[youtube_video] PHG46Ch3u78 [/youtube_video]
—> Most recent 2022 important updates here: Oahu’s Short-Term Rental Rules.
Video Transcription
Aloha, this is George Krischke with Honolulu HI 5 (now known as “Hawaii Living”)
Today, we’re going to talk about vacation renting property. That’s a very controversial subject, here in Hawaii. Now, you know one of the great benefits of homeownership is you may be able to rent out your property, either the whole property or just a portion of it or just one room. Whatever you like.
However, you need to be aware of some restrictions. Honolulu’s residential zoned neighborhoods are limited to minimum rental terms of 30 days per tenant. Means you can only rent out to one tenant, within a 30-day time period. It means you’re not supposed to do short-term vacation rentals. Some people do, and if they ever get caught, there may be hefty fines. So, be aware of that.
Whatever you do, whenever you rent out your property, just for sure, make sure you pay the appropriate taxes that are due to the state, which is the General Excise Tax, also called, “GET”. And the Transient Accommodation Tax, which is called “TAT,” plus, effective 12.14.2022, the additional Oahu Transient Accommodation Tax “OTAT”. It appears that the taxing department, they don’t complain about rental terms. They just collect the taxes. So, make sure you pay the appropriate taxes, for sure.
See related article: GET, TAT & OTAT In Hawaii – The Easiest Way To File & Pay
So, besides the zoning rental restrictions, if you buy into a condominium, you have to also consider what the house rules say. And some buildings restrict the rentability to rental terms that are maybe more, like, 60 days or sometimes 90 days per tenant. So, it’s important to look at that, as well. And why do they do that? It’s to reduce occupant turnover. And to reduce wear and tear, from moving in, and moving out. So, that’s the reason. And to maintain the residential nature of the building. For everybody’s peaceful, and quiet enjoyment.
Now, there are some legal exceptions to that vacation rental issue. They are properties that are called, “condotel properties.” Those are condominium buildings. Most of those are in Waikiki. They are zoned residential, as well as for hotel use. And those do allow short-term vacation rentals. And the other legal exception would be properties that had maintained, and annually renewed, a Nonconforming Use Certificate, also called, “NUC.”
Now, the State hasn’t issued any of those NUCs for many years. But back in the old days, they used to issue some of those. And if the owner has maintained and renewed every year, there’s a little fee to it, but if it is maintained and renewed every year, than the particular property which has a Nonconforming Use Certificate, is allowed to rent out the property, on a short-term vacation basis.
And that’s it for today. Thanks for watching. ~Aloha.