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To me that is the most important thing. It's all well and fine to try and make private companies responsible for collecting the tax, people will just work around that, if they are the type not paying their taxes now.
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Sad they took out the section that checked to make sure the rental was in a legally zoned area. Thielen is a smart cookie.
There are literally thousands of homes and condos not on the long-term rental market on Oahu because of Airbnb.
A lot of people keep wondering - why is rent and housing prices continuing the upward trajectory at such a stunning pace if wages, while going up, are not going up at the rate of housing - especially since population growth is slowing.
Answer: Airbnb
I don't know who Airbnb uses for their lobbiest in Hawaii - but they got their money worth.
There are literally thousands of homes and condos not on the long-term rental market on Oahu because of Airbnb.
A lot of people keep wondering - why is rent and housing prices continuing the upward trajectory at such a stunning pace if wages, while going up, are not going up at the rate of housing - especially since population growth is slowing.
Answer: Airbnb
I don't know who Airbnb uses for their lobbiest in Hawaii - but they got their money worth.
I don't understand this issue. Is there a short explanation?
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There are literally thousands of homes and condos not on the long-term rental market on Oahu because of Airbnb.
A lot of people keep wondering - why is rent and housing prices continuing the upward trajectory at such a stunning pace if wages, while going up, are not going up at the rate of housing - especially since population growth is slowing.
Answer: Airbnb
I don't know who Airbnb uses for their lobbiest in Hawaii - but they got their money worth.
Don't quote me ok I could be wrong. But isn't the airbnb issue more of an outsider investment thing then a local issue? No not saying there isn't people living on the island renting out the second house they own or renting a room in there one home they own. But isn't it more people who live in other areas of the country or world renting out there vacation home or condo not thinking about or caring about the effects of limited housing and the costs?
Wow 22,000 vacation rentals are reported in Oahu. That could house alot of locals.
I don't understand this issue. Is there a short explanation?
The vacation rental market has exploded on Oahu because of VRBO and AirBnb - with nearly 100% of them being illegal.
First problem: You have a situation where a lot of local residents who have equity in their homes are keeping that home and buying another primary residence and renting out what used to be the primary residence. Without a vacation rental market, they would have had to sell the primary residence to get a new home. Now they don't due to the inflated income of AirBnb and VRBO. Now you have an inventory of homes/condos taken off the rental market.
Second Problem: There are homeowners who don't live in Hawaii full-time - they could be retirees, snowbirds, whatever. Without an illegal rental market, those homes would sit vacant when they aren't here. Now that you have an illegal rental market - they rent these out when they aren't here driving up the value of the surrounding properties - pricing local people out of the market
Don't quote me ok I could be wrong. But isn't the airbnb issue more of an outsider investment thing then a local issue? No not saying there isn't people living on the island renting out the second house they own or renting a room in there one home they own. But isn't it more people who live in other areas of the country or world renting out there vacation home or condo not thinking about or caring about the effects of limited housing and the costs?
Wow 22,000 vacation rentals are reported in Oahu. That could house alot of locals.
No it is not. Locals are profiting off airbnb more than foreigners (in terms of access to new forms of income). Wealthy foreigners have been renting their extravagant beachfront and hillside homes on a short term basis for decades. Airbnb has opened the floodgates so the little guys (i.e. locals) can now cash in just at a much lower price point.
You seem to think locals don't care about paying their bills, saving up for retirement, funding their children's education, buying a new car, etc etc. Everyone wants to be solvent; everyone wants to be successful - locals and foreigners alike. Given the access to the right tools, locals will and are taking advantage of the sharing economy.
The new legislation stinks and will only make short term illegal rentals more ubiquitous. Homeowners will now have the confidence that they can get away with illegally renting their home as they know taxes are being levied on the income they receive. It's as if doing one thing right undoes the wrong. It's just more absurdity from the circus some call Hawaii Government.
What's even more disappointing is that a huge chunk of all the rental revenue goes to Airbnb (i.e. San Francisco). Any other form of rental mgmt (long OR short term) keeps the income LOCAL. Airbnb sucks the money out of the state and plops it right into another (you're welcome California).
The vacation rental market has exploded on Oahu because of VRBO and AirBnb - with nearly 100% of them being illegal.
First problem: You have a situation where a lot of local residents who have equity in their homes are keeping that home and buying another primary residence and renting out what used to be the primary residence. Without a vacation rental market, they would have had to sell the primary residence to get a new home. Now they don't due to the inflated income of AirBnb and VRBO. Now you have an inventory of homes/condos taken off the rental market.
Second Problem: There are homeowners who don't live in Hawaii full-time - they could be retirees, snowbirds, whatever. Without an illegal rental market, those homes would sit vacant when they aren't here. Now that you have an illegal rental market - they rent these out when they aren't here driving up the value of the surrounding properties - pricing local people out of the market
Mahalo. That all makes sense to me.
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We had an illegal rental situation within our community, which is small. We dealt with it through the board and the attorney to shut it down. Easy because it was against the CC&Rs.
Some rich foreigner? No, local couple renting out their upstairs.
We found out because we all socialize, and the "renters" would come and trash the pool and BBQs, so we quickly found out what was going on.
Why can't you report illegal rentals? Who would you report it to? Their tax license (IF they have one) and a copy of their ad should suffice. What is the enforcement agency?
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In my opinion, Airbnb has a responsibility to operate legally within a State. If they are going to collect and remit taxes and earn a profit doing business within a State, they have a responsibility to make certain they are profiting from a LEGAL activity. Which would mean before allowing a Vacation Rental to operate under their tax id umbrella and solicit via their website, they would need to vet the unit to make certain it was a legally rentable unit.
If they don't do that, and they allow illegal units to operate under their tax-id number for purposes of collecting and remitting taxes, and they also profit from the illegal activity, then I believe they are colluding and complicit in illegal business practices within the State of Hawaii.
I'm no lawyer but that is how it appears to me. And if I were Douglas Chin (Hawaii State Attorney General) I would be questioning this.
I would also have about 3 employees directed to cruise through Airbnb & VRBO and Craigslist contacting all the people advertising on those site posing as a potential customer to create a list of illegal operations and then start sending the owners large fines and violation notices.
I think the State needs to take a far more aggressive stand against illegal vacation operations.
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