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Vacation Rentals in Residential Areas

Last week we had a client inquire about the process for applying for a short-term rental permit for a residential home.

According to Section 19.04.040 of the Maui County Code, a short-term rental home is defined as “a residential use in which overnight accommodations are provided to guests for compensation, for periods of less than 180 days, in no more than two detached single-family dwelling units, excluding bed and breakfast homes. Each short-term rental home shall include bedrooms, one kitchen, and living areas. Each lot containing a short-term rental home shall include no more than two detached single-family dwelling units used for short-term rental home use, with no more than a total of six bedrooms for short-term rental home use, as specified within the zoning district provisions of this title”.

An interesting fact that I learned is that structures must have been built at least 5 years prior to the date of the application for the short-term rental home permit. Also, that the county has limitations on approving the number of permits per the community plan. For example, the West Maui area is only allowed to have 88 permits versus the Kihei/Makena area that is allowed to have 100 permits (provided there are no more than 5 permitted short-term rental homes in Maui Meadows). If you are interested in seeing if your property qualifies for short-term rental home use, visit this website. On this site you will find the short-term rental permit application packet, sign requirements, 500 ft. boundary notification list, home inspection form, and an informational brochure on if your property does qualify for short-term rental use.

If you don’t want to hassle with going through the process to get a permit to do vacation rentals on a home, I do know of a 4-Plex that is already legally doing vacation rentals and there would be no necessity to transfer permits because it is in one of those very rare hotel zoned areas. Call or email me if you are interested in more details. This property is not on the market.

Aloha,

Ken

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About The Smith Team

Ken Smith, a Maui resident for 35 years, brings his extensive local knowledge and passion for the island to his successful real estate career. Alongside his daughter-in-law, Melissa Smith, and Greg Smith, the Smith Team provides a wealth of experience and dedication to clients seeking to buy or sell property in Maui.

Melissa Smith, a third-generation Maui native, combines her deep understanding of the island's growth with a commitment to exceptional service. She empowers clients with knowledge to make informed decisions in finding their dream homes. With a background as a top agent and a Broker's license, Melissa's expertise is invaluable.

Gregory P. Smith, a lifelong Maui surfer, channels his passion for the island and its natural beauty into his real estate profession. His enthusiasm, deep market knowledge, and dedication to exceeding client expectations make him an exceptional agent.

The Smith Team's combined local expertise, commitment to client service, and understanding of the unique Maui real estate market make them an ideal choice for those looking to navigate the island's property landscape. Their proven track record ensures a smooth and successful experience for both buyers and sellers.