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To the extent allowed by law, I expect some property owners to offer 30+ day leases with the expectation that you're only staying for 3-5 days and will receive the difference of your month payment back when you leave. This does involve risk as someone could always decide to stay for the duration of their lease, thereby eating into the owner's potential profits, but it could serve as a legal loophole (I haven't read the law so can't say for sure). Note, if such is a genuine loophole in the law, I'd imagine that this would become the unspoken expectation among landlord and "tenant" for vacation rentals over time. Here's to hoping that the law is struck down by the courts, though
Last edited by prospectheightsresident; 08-25-2019 at 07:00 AM..
Here's to hoping that the law is struck down by the courts, though
On what basis?
Anyway, if it hadn't been for all the corporations, LLC's, and investment trusts formed strictly to buy real estate in Kailua Waikiki, Kahala, Hawaii Kai, etc for the sole purpose of AirBnb rentals - this law woudn't have been needed.
People should have a reasonable expectation when they live in a residential neighborhood - that it is indeed a residential neighborhood - emphasis on "resident" - and your neighbor isn't KailuaRental Corporation.
To the extent allowed by law, I expect some property owners to offer 30+ day leases with the expectation that you're only staying for 3-5 days and will receive the difference of your month payment back when you leave. This does involve risk as someone could always decide to stay for the duration of their lease, thereby eating into the owner's potential profits, but it could serve as a legal loophole (I haven't read the law so can't say for sure). Note, if such is a genuine loophole in the law, I'd imagine that this would become the unspoken expectation among landlord and "tenant" for vacation rentals over time. Here's to hoping that the law is struck down by the courts, though
The law addresses and makes it illegal to enter into any agreement for less than 30 days and makes it illegal for an owner to restrict a tenants use to less than 30 days. So your rental agreement must be for 30 days and you can’t limit or restrict their use to less than 30 days.
It also requires hosting platforms to provide monthly reports identifying each unit rented, the address and the length of stay purchased through the hosting platform.
I’m sure owners will try to work around it. But if your using a hosting platform like Airbnb it’s tough to do because each time someone books you would need to then block out 30 days on your availability calendar which would make it difficult to book more than one person within a 30 day period.
I’m hopeful most owners of illegal units will just start following the rental laws rather than trying to continue operating illegally.. or sell the place. I have zero tolerance for people who knowingly violate the law.
To the extent allowed by law, I expect some property owners to offer 30+ day leases with the expectation that you're only staying for 3-5 days and will receive the difference of your month payment back when you leave. This does involve risk as someone could always decide to stay for the duration of their lease, thereby eating into the owner's potential profits, but it could serve as a legal loophole (I haven't read the law so can't say for sure). Note, if such is a genuine loophole in the law, I'd imagine that this would become the unspoken expectation among landlord and "tenant" for vacation rentals over time. Here's to hoping that the law is struck down by the courts, though
Any workaround is illegal, and will be treated as such. Hawaii (finally) got their act together, and instead of coming up with a lamebrained law open to legal challenges,they modeled the law after a successful california law that withstood a 9th circus court challenge. Playing games with the 30 day "loophole", which is what people are already doing, will not stand up in court.
Anyway, if it hadn't been for all the corporations, LLC's, and investment trusts formed strictly to buy real estate in Kailua Waikiki, Kahala, Hawaii Kai, etc for the sole purpose of AirBnb rentals - this law woudn't have been needed.
People should have a reasonable expectation when they live in a residential neighborhood - that it is indeed a residential neighborhood - emphasis on "resident" - and your neighbor isn't KailuaRental Corporation.
I'm not sure, but I'd be interested in reviewing the lawsuit filed by the Hawaii Vacation Rental Owners Association filed the first lawsuit, alleging that the new law is unconstitutional and violates laws governing zoning and administrative procedures.
Even though the lawsuit is being filed in federal court (per the article on the other page), it seems to be concerning state law. So it'll be interesting to see how things shape out. I don't know enough about Hawaii state law on this matter to know if the association has a chance, but I'm keeping my fingers crossed.
Any workaround is illegal, and will be treated as such. Hawaii (finally) got their act together, and instead of coming up with a lamebrained law open to legal challenges,they modeled the law after a successful california law that withstood a 9th circus court challenge. Playing games with the 30 day "loophole", which is what people are already doing, will not stand up in court.
We'll see what the courts have to say. And there are state law claims being made here, so the case involving the California law isn't necessarily applicable here.
The law addresses and makes it illegal to enter into any agreement for less than 30 days and makes it illegal for an owner to restrict a tenants use to less than 30 days. So your rental agreement must be for 30 days and you can’t limit or restrict their use to less than 30 days.
It also requires hosting platforms to provide monthly reports identifying each unit rented, the address and the length of stay purchased through the hosting platform.
I’m sure owners will try to work around it. But if your using a hosting platform like Airbnb it’s tough to do because each time someone books you would need to then block out 30 days on your availability calendar which would make it difficult to book more than one person within a 30 day period.
I’m hopeful most owners of illegal units will just start following the rental laws rather than trying to continue operating illegally.. or sell the place. I have zero tolerance for people who knowingly violate the law.
That still fits squarely within my hypothetical.
While I don't advocate people violating the law, I won't exactly be out there protesting against people fighting back what I consider to be unfair laws.
While I don't advocate people violating the law, I won't exactly be out there protesting against people fighting back what I consider to be unfair laws.
I do think some people Eileen try to loop around it. But I think it will be difficult. They would need a steady stream of people willing to commit and pay for a 30 day rental (through Airbnb for example) and trust that they will get their money back if they don’t stay that long. Plus Airbnb charges them a fee as a % of the rental cost. They won’t get that back. I think some will try it but it’s not going to be as easy as it sounds.
Out of curiosity, what do you feel is unfair about the law ? It is not a new law. It does not make a home illegal today that was not already illegal under the prior law. The new law just makes it easier to enforce the old law. All of these illegal operators bought property that was not zoned for short term vacation use prior to them even purchasing the property. So it’s hard to have sympathy for them. They bought these properties that were not zoned for vacation use and simply thumbed their nose at existing laws and did it anyway. Now the new law just makes enforcement more effective. Hard for me to feel sympathy.
I actually don't understand why Just about anyone - of course a small minority besides the real estate investment trusts, corporations formed to explicitly buy Oahu real estate, or people who got second/third mortgages to buy more homes just for AirBnb would actually support illegal rentals. We know Hawaiian Airlines supports it - lets face it, there are only so many hotel rooms. Illegal rentals just make no sense.
I do think some people Eileen try to loop around it. But I think it will be difficult. They would need a steady stream of people willing to commit and pay for a 30 day rental (through Airbnb for example) and trust that they will get their money back if they don’t stay that long. Plus Airbnb charges them a fee as a % of the rental cost. They won’t get that back. I think some will try it but it’s not going to be as easy as it sounds.
Out of curiosity, what do you feel is unfair about the law ? It is not a new law. It does not make a home illegal today that was not already illegal under the prior law. The new law just makes it easier to enforce the old law. All of these illegal operators bought property that was not zoned for short term vacation use prior to them even purchasing the property. So it’s hard to have sympathy for them. They bought these properties that were not zoned for vacation use and simply thumbed their nose at existing laws and did it anyway. Now the new law just makes enforcement more effective. Hard for me to feel sympathy.
These guys trying to justify their illegal rentals might be all shooting themselves in the foot. There's board members of this condo trying to spend association money on hiring lawyers to fight the rental bill. Conflict of interest. Also, I'm not sure that publicly disclosing that 2/3 of the units has been used for short term rentals and the building operating as a hotel for 40 years is smart. That basically means that they should have been and should be assessed at hotel real property tax rates going forward. The board needs to use their brains and understand that their duties as board members aren't simply an "at-will" type of employment, they have fiduciary responsibilities and can be personally sued.
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