Honolulu Short Term Rental Regulation: A Guide For Airbnb Hosts

What are Short Term Rental (Airbnb, VRBO) Regulations in Honolulu, Hawaii?

The short term rental regulations in Honolulu, Hawaii are stringent and carefully enforced to ensure compliance with local laws and zoning ordinances. Short-term vacation rentals on Oahu are highly regulated, with specific areas on the island designated for such rentals, along with strict conditions on occupancy limits and rental durations1. Property owners must adhere to all regulations concerning short-term rentals and pay the relevant taxes to operate legally in Honolulu.

The regulations in Honolulu dictate that short term rentals, also known as vacation rentals, provide guest accommodation for less than 30 consecutive days and are only permitted in resort-zoned areas and specific apartment-zoned areas to preserve housing for long-term residents4. These regulations aim to strike a balance between catering to tourism demands and maintaining the integrity of residential and rural lands in Honolulu.

Recent legal challenges, such as Honolulu's Bill 41, have impacted short-term rental operations significantly. Bill 41 aimed to extend the minimum rental period for short-term rentals to 90 days, but due to legal challenges, the minimum rental period remains at 30 days2. This legal landscape has created a complex environment for hosts and property managers navigating the vacation rental market in Honolulu.

Despite the regulatory landscape, existing short-term rentals in Hawaii have been allowed to continue operations following a federal judge's ruling, granting a permanent injunction to property owners who have been operating short-term rentals for years5. This ruling has provided clarity for existing rental operators, allowing them to continue their operations within the parameters set by the court.

In conclusion, the short term rental regulations in Honolulu, Hawaii are designed to balance the needs of the tourism industry with the preservation of residential areas. Property owners looking to venture into the short-term rental market in Honolulu must carefully navigate the regulatory landscape, work with professionals knowledgeable about the market, and ensure compliance with all laws and ordinances to operate legally and successfully in the region.

Starting a Short Term Rental Business in Honolulu

Starting a short term rental business in Honolulu can be an exciting and profitable venture, but it's important to be aware of the regulations in place. Honolulu has strict zoning laws and regulations that govern the operation of short term rentals. For instance, short term rentals are only allowed in specific areas on the island with strict conditions on occupancy limits and the duration of rentals. Property owners must also comply with all regulations concerning short-term rentals as well as pay the relevant taxes.

Before starting a short term rental business in Honolulu, it's important to research the regulations and zoning laws that apply to short term rentals in the area. This will help you understand the requirements and restrictions that apply to your property and ensure that you are operating within the law. You should also consider the potential impact of short term rentals on the community and the local housing market.

Short Term Rental Licensing Requirement in Honolulu

To operate a short term rental in Honolulu, you need to obtain a license from the City and County of Honolulu. The licensing process involves meeting certain requirements, such as obtaining a non-conforming use certificate, complying with safety regulations, and paying the necessary fees. It's important to note that the licensing process can be lengthy and requires a significant amount of documentation.

The non-conforming use certificate is a document that allows a property to operate as a short term rental in a zone where it is not otherwise permitted. To obtain a non-conforming use certificate, you must provide a detailed site plan, proof of ownership, and a description of the proposed use. You may also need to provide additional documents, such as a fire safety plan, a noise mitigation plan, and proof of insurance.

Required Documents for Honolulu Short Term Rentals

To obtain a license for a short term rental in Honolulu, you need to provide various documents, including a detailed site plan, proof of ownership, and a description of the proposed use. You may also need to provide additional documents, such as:

• A fire safety plan that includes the location and operation of fire extinguishers, smoke detectors, and emergency exits.
• A noise mitigation plan that outlines measures to reduce noise levels and prevent disturbances to the community.
• Proof of insurance that covers liability and property damage.
• A description of the property's amenities and services, such as Wi-Fi, parking, and cleaning services.

Honolulu Short Term Rental Taxes

Short term rental operators in Honolulu are subject to state and county transient accommodations tax (TAT) as well as general excise tax (GET). These taxes are based on the gross rental proceeds and can be passed on to guests. Hawaii transient accommodations operators must be registered with the state’s Department of Taxation, file regular tax returns, and pay county taxes to Honolulu tax authorities and state taxes to state authorities.

The transient accommodations tax (TAT) is a 10.25% tax on the gross rental proceeds of short term rentals in Hawaii. The general excise tax (GET) is a 4% tax on the gross rental proceeds of short term rentals in Hawaii. These taxes are in addition to any other taxes that may apply, such as property taxes and income taxes.

Honolulu Wide Short Term Rental Rules

Honolulu has strict rules governing short term rentals, including a ban on rentals of between 30 and 89 days in non-resort areas. The city also restricts permits for vacation rentals to resort-zoned areas, such as Waikiki and Ko Olina, and prohibits vacation rental guest parking in rural, apartment, or residential zones. Violations can result in fines of up to $10,000 per day.

The city has also implemented measures to enforce short term rental regulations, such as requiring hosts to register with the city and display their registration number on their listings. The city has also implemented a 24/7 hotline for reporting illegal short term rentals.

Does Honolulu Strictly Enforce STR Rules?

Honolulu has been cracking down on illegal short term rentals, with the city issuing thousands of dollars in fines to violators. However, a federal judge recently ruled that existing short-term rentals outside resort zones can continue their operations and advertising of rentals for stays of 30 to 89 days. This ruling allows existing short-term rentals to operate under the 30-day minimum rule, but it doesn't apply to any short-term rentals that opened after the ordinance was put in place.

Despite the regulations, many hosts continue to operate their short term rentals, often under the radar of city officials. Some hosts have reported that they have been able to operate their short term rentals without a license by listing their properties on platforms that do not require a license, such as Facebook Marketplace or Craigslist.

How to Start a Short Term Rental Business in Honolulu

To start a short term rental business in Honolulu, follow these steps:

• Research the regulations and zoning laws that apply to short term rentals in Honolulu.
• Obtain a non-conforming use certificate and comply with safety regulations.
• Apply for a short term rental license from the City and County of Honolulu.
• Provide all required documents, including a detailed site plan, proof of ownership, and a description of the proposed use.
• Pay the necessary fees and obtain the required insurance.
• Comply with all tax obligations, including registering, filing lodging tax returns, and paying taxes to both the state and the county.
• List your property on short term rental platforms, such as Airbnb or VRBO, and comply with their requirements and regulations.
• Market your property to potential guests and provide high-quality services and amenities.

Who to Contact in Honolulu about Short Term Rental Regulations and Zoning?

For more information about short term rental regulations and zoning in Honolulu, contact the City and County of Honolulu Department of Planning and Permitting at (808) 768-8000 or dpp@honolulu.gov. You can also visit the department's website for more information on the short term rental licensing process and the required documents.

What do Airbnb Hosts in Honolulu on Reddit and Bigger Pockets Think about Local Regulations?

Airbnb hosts in Honolulu on Reddit and Bigger Pockets have expressed mixed feelings about local regulations. Some hosts have criticized the strict regulations and high fees, while others have praised the city for cracking down on illegal short term rentals.

On Reddit, some hosts have expressed frustration with the licensing process and the high fees associated with obtaining a non-conforming use certificate. One host reported paying over $10,000 in fees to obtain a non-conforming use certificate and a short term rental license.

On Bigger Pockets, some hosts have expressed concern about the impact of short term rentals on the local housing market and the community. One host noted that short term rentals can drive up housing prices and make it difficult for locals to find affordable housing.

Despite the challenges, many hosts continue to operate their short term rentals in Honolulu. Some hosts have reported that they have been able to generate significant revenue from their short term rentals, even after paying the required taxes and fees.

In conclusion, starting a short term rental business in Honolulu requires a significant amount of planning and compliance with local regulations. While the city has strict rules governing short term rentals, there are opportunities for legal and profitable ventures in resort-zoned areas. It's important to stay informed about the latest regulations and to work with professionals who have knowledge of the market and the regulatory landscape. By following the steps outlined in this article and working with the appropriate authorities, you can start a successful short term rental business in Honolulu.