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What you need to know about Vacation Rentals on Maui

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Here on Maui, striking the balance between vacation rentals and available residential homes isn’t always easy, and finding a mutually beneficial system is a constant conversation. Here are three recent Maui News articles covering upcoming changes, proposals, and the effects new regulations might have.

Opinion: Legal short-term rentals are better than unpermitted ones.

Thomas Croly addresses a recent Ask the Mayor answer to the question of resident housing and whether short-term rentals are affecting the housing market negatively for residents. Croly argues that the permitted short-term rentals on Maui make up less than one percent of the potentially available houses for rent and (more importantly) are generally not homes that would be considered “affordable housing.” He points out that unpermitted short-term rentals are a problem the County needs to address, but that permitted short-term rentals are a benefit to Maui’s economy, and that an increase of listing may reflect the changes brought about by internet accessibility, not a dramatic increase in available short-term rentals. You can read Croly’s entire article here.

Limited vacation rentals are now permitted on the North Shore.

The Maui Planning Commission has decided to allow 88 vacation rentals on the North Shore following a community majority in favor of the change. The issue was brought before the panel in July, as the Maui County Code allowed for the 88 vacation rentals, but the Paia-Haiku Community plan forbade short-term rentals. With legal rentals in the area, residents are hoping to crack down in unpermitted short-term rentals on the North Shore while also adding legal short-term rentals to the community. Read Colleen Uechi’s full story here.

Tax hikes may be coming for some short-term rentals on Maui.

A proposed county measure would re-classify short-term rentals that do not double as the owner’s primary residence from commercial to hotel status, raising the tax rate 29 percent. This bill would not affect short-term rentals that do double as primary residences, such as bed-and-breakfasts or rented ohanas. Melissa Tanji explains the full effects of the bill here.

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