Airbnb & VRBO Performance in Hana Hawaii.

Short-Term Rental Regulations in Hana, Hawaii for 2024

General Regulations

• County Authority: Hawaii counties, including Maui County where Hana is located, have been granted more power to regulate short-term rentals through Senate Bill 2919 signed into law on May 3, 2024. This allows counties to regulate the time, place, manner, and duration of short-term rentals and to phase them out in residential and agricultural zones.

Zoning and Licensing

• Zoning Permits: Short-term rentals must be located in permitted zones. In Maui, where Hana is situated, STRs are allowed in specific zones such as resort-commercial zones, but are restricted in residentially zoned neighborhoods where the minimum stay is now 6 months.

Phase-Out Provisions

• Phase-Out in Residential Areas: Counties can phase out short-term rentals in residential and agricultural zones. In Maui, a proposed bill aims to phase out over 7,100 short-term rentals in apartment-zoned districts by January 1, 2026.

Tax Compliance

• Transient Accommodations Tax (TAT) and General Excise Tax (GET): Short-term rental operators must register with the Hawaii Department of Taxation and pay both TAT and GET based on their gross rental proceeds. These taxes cannot be collected by platforms like Airbnb and Vrbo on behalf of the hosts in Hawaii.

Compliance and Penalties

• Registration and Permits: Owners must obtain necessary permits and licenses to operate legally. Failure to comply can result in fines of up to $10,000 per day.

Specific Maui County Regulations

• Minatoya List: Properties in Maui that were previously approved for short-term rentals under the Minatoya list must comply with new regulations. For Hana and other areas, this means that properties on this list may need to cease short-term rental operations by the specified deadlines.

Insurance Requirements

• Liability Insurance: Eligible properties must have short-term rental insurance providing at least $1,000,000 in general liability coverage.

Local Adaptations

• Maui Planning Commission: The Maui Planning Commission and the Maui County Council are involved in recommending and implementing new regulations, which may include specific rules for areas like Hana and Kaunakakai.

Top Airbnb Revenue-Generating Areas in Hana, Hawaii

Why Hana is Appealing for Guests

Hana, located on the eastern coast of Maui, Hawaii, is a secluded and picturesque destination that attracts guests seeking a tranquil and authentic Hawaiian experience. Here are the key areas and reasons why they are appealing for guests and lucrative for Airbnb investors:

Key Areas and Their Appeal

Haleakala National Park and Surroundings

• Appeal: Guests are drawn to the area around Haleakala National Park for its breathtaking sunrises, hiking trails, and the unique experience of watching the sunrise from a volcanic summit.
• Revenue Potential: High demand due to limited lodging options, with an average daily rate of $411 and an occupancy rate of 83%.

Waianapanapa State Park

• Appeal: This park is famous for its black sand beach, ancient Hawaiian temples, and lush tropical landscapes, offering a unique cultural and natural experience.
• Revenue Potential: The park's popularity contributes to the high occupancy rates and revenue in Hana, with annual revenues averaging around $116,000 per listing.

Pipiwai Trail and Waterfalls

• Appeal: The Pipiwai Trail, with its stunning waterfalls and bamboo forests, is a major attraction for nature lovers and hikers.
• Revenue Potential: The scenic beauty and outdoor activities in this area support the high demand for accommodations, resulting in significant revenue for Airbnb hosts.

Hamoa Beach

• Appeal: Known for its white sand and crystal-clear waters, Hamoa Beach is a favorite among tourists looking for a relaxing beach experience.
• Revenue Potential: The beach's popularity, combined with the overall scarcity of lodging options in Hana, drives up the revenue potential for Airbnb properties in the area.

Hana Highway and Surrounding Areas

• Appeal: The scenic Hana Highway, with its numerous stops at waterfalls, beaches, and tropical rainforests, offers a memorable drive and exploration experience.
• Revenue Potential: The entire Hana Highway corridor benefits from the high demand for accommodations, making it a lucrative area for Airbnb investments.

General Market Metrics

• Average Occupancy Rate: 83%
• Average Daily Rate: $411
• Annual Revenue: Approximately $116,000 per listing
• Limited Competition: Only 51 active Airbnb listings as of September 2024, indicating a high demand and limited supply.

Creating an Inviting Airbnb in Hana, Hawaii: Design and Furnishing Tips

Showcase Unique Features

• Highlight the distinctive aspects of your property, such as stunning ocean views, private pools, or lush gardens, in your listing photos and descriptions.
• Emphasize what sets your rental apart from others to attract travelers seeking an extraordinary experience.

Personalize the Space

• Incorporate Hawaiian-themed decor, artwork, and local products to give guests a genuine taste of the island's charm.
• Add personalized touches such as fresh tropical fruit baskets, Hawaiian coffee, and local goodies to welcome guests.

Use Local Art and Decor

• Decorate with local artwork or handicrafts that reflect the destination’s culture and heritage.
• Include faux or real plants that are easy to care for and add to the Hawaiian vibe.

Create Themed Rooms

• Design rooms with unique themes (e.g., beach, jungle, vintage) to create a memorable and immersive experience for guests.
• Ensure the theme is consistent throughout the entire property.

Provide Guest-Friendly Amenities

• Offer high-speed internet, cable or streaming services, beach gear (such as chairs, umbrellas, and snorkeling equipment), and bikes for exploring the island.
• Provide welcome baskets with snacks, toiletries, or a guidebook filled with insider tips and recommendations.

Focus on Ambiance

• Create a relaxing and indulgent atmosphere with comfortable and high-quality furnishings, plush bedding, and luxurious amenities.
• Add thoughtful details such as scented candles, soothing music, or a collection of books and games.

Incorporate Wellness Features

• Consider adding a small gym area, yoga mats, or a meditation corner for guests interested in wellness activities during their stay.

Pet-Friendly Amenities

• Provide amenities such as pet beds, food bowls, and a fenced-in yard to accommodate guests traveling with pets.

Functional and Stylish Entryway

• Create an inviting and functional entryway with a mirror, baskets for items like keys and shoes.

Balanced Decoration

• Avoid overloading the space with too many decor items and furniture; remember that less is more.
• Opt for light, trendy paint colors to make the home look more spacious.

Practical and Durable Design

• Choose functional, durable, affordable, easy-to-clean, and multipurpose pieces to ensure the space remains welcoming and low-maintenance.

Local Travel Guides and Social Media Integration

• Provide local travel guides and a sign with the property's Instagram handle and hashtag to encourage guests to share their experiences.

Thoughtful Details

• Include a designated coffee station in the kitchen and ensure the home is stocked with extra coffee and filters.
• Use gallery walls with vintage and watercolor prints to add a unique touch to the space.

Discovering Hana, Hawaii: Local Attractions and Insider Tips

Top Attractions in Hana

Wai'anapanapa State Park

• Explore the dramatic coastline, black sand beach, blowhole, sea-sculpted lava formations, and ancient Hawaiian burial sites.
• Hike the two walking trails, visit the birthing pool, hidden swimming hole, and five sheltered sea caves.

Hana Cultural Center and Museum

• Learn about Hana's unique culture and history through educational displays and Hawaiian artifacts.
• Visit the historic Hana Courthouse, a replica of a pre-contact Hawaiian village, and the gift shop.

Hana Bay (Uakea)

• Enjoy snorkeling in the protected, shallow waters of this black sand beach.
• Use the beach park facilities, including picnic tables, showers, pavilions, and restrooms.

Ohe'o Gulch (Seven Sacred Pools)

• Swim in the seven freshwater pools that flow from the mountain to the ocean.
• Located within Haleakala National Park, this is a must-see natural wonder.

Hamoa Beach

• Relax at this crescent-shaped beach, rated one of the top beaches in the world.
• Access the beach by walking down a steep hill from the street parking above.

Kahanu Garden

• Explore the National Tropical Botanical Gardens, featuring heiau, traditional dwellings, and a rich introduction to Hawaiian culture.
• Reservations are appreciated.

Hana Coast Gallery

• Visit Hawaii's most respected cultural arts gallery, showcasing Hawaiian-inspired art, oil paintings, koa wood sculptures, and fine jewelry.
• Located in the Hana Maui Resort.

Insider Tips

Dining

• Thai Food By Pranee: Enjoy incredible Thai food in a thatched roof house near the baseball ballpark. Be prepared for wait times.
• Hasegawa General Store: Stop for snacks, supplies, and souvenirs at this fourth-generation family-run store. Look out for the "greeters" outside.

Shopping

• Local Art Galleries and Stands: Explore art galleries, local art stands, and craft fairs to discover talented local artists.
• Farmers Markets and Stands: Visit weekly farmers’ markets and small farm stands for fresh, locally grown produce.

Activities

• Hiking: Hike to Fagan’s Cross for stunning coastal views, or explore the Pipiwai Trail to a 400-foot waterfall.
• Snorkeling: Snorkel at Hana Bay or other spots along the Road to Hana, but be mindful of time constraints if you're not staying overnight.

Practical Tips

• Stay Overnight: To fully experience Hana, consider staying a night or two to avoid missing out on the many attractions along the way.
• Reservations: Make reservations for out-of-state visitors at Wai'anapanapa State Park and Kahanu Garden.
• Driving: Be prepared for the scenic but time-consuming drive along the Road to Hana, with many stops for swimming, hiking, and sunbathing.

Local Favorites

• Koki Beach: While not suitable for swimming due to strong rip currents, it's a great spot for a picnic and taking in the ocean views.
• Red Sand Beach: A unique and picturesque beach, though access can be challenging.

By sharing these attractions and tips, you can help your guests make the most of their visit to Hana, Hawaii.

Practical Tips to Run a Successful Short-Term Rental Business in Hana, Hawaii

To ensure a smooth and enjoyable experience for both you and your guests in Hana, Hawaii, several practical tips can make a significant difference in the success of your short-term rental business.

Noise Regulations and Quiet Hours

Inform your guests about noise regulations and quiet hours to maintain a peaceful environment, especially in residential areas. Include a section in your house manual or welcome message that clearly outlines the quiet hours and any specific noise restrictions.

Creating a Comprehensive House Manual

Develop both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover local tips, recommendations for nearby attractions, and any specific rules or regulations for the property.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to use the smart locks and ensure that guests have all the necessary information before their arrival.

Parking Instructions with Photos

Include detailed parking instructions with photos to help guests navigate any complex parking situations. This can prevent confusion and ensure that guests park in the correct areas, respecting any local parking regulations.

By implementing these tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental business in Hana, Hawaii.

Here is a brief list of house cleaning services available in Hana, Hawaii:

House Cleaning Services in Hana, HI

Crystal Clean Maui

• Although primarily based in the North Shore and Upcountry regions, Crystal Clean Maui evaluates service requests for Hana individually. They offer all-natural and non-toxic cleaning services, including residential cleaning, deep cleans, and move-out cleans.

Homeaglow

• Provides professional, affordable, and background-checked deep cleaning services in Hana. Initial 3-hour clean starts at $19.

Sparkling and Beyond

• Offers professional deep cleaning services for houses, businesses, and commercial properties in Hana.

These services focus primarily on cleaning, but do not include repair or maintenance services.

Hana, Hawaii Short-Term Rental Management Fees: A Comprehensive Guide

Managing a short-term rental in Hana, Hawaii, involves navigating a range of fees that can significantly impact your revenue. Typically, short-term rental management fees in Hana range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the rental income.

Basic services, such as listing and booking management, may incur lower fees. Additionally, property owners should be prepared for other potential fees, including cleaning fees, repair costs, and design or renovation expenses. These extra fees can be managed through consumables fees or separate charges, ensuring that the property remains guest-ready and well-maintained.

Understanding these fee structures is crucial for optimizing your rental income and ensuring compliance with local regulations, which in Hana include stringent zoning laws and permit requirements.