Monthly Archives: March 2023

Vacation Rental Regulations

Chat GPT/Vacations Rentals

I have been thinking about upcoming changes to the law regarding vacation rentals, and wanting to write about what is going on.

I have been hearing about this new artificial intelligence program called ChatGPT.  It can write essays that are very convincing.  High school and college students are already using it to write their papers for school.

I thought, hey, what about me?   It would sure save me a lot of time and effort.  So, this is what I did.  I created an account at ChatGPT.  Then I went to ChatGPT+ and put in this request;

Write a 100 word essay on upcoming changes to regulations regarding vacation rental operations in the Puna District.

This is what I got back:

“Vacation rental operations in the Puna District of Hawaii are set to undergo some drastic changes. With the growth of the area’s tourism industry, state regulations have started to crack down on property owners who rent out their properties on a short-term or vacation basis.

Hawaii’s Department of Business, Economic Development and Tourism recently announced they are launching a Mandatory Vacation Rental Registry, which would allow the state to accurately track rental properties and their operations. The goal of this registry is to ensure that local regulations for vacation rentals are properly enforced. This will be mandatory for any property owner who wishes to continue to rent their property on a short-term basis.

In addition, the state has issued several new regulations on these properties. These regulations include additional restrictions on unhosted and nonresidential vacation rentals, such as a two-week limit for multiple bookings, and increased penalties for failure to comply. These changes are intended to increase accountability and provide stronger government oversight of vacation rental operations in the Puna District.

Overall, it is clear that the upcoming changes to regulations regarding vacation rental operations in the Puna District will have a significant effect on property owners. It is important that they are familiar with the new laws and regulations and comply accordingly. Failure to do so will result in severe punishments, including hefty fines and possible jail time.”

I love it.  I am not sure about the “possible jail time”, but for the most part, I wouldn’t change a word.  Also, it is more the county that is cracking down on vacation rentals, not the state.

I do want to add some things, though. 

This bill was introduced by Ashley Kierkiewicz and Heather Kimball.  I really don’t like the proposed changes, and wondered why they introduced this bill.  Ashley is our representative here in Puna.  I decided to ask her why she is sponsoring these changes.  This is what I sent to her

“Ashley, I am writing an article about the proposed changes to vacation rental regulations.  I wondered why you are introducing this legislation? 

I see it having a very negative impact on many senior citizens living in Puna.  Many retirees depend on vacation rental income to supplement their social security and give them a hedge against inflation.  I would like to include your response.

By the way, thank you for your support of our HPP Land Use Committee.  Aloha”

Non-hosted vacation rentals are already required to be licensed, and the county has said that they will not issue any new licenses in Puna for non-hosted short term rentals.  The changes that they are proposing would extend that regulation to hosted rentals.  Every hosted rental would be require to register with the county, and the county would be setting limits as to how many people will be able to offer hosted rentals.  There would also be new regulations

This is a quote from an article in Honolulu Civil Beat;

If the bill is ultimately adopted, transient rental operators would have to pay an initial registration fee and an annual renewal fee and comply with a host of rules. Some of the rules relate to on-site parking, the submission of site and floor plans, contact information for all registered property owners and managers, notification to surrounding properties and more.

Failure to do so could result in $10,000 in fines.

The bill would set a guest limit of no more than two adults per bedroom and an additional two adults for the unit as a whole. Individuals could operate no more than one transient accommodation rental, besides their principal home, unless they’re a licensed realtor.

Commercial weddings, wedding receptions or events would be prohibited unless operators get special permits.”

This is a link to that article;

Hosted rentals are not currently regulated.  You don’t need a license.  Hosted means that the owner or a manager lives on the rental property.  It’s a good deal.  Your kids are off to college, probably never to return to live.  You can rent out their rooms for short term rentals. At $50 to $100 per night, that could make a significant impact for retirees living on a fixed income.  The recent inflation has already created hardships for a lot of our neighbors.  Do we really need or want the county to be stepping in to regulate and limit this source of income?

To be fair, they are addressing some real issues.  There is a shortage of available rentals in Puna.  They want to manage this economic issue by restricting what people can or can’t do.  By limiting vacation rentals, they are, in theory, making more rentals available to local people.  There is some logic to that.  If I could not offer vacation rentals, I would probably offer long term rentals, if I needed some additional income.

The other issue is the increase in noise and traffic associated with vacation rentals.  The sponsors of this bill say they are trying to protect the quality of life for those living in the neighborhoods of these short term rentals. I haven’t seen any direct evidence of these problems, but I have heard stories.

I guess it comes down to costs and benefits.  I am sure the sponsors of this bill are looking out for the welfare of their constituents, but things don’t always turn out as intended.

What I see is a further intrusion of the government into our daily lives, more government fees and red tape for those wanting to offer hosted vacation rentals.  I am not saying they are totally wrong.  There are problems.  We do have outside investors buying up properties to operate as vacation rentals.  I would like to see that reduced.  It does reduce the amount of available housing, and doesn’t provide income to people living here. 

It is a complex issue.  We need to understand the costs and benefits associated with this proposed legislation.  We also need to speak up and let our county representatives know how we feel, whether we support this legislation or not.

Aloha.