Honolulu, Hawaii Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Honolulu, Hawaii?

Honolulu's short-term rental landscape has undergone dramatic changes in recent years, with increasingly stringent regulations reshaping the market. As a vacation hotspot, Oahu faces the challenging balance of accommodating tourism while preserving housing for locals. If you're considering entering this market, understanding the current regulatory framework is essential for success.

Starting a Short-Term Rental Business in Honolulu, Hawaii

Breaking into Honolulu's short-term rental market requires careful navigation of some of the nation's most restrictive regulations. The city defines short-term rentals as accommodations offered for less than 30 consecutive days. This definition is significantly more restrictive than Hawaii's statewide definition, which considers properties rented for fewer than 180 consecutive days as "transient accommodations."

The first crucial fact to understand: location is everything. Short-term rentals are only permitted in resort-zoned areas and a few specific apartment-zoned areas. This means popular tourist destinations like Waikiki and Ko Olina are fair game, but residential neighborhoods are largely off-limits for new operators.

If you're lucky enough to own property in an eligible zone, you'll need to complete the following steps:

• Obtain a Short-Term Rental Registration from Honolulu County
• Pay the $1,000 initial registration fee
• Ensure your property meets all zoning requirements
• Display your registration number in all advertisements
• Renew your registration annually

Remember that these registrations are non-transferable. If you purchase a property that was previously operated as a short-term rental, you'll need to apply for a new registration independently.

Types of Short-Term Rentals in Honolulu

Honolulu recognizes two distinct categories of short-term rentals, each with specific requirements:

Bed and Breakfast Homes (B&Bs): These are owner-occupied properties where the homeowner or permanent resident remains present during guest stays. B&Bs can rent up to two rooms with a maximum of two adult transient occupants per room.

Transient Vacation Units (TVUs): These are whole-home or unhosted rentals where the owner is not present. TVUs also have occupancy restrictions, allowing a maximum of two adult transient occupants per bedroom.

Both types must adhere to strict occupancy limits and parking requirements. For properties in residential areas that have grandfathered permissions, you must provide one off-street parking spot for each room rented.

Grandfathered Properties and Legal Exceptions

Some properties have been granted exceptions to these strict zoning requirements. Properties that have operated continuously as short-term rentals since before October 22, 1986, may qualify for a Non-Conforming Use Certificate (NUC). These certificates allow operation in otherwise ineligible zones but must be renewed annually.

It's important to note that new NUCs are not being issued. This creates a limited supply of legally operating short-term rentals outside resort zones, making them particularly valuable in the real estate market.

A recent court ruling has further complicated the regulatory landscape. In January 2024, a federal judge ruled that existing short-term rentals outside resort zones can continue operating and advertising rentals for stays of 30 to 89 days. This ruling followed a lawsuit by the Hawaii Legal Short-Term Rental Alliance challenging a 2022 ordinance that had banned rentals between 30 and 89 days in non-resort areas.

The judge agreed that the ordinance violated state law prohibiting county zoning ordinances that conflict with prior use. However, this ruling only applies to properties that were legally operating before the ordinance was passed in April 2022.

Recent Regulatory Changes

Honolulu's short-term rental regulations have seen significant changes in recent years. In April 2022, the Honolulu City Council passed Bill 41, which initially aimed to increase the minimum booking period from 30 days to 90 days for short-term rentals in most areas of Oahu. However, the federal court ruling mentioned above has temporarily blocked enforcement of this provision for existing operators.

More recently, in May 2024, Governor Josh Green signed Senate Bill 2919, which grants counties even more authority to regulate short-term rentals. This law allows counties to:

1. Phase out short-term rentals in residential and agricultural zones
2. Allow transient accommodations for up to 180 consecutive days
3. Impose fines of $10,000 per day for violations

The law is designed to address Hawaii's housing crisis by potentially converting short-term rentals into long-term residential housing.

Enforcement and Compliance

Honolulu has ramped up enforcement efforts in recent years, with dedicated staff monitoring online listings and responding to complaints. Violations can result in substantial fines—potentially $1,000 to $10,000 per day.

The city requires all short-term rental operators to display their registration numbers in advertisements and prohibits unregistered rentals from advertising daily rates. Additionally, anyone selling real property must provide buyers with a short-term rental disclosure form stating whether the property may be legally used as a short-term rental.

Despite these enforcement measures, compliance remains a challenge. With more than 5% of housing units statewide now offered as vacation rentals—and up to 40% in some destination communities—illegal operations continue to be a significant concern.

For prospective operators, the key takeaway is clear: Honolulu's short-term rental market is highly regulated and increasingly restrictive. Success requires careful attention to location, proper licensing, and ongoing compliance with evolving regulations. Those who navigate these challenges successfully can still find opportunity in one of the world's most desirable vacation destinations.

Short-Term Rental Licensing Requirement in Honolulu City, Hawaii

Navigating Honolulu's short-term rental licensing process requires careful attention to detail and thorough preparation. The city has implemented one of the most structured registration systems in the country, with clear requirements and substantial penalties for non-compliance. If you're considering operating a short-term rental in Honolulu, understanding these requirements is essential for legal operation.

The current licensing framework was established by Ordinance 22-7, signed on April 26, 2022, and later revised by Ordinance 24-14, signed on June 25, 2024. These ordinances created a comprehensive registration system and defined where short-term rentals can legally operate.

Registration Requirements

To legally operate a short-term rental in Honolulu, property owners must submit the following documents with their initial application:

1. Title Report - A current title report proving ownership of the property.
2. Tax Licenses - Copies of your General Excise Tax (GET) license and Transient Accommodations Tax (TAT) license from the State of Hawaii.
3. Real Property Tax Home Exemption - For bed and breakfast homes only, evidence of a real property tax home exemption to demonstrate the property is the owner's primary residence.
4. Insurance Coverage - Proof of adequate insurance coverage for the short-term rental operation.
5. Association Approval - Evidence that the short-term rental is permitted by any applicable homeowners association, condominium association, or co-op board.
6. Informational Binder - A comprehensive information binder for guests that includes house rules, emergency contacts, and other essential information.
7. Statement of Compliance - A signed form affirming the property is not an affordable rental unit and complies with all applicable regulations.

Each of these documents must be complete and accurate. Missing or incorrect information can significantly delay the approval process or result in denial of your application.

Application Process and Fees

The registration process involves several steps:

1. Check Eligibility - Verify that your property is located in an eligible zone using the STR eligibility map available on the Department of Planning and Permitting (DPP) website. Remember, STRs are only permitted in resort-zoned areas and specific apartment-zoned areas mapped in the ordinance.

2. Complete Application - Fill out the online STR registration form through the DPP website.

3. Pay Registration Fee - Submit the non-refundable registration fee of $1,000. This fee must be paid by check and mailed to:

1. Department of Planning and Permitting
2. Attn: Short-Term Rental Program
3. 650 South King Street, 15th Floor
4. Honolulu, HI 96813

4. Application Review - The DPP will review your application and supporting documents. This process can take several weeks to complete, depending on the volume of applications.

5. Certificate Issuance - If approved, a registration certificate valid for one year will be emailed to the owner/operator.

Registration Renewal

The registration is effective for one year from the date of issuance and must be renewed annually. The renewal process should begin no earlier than three months prior to expiration and no later than one month before expiration. The renewal fee is $500 and requires updated documentation, including:

1. Renewal application form
2. City and County of Honolulu real property tax clearance
3. City and County of Honolulu transient accommodations tax clearance
4. State of Hawaii general excise and transient accommodations tax clearance

It's important to note that any change in ownership of the property or change in the operator of the short-term rental will require a completely new registration.

Advertising Requirements

Once registered, all advertisements for your short-term rental must include:

1. Your STR registration number
2. The property's Tax Map Key (TMK) number
3. Your Transient Accommodations Tax (TAT) ID

Failure to include this information in your listings is a violation that can result in significant fines.

Penalties for Non-Compliance

Honolulu has implemented strict penalties for operating unregistered short-term rentals:

1. Initial violation fines start at $1,000
2. Ongoing violations can escalate to $5,000 per day
3. Maximum fines of $10,000 per day for continued non-compliance
4. Properties found in violation may be barred from STR use for five years

The city has demonstrated its commitment to enforcement, with Mayor Rick Blangiardi announcing in 2022 that the city would target illegal short-term rentals with "as much aggression as possible." The Department of Planning and Permitting has expanded its team of inspectors and implemented new technology to identify and penalize illegal operations.

Enforcement Measures

Honolulu's enforcement approach includes:

1. Active monitoring of online listings for compliance
2. A dedicated team of inspectors investigating potential violations
3. Use of technology to track and identify unregistered rentals
4. Response to complaints from neighbors and community members
5. Substantial daily fines for continued non-compliance

While a federal judge's ruling in 2022 temporarily blocked enforcement of the provision extending the minimum rental period from 30 to 90 days, the city continues to enforce all other aspects of the ordinance, including the requirement for registration and the prohibition of short-term rentals outside designated zones.

The comprehensive nature of Honolulu's short-term rental regulations reflects the city's commitment to balancing tourism needs with housing availability for residents. For property owners considering entering this market, careful compliance with all registration requirements is essential to avoid substantial penalties and ensure a legally operating business.

Required Documents for Honolulu City, Hawaii Short-Term Rentals

Successfully registering your short-term rental in Honolulu requires meticulous preparation of numerous documents. The Department of Planning and Permitting (DPP) has established clear requirements for what must be submitted with your application. Each document serves a specific purpose in ensuring your property meets legal standards and operates responsibly. Here's a comprehensive breakdown of what you'll need:

Title Report

A current title report serves as proof of your ownership of the property. This document must be recent and obtained from a licensed title company. The title report verifies your legal right to operate a short-term rental on the property and confirms there are no liens or encumbrances that would prevent such use. You can obtain this from any title company operating in Hawaii, such as Title Guaranty or First American Title.

General Excise Tax (GET) License

This state tax license is required for all businesses operating in Hawaii, including short-term rentals. The GET license demonstrates your registration with the Hawaii Department of Taxation to collect and remit the 4.5% general excise tax on gross rental income. You must apply through the Hawaii Tax Online portal, and the license costs a one-time fee of $20. This license remains valid as long as you operate your business and file regular tax returns.

Transient Accommodations Tax (TAT) License

Similar to the GET license, the TAT license registers you to collect and remit the 10.25% state transient accommodations tax charged on short-term stays. This is also obtained through the Hawaii Department of Taxation's online portal for a one-time fee of $20. Both your GET and TAT license numbers must be displayed in all advertisements for your rental property.

City Transient Accommodations Tax License

In addition to the state TAT, Honolulu County imposes its own 3% transient accommodations tax. You must register for this tax with the City and County of Honolulu and display this license number in your advertisements as well. This requirement was implemented more recently than the state taxes and represents an additional compliance step for operators.

Real Property Tax Home Exemption (B&Bs Only)

For bed and breakfast homes specifically, you must provide evidence of a real property tax home exemption. This document proves that the property is your primary residence, which is a requirement for B&B operations in Honolulu. The exemption documentation can be obtained from the Real Property Assessment Division of the Department of Budget and Fiscal Services. This requirement ensures that B&B operators actually live in the homes they're renting out partially.

Insurance Coverage Documentation

You must provide proof of adequate insurance coverage specifically for short-term rental operations. The minimum requirement is $1,000,000 per occurrence in commercial general liability insurance or homeowner's insurance with business liability coverage. This protects both you and your guests in case of accidents or damages. Contact your insurance provider to obtain a policy that explicitly covers short-term rental use, as standard homeowner's policies often exclude such commercial activities.

Association Approval Documentation

If your property is part of a condominium, cooperative, or homeowners association, you must provide evidence that short-term rental operation is permitted by the applicable association. This typically takes the form of a letter from the association board or management company confirming that your planned short-term rental use does not violate any association rules or covenants. This requirement prevents situations where an owner obtains city approval but is still prohibited from operating by their association.

Informational Binder

You must prepare and maintain a comprehensive information binder for guests that includes:

1. A detailed floor plan identifying all transient occupant bedrooms
2. Maximum occupancy limits for each bedroom
3. Location of all fire exits
4. A parking plan showing designated guest parking spaces
5. Trash collection and disposal instructions
6. A copy of the house rules
7. A list of emergency contacts including the property owner or manager

This binder must be physically present in the rental unit and available to guests at all times. Its purpose is to ensure guest safety and minimize neighborhood disruption.

Statement of Compliance

This is a signed form affirming that the property is not an affordable rental unit and complies with all applicable regulations. The statement serves as your legal attestation that you understand and will follow all short-term rental rules. This form is provided by the Department of Planning and Permitting as part of the application package.

Tax Map Key (TMK) Number

While not a document per se, you'll need your property's 12-digit TMK number to complete the registration. This unique identifier for your property can be found on your property tax documents or by searching the Department of Budget and Fiscal Services, Real Property Assessment Division website. The TMK is used throughout the registration process to accurately identify your specific property.

Site Plan and Floor Plan

Detailed site plans showing property boundaries, dimensions, setbacks, and the location of all structures are required. Additionally, floor plans must identify the location and use of all rooms, particularly those that will be used for short-term rental purposes. These plans help the DPP assess compliance with zoning, occupancy, and safety requirements. While not explicitly stated in all documentation, having professionally prepared plans can expedite the approval process.

Application Form and Fee

The completed STR registration form must be submitted through the official Honolulu DPP portal, along with the non-refundable registration fee of $1,000. This substantial fee reflects the administrative costs of processing and enforcing short-term rental regulations. Payment can be made by check or credit card, with checks made payable to the "City and County of Honolulu."

All of these documents must be accurate and complete when submitted. Missing or incorrect information will significantly delay the approval process or result in denial of your application. Given the complexity of these requirements and the substantial investment required, many property owners choose to work with attorneys or property management companies specializing in short-term rentals to ensure full compliance with Honolulu's regulations.

Remember that once approved, your registration is valid for only one year and must be renewed 1-3 months before expiration, with a renewal fee of $500. The renewal process requires updated versions of many of these same documents, ensuring ongoing compliance with all regulations.

Honolulu City, Hawaii Short-Term Rental Taxes

Operating a short-term rental in Honolulu comes with significant tax obligations that every host must understand and comply with. Hawaii's tax structure for vacation rentals is more complex than many other states, with multiple taxes at both state and county levels. As of April 2025, here's a comprehensive breakdown of the taxes you'll need to collect, report, and remit as a short-term rental operator in Honolulu.

General Excise Tax (GET)

The General Excise Tax applies to virtually all business activities in Hawaii, including short-term rental income. For Honolulu, the GET consists of:

• State base rate: 4%
• County surcharge: 0.5%
• Total GET rate: 4.5%

This tax applies to your gross rental proceeds, which includes not just the nightly rate but also cleaning fees and any other charges you collect from guests. Unlike sales tax in other states, GET is technically imposed on the business rather than the customer. However, hosts typically pass this cost on to guests by adding it to their bill.

You must register for a GET license with the Hawaii Department of Taxation before beginning operations. This license requires a one-time fee of $20 and remains valid as long as you continue to operate your rental and file regular tax returns.

State Transient Accommodations Tax (TAT)

The State Transient Accommodations Tax is Hawaii's version of a lodging or hotel tax. As of 2025, the state TAT rate is 10.25%. This tax applies to all accommodations rented for periods of less than 180 consecutive days.

Like the GET, the TAT is calculated based on gross rental proceeds, including rent, cleaning fees, and mandatory resort fees. While technically imposed on the business, most hosts pass this tax on to guests. When visibly passed on to guests, the TAT portion is exempt from GET.

You must register for a TAT license with the Hawaii Department of Taxation, which also requires a one-time fee of $20. This registration is separate from your GET registration, even though both are handled by the same department.

County Transient Accommodations Tax

In addition to the state TAT, Honolulu County imposes its own Transient Accommodations Tax of 3%. This county-level tax was implemented more recently than the state taxes and represents an additional layer of taxation for short-term rental operators.

The county TAT applies to the same gross rental proceeds as the state TAT and is typically passed on to guests. You must register separately for this tax with the City and County of Honolulu and file returns according to their schedule.

Property Taxes

Property tax rates for short-term rentals in Honolulu have increased significantly in recent years. As of July 1, 2024, the City Council approved a new tiered rate structure specifically for short-term rentals:

• $9 per $1,000 of assessed value for the first $800,000
• $11.50 per $1,000 of assessed value for anything above $800,000

This represents a substantial increase from the previous rate of $4 per $1,000 of assessed value that applied to non-owner-occupied residential properties. For perspective, a $1 million short-term rental property would now incur approximately $9,500 in annual property taxes.

By comparison, owner-occupied residential properties pay much lower rates (around $3.50 per $1,000), while hotels pay $13.90 per $1,000. The city created this intermediate category specifically for short-term rentals to generate more revenue while acknowledging that they aren't full commercial hotel operations.

Tax Filing and Payment Responsibilities

Unlike many other states, Hawaii does not allow platforms like Airbnb and Vrbo to collect and remit taxes on behalf of hosts. This means you are personally responsible for:

• Registering for all applicable tax licenses
• Collecting the correct amount of taxes from guests
• Filing regular tax returns (monthly, quarterly, or semi-annually depending on volume)
• Remitting the taxes to the appropriate authorities

Failure to comply with these tax obligations can result in significant penalties, interest charges, and potentially the loss of your ability to operate a short-term rental legally.

Possible Tax Deductions and Write-Offs

While the tax burden for Honolulu short-term rental operators is substantial, there are numerous deductions available to help offset your taxable income. These include:

• Mortgage Interest: You can deduct the interest portion of your mortgage payments proportional to the rental use of your property. If you rent out your entire property as a short-term rental, you may be able to deduct 100% of the interest. If you only rent out a portion, you'll need to apportion the deduction accordingly.
• Property Taxes: Similar to mortgage interest, you can deduct property taxes proportional to the rental use of your property. With the recent increase in property tax rates for short-term rentals, this deduction becomes even more valuable.
• Utilities: Expenses for electricity, water, internet, cable TV, and other utilities used by guests are deductible. If you also use the property personally, you'll need to allocate these expenses based on rental versus personal use.
• Insurance: Premiums for homeowner's insurance, liability insurance, and any specialized short-term rental insurance policies are deductible business expenses.
• Repairs and Maintenance: Costs for cleaning, landscaping, pest control, and repairs necessary to keep your property in good condition are fully deductible.
• Furnishings and Supplies: You can deduct the cost of furniture, linens, toiletries, and other supplies provided to guests, either as an immediate expense or through depreciation for larger items.
• Platform Fees: The service fees charged by Airbnb, VRBO, and other booking platforms are fully deductible business expenses.
• Professional Services: Fees paid to property managers, accountants, attorneys, and other professionals related to your rental business are deductible.
• Depreciation: You can recover the cost of your property (excluding land) and major improvements through depreciation deductions spread over 27.5 years.
• Travel Expenses: If you don't live near your rental property, travel costs to check on, maintain, or repair the property may be deductible.

It's important to note that if you rent your property for 14 days or less per year, you qualify for the "14-day rule" under federal tax law. This allows you to exclude all rental income from your federal taxes, but you also cannot claim any of these deductions. Given Honolulu's high tax rates, most serious short-term rental operators exceed this threshold and will want to take advantage of available deductions.

Proper documentation is essential for claiming these deductions. Maintain detailed records of all expenses, including receipts, invoices, and payment confirmations. Consider working with a tax professional familiar with Hawaii's short-term rental tax laws to ensure you're maximizing your deductions while remaining compliant with all tax obligations.

Hawaii Wide Short-Term Rental Rules

The regulatory landscape for short-term rentals in Hawaii has undergone significant transformation in recent years, with new state legislation creating a framework that empowers counties to implement stricter controls. As of April 2025, several state-level regulations directly impact Honolulu hosts, creating an additional layer of compliance requirements beyond city-specific rules.

Senate Bill 2919: Expanded County Authority

On May 3, 2024, Governor Josh Green signed Senate Bill 2919 into law, marking a watershed moment for short-term rental regulation across Hawaii. This landmark legislation significantly expanded county powers to regulate vacation rentals, with far-reaching implications for Honolulu hosts.

The law explicitly grants counties the authority to:

• Regulate the "time, place, manner, and duration" of land uses, particularly transient accommodations
• Phase out short-term rentals in residential and agricultural zones through zoning regulations
• Allow transient accommodations for up to 180 consecutive days
• Implement more aggressive enforcement measures against non-compliant operators

Perhaps most importantly, the law includes language stating that "the powers granted herein shall be liberally construed in favor of the county exercising them." This provision effectively strengthens counties' legal position when implementing and enforcing short-term rental regulations, making it more difficult for operators to challenge restrictions in court.

The law was specifically designed to address Hawaii's housing crisis by potentially converting short-term rentals back into long-term residential housing. With approximately 90,000 short-term rentals operating across the state according to the governor's office, the impact of this legislation is substantial.

Statewide Definition of Transient Accommodations

At the state level, Hawaii defines "transient accommodations" as properties rented for fewer than 180 consecutive days. This definition is significantly more permissive than Honolulu County's 30-day threshold, creating a regulatory gap that the new legislation helps counties address.

The 180-day state definition primarily establishes the framework for taxation purposes, while allowing counties to implement more restrictive operational definitions as they see fit. For Honolulu hosts, this means complying with both the state's tax requirements based on the 180-day definition and the county's stricter operational requirements based on the 30-day definition.

Tax Registration Requirements

All short-term rental operators in Hawaii, including those in Honolulu, must register with the Hawaii Department of Taxation before beginning operations. This requirement applies regardless of location or county-specific regulations. Two separate registrations are required:

• General Excise Tax (GET) License
• Transient Accommodations Tax (TAT) License

Both licenses require a one-time fee of $20 each and remain valid as long as the business operates and files regular tax returns. Unlike many other states, Hawaii does not allow booking platforms like Airbnb and Vrbo to collect and remit these taxes on behalf of hosts. This places the full burden of tax compliance on individual operators.

Disclosure Requirements for Property Sales

State law requires that anyone selling real property in Hawaii must provide buyers with a disclosure form stating whether the property may be legally used as a short-term rental. This requirement helps prevent situations where buyers purchase properties with the intention of operating short-term rentals, only to discover that such use is prohibited.

For Honolulu hosts looking to sell their properties, this disclosure requirement means being transparent about the property's legal status as a short-term rental, including any grandfathered rights or non-conforming use certificates that may transfer with the property.

Recent Court Rulings Affecting Honolulu

In January 2024, a federal judge ruled in favor of a group of Oahu short-term rental owners who challenged Honolulu's 2022 ordinance banning rentals of between 30 and 89 days in non-resort areas. The Hawaii Legal Short-Term Rental Alliance argued that the ordinance violated state law prohibiting county zoning ordinances that conflict with prior use.

The judge agreed and granted the group a summary judgment, allowing existing Honolulu short-term rentals that were established prior to the law's passage to continue operations. However, the law still applies to short-term rentals established after it was passed in April 2022.

This ruling created a two-tiered system in Honolulu: properties that were legally operating before April 2022 can continue offering rentals of 30-89 days, while newer properties cannot. The passage of SB 2919 in May 2024 was partly a response to this ruling, giving counties clearer authority to phase out even these grandfathered operations over time.

Impact on Honolulu Operators

For Honolulu short-term rental hosts, these state-level regulations create several important considerations:

• The need to comply with both state tax requirements and county operational requirements
• Understanding that grandfathered status may be phased out under the new county powers granted by SB 2919
• Recognition that enforcement efforts are likely to increase as counties implement the new powers granted by state law
• Awareness that the legal landscape continues to evolve, with potential for additional restrictions

The passage of SB 2919 has already prompted action in other counties, with Maui quickly introducing legislation to phase out over 7,000 short-term rentals. While Honolulu has not yet implemented similar measures, the Department of Planning and Permitting is actively considering how to use the new state law to increase enforcement and potentially phase out non-conforming use permits.

For Honolulu hosts, staying informed about both state and county regulatory developments is essential for navigating this increasingly complex landscape. The trend toward stricter regulation appears likely to continue as Hawaii grapples with housing affordability concerns, overtourism impacts, and the balance between visitor accommodation and resident housing needs.

Does Honolulu City, Hawaii Strictly Enforce STR Rules?

Honolulu has gained a reputation for being one of the strictest cities in the United States when it comes to enforcing short-term rental (STR) regulations. The city has demonstrated a clear commitment to cracking down on illegal vacation rentals, with Mayor Rick Blangiardi vowing to pursue enforcement with "as much aggression as possible."

The city's approach to enforcement includes several key elements:

• Increased Fines: Honolulu has implemented hefty fines of up to $10,000 per day for violators of STR regulations. This substantial financial penalty serves as a strong deterrent for potential rule-breakers.
• Enhanced Technology: The city has invested in new technology to more effectively identify and track illegal STRs. This technological approach allows for more efficient monitoring of online listings and advertisements.
• Expanded Enforcement Team: Honolulu has activated a larger team of inspectors dedicated to investigating potential violations. This increased manpower enables more thorough and frequent checks on properties suspected of operating illegally.
• Encouraging Community Reporting: The city actively encourages residents to report suspected illegal rentals, creating a community-wide network of enforcement.
• Legal Battles: Honolulu has shown a willingness to engage in legal battles to uphold its regulations. Despite a recent federal judge's ruling that temporarily blocked enforcement of the 90-day minimum rental period, the city continues to fight for stricter controls.

In conclusion, while some hosts may still attempt to operate illegally, the strong enforcement measures and severe penalties in Honolulu have created an environment where compliance is increasingly seen as the only viable option for those wishing to enter or remain in the short-term rental market. The city's commitment to enforcement, coupled with the high stakes for violations, has effectively discouraged widespread illegal operations, making Honolulu one of the least Airbnb-friendly major cities in the United States.

How to Start a Short-Term Rental Business in Honolulu City, Hawaii

Starting a short-term rental business in Honolulu requires careful planning, thorough research, and strict adherence to local regulations. The city's stringent approach to vacation rentals means that proper preparation is essential for success. Here's a comprehensive, step-by-step guide to launching your short-term rental business in Honolulu:

1. Research Zoning and Eligibility

Before investing time and money, verify that your property is located in an eligible zone. Short-term rentals in Honolulu are only permitted in resort-zoned areas and specific apartment-zoned areas. These include parts of Waikiki (specifically the Apartment Precinct on the Waikiki Special District Mauka of Kuhio Avenue), areas within A-1 low-density apartment zoning districts and A-2 medium-density apartment zoning districts near Ko Olina Resort, and areas within A-1 low-density apartment zoning districts near Turtle Bay Resort. Use the STR eligibility map provided by the Department of Planning and Permitting (DPP) to confirm your property's eligibility.

Tip: If you're planning to purchase a property specifically for short-term rental use, focus exclusively on these eligible zones. Properties outside these areas, even if currently operating as short-term rentals, may be doing so illegally or under grandfathered permissions that won't transfer to new owners.

2. Determine Your Rental Type

Decide whether you'll operate a Bed and Breakfast Home (B&B) or a Transient Vacation Unit (TVU). B&Bs require the owner or permanent resident to be present during guest stays and are limited to renting two rooms with a maximum of two adult transient occupants per room. TVUs are whole-home rentals where the owner is not present, with a maximum of two adult transient occupants allowed per bedroom.

Tip: Consider your personal circumstances and preferences. If you live on the property or are willing to do so, a B&B might be easier to qualify for and operate. If you prefer a hands-off approach, a TVU might be better, but these face stricter limitations on eligible locations.

3. Obtain State Tax Licenses

Register with the Hawaii Department of Taxation to obtain your General Excise Tax (GET) license and Transient Accommodations Tax (TAT) license. Both licenses require a one-time fee of $20 each and can be obtained through the Hawaii Tax Online portal. You'll also need to register for the City Transient Accommodations Tax with the City and County of Honolulu.

Tip: Set up a separate business bank account for your rental income to simplify tax reporting and ensure accurate record-keeping. Consider working with an accountant familiar with Hawaii's vacation rental tax requirements to ensure compliance.

4. Secure Proper Insurance Coverage

Obtain commercial general liability insurance or homeowner's insurance with business liability coverage of at least $1,000,000 per occurrence. Standard homeowner's policies typically don't cover short-term rental activities, so you'll need specialized coverage.

Tip: Shop around for insurance specifically designed for short-term rentals. Companies like Proper Insurance, Safely, and Steadily specialize in vacation rental coverage and may offer more comprehensive protection than traditional insurers.

5. Prepare Required Documentation

Gather all necessary documents for your registration application, including:

• A recent title report proving ownership
• Copies of your GET and TAT licenses
• Evidence of a real property tax home exemption (for B&Bs only)
• Proof of insurance coverage
• Confirmation that short-term rental use is permitted by any applicable homeowners association, condominium association, or co-op board
• A comprehensive information binder for guests
• A statement of compliance affirming the property is not an affordable rental unit

Tip: Create a dedicated folder (both physical and digital) to organize all these documents. Keep copies of everything you submit and maintain a checklist to ensure nothing is overlooked.

6. Create a Guest Information Binder

Develop a comprehensive information binder that includes:

• A detailed floor plan identifying all transient occupant bedrooms
• Maximum occupancy limits for each bedroom
• Location of all fire exits
• A parking plan showing designated guest parking spaces
• Trash collection and disposal instructions
• A copy of the house rules
• A list of emergency contacts including the property owner or manager

Tip: Go beyond the minimum requirements to create a truly helpful guide for guests. Include local restaurant recommendations, transportation options, cultural etiquette tips, and emergency procedures. A well-prepared binder enhances the guest experience while ensuring compliance.

7. Complete the Registration Process

Submit your STR registration application through the DPP online portal, along with all required documentation and the non-refundable registration fee of $1,000. Be prepared for a potentially lengthy review process.

Tip: Submit your application well in advance of your planned start date, as the review process can take several weeks or even months. Follow up regularly but politely with the DPP to check on your application status.

8. Prepare Your Property

While waiting for approval, prepare your property to meet all safety and comfort standards. This includes:

1. Installing smoke detectors and fire extinguishers
2. Ensuring all exits are clearly marked and accessible
3. Addressing any maintenance issues
4. Furnishing and decorating the space appropriately
5. Creating a welcoming environment for guests

Tip: Consider hiring a professional photographer once your property is ready. High-quality photos significantly impact booking rates and can justify higher nightly rates. Invest in quality linens, towels, and basic amenities to enhance guest satisfaction.

9. Develop a Marketing Strategy

Create listings on popular booking platforms like Airbnb and VRBO, ensuring you include your registration number, TAT ID, and TMK number in all advertisements as required by law. Develop a pricing strategy that accounts for seasonal fluctuations, local events, and operating costs.

Tip: Research comparable properties in your area to set competitive rates. Consider working with a professional property manager who specializes in Honolulu short-term rentals to optimize your pricing strategy and maximize occupancy.

10. Establish Operational Procedures

Develop systems for guest communication, check-in/check-out procedures, cleaning, maintenance, and emergency response. If you don't plan to handle these tasks personally, hire reliable service providers or a property management company.

Tip: Create detailed checklists for cleaning and maintenance to ensure consistency. Establish relationships with multiple service providers so you have backups in case your primary cleaner or maintenance person is unavailable.

11. Set Up Financial Systems

Establish accounting systems to track income, expenses, and tax obligations. Set aside funds for regular maintenance, unexpected repairs, and future improvements.

Tip: Consider using vacation rental software like Lodgify, Hostfully, or Guesty to streamline operations, manage bookings across multiple platforms, and simplify financial reporting.

12. Plan for Annual Renewal

Mark your calendar for renewal, which must be initiated 1-3 months before your registration expires. The renewal fee is $500 and requires updated documentation, including tax clearances from both the city and state.

Tip: Set up automatic reminders several months before your renewal deadline. Begin gathering updated documents early to ensure a smooth renewal process.

By following these steps and maintaining strict compliance with all regulations, you can establish a legal and profitable short-term rental business in Honolulu. Remember that the regulatory landscape continues to evolve, so staying informed about changes to local ordinances is essential for long-term success in this market.

Who to Contact in Honolulu City, Hawaii about Short-Term Rental Regulations and Zoning?

Navigating Honolulu's complex short-term rental regulations often requires direct communication with city officials and departments. Whether you're seeking clarification on zoning requirements, submitting an application, or reporting a violation, knowing the right contacts can save you significant time and frustration. Here's a comprehensive list of official contacts and community resources for short-term rental operators in Honolulu:

Department of Planning and Permitting (DPP)

The Department of Planning and Permitting is the primary authority overseeing short-term rental regulations in Honolulu. Their Short-Term Rental Program handles registrations, enforcement, and compliance matters.

Short-Term Rental Program

Phone: (808) 768-8127

For technical assistance with the STR registration portal:

1. Phone: (877) 352-3277, extension 5
2. Hours: 6:00 a.m. to 2:00 p.m. HST

Zoning Code Reviews

Phone: (808) 768-8245

Housing Code Inspections, Complaints, and Investigations

Phone: (808) 768-8116

DPP Main Office

1. 650 South King Street
2. Honolulu, HI 96813

DPP Satellite Office: Kapolei Building Permit Center

1. 1000 Uluohia Street
2. Kapolei, HI 96707

General Contact Information

1. Phone: (808) 768-8000
2. Email: dpp@honolulu.gov
3. Hours: Monday through Friday, 7:45 a.m. - 4:30 p.m. (closed holidays and weekends)

Short-Term Vacation Rental (STVR) Dedicated Line

1. Phone: (808) 768-STVR (7887)
2. Email: str@honolulu.gov

Department Leadership

1. Dawn Takeuchi Apuna
2. Director, Department of Planning and Permitting
3. Phone: (808) 768-8000
4. Email: dpp@honolulu.gov

The director and her team are responsible for implementing and enforcing short-term rental policies across Honolulu. While direct communication with the director may not always be possible, understanding the leadership structure can help when escalating complex issues.

Tax Registration and Compliance

For tax-related questions regarding your short-term rental operation:

1. Hawaii Department of Taxation
2. Phone: (808) 587-4242
3. Hours: Monday through Friday, 7:45 a.m. - 4:30 p.m.

This department handles the General Excise Tax (GET) and Transient Accommodations Tax (TAT) registrations and filings required for all short-term rental operators.

Community Resources and Support Groups

Beyond official government contacts, several community organizations and online forums provide valuable support and information for Honolulu short-term rental operators:

Oahu Short-Term Rental Alliance (OSTRA)

This organization advocates for responsible short-term rental operators on Oahu and provides updates on regulatory changes and best practices.

Hawaii Legal Short-Term Rental Alliance

This group was instrumental in the recent court case that challenged certain aspects of Honolulu's short-term rental ordinances. They provide legal insights and advocacy for STR operators.

Short Term Rental University: A public group for STR entrepreneurs, particularly those listing on Airbnb, HomeAway, and VRBO.

BiggerPockets Short-Term Rental Threads: The BiggerPockets forum frequently features discussions about Hawaii's short-term rental market, with experienced operators sharing insights about specific islands and neighborhoods.

Reddit r/Oahu and r/Honolulu: These subreddits occasionally features discussions about short-term rental regulations and experiences in Honolulu.

When to Contact Each Resource

1. For registration questions and application status: Contact the DPP Short-Term Rental Program directly.
2. For zoning verification: Reach out to Zoning Code Reviews.
3. To report violations or file complaints: Call Housing Code Inspections.
4. For tax questions: Contact the Hawaii Department of Taxation.
5. For peer advice and community support: Join one of the online communities or local organizations.

When contacting any official department, it's advisable to keep detailed records of all communications, including the date, time, name of the person you spoke with, and a summary of the conversation. This documentation can be invaluable if there are any misunderstandings or disputes later in the process.

Given the evolving nature of short-term rental regulations in Honolulu, maintaining open lines of communication with both official channels and community resources will help ensure you stay informed about the latest requirements and best practices for operating a compliant and successful short-term rental business.