I come across so many Buyers that want to purchase a second home here on the Big Island of Hawaii that are hoping to short-term rent the property to help with expenses. Short-term renting is defined as 30 days or less, and the County of Hawaii has been regulating this for decades. The most preferable option is to have a Short Term Vacation Rental Permit (STVR) that was obtainable from the County which allows for the property to be rented out without a host being present. Many Buyers are not aware that this program ended as of April 30, 2019. The County of Hawaii stopped issuing new STVRs as of that date, and only properties that had these in existence at that time are now allowed to continue in this fashion. If a buyer wishing to short-term vacation rent a property is lucky enough to find one with an existing and active STVR, these STVRs can be transferred to new owner with a few stipulations.
There is another option for Buyers wishing to short-term rent out a portion of a newly purchased residentially zoned property here on the Big Island. This is to obtain a Bed and Breakfast permit from the County of Hawaii. In order to do this the owner of the property will need to apply for this permit and agree to several rules and regulations. The permit to be acquired is known as a “Special Use Permit” which is granted from the Planning Department, and has been in effect since 1996. This permit allows for a residential property to be used as a Bed and Breakfast business.
B&Bs in the County of Hawaii are limited to single-family dwellings, or perhaps a separate guest house in which the owner of the property can rent this short term. The owner is allowed to serve guests just breakfast at no additional cost. While this is not an Inn or a Hotel, this allows one to produce income from their residence. There are several rules to be followed with this type of operation. Here are some of them:
- Owner of the property is to be onsite with guests and is to live in the dwelling.
- 5 guest rooms are allowed per a minimum 15,000 sqft. lot or greater.
- Rental is for 30 days or less per guest.
- Off street parking space necessary for each room.
- Up to 10 guests at any time is allowed.
- Only breakfast can be served and is included with stay.
- A Bed and Breakfast permit ” runs with the land” and can be passed to new owners upon sale of property.
Applying for this permit costs $500 and application must be accompanied with a detailed description of the property and several additional documents. Once all documents are reviewed and deemed acceptable, the next step is for the owner of the subject property to notify all owners and lessees of record of all lots located within 300 ft. of the perimeter boundary of subject property. The process continues with a public hearing before one of the County’s planning commissioners. This hearing allows neighbors an opportunity to speak up with any potential issues they may be concerned about, and for the commissioners time to assess these issues. If no issues are found a Bed and Breakast permit will be issued within four months or sooner of receiveing the initial application. Please see useful links for this process below.
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Feel free to reach out with any questions you may have regarding homes and land you are interested in. I look forward to helping you find the perfect property here on the Big Island of Hawaii.
About the Author
Lisa Heaviside is a REALTOR Salesperson with Hawai’i Life. I have over 18 years of experience as a licensed Realtor in the state of Hawaii since 2003. When you choose me to help you Sell or Buy your Big Island Property, you can be confident you are dealing with a knowledgeable and experienced professional who consistently delivers an exemplary level of service. Throughout my career, I have refined my skills as a savvy negotiator and strive to deliver maximum value for my clients. I seek to create lasting relationships with each client I meet with and advise. Consequently, I have turned many satisfied clients into great friends. Please keep me in mind if you should ever decide to sell your Big Island property or looking to purchase. I offer excellent communication skills with a commitment to personal excellence and client satisfaction. You can email me at firstname.lastname@example.org or via phone at (808) 987-3791.