Vacation rental on Oahu Hawaii | 15 days -/+

Vacation rental on Oahu Hawaii | 15 days -/+

Aiea, HI · Member since 2016 · 44 posts · 10 votes

Hi,

I've recently read this:

"I commend property managers who creatively book homes for less than 30 days each month. Some people interpret the law that vacation rentals are prohibited if a client rents less than one full month. Many homeowner associations prohibit residents from renting out their houses or condos for less than one month, three months, or six months, but did you know that you do not have to rent out your home for the full 30 days to comply?

The law states that as long as you leave a 30-day window, you’re okay. So, unless your association specifically states you cannot have short-term tenants less than one month, you can rent your home for a short amount of time during a 30 day period. You can get around the short-term rental rules by making sure you don’t rent out 15 days before, or 15 days after your contract."

The context of the article is specific to Hawaii laws on short-term vacation rentals.  I also understand that I probably shouldn't believe everything I read on the internet and it would best serve me to consult the specific department (Land Use Ordinance) or a lawyer.

With that said, I'm still trying to wrap my head around this "15 days before or 15 days after" thing. I've seen airbnb listings post 14 night minimums and wondered how or why (assumed it was illegal as the other 95% of airbnb listings on Oahu).  If I'm getting this right, it's more on the assumption of a period or window of days rather than a specific amount of days rented.  So, if I rented 15 days and blocked off the next 15 days from being rented, then technically that would fulfill the 30 day period, but what if they rented, say, 20 days?  Would I just block off 10 more from being rented to make the 30 day period or would I still need to block another 15 days?  Has anyone heard of this?  Is this even legal?

Lastly, I understand the other factors that come into play with running a vacation rental legally in Hawaii.  GET, TAT, non-conforming use certificate (which hasn't been issued since 1989 but are transferrable through sale), permits needed for 30 days or less (TVU, BB, condotel, etc.), transient considered if less than 180 days.  I've done my due diligence and it's not to say that I'm going to do it.  I'm simply curious to this specific "hack" and if anyone has experience with this or can further elaborate on it.  Thank you in advance for your time!

Aloha,

Laine

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  • Aiea, HI · Member since 2016 · 44 posts · 10 votes
    9y

    sorry, the previous link leads to the comments section.  Scroll up or click HERE for the article.

  • Isi NauPro Member
    Real Estate Broker · Mililani, HI · Member since 2016 · 217 posts · 253 votes
    9y

    Hey @Laine Furukawa  That's an interesting interpretation of the law that I have never heard before.  I read the article/post.  Thanks for sharing!  It's like a riddle.  I'll have to read it again and keep thinking about it.  It is definitely a unique angle.

    Just a few thoughts:

    -I believe the article is providing some pretty loose interpretations on some of the key terms; residential use, actual use, transient accommodation, and transient vacation unit.  But it is tough to put much of a spin on these terms, because in the HRS and associated Acts, definitions are already provided for these terms, leaving little room for interpretation. 

    -Would this strategy require the property owner to sign a 30+ day lease with the tenant, but some how only have them stay for a shorter period of time (rhetorical question)?

    -First sentence, fourth paragraph talks about a "30-day window".  I don't know everything, but I have never heard or read that before.  Maybe it is another creative interpretation.

    -For this strategy, would a property owner be limited to only one tenant every 30 days, in order to allow for the rest period of 15 before and 15 after (rhetorical question)?

    -First sentence last paragraph is interesting, "if you would like to profit once in awhile by renting out your personal residence...", makes me think the answer to my previous question is yes.  Which makes the strategy a whole lot less attractive.

    I'll say it again, a very interesting spin on the law.  

    Thanks again Laine.  I like real estate riddles.  :)

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