Blog by David Nash (B)

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Short term rentals on Oahu

Short term rentals on Oahu and You! 
AKA: Air BNB Bills

Looking for friend's and client's opinions on short term rentals on Oahu. 

The situation now is that you can't legally rent your home/condo for less than 6 months at a time without paying a 13% tax on every dollar earned. However, a lot of people are not paying that tax even though they owe it to the government and would like to pay it. The reason they do not pay is because they are not complying with local zoning laws that do not allow less than 30 days rentals in residential areas and most condo buildings.

At this time the city and county do not enforce those zoning laws very well so lots of people believe that this is taking away long term rental housing from locals and driving the rental rates up. (I haven't seen that happen)

A couple city council members put forward a legal way to take care of all this last year and got BBQ'ed by their constituents for it. They wanted to require that an owner of the home had to live in the home they were renting out a part of. That's it, then they could legally run short term rentals in part of their home and pay their taxes without getting ticketed for it. 

I have a few friends and clients that live next to absentee owners that vacation rental their properties and I know it can be a pain in the ass when people are loud and discourteous with no repercussions. So having the owner have to live there made sense. (Especially with so many people having rentals on their property already) 

Now there are bills in our legislature that are being lobbied very hard, mostly on self interest, that will make a change to how those taxes are collected and varying degrees of monitoring of who is renting and how. 

What do you think? Is this something that bothers you in your neighborhood? 

What would be your solution? 

This is a contentious issue for some people so please keep it peaceful and respectful. 

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