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Most of the listings in Kailua are entire homes. Just go on the site.
I saw very few detached single family homes. Mostly attached apts., studios, etc. If you check off the Entire home/Apt filter on abnb it can mean a bedroom with a sliding door to the outside.
Pick a month in the future like mid-September to mid-October - anything from now until Labor Day that is decent and priced right is already booked and not on the site.
I am wondering how vetoing this bill would have any positive affect on the homeless population. Ige said that the bill would have encouraged the illegal vacation rental market “at a time when affordable rental housing is in such short supply in our communities and homelessness remains to be a critical concern statewide.” Most of the listings on abnb are one or two bedroom spaces within an owner occupied home. If these homes are located in desirable locations such as, Kailua, N Shore, then fair market rates for these types rentals would be in the $2000 to 3000 range per month. Are the homeless individuals or families expected to occupy these units? What happens when it is time to fill out a rental application? Will these prospective tenants be able to show sufficient income, pass background checks and supply references? What percentage would qualify? How many of the abnb hosts would choose not to rent at all if it was long term? I keep hearing about the negative impact from short term rentals but I just don't see the connection.
Any mention of increasing the number of market-rent housing as directly alleviating the homeless population is just political pandering. Everyone knows that.
Any type of housing provided for homeless people will have to be almost entirely subsidized by taxpayers. Most (but not all) of our homeless population will never break free from government subsidies to maintain a satisfactory way of life on this island.
However, Ige's comments on Airbnb reducing the number of affordable rental housing units holds true. Every home that is opened up to short-stay visitors is a home that cannot be provided to local residents - this is not rocket science. If you are talking about renting out a room in a home, that is a totally different situation. But even that has its downsides... primarily having a direct impact on the character and feel of neighborhoods these homes are located in. Very few people want to live in a neighborhood (or condo) that has transient guests on a constant basis. This is exactly why the city zones areas for resort/hotel use - they want to keep the transient people concentrated into specific neighborhoods, not haphazardly spread out across the island.
You need to read between the lines when politicians speak. A lot of what they say may make absolutely no sense to you... but it sounds good to the general public as a whole. In this case, the main purpose of the vetoing of legislation is to prevent more homes (or parts of homes) from going to transient visitors. This keeps more long-term housing available for local residents that desperately need more affordable housing.
I was just thinking it could be a great source of revenue for the state if the bill passed and was expanded to allow for more short term rentals. If one home generates $3000 per/m long term(4.5%get) or $5000 p/m short term at (14.5% get+tat). That's $135 long term vs. $725 short term per mo. $1620 vs. $8700 per year in tax rev. That is a huge difference in tax rev that just one home can make. We are in dire need of infrastructure improvements: Roads, Sewers, Water Supply. Schools need 100 million just for AC, the train will eat up revenue perpetually without any return. Tourism is all we have so we should make the best out of the situation. It is never going back to the way it was. Just look at the plans A&B has for future Kailua development, it targets tourism in a big way. The bottom line is that there is great demand for both short term and long term housing. The short term renter will pour money into the local economy without utilizing state services and entitlements. They don't need jobs, schools, health care or public assistance. Something to consider before dismissing the opportunity the new sharing economy presents.
I was just thinking it could be a great source of revenue for the state if the bill passed and was expanded to allow for more short term rentals. If one home generates $3000 per/m long term(4.5%get) or $5000 p/m short term at (14.5% get+tat). That's $135 long term vs. $725 short term per mo. $1620 vs. $8700 per year in tax rev. That is a huge difference in tax rev that just one home can make. We are in dire need of infrastructure improvements: Roads, Sewers, Water Supply. Schools need 100 million just for AC, the train will eat up revenue perpetually without any return. Tourism is all we have so we should make the best out of the situation. It is never going back to the way it was. Just look at the plans A&B has for future Kailua development, it targets tourism in a big way. The bottom line is that there is great demand for both short term and long term housing. The short term renter will pour money into the local economy without utilizing state services and entitlements. They don't need jobs, schools, health care or public assistance. Something to consider before dismissing the opportunity the new sharing economy presents.
The government doesn't need more money. It rarely manages to spend it wisely. Passing that bill would, in my opinion, just be another example of of the government selling out its responsibilities to the residents for more money.
I was surprised the bill was vetoed but it was the right thing to do. If they want to allow the spread of short term rentals throughout the island, then change the laws and zoning and then collect the tax transparently. Don't say it's illegal and then take money through a third party below board for an activity that is currently not legal.
The residents of this state vote for big government and the big spending that goes along with it. 40 percent of public pensions go underfunded in Hawaii, with nearly $40 billion in unfunded liability and an average of $20,000 in per-person unfunded liability. It seems like the only go to source for future revenues to meet these needs are going to be through property taxes. At some point it has to be paid for and I don't think residents want to see their equity used like an ATM machine. I just look at tourism in general and be it hotels or home sharing in residential neighborhoods, inflows have to somehow grow. A short term rental will net substantially more rev for the state, local businesses and should be made legal and available to meet demand.
The residents of this state vote for big government and the big spending that goes along with it. 40 percent of public pensions go underfunded in Hawaii, with nearly $40 billion in unfunded liability and an average of $20,000 in per-person unfunded liability. It seems like the only go to source for future revenues to meet these needs are going to be through property taxes. At some point it has to be paid for and I don't think residents want to see their equity used like an ATM machine. I just look at tourism in general and be it hotels or home sharing in residential neighborhoods, inflows have to somehow grow. A short term rental will net substantially more rev for the state, local businesses and should be made legal and available to meet demand.
Well, make it legal first. Then tax it. Government shouldn't make it illegal and then try to generate revenue off an illegal activity. I'm pretty skeptical by nature when it come to anything government related. And I don't think pouring gasoline on a fire helps put it out. I'd also like to see them get out of the pension providing business. Private sector has largely done away with it and government should too. Again, just 2 more cents.
Well, make it legal first. Then tax it. Government shouldn't make it illegal and then try to generate revenue off an illegal activity.
On that I agree. Silly to condone an illegal activity. And I don't see it ever made legal.
Quote:
Originally Posted by WaikikiBoy
I'd also like to see them get out of the pension providing business. Private sector has largely done away with it and government should too.
I don't disagree - but those things are easier said than done. One of the justifications of paying many public sector lower than a private sector counterpart is a lower annual salary - so you'd have to make adjustments to attract/retain employees.
The other barrier to eliminating pensions is unions - especially Hawaii unions.
I was just thinking it could be a great source of revenue for the state if the bill passed and was expanded to allow for more short term rentals. If one home generates $3000 per/m long term(4.5%get) or $5000 p/m short term at (14.5% get+tat). That's $135 long term vs. $725 short term per mo. $1620 vs. $8700 per year in tax rev. That is a huge difference in tax rev that just one home can make. We are in dire need of infrastructure improvements: Roads, Sewers, Water Supply. Schools need 100 million just for AC, the train will eat up revenue perpetually without any return. Tourism is all we have so we should make the best out of the situation. It is never going back to the way it was. Just look at the plans A&B has for future Kailua development, it targets tourism in a big way. The bottom line is that there is great demand for both short term and long term housing. The short term renter will pour money into the local economy without utilizing state services and entitlements. They don't need jobs, schools, health care or public assistance. Something to consider before dismissing the opportunity the new sharing economy presents.
I am totally missing what you're saying about how Airbnb will help the local tourism economy.
Airbnb charges, on average, 15.5% of the money paid for by guests. That is 15.5% of every penny paid for by guest accommodations here on this island. Every penny of that money is funneled away from this state and into another state. Can you explain to me exactly how this is good for the LOCAL economy again?
You say the short term Airbnb guest "pours" money into the local economy. What do you think hoteliers do for the local economy when they build a new hotel? Suck money out of the state? Major renovations are occurring and new buildings are popping up all over Waikiki. Hoteliers are doing a perfectly good job of increasing capacity to keep up with demand. Look at the old Waikiki Trade Center... it was just announced it will be converted from an old office building into a 230-room Hyatt Centric Waikiki Beach Hotel with over $62 million dollars of OUTSIDE (non-local) money being injected into the project. That is $62M of money that is not coming from locals that is going directly into our local economy. And that's just to get it built. The property sits on land owned by Queen Emma Land Company, a nonprofit that supports The Queen’s Medical Center - again a worthy local entity that does so much good for locals. The lease rent (paid for by the hotel) all stays here and benefits the locals. Did I mention the construction jobs created from this new hotel? Again, goes back to benefit locals. What about all the jobs (hospitality, maintenance, management, marketing, construction, etc) created by the hotel operations? All of this benefits locals. The benefit of a legitimate hotel room is far far far greater to our economy than the additional income (for homeowners) generated by offering rooms or homes for short term stay vs long term. There is simply no comparison.
And talking about tax collections... the real property tax rate for hotels is QUADRUPLE what it would be for those units provided by Airbnb (since virtually all of them operate in residential zoned areas). So the city would effectively be collecting four times as much revenue if guests stay at a hotel vs Airbnb. And chances are those hotel rooms are worth 2-5X more per square foot when compared to the same square foot of home typically provided to Airbnb guests... so in reality the tax rate could be as much as TWENTY TIMES the rate. Hard to comprehend, but those are the facts.
Back to the Airbnb fees... On average, hoteliers turn a profit of only 5% average (so after all operation expenses and debt service, they are left with 5 cents on every dollar collected from guests). And of this profit, much of it may stay in the state. Assuming only 35% of hotel net-profit stays here in our state (65% is exported to other states/countries), Airbnb is effectively taking nearly FIVE TIMES MORE (15.5% vs 3.25%) away from our economy than hoteliers and generating FAR fewer jobs and FAR less city tax revenue.
If there is stronger demand for tourism, let the hotel industry increase its capacity to allow them a place to stay. It will all happen on its own - no need for regular homeowners to come in and "save" the tourism industry. The whole idea is idiotic.
Honestly, I think this whole Airbnb thing is going to die out (sharing homes, renting homes in residential areas, etc). Eventually people will understand that booking units in residential areas is upsetting many of the local residents that live in these neighborhoods. They will start realizing that what they are doing is disrespectful to others and their stays are unwanted. Through the use of social media and possible future campaigns, there will be Airbnb "shaming" of these unwanted guests. Demand for short term rentals in residential areas will wane... and life will go back to putting tourists where they belong.
I just think the fears are way over blown for new business models such as Airbnb or Uber. There is no question they are disruptors and quickly change the dynamic of a market. They are disruptive because of the efficiency, price discovery and the positive consumer experience that is driving their exponential growth. As far as Hotels vs. private home rentals, they are two distinctly different non-competing products with vastly different experiences for the end user. Hotels will sell rooms at the same rate and all their existing benefits for the local economy and profits for their mainland corporate stakeholders will remain the same. Corporations are people as I once heard but not all of them happen to live here. Airbnb is hyper-local in its benefits to a neighborhood. Most of the profits (about 70% before state and fed income tax) go to the local homeowner utilizing Airbnb and remain in the local neighborhood. That same resident might now have an extra $1000 or so in their pocket to patronize local shops and restaurants. In short, incredibly efficient at bringing in new outside money and keeping almost all of the profits in the local neighborhood economy. The state does not have to invest any resources at all and efficiently collects 14.5% of gross.
Some tourists seek out the resort experience and atmosphere, some don't. Why wasn't Waikiki chosen for the Obama's Christmas vacation for the past seven years? They could go anywhere in the world they desire but choose a short term illegal vacation rental in Kailua instead. Personally when traveling, my preference would be to catch an Uber ride from the airport to an Airbnb rental instead of taking a taxi cab to a resort. Technologies that did not even exist ten years ago make it common place now and will only continue to evolve. If you want to understand the experiences of the Hosts and Renters that patronize Airbnb you can go on their website and check out all the comments associated with a property. They tend to comment mostly about enjoying the beach, going on hikes, shopping, experiencing local culture and often praise the hosts for their hospitality and local knowledge. Kind of like, what’s that word, aloha? Hawaii is transient, people come and go, there will always be military, dreamers and others that only last a year or so and neighborhoods are used to new faces. Tourism and tourists specifically are the only thing that makes the lifestyle and opportunity to live here possible. Probably better to be grateful and accommodating rather than shaming people that just want to experience a small sliver of that local lifestyle.
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