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Updated about 3 years ago on . Most recent reply
Condo In Hawaii for Air Bnb
Hello,
Just running this through for some opinions…I live in Northern California and I know it’s Covid and all but we’ve been thinking about getting into vacation property. We recently purchased a property in Napa and it’s doing well so far.
Now we are looking into other fun areas like Lake Tahoe…my family also recently got back from Hawaii. Although I couldn’t find Brandon. It made me think I still wanted to purchase a condo out there to air bnb and possibly get some returns on it.
Does anyone else invest in Hawaii or have looked into it? It sounds like a no brainer but usually when something seems too good to be true, 9 times out of 10 it is.
Insight anybody??
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Current Laws (Bill 85 and Bill 89) upcoming Bill 41 being pushed:
- To be legal, a short-term rental must be located on land that is zoned explicitly for ‘resort/resort mixed use’ (Waikiki, Ko'olina, Kuilima (near Turtle Bay))
- Condominium Limit. Up to 50% of units in a condominium building may be allowed a B&B, subject to AOAO (Association of Apartment Owners) approval.
- All other rentals can currently be booked for 30 days or more, however, the state wants potentially change it to require a 180-day minimum (6 months) with exceptions for full-time students, temp health care workers, remote workers, homeowners in transition, and more.
- Applications for registration have been put on hold until the DPP reconsiders the registration process due to comments provided by the public at the April 6, 2021 hearing.
Transient Vacation Units (TVUs):
- Must have a permit (called a NUC) to operate outside of resort areas
- NUC's are non-transferable, can't be transferred to another property/person
- Bill 41 wants to push a $5,000 application fee with a $2,500 annual renewal fee to apply for a NUC (Non-Conforming Use) permit (up from the current $1,000 registration and $2,000 annual renewal fee). You can only rent to groups with no more than two adults per bedroom.
Bed & Breakfast (B&Bs):
- 1,700 new permits to be rented for short terms as long as the owner lives in the home (bed-and-breakfast home) must include permit numbers on all advertisements or you will be fined.
- Max 4 guests with homeowner present
Other Rules:
- Operators must provide neighbors within 250 ft of a property a number to can be called 24 hrs to receive complaints.
- Fines are given to property owners who rent without a permit or entire houses outside of designated resort zones. $10,000 per day of violation, the state wants to increase to $25,000 per day.