Airbnb and other short-term vacation rentals in Hawaii could soon see significant restrictions as the state addresses a housing shortage worsened by Maui’s wildfires last year.
Legislation aimed at transforming how vacation rentals are regulated throughout the state has successfully passed both the Senate and the House. It now awaits the approval of Governor Josh Green, who has expressed his intention to sign it once it reaches his office. Upon endorsement, the law is set to be enacted on July 1, 2024.
We know the majority of short-term rentals in Hawaii are illegal, owned by non-residents, and contribute to skyrocketing housing costs. We support Senate Bill 2919 to empower counties to regulate short-term rentals and potentially phase them out.
Governor Josh GreenSenate Bill 2919 would empower each county in Hawaii to revise zoning laws, potentially turning short-term rental properties into long-term living spaces. Here’s a breakdown of the key components of the new law and how it influences the landscape of Hawaiian vacations.
Expanded Zoning Authority for Counties
A significant aspect of the new legislation is the granting of expanded zoning powers to counties throughout Hawaii. This move allows local governments more control over land use within their jurisdictions, directly affecting short-term rental operations.
The goal behind this expansion is to foster orderly development across the state, ensuring that the proliferation of short-term rentals contributes positively to Hawaii’s overall growth and sustainability.
Broadened Transient Accommodations Tax Law
The transient accommodations tax law in Hawaii has been broadened to encompass a wider variety of lodging options, including unconventional accommodations such as shelters and vehicles equipped with sleeping facilities.
This adjustment is aimed at creating a more equitable taxation framework, capturing a comprehensive range of short-term accommodations under the umbrella of taxable entities. For travelers, this means a slight adjustment in the cost for these previously untaxed accommodations, contributing to the state’s ability to fund essential services.
Funding for Regulatory Enforcement
To ensure the effective enforcement of these new regulations, the Business Registration Division of the Department of Commerce and Consumer Affairs will receive dedicated funding. This financial support is earmarked for overseeing the compliance of rental properties with the updated laws.
For short-term rental hosts, this translates into a need for heightened adherence to regulatory standards.
What This Means for Timeshare Owners / Timeshare Renters
The true implications of this bill will not be seen until local jurisdictions determine what specific controls will be put in place for short-term rentals. With the current target of the bill being to free up single-family homes for local families, there is little to no impact expected for timeshare renters, or the owners they rent from.
From a long-term viewpoint, if the bill is successful in limiting the number of short-term rentals that are allowed in counties with housing shortages, it may drive demand for other types of accommodations.
Why Choose a Timeshare Rental
Timeshare rentals offer several advantages over hotels and the short-term vacation rentals that are now in the crosshairs of this new legislation.
Timeshares provide spacious accommodations with multiple bedrooms and large living areas, more akin to a home or apartment than a hotel room. They also typically come with full or partial kitchens, allowing guests to cook meals and save money on eating out.
However, unlike Airbnb-like vacation rentals, timeshares retain the hospitality and services of hotels, such as front desk staff, concierge services, and resort amenities like pools, spas, and restaurants. Also, the pricing of a timeshare rental is ultimately determined by the owners, and can be up to 50% booking the same reservation on the resort’s website.
Overall, timeshare rentals are a great option for those seeking spacious accommodations with home-like amenities, while still enjoying the services and hospitality found at hotels.
Conclusion
The recent legislative changes in Hawaii represent a significant step towards a more regulated short-term rental market. By tightening zoning laws, revising tax regulations, and allocating funds for enforcement, the state aims to strike a balance between fostering tourism and freeing up housing inventory for local families. While it’s specific effects will take time to see, the state of Hawaii has made it’s intentions known with this legislation.
If you’re planning a trip to Hawaii, or any other popular destination, be sure to check out our wide selection of timeshare rentals. We have hundreds of confirmed reservations at many of the most popular vacation destinations, for much less than booking it on your own!
If you have any questions about the rental process, don’t hesitate to contact one of our licensed agents today. Our experienced specialists are happy to walk you through the process.