Unless you have millions in dynamite.

Zach Edelman · Answer

This is likely going to be difficult to finance. Just something to look out for.

Michael Baum · Answer

Ok @Migle Taylor, if it is on wheels, then it isn't real property. It would be considered an RV or trailer in most areas. You will need to call the county and see what they say. I am guessing that they didn't permit it as it wasn't necessary. It isn't a permanent structure.

The deck and shower should be looked into. I am guessing that it can get a retro permit. Call the county.

Is the trailer on septic or attached to community sewer? Water? Electric?

Is it more like an RV dump type thing or ?

Dana Yost · Answer

BTW- It is possible to transfer a previously licensed Hawaii county STVR to a new owner when the property/land sells. Just because the tiny house is not permanently affixed and wasn't permitted with building permits, it doesn't necessarily mean the STVR wasn't. I have no idea the current regulations on using movable or temporary structures as STVR, but if that is allowed, the rental might've been permitted. Without further details, we really don't know and the OP hasn't said. This is the application though-

STVR Change of Information

Dana Yost · Answer

They may be wrong, as far as the part about restricting STVRs. I recall reading there are some 150,000 of them on the Big island (how many are officially permitted though- I don't know). Anyone buying one should seriously research what's possible and be aware there is a move to restrict these short term rentals on Hawaii, as there was recently on Oahu (successfully).

My understanding though is that HPP itself has no defined building codes. They are simply governed under the codes of Hawaii county. Hawaii county does have all the applications and extensive information online about STVRs. It would behoove anyone interested in doing this to not only read up on the current regulations, but to also speak to people "on the ground" in Hawaii county that could guide them on the current environment- legally and politically. No one wants to invest in a property that may soon become illegal or regulated out of business.

I would say they may very well be correct in the assertion that "half the houses out there are illegal with no permits" though. In the past, HPP has had a bit of a reputation that almost "anything goes" as far as structures on these properties. My recollection is that it was started as a massive block of 1 acre Ag. zoned properties (I would probably read up on that zoning as well if I wanted to legally do a STVR) and it has always seemed to attract people that want to live inexpensively in Hawaii with minimal oversight- hence I've seen structures of all sorts offered there in the past.

Some Hawaii county links-

Short-Term Vacation Rentals

Online Application Links

Potential "Sweeping Changes" Coming

Zane Cress · Answer

If it's unpermitted you run into insurance issues and it only takes one neighbor to complain about it and the government makes you tear it down or spend a ridiculous amount of time and money to get it permitted. If the seller really wants to sell then make them start that permit process and see how much trouble gets stirred up.

John Underwood · Answer

I would not invest in this, certainly don't pay more than land is worth since it is not permitted.

Henry T. · Answer

Big Island. A relative built a new place(along side his main house) out there near Keaau with vacation rental intent. He says it's no longer possible. Only pre- existing vacation rentals are operating. New ones are only allowed in certain districts (I'm assuming hotel areas) but not sure.  This is only what I've heard. I see them on Airbnb, but not as many as you'd expect if it were allowed full bore. Sorry I can't offer more facts, just heresay.  Oahu? There used to be rentals all over Oahu, now it's practically a ghost town , shut down,  except for certain designated areas.   This caught my eye the other day. Funny.

https://www.airbnb.com/rooms/5...

Henry T. · Answer

Half the houses out there are illegal with no permits. You can take your chances I guess. They don't allow STR around there, not legally anyway.

Tiny Home BUT!! Structure is not permitted. Should I get invested or not?

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