This is the ultimate guide to short-term vacation rental condos in Honolulu, which allow for rentals from just 1 day, just like a hotel (also referred to as transient vacation units). The vast majority of these condos are in Waikiki and are popular among investors as well as 2nd home buyers looking to generate income when not vacationing in Hawaii.
This overview highlights everything you should know about short-term vacation rental condos in Honolulu, followed by a list of the condos that allow short-term vacation rentals. Also take a look at our pages listing all Waikiki condos for sale and all Honolulu condos for sale (not just condotels, but all condos for sale).
Requirements to Run a Short-Term Vacation Rental Business 1 (and only 1) of these 3 criteria must be met for an owner to legally be allowed to run a short-term vacation rental business in Waikiki: 1) Parcel is zoned ‘Resort Hotel’, 2) owner holds a valid nonconforming use certificate (NUC), or 3) property has a current active hotel operation and the property is also exempt from requiring owners to hold a valid NUC (exempt buildings are determined by the Department of Planning & Permitting. This branch has an unofficial document created by their staff around year 1990, which highlights buildings that are exempt – we have reviewed this document. The document has not been used for enforcement purposes, but if there was a complaint or inquiry about any particular property, they would use it as a resource for their investigation).
Note: if the association of a condo changes their house rules to require minimum rentals of 30 days or longer, then an owner of a unit that fits criteria 1, 2 or 3 from the above would not be allowed to run short-term vacation rentals.
Hotel Definition: Building that contains lodging and/or dwelling units offering transient accommodations, and a lobby, clerk’s desk or counter with 24 hour clerk service, and facilities for registration and keeping of records relating to hotel guests.
Unit Classification (for real property tax purposes) Each unit, within a building, will, for tax purposes, be classified as either ‘Residential’ or ‘Hotel & Resort. An owner running a short-term vacation rental business is required to update the Real Property Assessment Division of such short-term rental activities (by filling out the Declaration Regarding Condominium Use), so the real property tax division can properly classify the unit as “Hotel & Resort” . If the unit is already classified as “Hotel & Resort” – upon taking ownership – the owner does not have to fill out the Declaration Regarding Condominium Use.
However, according to the Revised Ordinances of Honolulu Section 8.7.1(h), if an owner holds a valid NUC then the property shall be classified based on the underlying zoning. In other words, and owner of a condo in Waikiki on a parcel zoned “Apartment” with a valid NUC, can keep the “Residential” classification, thus paying the much preferred “Residential” tax rate.
If an owner of a unit classified as “Hotel & Resort” does not run short-term vacation rentals, then the owner can file for an exemption to get re-classified to ‘Residential’ status if either:
1) The owner claims the unit as the Principal Home (must occupy as primary residence at date of assessment, Oct. 1st, which can be proven by an intention to occupy unit at least 270 days in a given calendar year, be registered to vote in the city or file tax returns in the city) by filing the “Homeowner Exemption” prior to September 30th of a given year and the reclassification to ‘Residential’ should take effect the following fiscal year, if granted, or
2) The owner files the ‘Declaration Regarding Condominium Use’ prior to September 30th of a given year and the owner only engages in rentals that are 30 days or longer. The reclassification will either take 1 or 2 fiscal years, as the owner has to proof (via the Declaration Regarding Condominium Use) he / she has not engaged in short-term rentals (less than 30 days) from Oct 2 of a given year – Oct 1 of the following year.
Example: if an owner takes ownership of a condo May 2016 and files the ‘Declaration Regarding Condominium Use’ September 2016, then the re-classification to ‘Residential’, cannot takes effect fiscal 2017, since the owner cannot proof there hasn’t been short-term rentals from Oct 2016 – April 2017 (the period the owner didn’t own the condo) and the owner will instead Sept 2017 file the Declaration Regarding Condominium Use and include proof he / she has not been running short-term rentals from Oct 2, 2016 onward and, if granted, the reclassification to ‘Residential’ will take effect fiscal 2018, which runs July 1st 2018 – June 30th 2019.
Note: If a unit is classified as “Residential”, but the parcel is zoned “Resort Hotel” then a new owner who is not planning to run short-term vacation rentals is at “risk” the Real Property Assessment Division will re-classify the unit to “Hotel & Resort” for the following fiscal year, thus exposing the owner to a much higher real property tax rate. Therefore, such owner should make sure to file the Homeowner Exemption (if intension is to be primary residence) or file the Declaration Regarding Condominium Use if the owner’s intension is to run rentals 30 days or longer or simply keep unit vacant or use as owner’s 2nd home.
Taxes (Honolulu County - Oahu) Property Taxes A unit classified as ‘Hotel & Resort’ is taxed 1.29% of assessed value, whereas a unit classified as ‘Residential’ is taxed either: 1) The “Residential” tax rate, which is 0.35% of assessed value for owners who can claim the homeowners exemption (irrespective of assessed value) or properties assessed at less than $1,000,000 for owners who cannot claim the homeowners exemption, or 2) The “Residential A” tax rate, which is 0.6% of assessed value when the property is assessed at $1,000,000 or more for owners who cannot claim the homeowners exemption.
On October 1st of a given year, the tax office determines the unit’s classification, which applies for the following fiscal year. Example 1: October 1st, 2016 the classification is determined for fiscal year 2017 (July 1st 2017 – June 30th 2018).
Rental Income Taxes All short-term rental income is subject 2 separate tax components: a) GET – general excise tax – of 4.5% (applies to all rentals). b) TAT – transient accommodation tax – of 9.25% (applies to all rentals less than 180 days).
Waikiki Business Improvement District (annual charge) This association levies an annual fee on all units classified as “Hotel & Resort” in Waikiki only and will show on the property tax bill. PS! You may have seen the Aloha Ambassadors in yellow shirts walking around Waikiki. They represent an example of what the funds are used for.
The calculation various each year, but here is a recent example: District 1: $0.46 / $1,000 of assessed value – Kuhio Ave, Kalakaua Ave and all streets in between. District 2: $0.1533 / $1,000 of assessed value – Streets towards the ocean side of Kalakaua Ave, but before Ala Moana Blvd area. District 3: $0.115 / $1,000 of assessed value – Ala Moana Blvd area.
Nonconforming Use Certificate (NUC) AN NUC is a certificate, which allows an owner to run a short-term vacation rental business, despite a parcel not being zoned ‘Resort Hotel’. Up until year 1986 the Department of Planning & Permitting in Honolulu would issue NUC’s. When the department ceased to issue these certificates, a number of owners who had previously been issued such certificates had them grandfathered in. Owners have since been able to keep their certificate, subject to ongoing renewal every even numbered calendar year. Should an owner be late in filing for a renewal with the Code Compliance Branch, the certificate is lost for good. As of writing, there are around 600 nonconforming certificates issued for a small group of buildings across Waikiki and about 100 certificates for properties outside Waikiki (mainly on Oahu’s North Shore and Kailua). See this comprehensive list of residential properties holding nonconforming use certificates in Waikiki and across Oahu.
Financing Banks will typically not lend on a property if it lacks a full kitchen. Typical requirements to be considered a full kitchen includes a full size refrigerator, a sink and a minimum of 2 burner built-in cooktops. Some lenders will also require a freezer with its own door and a full size oven.
Local banks in Hawaii frequently change their appetite for lending on short-term vacation rental condos and their willingness to lend also depend on the property in question. In many cases, there is at least 1 local bank prepared to lend, subject to the unit having a full kitchen. Mainland lenders are typically not very likely to lend on short-term vacation rental condos, unless you have a special relationship with your bank.
Banks typically required the cash down payment be 30% or more and the overall loan terms may not be as attractive as terms offered by conventional financing. Therefore, if you need financing, it may be worthwhile to speak with a lender early in the process and establish a) can you get a loan on building(s) of interest and b) what are the expected loan terms and upfront costs associated with the loan.
Property Management (Hotel Operation, 3rd Party Rental Agency or Owner Managed) Hotel Operator Pros: Strong marketing presence and name recognition, potentially making it easier to charge a higher daily rental rate and keep a higher occupancy rate. Very familiar with managing rentals in building. Cons: Typically charges a higher management fee (~50% on gross rental income is common) and an owner is subject to the hotel operator’s requirements, such as keeping unit up to a certain standard, which may on occasions require remodel / upgrade work at the owner’s expense, potential longer lock-in periods (an owner may not easily be able to pull out of a contract with the hotel operator).
3rd Party Rental Agency Pros: Typically charges a lower management fee (~20 – 25% is common) and may be more flexible on the unit’s standard and overall less restrictions. Cons: Marketing efforts may not have as great a reach, potentially making it difficult get top $ rental income and leading to a lower occupancy rate.
It is not always clear-cut whether a hotel operator or 3rd party rental agency offer the most attractive setup for an owner. Therefore, each unit and / or building needs to be analyzed on a case by case basis. A few buildings also have restrictions on usage of 3rd party rental agencies.
Owner Managed Rentals If an owner’s primary residence is on Oahu, the owner may manage his / her rentals, without using a licensed rental agency (subject to each condo’s governing documents). If an owner lives on another Hawaii island, the US mainland or in another country, the owner is not allowed to be the point of contact for the rentals. However, the owner may, in such case, designate a person who lives on Oahu, to act as the on-island agent. The owner is also required to designate a person to be the point of contact for emergencies and support with collection of taxes. These roles can be managed by the same person and he / she does not have to be a licensed real estate agent.
Illegal Vacation Rentals – Fines & Enforcement The Department of Planning & Permitting’s Rules Relating to Administration of Codes spells out that daily fines for running an illegal vacation rental range from $50 – $1,000 per day – see details here (look for §20-3.3 i).
According to the Code Compliance Branch, almost all inspections for illegal short term (less than 30 days) transient vacation rentals are complaint driven. When the inspector conducts a site visit, he/she will attempt to gain access to the unit and interview the occupant. If it is determined that non-permitted (illegal) transient vacation rental operations are being conducted, the inspector will immediately issue a Notice of Violation (NOV). Typically, the inspector will allow 30 days to correct the violation without the referral for a Notice of Order (NOO), which imposes the civil fine. However, if the violation is recurring, the inspector will immediately refer the NOV for an NOO with immediate imposition of civil fines (usually $1,000 initial fine and if not corrected, addition civil fine will be assessed at a rate of $1,000 per day until the violation is corrected. Regarding the use of vacation rental websites proactively, the inspector will include the research of the website to add to the preponderance of evidence to support the enforcement action taken. However, at the present time, the DPP does not surf the net to identify listings of vacation rentals (e.g. VRBO, AirB&B, etc.) to conduct neighborhood sweeps to identify properties where illegal vacation rentals are being conducted.”
For properties zoned apartment, an inspector from the Commercial, Multi-family Code Enforcement Branch will conduct any potential inspection and take enforcement action as appropriate.
Also Good to Know 1) Most units do not have a dedicated car parking stall. Oftentimes, there will be parking available for rent within the building or nearby. 2) Several units do not have washer & dryer in the unit, but instead typically have access to community laundry. 3) A few properties on parcels zoned “Resort Hotel” have house rules in place requiring a minimum of 30 day rental or longer (ex: Foster Tower, Crescent Park). Therefore, don’t assume “Resort Hotel” zoning equals a guaranteed right to run a short-term vacation rental business. 4) Most buildings do not allow pets. 5) Rule of thumb: a) Buildings located on the ocean side of Kuhio Ave and all other buildings further towards the ocean and b) buildings located on the ocean side of Ala Moana Blvd are all zoned “Resort Hotel”. 6) On rare occasions buildings do not allow owners to occupy units full-time or do not allow owners to claim the ‘Homeowner Exemption’. 7) If the declaration of a condo states short-term vacation rentals are allowed, that does not necessarily mean short-term vacation rentals are indeed allowed, if the City & County of Honolulu rules states otherwise.
Vacation Rental Condos in Waikiki The following is a comprehensive list of all condos in Waikiki that allow for short-term vacation rentals. The list is divided into 5 categories, with buildings organized alphabetically: A) Parcels zoned ‘Resort Hotel’ with a hotel operation. B) Parcels zoned ‘Resort Hotel’ without a hotel operation. C) Parcels zoned ‘Apartment’ with a hotel operation and the Department of Planning & Permitting does not require owners to hold valid NUC’s in order to run a legal short-term vacation rental business. D) Parcels zoned ‘Apartment’ with a hotel operation and the Department of Planning & Permitting do require owners to hold a NUC in order to legally run a short-term vacation rental business. E) Parcels zoned ‘Apartment’ without a hotel operation (mix of buildings where some owners hold an NUC and buildings where there appears to be a significant number of short-term vacation rentals, though apparently not legal).
A) Parcel Zoned “Resort Hotel’ (with hotel operation)
Bamboo Size: Studio – 1BR, ~200 – 450sqf. Full kitchen: Only 8 x 1BR. Hotel Operator: Aqua Bamboo Waikiki Hotel (Phone: 808-922-7777). Tenure: Fee simple. Comments: 8 x 1BR units with full kitchen. There are 5 other 1BR without full kitchen.
Ilikai Apartments Size: Studio – 2BR, 500 – 1,00sqf. Full Kitchen: Yes. Hotel Operator: Aqua Ilikai Hotel & Luxury Suites (Phone: 808-954-7417). Tenure: Fee simple. Comments: 500sqf units were originally all 1BR, but most owners have pulled out the shoji doors to create a large studio with better / wider views. Several owners are marketing their unit on www.waikikibeachrentals.com to find tenants.
Luana Waikiki Size: Studio – 1BR, ~300 – 680sqf+. Full Kitchen: Only 1BR. Hotel Operator: Luana Waikiki Hotel (Phone: 808-955-6000). Tenure: Fee simple. Comments: 2 types of studios – ‘Studio Kitchenette’ with stove burner and microwave and the ‘Hotel Room’ without stove and microwave.
Pacific Monarch Size: Studio – 1BR, ~350 – 450sqf. Full Kitchen: Only 1BR. Hotel Operator: Aqua Pacific Monarch Hotel (Phone: 808-923-9805). Tenure: Fee simple with a few leasehold (expiry: 2044). Comments: Rooftop pool with spectacular ocean views.
Regency on Beachwalk Size: 1BR – 2BR, ~500 – 700sqf. Full Kitchen: Yes. Hotel Operator: Regency on Beachwalk by Outrigger (Phone: 808-922-3871). Tenure: Fee simple. Comments: A stone throw away from Trump Tower.
Ritz-Carlton Waikiki Size: Studio – 3BR, ~500sqf to 3,000sqf+. Full Kitchen: Yes. Tenure: Fee simple. Note: Pet friendly (verify). Tower 1 completed spring 2016 and Tower 2 expected completion summer 2018. Besides from Ritz-Carlton’s hotel operation, only a few select 3rd party rental agencies are allowed to manage vacation rental units. As an owner, you will have access to complimentary parking when you stay in the unit (even if it is your full-time residence).
Trump Tower Waikiki Size: Studio – 3BR, ~350 – 3,000sqf+. Full Kitchen: Yes. Hotel Operator: Trump International Hotel Waikiki Beach Walk (Phone: 808-683-7777). Tenure: Fee simple. Note: Aside from Trump’s hotel operation, only a few select 3rd party rental agencies are allowed to manage vacation rental units. As an owner, you will have access complimentary parking when you stay in the unit (even if it is your full-time residence).
Waikiki Beach Tower Size: 2BR, ~1,000 – 1,100sqf. Full Kitchen: Yes. Hotel Operator: Aston Waikiki Beach Tower (Phone: 808-926-6400). Tenure: Mixed fee simple and leasehold (expiry year 2039). Note: Aston offers 14 days of complimentary cleaning service per year, for units in their rental program. Several units – especially “02” and “03” units on higher floors – offer outstanding ocean and Diamond Head views.
Waikiki Grand Hotel Size: ~200 – 470sqf (studios). Full Kitchen: Some units. Hotel Operator: Castle Resorts at the Waikiki Grand Hotel (Phone: 808-923-1814). Tenure: Fee simple with a few leasehold (expiry year 2043). Comments: Very few units come with parking stall and 1 bedroom.
Waikiki Shore Size: Studio – 2BR, ~350 – 1,200sqf. Full Kitchen: Yes. Hotel Operators: Castle (808-952-4500), Park (808-954-7426) & Outrigger (808-922-3871). Tenure: Fee simple. Comments: Pet friendly (verify). Only condo right on the ocean (white sandy beach) in Waikiki. There are 3 hotel operators in the building.
B) Parcel Zoned “Resort Hotel’ (no hotel operation)
Cabana at Waikiki Size: 1BR, ~365sqf. Full Kitchen: Yes. Tenure: Fee simple. Comments: Pet friendly (verify). 3 of the units come with parking. There is 1 studio on 1st floor without a full kitchen.
Ilikai Marina Size: Studio – 1BR, ~420 – 650sqf. Full Kitchen: Yes. Tenure: Fee simple. Comments: 1 of just 3 condos in Waikiki with beach access, without having to pass through a busy main street.
Imperial Hawaii Resort Size: Studio – 3BR, ~320 – 3,300sqf. Full Kitchen: Yes. Tenure: Leasehold (expiry: 2052). Comments: Just 8 units total. All other units in building are time-shares managed by the Imperial.
Kuhio Village Size: Studio – 1BR, ~200 – 500sqf. Full Kitchen: No. Tenure: Mixed fee simple and leasehold (expiry year 2033). Comments: Pet friendly (verify). 2 buildings. “1” (2463 Kuhio Ave) is fee simple and “2” (2450 Prince Edward St) is leasehold.
Marine Surf Waikiki Size: Studio, ~392sqf. Full Kitchen: Yes. Tenure: Fee simple. Comments: All units come with 1 parking stall.
Seashore Size: Studio, ~392sqf. Full Kitchen: Most units. Tenure: Fee simple with a few leasehold (expiry: 2034).
Tradewinds Plaza Size: Studio, ~392sqf. Full Kitchen: Yes. Tenure: Fee simple with a few leasehold (expiry: 2032). Comments: Many units come with 1 parking stall.
C) Parcel Zoned ‘Apartment’ (with hotel operation & owners are exempt from having an NUC)
Aloha Surf Hotel Size: Studios, ~180 – 390sqf. Full Kitchen: No. Hotel Operator: Aqua Aloha Surf Waikiki Hotel (Phone: 808-954-7410). Tenure: Fee simple. Comments: Beautiful lobby.
Hawaiian Monarch Size: Studio – 1BR, ~200 – 570sqf+. Full Kitchen: Only 1BR. Tenure: Mix of fee simple and leasehold (expiry year 2054). Comments: Hawaiian Monarch Hotel has 50 hotel rooms, which are all owned by Roberts Hawaii, with an office on the 2nd floor. They do not manage individually owned units. Despite this hotel operation’s self-imposed restrictions – not offering the hotel operation services to individual owners – the building is still exempt and owners are allowed to run short-term vacation rentals.
Island Colony Size: Studio – 1BR, ~280 – 570sqf. Full Kitchen: Some studios, all 1BR. Hotel Operator: Aqua Skyline at Island Colony (Phone: 808-954-7411). Tenure: Fee simple with a few leasehold (expiry: 2044). Comments: Bylaws only allow owners who place their unit in the hotel operation to run short-term vacation rental (otherwise minimum 30 day rental). There are 2 kinds of studios; 1) “Studio” type, which allows a full kitchen and 2) “Lodging” type, which do not allow a full kitchen.
Palms at Waikiki Size: Studio – 1BR, ~220 – 750sqf+. Full Kitchen: Only 1BR. Hotel Operator: Aqua Palms Waikiki (Phone: 808-954-7424). Tenure: Fee simple. Note: Some units come with a parking stall. Building’s governing documents do not allow owners to claim the Homeowner Exemption. In other words, an owner may live in a unit full-time, but will be subject to the “Hotel & Resort” classification (substantially higher tax rate).
Royal Garden at Waikiki Size: Studio – 3BR, ~310 – 1,780sqf. Full Kitchen: Only 1 -3BR. Hotel Operator: Wyndman Vacation Resorts Royal Garden at Waikiki (Phone: 808-943-0202). Tenure: Fee simple. Comments: Mostly studios, with just a few select 1, 2 and 3BR units.
D) Parcel Zoned ‘Apartment’ (with hotel operation & owners are not exempt from having nonconforming use certificates) Note: Owners in this category, who do not hold a valid NUC, are not allowed to run a short-term vacation rental business, despite the fact there is a hotel operation in the building.
Waikiki Banyan Size: 1BR, ~530 – 600sqf. Full Kitchen: Yes. Hotel Operator: Aston at Waikiki Banyan (Phone: 808-922-0555). Tenure: Fee simple with a few leasehold (expiry year 2035). Comments: Almost every unit comes with a parking stall. 2 towers with shared amenities.
Waikiki Sunset Size: 1-2BR, ~530 – 600sqf. Full Kitchen: Yes. Hotel Operator: Aston Waikiki Sunset (Phone: 808-922-0511). Tenure: Mixed fee simple and leasehold (expiry year 2036). Comments: Almost every unit comes with a parking stall.
E) Parcel Zoned ‘Apartment” (no hotel operation and no exemption from NUC’s) Note: This category includes a mix of buildings where a) at least 5 unit owners hold an NUC or b) there simply appears to be a significant number of short-term vacation rentals, even though not allowed. It will be highlighted if there are some NUC’s in a given building.
444 Nahua Size: Studio – 1BR, ~430 – 720sqf. Full Kitchen: Yes. Tenure: Fee simple with a few leasehold (expiry: 2051). Comments: Every unit comes with 1 parking stall and some units even 2! Less than 40 unit owners hold a valid NUC.
Diamond Head Beach Hotel Size: Studio – 2BR, ~350 – 1,300sqf. Full Kitchen: Some units. Tenure: Leasehold (expiry: 2032). Zoning: Apartment. Comments: Not really part of Waikiki, just the Waikiki zip code. No hotel operation (only a property manager with an office in building).
Four Paddle Size: Studio – 1BR, 460 – 630sqf. Full Kitchen: Yes. Tenure: Fee simple. Comments: All units come with at least 1 parking stall. Less than 20 unit owners hold a valid NUC.
Hawaiian King Size: 1BR, ~460sqf – 620sqf. Full kitchen: Yes. Tenure: Leasehold (expiry: 2036).
Inn On The Park Size: Studios, 250 – 320sqf. Full Kitchen: Yes. Tenure: Leasehold (expiry 2035). Comments: Building is exempt from NUC’s. However, since there is no active hotel operation, short-term vacation rentals are not allowed.
Royal Kuhio Size: 1BR – 3BR, ~400 – 2,400sqf. Full Kitchen: Yes. Tenure: Mainly leasehold (expiry year 2041) with some fee simple. Comments: All units come with at least 1 parking stall. Some units are time share and there are a total of 3 time share management companies in the building. Less than 70 unit owners hold a valid NUC.
Waikiki Lanais Size: 1BR – 2BR, ~510sqf – 840sqf. Full kitchen: Yes. Tenure: Fee simple. Comments: At least 1 parking stall – a few units have 2 stalls. Despite the fact the City’s zoning rules do not allow for short-term vacation rentals, the bylaws reportedly reads that short-term vacation rentals are allowed.
Waikiki Marina Condominium Size: Studio, ~360 – 390sqf. Full Kitchen: Yes. Hotel Operator: The Equus (Phone: 808-949-0061). Tenure: Mostly fee simple with a few leasehold (expiry 2048). Comments: Almost every unit has a parking stall. Less than 60 unit owners hold a valid NUC. There is a hotel operator in the neighboring building, which will manager rentals in the building, but only do short-term vacation rentals if the owner holds an NUC.
2 More “Outsiders” Across Honolulu city – aside from Waikiki – there are just 2 condo buildings that allow for short-term vacation rentals:
Ala Moana Hotel Condo Size: Studio -2BR, ~250 – 1,900sqf. Full Kitchen: Only 1 & 2BR. Hotel Operator: Outrigger runs the operation, though the name of the operation is listed as Ala Moana Hotel (808-955-4811), without the Outrigger name. Tenure: Fee simple. Zoning: “Business Mixed Use” and all units are classified as “Hotel & Resort”. Comments: Great building. Owners are not allowed to occupy full-time. Somewhat high maintenance fees.
Executive Centre Size: Studio – 2BR, ~370 – 1,200sqf. Full Kitchen: Most units. Hotel Operator: Aston at the Executive Centre Hotel Hawaii (Phone: 808-539-3000). Tenure: Mainly leasehold (expiry: 2053) with some fee simple. Fee is offered on all units. Zoning: “BMX-4” which is a type of business mixed use zoning that allows for commercial, residential and short-term vacation rentals. Comments: Predominantly 1BR units. Great rooftop amenities deck. Some units are townhouse style. Located in Honolulu’s Downtown business district.
A Final Interesting Note Bill 79: If a building is located on a parcel that is not zoned “Hotel Resort” and used to have a hotel operation, which ceased to exist, then, by law, owners would not have been allowed to conduct short-term rentals (less than 30 days) since the hotel operation ceased. Bill 79 would allow those owners who have been conducting short-term vacation rentals outside the law continuously, since hotel operations ceased, and thus legitimize their operations and allow such owners to continue, if the bill is passed in its currently written format (June 2016).
Condo owners who may be able to obtain the right to run short-term vacation rental business if Bill 79 becomes a law, could include owners of units in: Ala Wai Terrace, Colony Surf, Hawaiian Crown, Inn On The Park, The Windsor, 441 Lewers St, Waikiki Park Heights and Waikiki Townhouse. However, several of these buildings have house rules in place requiring a minimum of 30 day rentals, which means even if Bill 79 became a law, many owners would not be allowed to run short-term vacation rentals. Additionally, based on Bill 79’s current wording, an owner carries the burden of proof to show the owner has continuously been running a short-term vacation rental business prior to the hotel operation ceased until present. Proof may include tax records, show documentation that each year since the hotel operation ceased it has been a transient accommodation (short-term rental less than 30 days) for at least 35 days per calendar year and there has not been 12 consecutive months without short-term rentals (as the amended Bill 79 is currently written). Note: This is currently (July 2016) a proposed bill, being considered by the City Council and not a law.
Disclaimer: The information presented here is deemed reliable, but not guaranteed, and should not be relied upon in deciding to purchase or sell. Always verify any and all information before making a decision to purchase or sell. Also, keep in mind; rules, regulations, tax rates, tax laws, zoning laws, governing documents in buildings etc are subject to change.