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WAILUKU, Maui (KHNL) - Maui's planning director says he's going to crack down on illegal vacation rental operators.
Jeff Hunt says in a planning meeting Tuesday, he doesn't want to continue a climate of "permissiveness" and will enforce the county's laws governing short-term rentals.
He will have as many as five inspectors working full time to carry out the new enforcement policy.
The practice of renting accommodations to travelers in areas not permitted by zoning had been pervasive on Maui for decades. Recent estimates of the number of properties offered for vacation rentals ranged between 1,000 and 2,000. Though officially this kind of use was not allowed, the law was seldom enforced except when there were complaints.
WAILUKU, Maui (KHNL) - Maui's planning director says he's going to crack down on illegal vacation rental operators.
Jeff Hunt says in a planning meeting Tuesday, he doesn't want to continue a climate of "permissiveness" and will enforce the county's laws governing short-term rentals.
He will have as many as five inspectors working full time to carry out the new enforcement policy.
The practice of renting accommodations to travelers in areas not permitted by zoning had been pervasive on Maui for decades. Recent estimates of the number of properties offered for vacation rentals ranged between 1,000 and 2,000. Though officially this kind of use was not allowed, the law was seldom enforced except when there were complaints.
There are going to a lot of homeowners sucking wind. The job for these inspectors couldn't be any easier. All they have to do is go online and look for <30 day rentals being advertised, find out the address, confirm address does not fall into resort/hotel tax classification and mail the fine to the owner. Everything can be done from the comfort of their office. I can't imagine an easier job of enforcement.
I would say that 95%-98% of all single family Airbnb rentals are illegal. And about 80% of condo Airbnb rentals are illegal.
It's going to be interesting to see what the result is after the dust settles.
While I recognize some families will take a financial hit if they lose the income they're receiving from running an illegal vacation rental, I think cracking down on it is long overdue.
People know when they buy that it is illegal. And it's not fair to other residents in the neighborhood, not fair to the state, and often not fair to the. Unsuspecting tourists either. Most tourists don't know the law and have no idea the unit they are renting is not legal.
I had a few friends from the mainland who rented a house on Oahu for a week (either Airbnb or VRBO). After their vacation was over and they went home, the landlord refused to send them back their deposit. He made up a story about some oil dripped onto the driveway from their rental car. Then he ignored all their emails and just kept their money. They were upset and it left them with a very bad impression of Hawaii.
When I heard their story I told them it was likely illegal and he likely was not paying the Transient tax. I told them to let him know if he didn't return their deposit, they would report him to the state.
He returned their deposit immediately.
If the majority of residents want the law changed to allow more vacation rentals, then vote and make it legal. In the mean time, the State should vigorously enforce the existing laws and zoning.
All they have to do is go online and look for <30 day rentals being advertised, find out the address, confirm address does not fall into resort/hotel tax classification and mail the fine to the owner.
They will be very busy - Airbnb has 10,000 active listings in Hawaii.
Illegal listings are subject to $1,000/day fine on Oahu. Got get em.....
While I recognize some families will take a financial hit if they lose the income they're receiving from running an illegal vacation rental, I think cracking down on it is long overdue.
Enforcement is far beyond overdue. Despite the fact that I have no sympathy for those families that will take a financial hit by adhering to laws followed by most other homeowners, I almost want to put some of the blame on our inept politicians for not taking action much sooner. Lack of enforcement and overall complacency has, to at least some extent, led to a society that literally relies on illegal rental income to pay their mortgage and survive in Hawaii.
Enforcement is far beyond overdue. Despite the fact that I have no sympathy for those families that will take a financial hit by adhering to laws followed by most other homeowners, I almost want to put some of the blame on our inept politicians for not taking action much sooner. Lack of enforcement and overall complacency has, to at least some extent, led to a society that literally relies on illegal rental income to pay their mortgage and survive in Hawaii.
Though I agree it's far overdue , illegal and not fair. Let's not forget it's just a symptom to a problem that has existed for awhile. The real question is why do people have to rely on illegal actions to survive in a state that to be quite honest is well off money wise? You have to sometimes ask the question "whats wrong here?" Though I'm not dismissing individual responsibility and what some individuals are doing is wrong.However you can't help but wonder if people who can afford to own property in Oahu can't afford to live in Hawai'i and have to rely on illegal means to do so? Then is this really just an individuals issue? Especially in a state where wages haven't kepted up with cost of living for along time. Where a local government can overspend by millions on a rail project that we will never know when it will be completed or what the final price tag will be without any real public protest. Further understanding that this isn't just a small issue with a few individual's its estimated that in Hawaii there has to be at least 22,000 illegal rentals .
The real question is why do people have to rely on illegal actions to survive in a state that to be quite honest is well off money wise?
HBH - it would be naïve to think that people listing rooms and homes on Airbnb and VRBO are doing so to survive - these are mostly the wealthiest people on the island otherwise known as homeowners. It is actually hilarious to punch in a dummy booking in May in Kailua and see the homes that come up - surviving? Ha ha.
HBH - it would be naïve to think that people listing rooms and homes on Airbnb and VRBO are doing so to survive - these are mostly the wealthiest people on the island otherwise known as homeowners. It is actually hilarious to punch in a dummy booking in May in Kailua and see the homes that come up - surviving? Ha ha.
Pretty much this right here. ^^^^^
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HBH - it would be naïve to think that people listing rooms and homes on Airbnb and VRBO are doing so to survive - these are mostly the wealthiest people on the island otherwise known as homeowners. It is actually hilarious to punch in a dummy booking in May in Kailua and see the homes that come up - surviving? Ha ha.
Well to be fair your right, a lot of airbnb type rentals are investment properties, some are just local families just making it and some are people who are out of towners. Don't you live in Kailua? What is an HbH? Is that slang for something or someone?
I have been running a vacation rental on Kauai for 26 years. I do all the advertising, bookings, record keeping, taxes, etc. My son and his wife, who own a half interest, take care of the property, since they live nearby.
Last year we took in about $80,000 and had expenses of about $53,000. Net taxable income $27,000, but the expenses only count mortgage interest, not the whole mortgage payment, so the cash flow is less.
My kids would like to get out of the business, but we have another three years to go on the mortgage. If we rented it long term, we could get between $3000 and $3500/mo. The mortgage is about $1900/mo, including real estate taxes and insurance. The Hawaii General Excise tax would be About $123, maintenance perhaps $300, and association fees about $230. Leaves less than $500/mo ($6,000/yr) before income tax.
Vacation Rental is much more profitable, but the hassle factor is a serious consideration
Fantastic example HankDfrmSD! Exactly what I was hoping for....
Could I ask what made up $53k of expenses? -- Was shocked when you said it didn't include the mortgage payment - wow.
3 years left on the mortgage? Why in the WORLD would your kinds want out?? -- sounds like a sweet sweet deal. What has them so disinterested?
What venue are you using... AirBnB? VRBO? And does it have an ocean view?
Quote:
Originally Posted by whtviper1
I could easily without much work whatsoever, AirBnB any of the single family homes I own and make well more than 50% here on Oahu vs. a long-term renter. It isn't even close.
Except.....
It would be illegal.
Viper, thats really good to know. Is Oahu not issuing permits outside the "rental zone"? I know in Maui it is case-by-case. I think I remember reading the government there set a limit on permits that hasn't maxed out yet but have announced they aren't increasing the # after they're full-up. Don't know if there are any such zones on the BI... Seem to recall that Kauai and Lanai have no limit/license requirement...
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Vacation Rentals
