Illegal transient vacation rentals hurt kama'aina (mortgage, home, buying)

[Joliefille]

sorry the link didn't post.

Look at www.sonhawaii.org and look at the top for 10 myths about vacation rentals.

[winkosmosis]

The last mayor of Maui, Charmaine Tavares, cracked down on illegal vacation rentals, but those "businesspeople" screamed. I believe that's one reason she didn't get reelected.

[winkosmosis]

Reform bills to spell out short-term rental rules - Mauinews.com | News, Sports, Jobs, Visitor's Information - The Maui News

[Joliefille]

Interersting that all those posters asking about rent to retire have disapeared.

[WaikikiBoy]

Originally Posted by Joliefille

Interersting that all those posters asking about rent to retire have disapeared.

Hi Joliefille,

I am "one of those posters" who asked about rent-to-retire. Your statement implies that people asking about rent-to-retire are not commenting on your thread because we're all sheepishly considering something illegal (or worse yet, doing something illegal). But perhaps I've misunderstood your post.

I have purchased a rent-to-retire property and I had/have absolutely no interest in attempting to operate and illegal or non-conforming vacation rental.

I can only speak for myself but I specifically chose the property I chose because it IS already zoned for short-term rental. And interestingly enough, I've rented it to a long-term tenant and prefer that to short-term vacation rentals. I just wanted the option ... legally ... if I chose to rent short-term.

I do feel it would be a shame if people intentionally set out to purchase and operate a vacation rental property with total disregard to the existing zoning laws. And those operators should be turned in to the authorities.
But I can tell you that as a rent-to-retire owner, I intentionally set out to work within the laws in place in the state of Hawaii and look forward to the day I transition to a full time retired resident.

Anyway, just wanted you to know all the rent-to-retire posters have not disappeared and are not involved in illegal vacation rentals.

Just my 2 cents.

[Joliefille]

Good post! While I was not speaking to you personally, my point, as you recognized, was to inform those considering buying a rental that is not zoned for short term that it does have a negative effect on those who live here permanently.

[KauaiHiker]

The key here is "zoned for short-term rental," and in other cases the ability (or inability) to obtain a permit to operate a short-term rental. I do appreciate WaikikiBoy's respect of the laws, but the problem is most people considering (dreaming of) rent-to-retire are often not aware of them. The put in motion the plan, the real-estate agent doesn't talk tell them the legality of rentals, and then when they do find out, they're tempte to run an illegal rental. So thanks to Joliefille (joli nom au fait) for helping to spread the awareness.

During the boomtimes, it was common for real-estate agents on Kaua'i to pimp a property (either the whole thing or the 'ohana unit--aka mother-in-law unit) as a vacation rental. They didn't care where it was, they really wanted to make the sale. Then when the county started cracking down, they would complain: but how can I pay the mortgage on my vacation/retirement home if I can't rent it out. Or worse, they threatened to sue the county for "taking" away their perceived right to run a business.

[WaikikiBoy]

I think there are a lot of people who make emotional purchases in Hawaii without doing any research. They don't think about things like zoning and just think they can rent a property in any manner they choose. Because they've done no research, they just move forward with the purchase.

I wonder how many existing illegally operated short-term vacation rental properties are owned by rent-to-retire mainlander's -vs- local residents who know the laws, know they can get away with it, and have made second home purchases on island as personal investment properties.

My building is a legally zoned Short-term rental building. I assumed most owners were mainland residents who owned a unit as a vacation property, and a lot are. But, I was surprised to find out that many owners in the building were local residents who had purchased a unit as a personal investment.

Anyway, likely no way to know. But I suspect there are more illegal short-term vacation rental properties owned by local residents than people might think. Just a hunch.

But long story short, if I was a local resident living in a residential area, I certainly would not want an illegal short-term rental as my next door neighbor. People need to learn the laws that govern their investments before they make the purchase. Or accept the consequences if they cross the line.

[mdand3boys]

Originally Posted by Joliefille

Good post! While I was not speaking to you personally, my point, as you recognized, was to inform those considering buying a rental that is not zoned for short term that it does have a negative effect on those who live here permanently.

I have to disagree.
In my area (Puna) the vacation rentals are the ones that are the best maintained, thus increasing property values. Rental properties also pay more in property taxes than owner occupied. Since occupancy is well less than 100% in most of them, additional traffic concerns is another misnomer.

BTW, in Hawaii County - there is no such thing as "zoned for short-term rental". A landlord can rent long or short term as they desire.

[Joliefille]

Originally Posted by mdand3boys

I have to disagree.
In my area (Puna) the vacation rentals are the ones that are the best maintained, thus increasing property values. Rental properties also pay more in property taxes than owner occupied. Since occupancy is well less than 100% in most of them, additional traffic concerns is another misnomer.

BTW, in Hawaii County - there is no such thing as "zoned for short-term rental". A landlord can rent long or short term as they desire.

I'm sure everyone understands that BI is a different situation than the other islands. There's more room, less congestion, fewer tourist etc..so what goes in Puna doesn't represent what occurs on Oahu. Or Maui. Or Kauai.