Maui Real Estate Update: Maui Planning Commission to Hear Short Term Rental Bill
June 14, 2011, 9:00 am, Maui Planning Commission Conference Room
On Tuesday, June 14th, The Maui County Planning Commission will be hearing a bill seeking to set up a permit process to allow the short term rental of residentially zoned property. Why is this important?
The allowance of short term rentals in residentially zoned areas is vital for property owners, real estate values, and Maui County™s economy in general.
At this point in time, Maui County only allows short term rentals (defined as anything less than six months) of residentially zoned properties under the Bed and Breakfast Ordinance, which allows a full time resident-owner to rent out a portion of their home to visitors. This leaves second home owners without the right to legally rent out a property that they only wish to use part time.
Many of the resort residential communities have CC&Rs which permit rentals that are less than thirty days, in direct contradiction of the county guidelines. As there is no formal enforcement policy, property owners across the island are œillegally renting their properties on a short term basis. The county, by not providing a legal mechanism for these rentals, is missing out on both transient accommodation/GET taxes that could be collected, as well as a higher property tax rate for short term use. Vacation rentals of luxury homes also bring high end tourism to the island, which provides a much needed boost in these hard economic times. Further, I™ve noticed that properties that can be legally vacation rented often hold a higher market value, as the rental income received can help defray the cost of ownership. If the bill makes it through the Planning Commission, it would still need to be passed by the County Council and the Mayor.
If you have an opinion on short term rentals in residentially zoned areas, I suggest you attend the planning commission meeting and be heard. For more information, you can visit the Maui Vacation Rental Association at www.MVRA.net