Short Term Vacation Rentals (STVR) law goes into effect on the Big Island in Dec.

[philemer]

https://www.westhawaiitoday.com/2025/08/18/hawaii-news/stvr-law-goes-into-effect-soon/ (May be behind a paywall).

STVR law goes into effect soon - West Hawaii Today

STVR law goes into effect soon – Hawaii News | West Hawaii Today

www.westhawaiitoday.com

We would often use VRBO to rent a condo for a few days in addition to our T/S stays. Bummer.

 

[jacknsara]

I didn't feel like registering or paying for another news site, so I found this link for free

Vacation Rentals: What Big Island Homeowners Need to Know About Short-Term Rentals - Hawaii Real Estate Market & Trends | Hawaii Life

In my 25 years of living on the Big Island, I’ve seen several changes to short-term vacation rental regulations, but this upcoming one is...

www.hawaiilife.com

 

[rickandcindy23]

So it's starting on the Big Island now. Maui has been working on this for years. It seems that 2028 will be the year the law goes into effect that no one will be allowed to rent private homes or condos by the week or the month. Longterm rentals are all that will be allowed. This is sad for the owners of homes that were using the rental to supplement their income. There will be a glut of homes and condos on the market, bringing down prices, and mortgage rates are high, which has already brought down home values.

Times are changing.

 

[Luanne]

So it's starting on the Big Island now. Maui has been working on this for years. It seems that 2028 will be the year the law goes into effect that no one will be allowed to rent private homes or condos by the week or the month. Longterm rentals are all that will be allowed. This is sad for the owners of homes that were using the rental to supplement their income. There will be a glut of homes and condos on the market, bringing down prices, and mortgage rates are high, which has already brought down home values.

Times are changing.

From what I hear from someone who lives on Maui it will be tied up in the courts for years.

 

[rickandcindy23]

The law passed for 2028. It's a done deal, according to the article I read. This is good for timeshare and hotels. The mayor has said time and time again that he wants the hotels filled with tourists who will spend money on restaurants and activities. Timeshares are not really beneficial, according to the mayor.

 

[JIMinNC]

So it's starting on the Big Island now. Maui has been working on this for years. It seems that 2028 will be the year the law goes into effect that no one will be allowed to rent private homes or condos by the week or the month. Longterm rentals are all that will be allowed. This is sad for the owners of homes that were using the rental to supplement their income. There will be a glut of homes and condos on the market, bringing down prices, and mortgage rates are high, which has already brought down home values.

Times are changing.

I have no problem with VRBO or AirBnB short term rentals in resort condos like those in Kaanapali on Maui or Waikoloa on the Big Island, but the problem these new laws are designed to address comes from STRs in formerly residential-only areas. There is a reason most communities have long had zoning laws that prevent someone from building a hotel in a residential neighborhood. The problem is, those zoning laws were slow to adapt to the invention of VRBO and AirBnB, and the boom they created in STRs in formerly residential-only areas. When people are only renting a property for a week, they often behave differently than they do in their regular community. I think more tourist-oriented communities need to modernize their zoning and property use laws to keep residential areas residential.

In many of these communities, the goals for these laws are quality of life for full-time residents, plus bringing down home prices so more full-time residents can afford them. Yes, it will hurt the investors and speculators, but they can always sell their residential properties and buy a condo in a true resort area where STRs are an intended use.

In some cities that have passed these laws, they still allow a homeowner to rent out an empty room to help supplement their income, but they require the homeowner to be in residence when their guests are there. No absentee STRs. I think that's the way the law in New York City works.

 

[Luanne]

The law passed for 2028. It's a done deal, according to the article I read. This is good for timeshare and hotels. The mayor has said time and time again that he wants the hotels filled with tourists who will spend money on restaurants and activities. Timeshares are not really beneficial, according to the mayor.

The article may say it's a done deal. According to boots on the ground, that's premature. I didn't realize that timeshares had been exempted since many of them are on the Minatoya List, which had the developments and how they were classified.

 

[rickandcindy23]

The article may say it's a done deal. According to boots on the ground, that's premature. I didn't realize that timeshares had been exempted since many of them are on the Minatoya List, which had the developments and how they were classified.

The Minatoya list is outdated. Hono Koa is on the list, and I was disappointed to find out that it was re-zoned to timeshare. The reason for that is obvious. It was zoned as an apartment complex, but the re-zoning to timeshare allowed the county to charge 7X the property tax. We pay $500+ in property taxes per week for Hono Koa X 3 weeks. It's expensive. This is why we don't eat at many restaurants or book activities. We enjoy our oceanfront view.

And why was I disappointed to find out we were re-zoned? I wanted the fees gone and the ownership gone. Because the cost of the MF's has sky-rocketed, with many owners refusing to pay the outrageous fees, heaping the responsibiltiy of ownership on the few of us who do pay. $3,258 for a week in a timeshare for MF's and taxes that has a tiny pool and hot tub and no other amenities is outrageous. Doesn't matter that the interior was recently upgraded, probably so Soleil can sell weeks for crazy prices (or rent weeks). This has gone to the point of us walking away from the obligation.

 

[rickandcindy23]

From what I hear from someone who lives on Maui it will be tied up in the courts for years.

You cannot fight city hall, especially with a mayor who doesn't care what the people think or want.

 

[Luanne]

You cannot fight city hall, especially with a mayor who doesn't care what the people think or want.

Cindy, the lawyers are already lining up.

 

[lynne]

This new law only applies to vacation rentals that either to do have a prior NUC (Non Conforming License), are outside of designated zoning such as a resort zone or a rental where the owner does not live on-site. There are many illegal rentals that advertise on VRBO and aibnb where the registration will allow the county to

I have no problem with VRBO or AirBnB short term rentals in resort condos like those in Kaanapali on Maui or Waikoloa on the Big Island, but the problem these new laws are designed to address comes from STRs in formerly residential-only areas. There is a reason most communities have long had zoning laws that prevent someone from building a hotel in a residential neighborhood. The problem is, those zoning laws were slow to adapt to the invention of VRBO and AirBnB, and the boom they created in STRs in formerly residential-only areas. When people are only renting a property for a week, they often behave differently than they do in their regular community. I think more tourist-oriented communities need to modernize their zoning and property use laws to keep residential areas residential.

In many of these communities, the goals for these laws are quality of life for full-time residents, plus bringing down home prices so more full-time residents can afford them. Yes, it will hurt the investors and speculators, but they can always sell their residential properties and buy a condo in a true resort area where STRs are an intended use.

In some cities that have passed these laws, they still allow a homeowner to rent out an empty room to help supplement their income, but they require the homeowner to be in residence when their guests are there. No absentee STRs. I think that's the way the law in New York City works.

Jim, you are 100% correct. Vacation rentals in allowable zones have never been an issue. This new bill is aimed at all of the illegal rentals in residential neighborhoods. Also, any homeowner who lives on their property will be permitted to rent out rooms.

In addition, properties in residential neighborhoods will be able to rent to on-island workers such as nurses, doctors and trades who are working here for a defined period.

I consider this new bill a win for residents, but I have been negatively impacted with vacation rentals next door bringing groups of up to 12 people and multiple vehicles. Lots of noise, unsafe roads.

 

[rickandcindy23]

Cindy, the lawyers are already lining up.

Lawyers will be the only one that gets anything out of it. The law will still be implemented. It's not like the council people and the mayor are without power. The locals need to vote for what they want. It seems that more people want the rentals gone because that is how these "representatives" are voting.

I want Hono Koa shut down as a timeshare, personally. Soleil wants to take control of all of it. I would rather they were forced to pay us something to walk away from our deeded weeks.

 

[jp10558]

So it's starting on the Big Island now. Maui has been working on this for years. It seems that 2028 will be the year the law goes into effect that no one will be allowed to rent private homes or condos by the week or the month. Longterm rentals are all that will be allowed. This is sad for the owners of homes that were using the rental to supplement their income. There will be a glut of homes and condos on the market, bringing down prices, and mortgage rates are high, which has already brought down home values.

I think that's the goal. They want cheaper housing options for full time residents.

 

[Luanne]

The Minatoya list is outdated. Hono Koa is on the list, and I was disappointed to find out that it was re-zoned to timeshare. The reason for that is obvious. It was zoned as an apartment complex, but the re-zoning to timeshare allowed the county to charge 7X the property tax. We pay $500+ in property taxes per week for Hono Koa X 3 weeks. It's expensive. This is why we don't eat at many restaurants or book activities. We enjoy our oceanfront view.

And why was I disappointed to find out we were re-zoned? I wanted the fees gone and the ownership gone. Because the cost of the MF's has sky-rocketed, with many owners refusing to pay the outrageous fees, heaping the responsibiltiy of ownership on the few of us who do pay. $3,258 for a week in a timeshare for MF's and taxes that has a tiny pool and hot tub and no other amenities is outrageous. Doesn't matter that the interior was recently upgraded, probably so Soleil can sell weeks for crazy prices (or rent weeks). This has gone to the point of us walking away from the obligation.

Have you seen a new list, or how did you find out about the re-zoning of Hona Koa? The only zoning I had seen (and this was on the Minatoya list) was apartment and hotel. There was no timeshare designation.

I'm asking my on island source for any updates she may have.

 

[Luanne]

The Minatoya list is outdated. Hono Koa is on the list, and I was disappointed to find out that it was re-zoned to timeshare. The reason for that is obvious. It was zoned as an apartment complex, but the re-zoning to timeshare allowed the county to charge 7X the property tax. We pay $500+ in property taxes per week for Hono Koa X 3 weeks. It's expensive. This is why we don't eat at many restaurants or book activities. We enjoy our oceanfront view.

And why was I disappointed to find out we were re-zoned? I wanted the fees gone and the ownership gone. Because the cost of the MF's has sky-rocketed, with many owners refusing to pay the outrageous fees, heaping the responsibiltiy of ownership on the few of us who do pay. $3,258 for a week in a timeshare for MF's and taxes that has a tiny pool and hot tub and no other amenities is outrageous. Doesn't matter that the interior was recently upgraded, probably so Soleil can sell weeks for crazy prices (or rent weeks). This has gone to the point of us walking away from the obligation.

Cindy, Hono Koa isn't on the Minatoya list. At least I couldn't find it and neither could my source on Maui. She did find a document that shows it is designated at timeshare.

She also said it's not completely a done deal as the council still has to vote and that vote will on 9/23 and then it goes to Bisson. She does think it will pass mostly because they want to pass the buck and get re-elected in 2026. She also said that the lawyers are lining up. This is of course one person's view, but she's pretty accurate on her assessment of what's going on.

 

[dioxide45]

I think that's the goal. They want cheaper housing options for full time residents.

I think that is the goal, but will that be the result?

I also wonder if the hotels and hotel lobby groups were behind the new law? Less competition for them.

 

[jp10558]

I think that is the goal, but will that be the result?

I also wonder if the hotels and hotel lobby groups were behind the new law? Less competition for them.

Well, if @rickandcindy23 is right about a housing glut as STR owners dump the houses they can no longer rent like they wanted to - it seems like that would drive prices down. Of course, I think it's debatable whether enough investors or whoever is going to dump houses because of this law all at once such that the prices go down. And it's also debatable if the prices would drop enough for "regular people" to buy them, or for someone to both purchase and then rent out as a long term rental at lower rates. They might just end up with a bunch of abandoned houses, or ones that just aren't used and held for when the law might change again, or as investments from rich people that aren't used for rental income. I was just pointing out that it wasn't really a "whoopsie" to try and cause "a glut of homes and condos on the market, bringing down prices, and mortgage rates are high, which has already brought down home values."

Of course, it's also starting in 2028 which means there's at least a couple years to lobby to try and repeal that law, a few years for interest rates to change, and for the housing market to change in general.

 

[JIMinNC]

I also wonder if the hotels and hotel lobby groups were behind the new law? Less competition for them.

The hotels may support it, but the energy behind getting these laws passed has been from locals who are trying to get STRs out of areas zoned for full time residential use.

This may be a case where the interests of the hotel companies just happen to align with the interests of many in the local population.

 

[ScoopKona]

There will be no "housing glut."

The amount of people trying to move to Hawaii (most of whom have no plan and no chance of success) has skyrocketed this year. You can guess why. Real estate in my area has gone up six-fold since we moved here.

Don't get me wrong. I completely support local families renting out a room or an ohana so they can make the numbers work. No problems there. But that is the tiniest percentage of VRBO owners. Most of them don't live on the island and they're parking capital in Hawaii because it's seen as a safe bet and a hedge against global chaos. That's why all the billionaires are buying as much of the islands as they can. In some cases, entire islands.

What they're doing on a large scale, small-time speculators are creating a "death by 1,000 cuts" situation for local housing. Most of these people don't care about the area as anything more than a theme park or an investment vehicle. They have no ties other than property ownership. These people will continue to occasionally visit their houses, and sell only if they need more liquidity.

Hawaii doesn't generate wealth fast enough for the local population to compete to the rest of the planet's multi-millionaires. Most of that wealth is a mirage -- going straight off the island as soon as the credit card chip is scanned.

 

[1Kflyerguy]

From everything I have read, most people expect a lot of litigation over these new regulations. It may well be tied up in the courts for years. I support the idea of keeping STRs out of full-time residential areas, but I don't think the way the law has been drafted is the best approach to solving the affordable housing shortage on Maui.

 

[ScoopKona]

From everything I have read, most people expect a lot of litigation over these new regulations. It may well be tied up in the courts for years. I support the idea of keeping STRs out of full-time residential areas, but I don't think the way the law has been drafted is the best approach to solving the affordable housing shortage on Maui.

Anyone who is capable of "reading the room," is either winding down their STVRs or not building any. I could build a few right now. Nothing really stopping me. "Stay on a farm with a million-dollar view. Quiet. Can't even see the closest neighbors. Go turkey hunting if you want. Italian agriturismo model -- great local dinner each night. Help out on the farm if you want."

The tax implications make this a non-starter. I would be better off either creating a guest house and operating 100% off book (and then always looking over my shoulder for a county inspector and code enforcement). Or building rental properties and becoming a landlord again. A friend and business associate has an STVR at his coffee farm. He's turning it into a tasting room because of the taxes.