Buying A Vacation Rental In Hawaii [2026 Release]

STRs are largely confined to Visitor Destination Areas (VDAs). New permits outside these areas have not been issued since 2008. 2. Financial Performance & Realities

Significant changes are underway following Bill 9, which aims to phase out approximately 7,000 units in apartment-zoned districts (the "Minatoya List") by January 1, 2029 (West Maui) and 2031 (rest of the island). Focus only on hotel-zoned units or permitted Short-Term Rental Homes (STRH). buying a vacation rental in hawaii

This report details the complexities of purchasing a vacation rental in Hawaii in 2026. Significant legislative shifts have reshaped the investment landscape, making due diligence on zoning and tax compliance the most critical components of a successful acquisition. 1. STRs are largely confined to Visitor Destination Areas

Full-service management fees range from 25% for independent companies to 40–50% for resort "front desk" operations. 3. Taxation & Compliance Hawaii Rental Property Bookkeeping: Complete Guide (2026) buying a vacation rental in hawaii

New registration rules under Ordinance 25-50 take effect July 1, 2026 . All STRs (hosted and unhosted) must register with the county, with fees ranging from $250 to $500 annually.