Hawaii’s beautiful scenery and sweet climate have made it to the record of being one of the most visited states in America. With over 9.4 million visitors, property investors have been eyeing great property deals and the Airbnb business has been a great source of income. In order for future hosts to successfully start an Airbnb business in Hawaii, it’s important to learn about its legality, step-by-step process, and most of all – profitability!
In this article, we featured Airbnb regulations in Hawaii, along with the new Airbnb laws in O’ahu. Continue reading and learn more about the Airbnb laws in Hawaii.
To cut the story short, yes – Airbnb is legal in Hawaii! While short-term regulations have been regulated since 1989 in the City & County of Honolulu in Hawaii, there have been recent restrictions and upcoming regulations. Here’s what you need to know before you invest in an Airbnb in Honolulu:
1. Based on Bill 41 (21) CD2, or Ordinance 22-7, the registration for new short-term rentals has been temporarily suspended until further notice.
2. Only the hosts with a registration number are able to publish listings on the platform.
Currently, there are 3,664 Airbnb listings in Honolulu, with 90% of entire houses earning up to $4,886 a month. The Average Occupancy Rate in Honolulu is 89% and the average daily rate is $151. According to vacation rental market analytics source Airbtics, a 2-bedroom apartment in Honolulu can make up to $47,987 annually. Check out our Airbnb Profit Calculator!
Since the announcement of the City & Council of Honolulu regarding Ordinance 22-7, many vacation rental owners and hosts have filed lawsuits against the said law.
Since the announcement of the City & Council of Honolulu regarding Ordinance 22-7, many vacation rental owners don’t see the point of calling it a “short-term rental” business because of the minimum 90-days law. According to one of the local real estate agents in the area, they had to return lease arbitrages in Waikiki to the lessor because there are way too many hotels and STRs are being overlooked.
To summarize, knowing the Airbnb rules & its potential profit in Honolulu is still important before investing in an Airbnb within the area. While gauging the personal experiences of various local hosts should also be considered in your decision-making process, accurate data should still be the foundation of your investment.
In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15 – 30% gross rental yields, and 10-20% net. It’s also fun to do!
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