Bill 41 - Short Term Rental Laws on Oahu Hawaii - Vacation Rental Law

VACATION RENTAL BY THE BEACH ON OAHU

Vacation rentals on Oahu are a political hot button. Right now, Bill 41 has been proposed to address short term rentals. Bill 41 Most people have an opinion on short term rentals on Oahu. Some see them as a problem that destroys neighborhood culture and takes housing from locals. Others see having vacation rentals on one’s property as a necessary supplement to many local families’ income, and a property right that should not be interfered with by the government.

What Does Bill 41 Propose?

One of the most important and controversial changes in Proposed Bill 41 is a lengthening of the minimum duration of legal rentals. Right now, homeowners that do not have either a TVU or BNB certification, must rent for a minimum of 30 days and cannot do nightly rentals. Bill 41 changes this minimum rental period to 90 days. This would affect many property owners who currently do 30 day minimum rentals. This also affects anyone not on vacation that needs a temporary place to reside. For example, military without base accommodations that come on temporary assignments, traveling nurses, motion picture professionals, people looking to purchase a home, people doing major remodels that have to move out, people coming to the island to care for an ill parent for an extended period . . . This list of examples could go on and on.

Another change proposed by Bill 41 is to add expand the locations of permissible nightly rentals. This adds to resort-zoned Waikiki, areas of the Gold Coast, Kuailima (Turtle Bay) and Koolina. This may help resolve some of the controversy over buildings which have for years been operated as Condotels, but do not have resort zoning.

In addition, Bill 41 proposes raising the fee for renewal of a non-conforming use certificate (NUC) from $600 to $4,000 every two years.

What are your thought on Bill 41?