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Old 02-18-2012, 04:19 PM
 
Location: Oahu
431 posts, read 940,230 times
Reputation: 588

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I live on Oahu and have seen that the illegal rentals are a really big issue here. My question would be---why would you purposely set out to break the laws and go against the regulations of a town that you plan on moving to? There is a LOT of resident backlash against mainland transplants who disregard local rules and regulations. Just because you CAN (thanks to little money for enforcement) doesn't mean you SHOULD. Come on already---learn the meaning of "pono."
Really, if you were bought a house next to me and turned it into a vacation rental, I would do everything in my power to see you shut down. Just on general principle.
How dare you??
I have seen that Maui residents are getting fed up with the vacation rental abuses. Not sure about the other islands, but I definitely know that the Windward and North Shore areas of Oahu are up in arms.
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Old 02-18-2012, 05:50 PM
 
10 posts, read 28,329 times
Reputation: 27
Default VR enforcement

There have been several efforts in the legislature to enable or increase enforcement. I've written to my representative supporting each one but each gets shot down.
The first that I know of would have enabled the DPP to access tax records.
The second would have allowed DPP to visit suspected illegal rentals at any time. Currently they can only do this during normal government business hours when the visitors are typically out seeing the sights. In order to enforce the regulations the visitor has to be present and they have to "turn in" the owners.
The most recent would have required each advertisement list the address and the TVU permit number.

Any one of these would have worked but they've all been shot down. My assumption is that it all comes down to money and the politicians' desire for more. From the illegal rentals that I know of, they all pay the taxes. Getting caught for operating an illegal rental is far less than getting caught for tax evasion.

There has been sporatic enforcement but it takes quite an effort, sometimes the efforts of the entire community with lots of patience and persistance. Pity that it takes so much to get the government to do its job.
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Old 02-19-2012, 04:59 PM
 
Location: SF Bay & Diamond Head
1,776 posts, read 1,873,289 times
Reputation: 1981
Here's how one Waikiki condo handles the problem. Notice the eviction of the tenant.
Attached Thumbnails
Investing in a Vacation Rental on Oahu - what about permits?-pic_0098.jpg  
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Old 02-19-2012, 07:47 PM
 
3 posts, read 24,908 times
Reputation: 14
Quote:
Originally Posted by PaliPatty View Post
I live on Oahu and have seen that the illegal rentals are a really big issue here. My question would be---why would you purposely set out to break the laws and go against the regulations of a town that you plan on moving to? There is a LOT of resident backlash against mainland transplants who disregard local rules and regulations. Just because you CAN (thanks to little money for enforcement) doesn't mean you SHOULD. Come on already---learn the meaning of "pono."
Really, if you were bought a house next to me and turned it into a vacation rental, I would do everything in my power to see you shut down. Just on general principle.
How dare you??
It would appear this is a sensitive issue. Having read some more about the various campaigns against zoning changes and specifically short term vacation rentals, I now have a better understanding of the community attitudes on this matter.

As for this surprisingly aggressive (almost hostile) response, I urge you to please read my original post. I do not say that I am setting out to run an illegal vacation rental and intentionally break the law. I am simply highlighting the discrepancy between zoning regulations and what appears to be a disproportionately high number of vacation rentals. In addition, I have asked what has been the experience of running a (presumably legal) vacation rental on the island.
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Old 11-17-2012, 06:09 PM
 
1,730 posts, read 3,811,997 times
Reputation: 1215
Google, then call a few property management companies, ask what services they provide, get quotes, and then you can compare Company A with Company B (including what the prices are for specific services).

Out of state property owners of vacation rentals is a hot topic, and will no doubt return to the legislature in the 2013 session. Here's something from this year, which might be be worth discussion with your realtor prior to your purchasing a "vacation rental".
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Old 11-17-2012, 07:14 PM
 
Location: Kahala
12,120 posts, read 17,917,108 times
Reputation: 6176
Legitimate property mgmt companies won't touch your illegal nightly rental property.
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Old 11-17-2012, 09:37 PM
 
1,730 posts, read 3,811,997 times
Reputation: 1215
Goodness, I'd not caught the "illegal rental" part. If that is the case, invest your money elsewhere.
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Old 11-19-2012, 10:40 AM
 
Location: North Idaho
32,659 posts, read 48,067,543 times
Reputation: 78476
Quote:
Originally Posted by kleino View Post
can you knowledgeable folks share with me what percentage I can expect to pay to a property manager if I invest in a single family rental home to be rented to vacationers coming to Hawaii? I am told a 3 bdr 2 ba house that sleeps 6 to 8 would rent for $350 per night.
Thank you
You are going to have to talk to some property managers to see what they charge and what they will do. The charge will be quite high because managing a vacation rental is a huge amount of work. The unit must be cleaned between each guest and there are a lot of tenants to keep track of, a lot of deposits to manage, and a lot of face-to-face appointments to turn over or collect keys. Inspections are frequent and repairs must be done more frequently.

With a leased rental, there is a lot of work finding the tenant, but after that, it is just collect the rent and clean and repair after the tenant moves out, which might be years later. So long term rental management costs a lot less than vacation rental management.
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Old 11-19-2012, 04:06 PM
 
4,096 posts, read 6,219,292 times
Reputation: 7407
Quote:
Originally Posted by kleino View Post
can you knowledgeable folks share with me what percentage I can expect to pay to a property manager if I invest in a single family rental home to be rented to vacationers coming to Hawaii? I am told a 3 bdr 2 ba house that sleeps 6 to 8 would rent for $350 per night.
Thank you
uh, where did this say ilegal? And this is this person's first post. Wow.
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Old 11-19-2012, 04:21 PM
 
Location: Kahala
12,120 posts, read 17,917,108 times
Reputation: 6176
Quote:
Originally Posted by Kayekaye View Post
uh, where did this say ilegal? And this is this person's first post. Wow.
Seriously? It doesn't have to say it - because it is - you can't just buy a single family residence and rent it out by the night - that is illegal on Oahu. That's just basic knowledge. Wow.
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