— If you are renting your Oahu home or condo long-term (30-consecutive days or more per tenant), then you may skip this article.
However, if you are doing short-term renting, then read on. Oahu’s new short-term vacation rental regulation, Bill 89 became law as Ordinance 19-18 on 6/25/2019.
Most Recent Updates:
- Update 10.13.2022: Federal Judge Watson ruled that the DPP and the City and County of Honolulu shall not implement and enforce changing minimum rental terms from 30 days to 90 days. All STR rule updates are here –> Bill 41 (CO 22-7) – Oahu’s New Short-Term Rental Rules 2022 – Legal STR Properties
- Update 4.26.2022: Bill 41 (CO 22-7), Oahu’s latest updated short-term rental rules take effect 10.23.2022, prohibiting rental terms of less than 90 days (formerly 30 days) in residential neighborhoods. Existing rentals must comply by 4.23.2023. Also, STR properties (rental terms of less than 90 days) must be registered with a $1K initial registration fee, and a $500 annual renewal fee. All Waikiki Banyan and Waikiki Sunset condos are legal STRs subject to the terms of Bill 41. Bill 41 updates are here –> Bill 41 (CO 22-7) – Oahu’s New Short-Term Rental Rules 2022 – Legal STR Properties
- 8.20.2021: The DPP released this Memorandum and DRAFT Bill. More here: Short-Term Rental Rule Amendment – “Policy Pivot”?
- 4.22.2021: The DPP suspended the start of the short-term rental (STR) registration process until some concerns are being worked out.
- 11.24.2020 The city reached an agreement with Airbnb and Expedia Group on the enforcement of CO 19-18. It will make it easier for the city to track and regulate vacation rentals and ensure operators are properly taxed. Airbnb and VRBO, an Expedia subsidiary, will provide the DPP monthly reports including TMK and TAT numbers for each advertised property. If found to be unpermitted, the two companies have agreed to take the ads down permanently.
- 9.17.2020 City Council adopted Bill 50 pushing the 10.1.2020 date to no earlier than 4.30.2021 to allow up to 1,700 new B&B permits as per CO 19-18. The DPP is drafting new rules for public hearings in the 1st quarter of 2021.
- 6.20.2020 Honolulu City Council established the tax rate for the new ‘Bed & Breakfast Home’ property tax category at $6.50 per $1,000 assessed value, effective 7.1.2020.
- 2.10.2020 New DPP declaratory ruling: B&Bs and TVUs are permitted at Kuilima Estates East & West, pursuant to CO 19-18. That’s because Kuilima Estates a) is within 3,500 feet of a resort zone district of greater than 50 contiguous acres, and b) was rezoned to A-1 Low-Density Apt District (Zone Change #71/2-33) as part of the rezoning of the Turtle Bay master-planned resort.
- 12.26.2019 The city launched a new online form for residents to anonymously report suspect rentals that might be violating CO 19-18. Most of the 40 complaints received during the 1st week were in Kailua.
- 12.15.2019 CO 19-32 was signed into law by Mayor Caldwell. This new city ordinance establishes that all new B&Bs obtaining permits under CO 19-18 will be placed in a new “B&B Home” property tax category. The tax rate will be established before taking effect 7/1/2020. This law does not change the tax category of the existing 793 NUC properties (B&Bs & TVUs).
- 11.6.2019 A judge ruled Hawaii tax authorities may subpoena Airbnb for records of its hosts as part of an investigation into whether operators of vacation rentals have been paying their taxes. A recent investigation by tax authorities found 70.4% of Hawaii listings on Airbnb’s website didn’t include tax ID numbers in violation of Hawaii law.
- 10.22.2019 The Waikiki Banyan AOAO has obtained a ‘Stipulation to Stay Proceedings’ with the DPP. That means that Waikiki Banyan non-NUC units can continue renting on a short-term basis until the conclusion of the Waikiki Banyan AOAO case that was filed on 8.1.2019. The administrative process, including any appeals, might take a couple of years to resolve.
- 10.4.19: The 8.2.19 ‘Hawaii Vacation Rental Association’s’ lawsuit has been settled. The judge’s order and dismissal clarifies:
“Rental agreements, advertisements, solicitations and offers to rent property violate Ordinance 19-18 if the price paid for the rental is determined, in whole or in part, by an anticipated or agreed upon occupancy of the property for less than thirty days.” However: “CO 19-18 does not require a renter to physically occupy a rental property for any minimum length of time.” There is no violation if: “1) the owner and/or operator has not limited the actual occupancy of the premises to a period less than the full stated rental period, and 2) the owner and/or operator has not conditioned the right to occupy the premises for the full stated rental period on the payment of additional consideration.”
- 8.2.19: The ‘Hawaii Vacation Rental Association’ filed a lawsuit to challenge the new law. Attorney Greg Kugle claims: “Ordinance 19-18 is unconstitutional because it violates rights guaranteed regarding illegal search and seizure, due process, property, privacy, and free speech.”
- 8.1.19: The Waikiki Banyan AOAO filed a lawsuit to challenge the new law.
- 7.27.19: The city mailed 5,000 letters to property owners who are suspected of running illegal vacation rentals. Enforcement starts August 1st, 2019.
- 7.23.19: Aqua-Aston manages the majority of all 876 ‘Waikiki Banyan‘ units and 435 ‘Waikiki Sunset‘ units. Only 197 Waikiki Banyan units and 256 Waikiki Sunset units have NUCs. All others are not permitted as TVUs. On 7.23.2019, Aqua-Aston mailed letters to 100 Waikiki Sunset owners and 100+ Waikiki Banyan owners of units without NUCs alerting them that as of 8.1.2019 Aqua-Aston will cease renting their units to comply with the new law. This diminishes Aqua-Aston Waikiki Banyan hotel room inventory by ~50% and Waikiki Sunset hotel room inventory by ~30%. – Up until now the perceived value spread between units with NUC vs. without NUC had been negligible. With imminent enforcement the value spread could quickly become $200K+ because of the rental income disparity. The same holds true for several other buildings that have NUC units. – See related: ‘Economic Impact’
Bill 89, now ordinance 19-18, in three simple bullet points:
1) ‘Short-term Rentals (B&Bs & TVUs) outside of the ‘resort/resort mixed use district’ are prohibited unless the property has a ‘Non-Conforming Use Certificate’ (NUC).
Definitions:
- ‘Short-term Rentals’ are residential dwellings, homes or condos, that are advertised or rented with rental terms shorter than 30-consecutive days per tenant.
- ‘B&Bs’ are transient vacation rentals with the owner as the host residing in the same dwelling.
- ‘TVUs’ are transient vacation rentals without the owner residing in the dwelling.
- ‘Resort districts’ are limited to only some sections within Waikiki, Koolina, and Turtle Bay Resort.
- Check this list to see all properties with a ‘NUC.’
2) Effective August 1st, 2019, merely advertising an illegal short-term vacation rental (besides operating one) is a violation and triggers stiff fines.
3) Only 1,699 owner-occupied, hosted B&Bs will be permitted outside of resort zoned areas starting October 1st, 2020, subject to an application approval process and a number of restrictions.
That’s it in a nutshell. – Important additional provisions are itemized below, or you may check the DPP’s FAQ, check their new website, or read the entire Ordinance.
Before we get into the details of the new law, let’s explore what preceded this regulation and how we got to today.
Owning Hawaii real estate comes with the typical bundle of rights, including the right of possession, control, exclusion, enjoyment, and disposition. That also includes the right to rent out your property, either the entire property or just a portion of it.
We are strong advocates of homeownership and property rights. We believe in the tremendous benefits of owning your home in addition to owning a sensible portfolio of investment properties for wealth creation and retirement planning. We are dedicated to excellence in assisting buyers and sellers of Hawaii real estate and providing you with important information to help you make better decisions.
Every exceptional opportunity, such as owning Hawaii properties, comes with a number of responsibilities, including the responsibility to follow the rules.
We are not attorneys. If you are an attorney, and or you have an opinion on how to better interpret the rules and responsibilities, then let us know in the comment section below. We are here to help with a humble desire to learn.
For decades up until now, existing zoning laws and short-term rental rules remained largely unchanged
The Land Use Ordinance (LUO) defines Oahu’s zoning laws. Most people on Oahu either live in condos zoned ‘apartment’ or in single-family homes zoned ‘residential,’ e.g., R-5, R-7.5, R-10, etc.
If your home or condo is in the residential or apartment precinct then you may rent out your property long-term for minimum rental periods of 30-consecutive days as evidenced by a 30-day rental contract (except if restricted by the HOA – Home Owner’s Association or the AOAO – Association Of Apartment Owners).
Contrary to what many think, you may not rent for a shorter period e.g., one week only and justify the short-term rental by arguing that there was no tenant for the remaining 3 weeks of the 30-day rental term. – Can you imagine some might be trying to bend the rules?
Note: Be careful how you respond to an inspector/investigator. Bill 807 (Act 114), was recently signed into law by governor David Ige, which makes it a misdemeanor offense (one year jail and $2,000 fines) to
“knowingly making a false statement to a state investigator or county inspector.”
Think twice before claiming your guests unexpectedly shortened their 30-day stay unless you can show the supporting evidence. Also, reconsider before coaching your unrelated guests: “just tell the inspector you’re my relative.”
Kakaako condos fall under HCDA rules come with additional rental restrictions.
See related article: The Risks Of Short-Term Vacation Renting.
When are you allowed to rent with rental terms shorter than 30-consecutive days?
Short-term rentals are only allowed, if..
a) the underlying zoning is ‘resort/resort mixed use,’ and
b) the HOA/building house rules do not prohibit short-term vacation renting.
Outside of the ‘resort/resort mixed use district,’ short-term rentals are only allowed, if..
c) the individual property has a NUC (Non-conforming Use Certificate). Of all 793 current NUCs, 759 of them have been issued for TVUs (Transient Vacation Units), and 34 of them have been issued for hosted B&Bs (Bed & Breakfast). (The city stopped issuing NUCs in Sept. 1990) – Or,
d) the condo building has an ongoing active hotel operation and the property is exempt from requiring owners to hold a valid NUC, as per an unofficial list from 1990 by the Dept of Planning & Permitting.
We reviewed this list of exempt condo buildings and compiled them in the Guide To Condotels and Short-Term Vacation Rentals
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When you review the three key components of Bill 89 summarized in the bullet points at the beginning of this article, then you notice that only item #2 and #3 are new!
Item #1 has been clearly defined in existence for decades, yet many, even seasoned real estate professionals seem to struggle with understanding and compliance. Why is that?
What has changed during the last 30 years?
$10 Million visitors flock to Hawaii this year. In early 2018, an astounding 23,000! vacation rental units were advertised throughout the state of Hawaii. That represents an increase of 35% compared to two years before.
An estimated 8,000 illegal short-term vacation rentals exist on Oahu. 25% of all Oahu’s North Shore homes have been involved in illegal short-term vacation renting.
No TVUs are allowed on the North Shore unless within the ‘Resort’ zone or with an existing rare NUC, or within the Kuilima Estates project adjacent to the Turtle Bay Resort.
Either property owners don’t know the rules or they simply don’t want to follow them.
How did we get to this point?
Reasons for the rapid proliferation of illegal short-term rentals:
Economic benefit. Hawaii’s tourism is booming. Seemingly never-ending demand can translate into substantially better rental returns from short-term renting compared to long-term renting. Legal short-term vacation rentals (condotels and B&Bs) are readily available to purchase, but they are limited in numbers and concentrated in resort neighborhoods.
The ‘Airbnb’ effect. We now live in the new ‘sharing economy.’ Today’s most powerful hosting platforms have successfully managed to get the host and guest to fall in love and dance the tango. Here are the winning ingredients:
- a) Booking platforms have lowered the threshold for property owners and even tenants unbeknownst to their landlords, to monetize their home, condo, cottage, bedroom, or even a living room sofa to crash on. Ease of operation, effective worldwide marketing, simple booking logistics, and hassle-free rent collection all promise to generate lucrative returns for the host. “It’s easy, you could do it too!” Effortless. Quick and easy money on the side with minimal cost and without having to work.
- b) The trust barrier has been lowered for guest. Host profiles are double verified and glowing reviews remove any remaining doubts for adventurous travelers to book. More and more consumers are becoming comfortable using convenient cell phone apps to book their next vacation or business stay, as simple as catching an Uber or Lyft.
Lack of enforcement of the existing zoning/rental rules. The DPP enforcement division only investigated infractions when a neighbor complained. And even then, it seemed to only do reluctantly. For two reasons:
- a) The burden of proof had been on the enforcement division. With the existing law, it had been almost impossible to prove violations. Rental ads only show intent and had been insufficient as proof.
- b) Consider the potential conflict of interest between DPP’s enforcement branch and the state’s tax office. The city’s DPP enforcement branch is supposed to ‘enforce the law’ while the state tax department prefers that the DPP enforcement backs off. The state needs the revenue and aggressively‘ pursues tax collection irrespective of the short-term rental income being legal or not.
Entitlement – Lack of enforcement of the existing rules created an entitlement attitude. “This is my property. I have been doing this for years and always paid my taxes. How dare the government changes the rules and tells me what I can not do.” Even seasoned real estate professionals appeared confused, seemingly doubting the validity of the long-standing existing rules while giving questionable advice to their clients.
That’s how we got to today’s dilemma with an unprecedented number of illegal vacation rentals.
A classic tale of the ‘tragedy of the commons’ where exploiters guided by self-interest compromise the integrity of communities and the quality of life in residential neighborhoods.
“The tragedy of the commons is a situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource through their collective action.” ~ Wikipedia
Time to update antiquated laws?
Today’s world is different than 30 years ago. Airbnb, Expedia, VRBO, Home Away, and others are here to stay. With new regulations that improve ease of enforcement and carefully expanding short-term vacation renting, the state can have its cake and eat it too: Improving compliance and increasing tax collection.
Heated discussions ensued with polarizing arguments.
- Supporters of short-term vacation rentals argued that the state and counties should embrace diversifying the visitor base and legalize alternative accommodations. It could increase economic prosperity and tax collection. Restricting short-term vacation rentals could risk millions in lost revenue and the loss of thousands of jobs.
- Concerned residents said that illegal vacation rentals have ruined the character of their neighborhoods, diminished urgently needed housing supply and made housing less affordable for the local population. The traditional hotel-resort industry has suffered tremendous job losses as a result.
In March 2018, Hawaii Appleseed, the center for law & economic justice issued the telling report Impact On Housing & Hawaii’s Economy.
Most will agree, new short-term vacation rental regulations has been overdue.
More details about the new 2019 rules
Here are some additional provisions:
- 1) Up to 1,699 Bed & Breakfast (owner-occupied hosted transient vacation rentals) will be allowed outside of resort zoned areas starting October 2020 subject to an application/approval process and subsequent annual renewal.
- 2) The application requires a $1,000 initial application fee. Renewals are due every year by August 30th with a $2,000 annual renewal fee plus evidence of having paid all GET & TAT.
- 3) An approved B&B application is not transferable and does not run with the land.
- 4) A B&B application must include proof of sufficient insurance coverage, must have HOA approvals, if applicable, and must be compliant with any CC&Rs, bylaws, and house rules. Quiet hours must be maintained from 10 pm to 8 am. A phone number to complain must be answered 24/7 and provided to all neighbors within 250 feet of the B&B.
- 5) B&Bs cannot be closer than 1,000 ft from each other (except existing B&Bs with NUC or in the resort district) and are limited in numbers by geographical area as follows:
- 6) Bed & Breakfast homes shall be occupied by a family and shall not be used as a group living facility. No more than two guest rooms shall be rented to a maximum of four total guests at any one time. Each guest room must have one off-street parking stall available.
- 7) Exterior signs to advertise the B&B are prohibited.
- 8) B&B applicants must be a natural person and must be an owner occupant with a home exemption. An applicant must have at least 50% ownership interest in the property and can not own any interest in another B&B or TVU.
- 9) Effective August 1, 2019, all short-term vacation rental advertisements and operations need to be in compliance with the new Bill 89 regulation. The existence of an advertisement is sufficient evidence that a short-term vacation rental is being operated at the listed address. The burden of proof is now on the owner.
- 10) Advertisements of Transient Vacation Rentals must include the current registration number or the NUC number, and the full address.
- 11) Fines of up to $1,000 could be levied if the initial violation is not corrected within 7 days. Fines of up to $5,000 could be levied for each day the violation persists. Fines for recurring violations could be as high as $10,000 per day, plus the total revenue that the owner received for the cited illegal rental activity.
- 12) Besides in resort zoned areas, B&Bs and TVUs are also permitted in the A-1 low-density apartment zoning district and A-2 medium-density apartment zoning district provided:
- They are within 3,500 feet of a resort zoning district of greater than 50 contiguous acres; and
- The resort district and the A-1 or A-2 district, as applicable, were rezoned pursuant to the same zone change application as part of a master-planned resort community.
Note: Waikiki is not a master-planned resort community and does not have A-1 or A-2 districts. However, this provision does apply to the master-planned resort community of Koolina, provided the CC&Rs, declaration, bylaws or building house rules don’t restrict otherwise. In doubt always verify with the DPP at #768-8000 in addition to checking your condominium documents.
- 13) Effective October 1st, 2020, hosting platforms are required to provide monthly reports to the DPP, for all B&Bs and TVUs listed on the platform, including:
- The names of the persons responsible for each listing;
- The address of each listing;
- The transient accommodations tax identification number of the owner or operator of the bed and breakfast home or transient vacation unit;
- The length of stay for each listing; and
- The price paid for each stay.
Note: Hosting platforms are likely to protest these reporting requirements. We shall see how it turns out. Airbnb has been subpoenaed in the past to turn over this type of information, so far unsuccessfully.
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Note: An alternative Bill 85 was vetoed by Mayor Kirk Caldwell. And on the Hawaii state level SB 1292, aka the ‘Airbnb bill’ was vetoed by Governor David Ige. Both did not become law.
Besides Oahu, the neighbor islands are implementing their own tightened new short-term rental regulations.
Conclusion
The new law hardly restricts anything that wasn’t already prohibited. The biggest change is the ease of enforcement. Thousands of short-term rental homes and condos could face fines. Several hundred condos in Waikiki’s apartment precinct might be short-term rentals without the owner realizing that it is against the law.
Out of a total of 876 Waikiki Banyan condos, only about 200 units have a NUC. Out of a total of 435 Waikiki Sunset condos only about 250 units have a NUC. All others are not allowed as short-term rentals. (see 10.22.2019 most recent update at the top of the page).
Contrary to popular misinformation, no short-term rentals are allowed at the Waikiki Skytower and Waikiki Lanais. Yet a whopping one-third of Waikiki Lanais condos have been operating as illegal TVUs for years. Ignorance could get you in trouble. Be in the know.
Whatever you do, we recommend following the law, including paying the appropriate taxes on rental income.
See related article: GET & TAT in Hawaii – The Easiest Way To File & Pay
We believe Hawaii will manage the potential economic ripples from the new law just fine. In 2015 a similar law took effect in Santa Monica, CA. Perhaps some property owners will start renting their properties for 30-day minimum rental terms instead of short-term renting. Others will continue finding creative ways to circumvent the law.
No doubt, legal short-term rentals (condotels), and condos with NUCs will benefit. Buildings like the Ilikai, Ilikai Marina and other legal short-term rentals could become more desirable for investors.
We specialize in this market segment, together with other Honolulu condos. Let us know if there is anything we can do for you. We are here to help. ~ Mahalo & Aloha
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Let us know your thoughts. We love to hear from you. Reciprocate Aloha: ‘Share’, ‘Like’ and ‘Comment’ below. ~ Mahalo & Aloha
Can you do a short term rental in the Hawaiian king on nohanani street? I’ve rented airbnbs there before so how did it change?
Thank you for the excellent article. For Wyndham Royal Garden, how do I validate if it can be used for STR? Is there a public record of the unofficial list?
Aloha Julie!
You may review the list that the city released in 2017 when CO 17-013 took effect. It shows Royal Garden as grandfathered for hotel use in the apartment precinct. We posted the list here: https://www.hawaiiliving.com/blog/new-rules-dedicating-condotel-residential-use/
Call us when you are ready to buy or sell.
We are here to help.
~ Mahalo & Aloha
Can you rent a residential home on diamond head Road short term. Thank you
Aloha Linda!
Minimum rental terms allowed are 30-consecutive days per tenant. That could increase (!) if the proposed Bill 41 becomes law.
More here: https://www.hawaiiliving.com/blog/bill-41-short-term-rental-rule-amendment/
~ Mahalo & Aloha
Aloha Linda!
The only property on Diamond Head Rd with a current NUC is 5151 Diamond Head Rd.
See all NUC properties here:
https://www.hawaiiliving.com/assets/editor/nucreport_dec_8_2020.pdf
~ Mahalo & Aloha
Very informative. I wish I would have found this earlier. Thank you.
Thanks for sharing.
Hello, I enjoy reading through your article post. I wanted to write a little
comment to support you.
Aloha Veronique!
Very kind of you.
Let us know if there is anything else we can do for you.
~ Mahalo & Aloha
Thank you. This information is invaluable. You know so much! We are interested in purchasing at Waikiki Skytower but understand that the current 30 day minimum rental requirement may change to 180 day minimum rentals if the new bill 89 passes. Is that your opinion/ information also? Thank you for sharing all of this with us
Aloha Brenda Morgan!
Thank you for your question.
The proposed DRAFT which the city refers to as a ‘policy pivot’ includes changing 30-day minimum rental terms to 180-day minimum rental terms. I regret, we don’t vouch for any governmental agencies and their actions. However, the DRAFT is still subject to further hearings and possible revisions. We will update here: https://www.hawaiiliving.com/blog/short-term-rental-rule-amendment/ ~ Mahalo & Aloha
We tried to rent a property that was available for 25 days (but not 30). No luck. It will sit empty
Aloha Nancy Harkness!
Congratulations. The landlord/host didn’t break the law in spite of the temptation to do so.
Hopefully you were able to find a legal STR to accommodate your 25-day stay. 🙂
~ Mahalo & Aloha
Do you have any information on the makaha valley plantation units? We have looked into buying one for STU… and we have heard at one point they were legal there. But I’m assuming that was never true? And people were just illegally renting out?
Aloha Hayley Cram Richards!
Be careful, Makaha Valley Plantation rental terms shorter than 30-consecutive days per tenant were never legal.
Contact us when you are ready to buy:
https://www.hawaiiliving.com/contact/
We are committed to finding the best property that fits your needs.
Stay safe. ~ Mahalo & Aloha
Hi George. . .for Ko’olina, are the ‘resort’, ‘A-1’ and ‘A-2’ colored areas designated as areas that allow short-term rental (less than 30-days)?
Aloha Roxanne Salondaka Tiu!
Only if the CC&Rs, declaration, bylaws or building house rules don’t restrict otherwise!
Currently, no Ko Olina condos and townhomes allow short-term renting, except the Ko Olina Beach Villas:
https://www.hawaiiliving.com/oahu/ko-olina/beachvillas-ko-olina-condos-for-sale/
Say safe. ~ Mahalo & Aloha
Hi! We have found an Air BNB rental in Laie for July 2020 of this year. (Its TVU.)
Should I not book it? How can I verify if it is legal?
I appreciate your help!
Aloha Daniels!
If the property address is not on this list: https://www.hawaiiliving.com/assets/editor/nucreport_dec_8_2020.pdf, then it does not have a valid Non Conforming Use Certificate (NUC).
That means the owner or property manager is not allowed to advertise or rent for shorter than 30 days per tenant.
Good luck. ~ Mahalo & Aloha
I’m interested in buying a condo that currently has a NUC that will expire in September 30,2020 at the Waikiki Marina Tower .. are those still renewable?
Aloha Olga Rubi!
Of course we can help, and yes, all current NUCs will be up for renewal by 9.30.2020.
There is a small number (not all) of Waikiki Marina Tower units that come with valid NUCs and are currently for sale.
We’ll make it happen if you contact us here (provide email & phone#): https://www.hawaiiliving.com/contact/
We are here to help. ~ Mahalo & Aloha
We were planning to spend a week in Hawaii with our extended family of 15 people. Every rental I pull up has a 30 day minimum rental. That is simply unaffordable for middle class families. One week is expensive enough to pay for. I am really upset about this. How are we supposed to visit Hawaii? We are getting jacked around here. I think it is completely inappropriate to charge a client for 30 days when they may only be staying 7 days.
Aloha Carrie Raymond Bordeni! Thank you for your comment.
I regret, we only handle sales and not rentals.
Renting a “house” for 1 week in a residential neighborhood might be tough to find unless it is a rare legal B&B.
Don’t know your budget. Have you considered renting legal STRs, e.g. 3×1-bedroom condotels that can sleep 5 people each (3×5=15) either at the ‘Waikiki Banyan’ or at the ‘Ilikai’: https://www.waikikibeachrentals.com/viewProperty.jsp
Here you can be directly at the beach with oceanviews at $139/night + tax. That’s $417/per night + tax (3x$139) total for 15, or $27.80/night + tax per person right on the beach! Enjoy your trip and call us when you are ready to buy. We are here to help.
~Mahalo & Aloha
Question: if an owner in a building is running an illegal Airbnb separate of the building management. who gets the fine the owner or the management company of the entire complex or both?
Aloha Carissa Hayashi!
Thank you for your comment.
The property owner is on the hook for the fine.
The AOAO or anybody can report the violation through the 808-768-8127 hotline and or the online complaint portal mentioned above.
The burden of proof is on the owner of the subject property to establish that the property is not being used as a B&B or TVU or that the ad was placed without the property owner’s knowledge or consent.
Let us know if there is anything else we can do for you.
We are here to help. ~Mahalo & Aloha
This bill is blatant violation of property rights, some one needs to take this to a higher court and challenge this bill. Hawaii already has a struggling economy Bill’s like this only hurt the middle class and reward the hotels and politicians that take their money.
Mahalo for your comment.
Is this applicable to the other islands as well, or just Oahu? Do the other islands have their own similar resort zones?
Aloha Jef FreyJarbs! Thank you for your excellent question.
The short-term vacation rules explained in this article are for Honolulu county only, which includes the entire island of Oahu and represents >70% of the Hawaii market. The other islands have their own short-term rental rules.
— Let us know your budget and on which island you want to buy/sell real estate. We’ll get you up to speed. ~ Mahalo & Aloha
Aloha George well said, from Deborah J Kirk DNA Realty, still trying to figure out Diamond Head Beach Hotel & Residences status, any thoughts?
Cheers~
Aloha Deborah Jane Kirk!
Thank you for your excellent question.
Contrary to what anyone else is saying, short-term renting was never legal at Diamond Head Beach Hotel.
Three reasons: 1) Apartment zoned, 2) not exempt from the NUC requirement, and 3) does not meet the LUO’s definition of a hotel to have ‘grandfathered hotel use status.’
There are no NUCs in the building and the name of the building does not make up for it. 😉
Our Condotel Guide shows which buildings allow short-term renting:
https://www.hawaiiliving.com/blog/condotels-in-waikiki/
~ Mahalo & Aloha
Say a licensed TVU/B&B property goes into foreclosure and the trustee fails or opts not to make its annual NUC fee payment. Can the succeeding buyer pay the back/current fees and regain the permit?
Aloha Bruce!
The answer is no. Once you failed to renew your NUC license you have given it up for good.
Many let their NUC laps because they thought they don’t need it and it could save a little money. It’s the tyranny of small decisions. Hindsight is perfect.
Let us know if there is anything else we can do for you.
~ Mahalo & Aloha
Honolulu county today surely looks like 1980′ Eastern Communist countries: deprivation of ownership rights, inquisition by “civil servants” into the private lives of others, heavy fines, criminal prosecution for renting your OWN home …. and no one objects !!
You guys just question the meaning of the language of this terrible ordinance without being outraged and without doing anything about it ?
Without being pro active you will not change anything and will find more “ordinance” to deprive of your ownreship privilege.
There was no harm having vacation rental for less than a month. In fact it was a need for many vacationers and such practice allowed many people to come to Hawaii; but it was disturbing for the hotel lobbyist …. hence an ordinance to protect the Democratic major donors: the hotel industry.
Send protest letters to the Mayor and your elected “representatives” which only allegiance seems towards their donors buddies and surely not to local owners voters interests.
This ordinance reduces use and de facto YOUR property value.
Not only such local ordinance is objectionable, it is a disguised oppressive tool used to maintain local owners in dependence, depriving them the opportunity to supplement their income by the use of their constitutional ownership privilege. Your elected democratic representative passed another measure to oppress local property owners. Vote all the elected representative supporters of this ordinance OUT of office. Vote Republican and send these Democrats packing and void this ordinance.
Patrick Bertran: Finally a person with real “common sense”! The majority of the people do not see what is the “real goal” of Bill 89. You are the only one (and Greg Shannon) that can read between the lines, and object to this oppressive and unconstitutional ordinance. Read the US Costitution folks. Bill 89 is unconstitutional, and takes away our God given rights that are protected by the US Constitution from “corrupt civil servants”. How much money did the Hotel lobbyists pay our government officials? Mr. Krischke, can you please divulge how much money did our elected officials receive in “campaign contributions? Thank you!
Aloha Gloria Almendares!
Thank you for your comment. We don’t vouch for government officials or institutions. We are expert realtors assisting buyers and sellers committed to excellence, and we write this blog to be useful for the public. May you find benefit and peace in it.
~ Mahalo & Aloha
What a bunch of bull ship. Family paid for their rental months and month ago, only to have the whole thing cancelled because of these damn laws passed right before the vacation. What a bunch of bull shit.
Aloha Greg Shannon,
I’m very sorry to hear that. Thank you for your comment.
Hopefully you had a chance to discuss your grievance with your host, claim a refund, and have traveler’s insurance to cover the rest.
We are experts in assisting buyers and sellers, but I regret, we don’t handle rentals.
Let us know if there is anything we can do for you.
~Mahalo & Aloha
Would you clarify – only the area in pink in Turtle Bay is allowed short term stays? We have booked a wedding on the North Shore and most of us are in the condos/ townhouses along the golf course? Will these be ok?
Aloha Debby McKinney!
Thank you for your question. Most likely you are referring to the Kuilima Estates project which is located to the left and right along Kuilima Dr before you get to the hotel. The map just shows the Kuilima Estate outline but without the pink coloring.
— Latest Update: On 2.10.2020, the DPP issued a new declaratory ruling: B&Bs and TVUs are allowed at Kuilima Estates East & West, pursuant to CO 19-18. That is because Kuilima Estates is within 3,500 feet of a resort zone district of greater than 50 contiguous acres (pink area on the Northshore map above) and was rezoned to A-1 Low-Density Apartment District (Zone Change Application #71/2-33) as part of the rezoning of the Turtle Bay master planned resort.
– Also check the top of this article for a link to the full text of the new ruling.
Let us know if there is anything else we can do for you.
~ Mahalo & Aloha
George Krischke, Principal Broker, Hawaii Living LLC thank you for your response. The link is broken, would you re-post please?
Debby McKinney
https://www.hawaiiliving.com/assets/editor/nucreport_dec_8_2020.pdf
~ Mahalo & Aloha
George Krischke, Principal Broker, Hawaii Living LLC Thank you so much !!
We have a vacation rental unit in Executive Centre. We have always diligently paid all TAT and GET taxes as well as property taxes at the resort rate. The building is a condotel, there is an active hotel operation on-site, and the zoning is BMX-4. According to hawaiiliving.com : “Zoning: “BMX-4” which is a type of business mixed use zoning that allows for commercial, residential and short-term vacation rentals.”. Although we have not received a notice of violation, we are very confused about our right to continue our business. Could you please clarify? Mahalo.
Aloha Marianne Luken!
Thank you for your comment.
With legal matters and to clarify your rights always consult with your favorite qualified legal counsel. We are not attorneys.
We are realtors that aim to provide most exceptional real estate services to our buyer and seller clients.
We are aware of the 7/9/19 DPP violation notice to the AOAO for not having obtained the required ‘change of use permit’ before converting apartments into hotel rooms.
We are also aware of the 7/25/19 AOAO letter to the Excecutive Centre apartment owners that states: “Any owner renting a unit as a transient vacation unit will be responsible for contacting the city to: (i) confirm that such use is permitted under city ordinances; and (ii), if so, to comply with any city requirements relating to that use.”
– It appears prudent to follow the AOAO’s recommendation.
Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
We have also planned for a summer vaccation with family – app 6+3 children
during mid August 19 for week’s time. But unfortumately due to Bill 89 the booked rental is cancelled . With all airtickets booked and what could be done by now? Is rental booking is possible for a shorter period i.e. less than 30 days ? or to cancel the air tickets and vaccation . Pl advise
Aloha Selvarajan Sankarapandian!
I’m very sorry to hear that.
Thank you for your comment.
Rental bookings for less than 30 days are available in resort zoned properties e.g., hotels, legal condotels, and legal B&Bs.
We are experts in assisting buyers and sellers, but I regret, we don’t handle rentals.
Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
My husband and I have spent months planning our trip (and a whole lot longer saving for it) to Oahu. We weren’t blessed with our own kids so we decided to invite our nieces on this once in a lifetime trip. But yesterday (11 days before we leave) our beautiful rental was canceled because they recieved a letter regarding Bill 89. If there hasn’t been an NUC issued in nearly 29 years then what would a 6 month grace period hurt anyone?? My poor husband barely slept last night…I haven’t slept at all…spending our time looking for a new place to stay. Everything is either booked or out of our price range. I just don’t understand why we are being punished for someone else’s mistake (that’s been overlooked for almost 3 decades).
Aloha Julie Gatti Gregory!
I’m very sorry to hear that.
Thank you for your comment.
-Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
Aloha Julie, certainly life isn’t always fair, you could try to locate a Condo that is in or near your price range ask the property manager to put you on their cancellation list, I do this with my perspective vacation rental clients inquiring anytime I cannnot accomadate them. Best of Luck ~
George, Thank you for this information. I have been vacation renting a condo in Turtle Bay, Kuilima Estates East for a few years. It is unclear to me and others at the resort if we need a NUC? Are we still in jeopardy even though we have reservations that were booked before Aug 1, but have arrivals into 2020? If I need a NUC how do I obtain one?
Thank for your answer. Cary Robles, Email is Cgrobles1@aol.com
Aloha Cary Georgia Robles!
Thank you for asking. –Update: On 2.10.2020, the DPP issued a new declaratory ruling: B&Bs and TVUs are allowed at Kuilima Estates East & West, pursuant to CO 19-18. That is because Kuilima Estates is within 3,500 feet of a resort zone district of greater than 50 contiguous acres and was rezoned to A-1 Low-Density Apartment District (Zone Change Application #71/2-33) as part of the rezoning of the Turtle Bay master planned resort.
-Also check the top of this article for a link to the full text.
– Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
So when does bullet point # 1 take effect? Immediatley or Aug 1? Also seems weird that the punishment starts in Aug 2019 but the permit to make your B&B legal isn’t available until Oct 2020 (or am I reading this wrong?)
Aloha Christopher Anthony Blackton! Thanks for asking.
1) Bullet point #1 has been in effect since 1989(!) Enforcement and fines start 8.1.2019. Surprise!
2) You read it right: New B&B applications will be accepted starting Oct 2020 because the DPP needs to work out how to implement some of the application process details. No application forms yet. 🙁
– Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
George Krischke, Principal Broker, Hawaii Living LLC Is this stating that any air B&B agreements that were fullfilled before 8.1.2019, the host will not be fined?
Aloha Zoe Hall! Thanks for checking in.
Any violations as of 8.1.2019 will be enforced and subject to fines.
Mahalo & Aloha
Do you think anything will change with the apartment mixed use sub precinct in Waikiki? For example, Discovery Bay? I see they are selling faster right now. And I see Inn on the Park is in the green, does that mean it now is legal to do short term rentals out of there? Mahalo for all the work you do on this website!
Aloha Kelly Alliger Keane!
I regret, we aren’t privy to what the future brings.
Fyi, ‘Inn On the Park’ does NOT allow short-term renting. For clarity we will be updating the list of legal Waikiki TVUs here: https://www.hawaiiliving.com/blog/condotels-in-waikiki/
Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
George Krischke, Principal Broker, Hawaii Living LLC
Aloha George!
Could you clarify, why Inn on the Park doesn’t allow short-term?
best, Denis
Aloha Денис Джиндо!
Thank you for asking.
Inn On The Park is: 1) outside of Waikiki’s ‘Resort Mixed Use zone,’ and 2) the building does not have grandfathered hotel/resort use status, and 3) there are no NUCs in the building.
Let us know if there is anything else we can do for you.
We are here to help.
~ Mahalo & Aloha
I was under the impression city attorney’s had clarified it was legal to use the 30 day rule (1 renter per 30 days regardless of stay duration). Who can we contact to get actual clarification on this? I’ve called the City Planning Department and they were useless. Thanks.
Aloha Corry Daoust!
Thanks for your excellent question.
Be careful. Regardless who gave you that impression, it has been a popular and convenient misperception since the 90s.
Bill 89 clarifies:
“It is unlawful for any owner or operator of an unpermitted B&B home or unpermitted TVU, or the owner or operator’s agent or representative to:
(A) Rent, offer to rent, or enter into a rental agreement to rent an unpermitted B&B home or unpermitted TVU for fewer than 30 consecutive days;
(B) Rent, offer to rent, or enter into a rental agreement to rent an unpermitted B&B home or unpermitted TVU, where such rental, offer, or rental agreement limits actual occupancy of the premises to a period of less than the full stated rental period, or conditions the right to occupy the rented premises for the full stated rental period on the payment of additional consideration;
(C) Set aside or exclusively reserve an unpermitted B&B home or unpermitted TVU for rental or occupancy for a period of 30 consecutive days or more, but limit actual occupancy of the premises to a period of less than the full stated rental period, or condition the right to occupy the rented premises for the full stated rental period on the payment of additional consideration; or
(D) Advertise, solicit, offer, or knowingly provide rental of an unpermitted B&B home or unpermitted TVU to transient occupants for less than 30 consecutive days.”
Check the bottom of page 21 here: http://www4.honolulu.gov/docushare/dsweb/Get/Document-238476/DOC%20(37).pdf
With all legal matters, the best person to clarify would be your favorite qualified legal counsel.
Let us know if there is anything else we can do for you.
We are here to help. ~ Mahalo & Aloha
Thank you for the helpful reply. That is definitely now what I was tracking but it’s pretty clear in the reading. I guess I just don’t understand how the city can dictate and legally tell a homeowner how long they can or can’t rent their property for. It seems to me like an overstep of local government on the rights of property owners.
Aloha Corry Daoust,
Thank you for your comment.
~ Mahalo & Aloha
George Krischke, Principal Broker, Hawaii Living LLC so how do we apply for a permit?
Aloha Angela Stenger Kaaihue!
Still early. B&B applications will be accepted starting October 2020, that is next year. Details will be forthcoming. Sign-up for our newsletter and you’ll be in the know. 🙂
Let us know if there is anything else we can do for you.
We are here to help. ~ Mahalo & Aloha
Corry Daoust I agree with you 100%. How can the DPP and City & County of HNL tell a homeowner how many days they can, or cannot rent their property for? This is completely against the US Constitution in regards to every individual’s property rights, and the right to rent and/or occupy their property. The government is out of line by violating our God given rights, and they are the ones breaking the law with these ridiculous laws that are intrusive and invasive. Also, how can the C&C issue such outrageous fines, which are also unconstitutional, and have been thrown out by the Courts in Florida. Just because Bill 89 passed does NOT mean Bill 89 is Constitutional. This remains to be seen. George Krischke, do you know how many lawsuits have been filed to-date against Bill 89? Do you know how many local homeowners have lost their means of making a living? How many small businesses (such as cleaning companies, gardeners, handyman svcst, etc) have found themselves out-of-work due to Bill 89? Also, the most important question regarding Bill 89 has not been mentioned: who does Bill 89 actaully benefit? The Hotels of course!
Aloha Gloria Almendares!
Thanks for your comment.
I am aware of only two lawsuits that have been filed against CO19-18. Both have been mentioned at the top of the article under “Most Recent Updates.”
We will report any updates but one has been settled already as reported above.
Make it a remarkable day.
~ Mahalo & Aloha
I own a home in Waimanalo. I live in the main house and till now had rented our detached 2 bedroom cottage (without a stove) short-term, paying all GET and TATs. Since it is detached will I be allowed to apply for a permit.
Aloha Elizabeth Blalock!
Thanks for checking in.
B&Bs require the host to reside in the ‘same’ dwelling where the guests are staying. The application requires that you also provide a floor plan of your dwelling. I regret, ‘detached’ cottages won’t work.
Here is the B&B definition as it is restated in Bill 89:
“‘Bed and breakfast home’ means a use in which overnight accommodations are advertised, solicited, offered, or provided, or a combination of any of the foregoing, to guests for compensation, for periods of less than 30 days, in the same detached dwelling as that occupied by an owner, lessee, operators or proprietor of the detached dwelling.”
Check the bottom of page 25 here:
http://www4.honolulu.gov/docushare/dsweb/Get/Document-238476/DOC%20(37).pdf
With all legal matters, always check with your favorite qualified legal counsel.
Let us know if there is anything else we can do for you.
We are here to help. ~ Mahalo & Aloha
@elizabeth blalock- I sent you a pm- I think we have mutual friends!