Maui B&B's (Kihei: foreclosures, rentals, condos)

[FishTal]

When I was on Maui earlier this year there was talk of the government imposing some new legislation regulating B&B type accomodations. From the look of some of the sites I've looked at it seems to have passed. Does anyone have any info on the specific details of this?

Mahalo

[Calico Salsa]

It's true, Maui County gov has cracked down on unlicensed Temporary Vacation Rentals (TVRs). Many places have closed down. There are still licensed B&Bs, which can be found via the internet.

On which area of the island are you looking to stay?

[FishTal]

Originally Posted by Calico Salsa

It's true, Maui County gov has cracked down on unlicensed Temporary Vacation Rentals (TVRs). Many places have closed down. There are still licensed B&Bs, which can be found via the internet.

On which area of the island are you looking to stay?

I intend to stay in Kihei. What is the intent behind the "crack down" on TVR's? What are the specifics?

[Calico Salsa]

There's a lot about that topic on this site and the internet already, you can Google it to get a broader perspective. Here's what I hear:

From the County's point of view:
Bottom line, they were illegal. Some places had lots of complaints from neighbors due to noise and parties and extra cars parking on the street. Most didn't collect and pay the hotel tax. Most didn't report the income. Residential areas and homes are not zoned for vacation rentals. It took housing away from residents; that is, if not used for TVRs, the homeowner would probably rent out the house/ohana/cottage to a long term renter. It took bookings away from licensed places.

From the TVR owner point of view:
The complaints should have been dealt with as the problem, not the symptom, and those were mostly places that did not also have the owner living there. Any place, whether TVR or private residence that has frequent noise or parking issues should be handled by the local authorities who are already in place to deal with such issues. There was no permit process in place for people who did want to be legit, and some were even discouraged from applying, because the issue was undecided. Many did collect and pay tax and report income. Those who didn't could be dealt with like any other tax violator. Many people who would rent to visitors do not want to deal with long term renters, where it is harder to make them vacate if there are problems. Many of the type of people who would use private rental places are not the type to want to, or be able to afford the resorts and other facilities. Usually TVR visitors are quieter, more down home people who want privacy. It was felt a driving force behind the issue was the service industry unions.

REBUTTAL FROM COUNTY
You are still not zoned for it. Despite the fact it sounds like a good idea, it's against the law. Police force is not at full capacity now, and don't want to be handling noise/party/parking complaints. Even with permit process in place now, most don't qualify as they are in residential zones. Not the county's problem you bought a big house and can't afford it without doing something illegal.

REBUTTAL FROM TVR OWNERS
County should look at what serves the population and change the laws as the people wish it to be. Start the process to adjust the laws without cutting everyone off from much needed income during these hard times. People can't afford resorts and condos, and with 2 airlines going out of business Maui is in trouble already. Visitors also rent cars, buy food, eat out, go on activities. While it may not have been the County's problem that a person can't afford their house payment, it will be as the housing market continues to decline and people will lose their homes to foreclosures. County should look at the long term issue instead of being short sighted.

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There's more, always more, from both sides. Complex issue, and no one is happy either way.

[FishTal]

Thanks so much for the info. I looked around before I asked but didn't find anything, maybe I was searching with the wrong key words

When I was there in February I stayed in what would be considered a TVR an I thought it was GREAT! It was a very nice little place in a quiet neighborhood just a short walk to beach. The cost was the best part, next to the fresh bananas on the property). I didn't have to spend a fortune on a room. I was able to spend my money getting my SCUBA certification, on food, tips, and things at Whale Day...

I feel that my money benefitted the local economy more that way, rather than the majority of it going to a big hotel company. If I had to spend $$$ for a room I wouldn't have had much left for anything else

[HankDfrmSD]

Calico, your post was a pretty balanced picture of the arguments on both sides, except for one thing, in my opinion:

The statement that "it is illegal" hasn't really been decided by the Hawaii courts yet. Everyone agrees that renting a house for more than 30 days (long term) is legal. What makes renting it for 29 days (or a week) so different that "it is a business, and businesses are illegal in residential areas"?

In most places a "business" is a place where customers come and go all day long. That's why "internet businesses" or "home businesses" (like a wife taking orders over the phone for the husband who cleans carpets in other peoples homes) are legal in residential areas in most states.

That point of view has been argued successfully by vacation rental owners in some other states.

In Hawaii, the decisions are being made, so far, by elected folk, not the courts, and elected folk seem to be leaning in the direction of the very vocal folks who are complaining about Vacation Rentals.

Hank

[whynot?]

Back to Tai's original question, if we may, I found tons (TONS!) of rentals still listed in Kihei at VRBO.com, vacationrentals.com, mauiownercondos.com, etc. These are condos, of course, and not B&Bs per se. They should be "legal" if they fall within the resort-zoned areas of Kihei.

Aside from the TVR back-and-forth, the state historically has done a very bad job of defining just what constitutes a B&B v. say, an inn. Other states do have fairly strict regulations for marketing one's property as a B&B v. an inn, and the amenities/services that must be offered in order to advertise as such. Perhaps the current slow-down will give everybody an opportunity to calm down, focus, and come up with a reasonable solution. I expect a lot of rooms of all kinds to be sitting empty for several months.