section of map showing current unpermitted short term rental units in the Kapahulu area

It is with mixed feelings that Aunty reports the passing of both Bills 85 and 89 at Monday’s City Council meeting.  Bill 85 would have been the one to pass to totally stop the illegal short term rentals with strict enforcement and fines.  Bill 89 allows for homeowners to apply for permits allowing them to rent out 2 rooms in their homes on short term basis.  Everything else will be penalized and fined if they get caught.  The Mayor will probably nix Bill 85 and pass Bill 89 because it is more in line with what he first proposed this year to allow more short term rentals.

The hundreds of testimonies of those who wanted to have all short term rentals legalized and permitted would admit to having unpermitted short term rental businesses and justify it by how great they are by supplying what tourists wanted and paying their taxes.  Some of them were very brazen, some were humble.  All were breaking the law.

How many of them, and how big a deal is it to them?  Check out melekomo808.com for one of the illegal whole house rental units currently banking it.  It is a drop dead gorgeous place on the beach in Kailua and looks like a high end Maui resort hotel.  Rates are $5,000 per night with 6 night minimum stay ($30,000 for 6 nights).  That kind of money motivates the push for legalizing short term rentals and encourages more investors to bid up our island properties out of reach for local families to buy and live in.  Hopefully, when Bill 89 passes, enforcement and fines kick in – big time, and their profit motivation disappears.   Otherwise it will be business as usual as the players in this field flaunt their illegal activity because civil action becomes a non event as it has in the past.

How invasive is our current situation?  Check out airdna.co for a map of what is currently available as short term rentals through Airbnb and Vrbo rental sites.  Enter “Honolulu” or whatever area you are interested.  A map of the area will show purple, blue, or green dots indicating whole house, room, or shared room rentals.  Most of the sites listed are for whole house rentals (purple dot).  Each dot can be clicked on for details about nightly rates, but addresses are not listed, though you could do a guess on which house it is by the location on the map.

Just in the city area of Honolulu from Hawaii Kai to the airport, there are 7,527 active rentals, 86% of them are entire home rentals.  The rental growth chart shows a history of the expansion ~ 2,500 units in 2016, and has grown to 7,527 units today in less than 3 years time.  Some are legal because they exist in Waikiki, with special district status.  All others are illegal.

These numbers are current to Airbnb and HomeAway rental sites.  There are more sites that do not report to this market minding overview, so actual numbers are higher than shown.  For example, right around the corner from Aunty is a short term rental house with tourists staying for a few days, coming and going constantly.  This house is not listed on the map.  A property on the next block with 2 big ornate houses that occasionally have large groups staying for a week or so are also not listed on the map.  These might be listed on Craigslist or other rental sites that airdna does not track.

Aunty testified that the expansion of illegal short term rentals was not only because of investors’ motive for profit, but also because of the non-enforcement of our existing laws and piddly consequences.

Slowly, and insidiously, our residential neighborhoods have been invaded.  They are not as obvious as monster houses, but they are just as, or more detrimental to our local lifestyle.  Hopefully, with the passing of Bill 89 and proper enforcement that follows, we can protect our neighborhoods from unwanted changes.

***Want to protect our neighborhoods on the State level?  Governor Ige has before him a Senate Bill – SB1292 – which will undermine our city county laws and recognize renting platforms such as Airbnb as registered agents of Hawaii, giving more legitimacy to illegal rentals by collecting taxes.  Attached are 3 ways to reach Governor Ige.  Aunty just did the second option and sent a comment to Governor Ige.  He responded (a robo response but still informative) immediately.  He has until June 24 to send in a notice of intent to veto, and then until July 9 to veto.  Please ask him to veto SB1292!

FIRST – Phone GOVERNOR IGE’s office IMMEDIATELY [(808) 586-0034] before his voice mailbox fills up. Ask him to VETO SB1292 and tell him why. Let his office know that you are a voter, a taxpayer, and are upset that SB1292 might become law.  Remind him of his 2016 veto message (attached)

SECOND – Send the governor your online opinion right now. Ask him to VETO SB1292. Click Comment to Governor Ige to be directed to his website.  Remind him of his 2016 veto message (attached)

THIRD – Phone GOVERNOR IGE’s office [(808) 586-0034] again in by Friday. Ask him to VETO SB1292 and tell him why.