Short Term Vacation Rentals in Kailua-Kona, HI

[Rob Hilton]

Anyone here have experience with STRs in Kailua-Kona? I currently live in SoCal and own an STR in FL, and I'm very interested in the Big Island STR market. I understand that STVR licenses are being issued only within the tourism zoned areas. I'm very familiar with the town, but I've never actually met with an RE agent or property manager in town when I've visited in the past. Planning to fly down in a couple weeks, and would love to hear from the anyone who has insight on owning and managing STRs on the Big Island while living here on the mainland. Mahalo.

[Paul Winchell]

@Rob Hilton 

There are two preliminaries to running a STR in Kona (or anywhere on the Big Island). First, is the Hawaii STVR license. This is mainly just a taxation thing. If your property is legally allowed as an STR, then it's just a simple form to get the permit and pay the taxes (not only General Excise Tax as mentioned above but also Transient Accommodation Taxes for both the county and state).

The second is a bit trickier and that's making sure that the property is legally allowed as an STR. The zoning laws are what determines this. Anything zoned as Vacation/Resort zoning automatically qualifies for the permit. This includes most (but not all) of the major condo complexes and a few limited communities. If the property is zoned residential, then a Non-Conforming Use Certificate (NUC) is required. These are only available to properties that were already operated as STRs and grandfathered in when the law changed in 2018. If the property has an NUC, it is transferrable with the sale. If it doesn't already have one, then it doesn't qualify and using it for an STR is illegal (and yes, they do enforce). No other zoning types have a legal route to an STR license. Your realtor can help point you to properties that do qualify if you're still interested.

Best of luck!

--Paul