Background
The minimum number of days for short-term rental properties on Oahu had been 30 days for a very long time. In 2022, the City of Honolulu passed Bill 41, a law that changed the minimum to 90 days. They were sued and recently lost. The outcome of the lawsuit means that the current minimum to back to 30 days. There are certain areas that allow for daily or weekly rentals. In our past blog here, you can find a list of which buildings in Waikiki are in which zones and whether short-term rentals will be allowed there.
In addition to the changes to the minimum number of days, other previous regulations on short-term rentals include: Raised real property tax, transient accommodation tax (TAT), Oahu transient accommodation tax (Oahu TAT), raised real property tax rate to business rate for anyone who did short term rentals, all on top of gross excise tax.
Watch past episodes of Ask Doug! for more information about Bill 41. Here is the original video explaining Bill 41. This video provides an update when the minimum stay was first changed. Here is a video explaining what Bill 41 means for Waikiki condotels.
Update
The government still wants to have a 90-day minimum. To accomplish this, they are going to change the way the county can enforce zoning. If your rental property is not hotel-zoned, is it most likely residential. As mentioned above, if you operate 30-day rentals, you have a business license and pay general excise tax, TAT, and Oahu TAT. When the zoning laws change, your business will no longer be able to operate in a residentially zoned area or in apartments. You will be subject to ticketing and fines.
Your Oahu Rental Property
Contact us to learn more about how your rental portfolio may be affected by this change. We would also be happy to answer any other property management or real estate sales questions you have. You can reach Doug directly at (808) 596-4883 or email concierge@caronb.com
