Airbnb & VRBO Performance in Honokowai Hawaii.

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Honokowai, Hawaii: Airbnb & VRBO Vacation Rental Market Overview

Despite challenges, Honokowai, Hawaii, sees a resilient short-term rental market with increasing supply and average daily rates, though occupancy rates have declined, reflecting ongoing adaptations to regulatory changes and market dynamics.

Market overview

Thriving Short-Term Rentals in Honokowai, Hawaii: A Beacon of Tourism Resilience

Honokowai, a vibrant area in West Maui, continues to showcase its allure as a top tourist destination, despite recent market fluctuations. As part of the broader Maui County, Honokowai's short-term rental market is characterized by a robust supply and stable occupancy rates. In May 2024, Maui County's vacation rental supply saw a slight decrease but still maintained a significant presence, with an occupancy rate of 49.5% and an Average Daily Rate (ADR) of $360, reflecting a 4.6% increase from the previous year and a 56.3% rise from pre-pandemic levels in 2019.

This resilience is a testament to the area's enduring appeal, with visitors drawn to its unique blend of resort-style vacations, fine dining, and high-end shopping. As the local regulations evolve, properties within hotel-zoned areas, such as those in Honokowai, remain unaffected, ensuring a seamless and luxurious experience for visitors. With its exceptional ocean views, year-round sunset vistas, and a wide range of amenities, Honokowai continues to be a prime choice for those seeking an unforgettable Hawaiian getaway.

Short Term Regulations

Short-Term Rental Regulations in Honokowai, Hawaii for 2024

General Regulations

  • County Authority: Hawaii counties, including Maui County where Honokowai is located, have been granted the authority to regulate short-term rentals through Senate Bill 2919, allowing them to decide on the time, place, manner, and duration of short-term rental operations.

Zoning and Permits

  • Zoning Restrictions: Short-term rentals are permitted only in specific zoning districts. In Maui County, these include resort-zoned areas and certain apartment-zoned areas. Properties in residential or agricultural zoned areas may be subject to phase-out or strict regulations.

Licensing and Registration

  • STR Registration: Owners must obtain a valid short-term rental registration, which can be applied for online. The application requires information about the property, owner, operator, emergency contact, site, and safety equipment.
  • Tax Registration: Owners must register with the Hawaii Department of Taxation for a transient accommodations tax (TAT) license and a general excise tax (GET) license.

Operational Requirements

  • Owner-Hosted vs. Unhosted Rentals: Different regulations apply depending on whether the rental is owner-hosted (where the owner lives on the property) or unhosted. Owner-hosted rentals may have cheaper registration fees and more zoning flexibilities.
  • Grandfathered Rentals: Properties that have been operating as short-term rentals since before specific dates (e.g., October 22, 1986) may be grandfathered into the new regulations.

Phase-Out and Transition

  • Phase-Out in Apartment-Zoned Areas: Maui County is proposing to phase out short-term rentals in apartment-zoned areas, particularly in South and West Maui, to return these properties to long-term housing use. This phase-out will be effective starting July 1, 2025, for West Maui and January 1, 2026, for the rest of Maui County.

Safety and Liability

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

Specific Maui County Regulations

  • Minatoya List: Properties on the Minatoya List, which includes apartment-zoned condos built before 1992 and previously approved for short-term rentals, may face new restrictions or phase-out under the proposed regulations.
  • Visitor Destination Areas: While not specific to Honokowai, some areas designated as visitor destination areas may allow more flexible zoning for short-term rentals, but this is subject to local council approvals.
Neighborhood Performance

Top Airbnb Revenue-Generating Neighborhoods in Lahaina, Hawaii (Including Honokowai Area)

While the specific data for Honokowai as a standalone neighborhood is not provided, it is often considered part of the broader Lahaina area. Here are the top neighborhoods and areas around Lahaina, including those that might encompass or be near Honokowai, known for generating significant Airbnb revenue and their appeal to guests:

Lahaina, HI

  • High Occupancy Rate and Revenue: Lahaina boasts a median occupancy rate of 87% and an average daily rate of $294, resulting in an annual revenue of $91K per listing.
  • Attractions: Guests are drawn to Lahaina's rich cultural history, beautiful beaches like Ka'anapali Beach, and popular spots such as the Lahaina Historic District, Whalers Village Museum, and Black Rock Beach.

Ka'anapali, HI

  • Luxury and Amenities: Located near Lahaina, Ka'anapali is known for its luxury resorts, golf courses, and high-end amenities. It attracts guests seeking a premium vacation experience.
  • Beach Access: The area offers direct access to Ka'anapali Beach, a major draw for tourists.

Napili, HI

  • Natural Beauty: Napili is famous for its stunning beaches and scenic views, making it a favorite among guests looking for a tranquil and picturesque stay.
  • Proximity to Lahaina: Its close proximity to Lahaina's attractions adds to its appeal.

Honokowai (within the Lahaina Area)

  • Convenience and Accessibility: Honokowai, being part of the larger Lahaina area, benefits from its proximity to major attractions and beaches.
  • Affordability: Compared to some other areas in Lahaina, Honokowai might offer more affordable accommodation options while still providing easy access to luxury amenities and attractions.

Other Notable Areas

  • Kapalua, HI: Known for its championship golf courses and luxury resorts, Kapalua is a short drive from Lahaina and offers a high-end vacation experience.
  • High Demand: The area's luxury appeal and outdoor activities ensure a high demand for vacation rentals.

These neighborhoods and areas around Lahaina, including those near Honokowai, are highly appealing due to their combination of natural beauty, rich cultural heritage, and access to luxury amenities and attractions.

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Design Tips

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

Entry and First Impressions

  • Ensure the entryway makes a welcoming impression with local touches such as chocolates, coffee, or flowers.
  • Consider partnering with local businesses to offer guests exclusive discounts or products.

Living Area

  • Focus on lighting control with lamps and dimmer switches to create a cozy and adjustable atmosphere.
  • Provide soft, clean blankets and comfortable pillows to enhance guest comfort.
  • Ensure the layout promotes conversation and relaxation, with occasional tables and seating areas that encourage social interaction.
  • Include a pouf or ottoman for guests to put their feet up.

Kitchen

  • Invest in durable and easy-to-maintain materials such as quartz countertops and high-quality, water-resistant flooring.
  • Update existing elements like cabinets by repainting them and adding floating shelves to create a more open and bright space.
  • Ensure the kitchen is well-stocked with essentials and consider adding local specialties.

Bedroom

  • Offer luxurious bedding options and provide extra layers stored in the closet for guest convenience.
  • Include multiple pillow options with different fill materials to cater to various preferences.
  • Install blackout shades and provide bedside tables and lamps for each guest.
  • Consider adding temperature control features like ceiling fans.

General Design Tips

  • Splurge vs Save: Invest heavily in high-wear items like beds, sofas, and dining tables, while saving on accent pieces like side tables and decor.
  • Local Touches: Incorporate small, local elements to give the space a unique and authentic feel without going overboard on themes.
  • Durability: Choose high-quality, solid wood furniture that can withstand frequent use.
  • Guest Experience: Ensure the seating and sleeping capacities match to facilitate comfortable gatherings and relaxation.

Additional Amenities

  • Provide washable rugs to simplify cleaning and maintenance.
  • Reinforce platform beds with bunkie boards to prevent damage from heavy use.
  • Offer amenities like private hot tubs, outdoor showers, or pools if feasible, as these are highly appreciated by guests in tropical locations.

Cleaning and Maintenance

  • Use materials and furnishings that are easy to clean and maintain, such as washable rugs and durable flooring.
  • Ensure regular cleaning and upkeep to maintain a high level of cleanliness and guest satisfaction.
Insider Tips

Discover Honokowai, Hawaii: Local Attractions and Insider Tips

Local Attractions

Beaches and Parks

  • Honokowai Beach Park: A family-friendly park with playground facilities, ideal for picnics but not recommended for swimming due to shallow water and a submerged rock shelf.
  • Napili Bay: Known for its excellent snorkeling, beautiful beach, and sightings of Hawaiian green sea turtles.
  • Kahekili Beach Park: Located at the northern end of Kaʻanapali, offering better swimming conditions than Honokowai Beach Park.
  • D.T. Fleming Beach Park: A great spot for family BBQs, sunbathing, and swimming, with lifeguards on duty and various amenities.

Natural Wonders

  • Nakalele Blowhole: A powerful geologic feature where waves create a spouting geyser-like effect. Accessible via a 30-minute hike from the Acid War Zone Trail.
  • Honolua Bay Marine Preserve: A protected area featuring Slaughterhouse Beach, Honolua Bay, and other scenic spots, perfect for snorkeling and exploring coastline trails.

Other Attractions

  • Kapalua Golf Resort: Renowned for its world-class golf courses, golf instruction, and annual golf events.
  • Lahaina: A historic town with a rich whaling history, offering a pleasant stroll along the beach walk, cafes, and sunset views.

Insider Tips

Best Times and Spots

  • Early Bird Hikes: Start your day early to avoid clouds and enjoy clearer views at attractions like the Nakalele Blowhole.
  • Sunset Views: Enjoy magical Maui sunsets and tri-island views of Molokai, Lana’i, and Kaho’olawe from various spots in Kapalua and Napili.

Local Events and Markets

  • Napili Farmers Market: Every Wednesday from 8am to 11am, offering local produce, smoothies, and more at the corner of Honoapiilani Highway and Napilihaui Street.
  • Slack Key Guitar Show: Hosted by George Kahumoku Jr., a great cultural experience for music lovers.

Dining and Relaxation

  • Gazebo Restaurant: A popular breakfast spot fronting Napili Bay, known for its great food, open-air setting, and reasonable prices.
  • Beach Activities: Enjoy snorkeling, swimming, and beachcombing at Napili Beach, which offers good conditions when calm.

Safety and Amenities

  • Beach Conditions: Be aware of the shallow water and submerged rock shelf at Honokowai Beach Park, and opt for other beaches like Kahekili Beach Park for safer swimming.
  • Amenities: D.T. Fleming Beach Park offers lifeguards, picnic tables, BBQ grills, restrooms, and wheelchair access to the beach.
Practical Tips

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

To ensure a smooth and profitable short term rental business in Honokowai, Hawaii, several practical tips can make a significant difference in guest satisfaction and compliance with local regulations.

Noise Regulations and Guest Communication

Inform your guests about quiet hours to maintain a peaceful environment for both your guests and the local community. Include clear guidelines on noise levels in your digital and physical house manual to avoid any misunderstandings.

Comprehensive House Manual

Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should cover everything from appliance usage to emergency contact details, ensuring guests have all the information they need at their fingertips.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos of the smart lock and any other relevant entry points.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests navigate any parking challenges. This can prevent confusion and ensure that guests park in the correct areas, respecting both your property and the neighborhood.

By implementing these tips, you can enhance the guest experience, reduce potential issues, and ensure your short term rental business in Honokowai, Hawaii, operates smoothly and in compliance with local regulations.

Local Vendors

Here is a brief list of house cleaning providers in or serving the Honokowai, Hawaii area:

Eleg Maid Service

  • Offers top-notch cleaning services, including regular house cleaning, deep cleaning, and one-time refreshes.
  • Uses eco-friendly products and advanced techniques.
  • Flexible scheduling and customized cleaning plans.
  • Contact: (877) 848-1711.

The People Who Clean (PWC)

  • Provides home, condo, office, and commercial cleaning services.
  • Serves Maui, including Honokowai, with options for one-time or regular cleaning contracts.
  • Known for dependable service and reasonable prices.
  • Contact: 808-661-3760 (Maui), Toll Free: 800-284-0859.

West Maui Cleaning

  • Offers professional house cleaning services tailored to individual needs.
  • Uses commercial-grade equipment and superior customer care.
  • 100% Quality Service Guarantee with free re-service within 24 hours if not satisfied.
  • Contact: Book an appointment online or call for details.

Maui Cleaning Care

  • Licensed, bonded, and insured in the state of Hawaii.
  • Provides customized cleaning services with trained experts.
  • Offers free in-home or on-site estimates and 100% satisfaction guarantee.
  • Family-owned and operated with a focus on customer satisfaction and eco-friendly practices.
  • Contact: For free estimates and more information.
Management fees

Honokowai, Hawaii: Understanding Short-Term Rental Management Fees

In Honokowai, Hawaii, managing a short-term rental property can come with a range of fees, typically varying from 10% to 30% of the rental revenue, depending on the level of service chosen. Full-service management, which includes comprehensive services such as guest communication, marketing, price optimization, and property maintenance, tends to be on the higher end of this spectrum, often ranging between 20% to 30% of the rental income. In contrast, basic services that may only include listing creation and booking management might be more affordable, starting at around 10%. Additionally, property owners may incur extra fees for services like cleaning, repairs, and interior design, which can further impact the overall cost of managing their short-term rental properties.

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Why choose RedAwning

RedAwning is a tech leader in full-service short-term rental management, powered by our exclusive, unmatched tools.
Other property managers
Cost
Starting at 10%
25-40%
Guest communications
5-15 mins / 24 hours a day
1 hour+
Host communications
Dedicated phone and text line with no time on hold
Chat bots, hold lines and email threads
Insurance
Robust liability and dwelling coverage for every reservation
Spotty coverage with low claim approval rates
Contract
No cancellation fees
No contract lock-in
Just 90 days notice to cancel
Cancellation penalties
Number of Channels Your Listing is On
50+
2-4

Experience in numbers

Rest well knowing your property is managed by an experienced team powered by world-class technology.
+10-30%
in gross revenue
4.8 stars
guest rating
14+ years
managing STRs

Short Term Rental Calculator

Find out how much your property in Honokowai should generate as a short term rental and look at the performance of properties around yours.

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Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Honokowai.

Living Room
Seating: Sofa, armchairs, and ottomans
Coffee Table
Entertainment: Smart TV (with streaming apps) and remote control
Decor: Area rug, wall art, plants, and throw pillows
Lighting: Floor lamp or table lamps
Charging Stations: Power strips or outlets with USB ports
Bedrooms
Beds: High-quality mattress with mattress protector
Linens: At least two sets of sheets per bed
Pillows: Hypoallergenic pillows (2-4 per bed)
Blankets: Extra throw blankets or quilts
Nightstands: With lamps or charging docks
Closet or Storage: Hangers, dresser, or luggage rack
Blackout Curtains or Shades
Bathrooms
Towels: Bath towels, hand towels, washcloths (2 sets per guest)
Shower Curtain & Liner
Toiletries: Shampoo, conditioner, body wash, hand soap
Bathroom Essentials: Toilet paper, tissues, trash bin
Hairdryer
Mirror: Full-length or wall mirror
Dining Area
Dining Table: Seating for the maximum number of guests
Place Settings: Placemats or tablecloths
Centerpiece: Vase with flowers or decorative piece
Kitchen
Appliances: Refrigerator, microwave, toaster, coffee maker, kettle
Cookware: Pots, pans, baking trays
Utensils: Forks, knives, spoons, spatulas, tongs
Dinnerware: Plates, bowls, glasses, mugs (2 sets per guest)
Cutting Board & Knives
Basic Spices & Condiments: Salt, pepper, oil
Cleaning Supplies: Sponge, dish soap, paper towels, trash bags
Outdoor Space (if applicable)
Seating: Outdoor chairs, benches, or lounges
Table: For outdoor dining or drinks
Lighting: String lights or outdoor lanterns
Grill: With necessary utensils and instructions
Outdoor Trash Bin
Extras to Elevate Guest Experience
Welcome Basket: Snacks, water bottles, or wine
Guidebook: Local recommendations and house rules
Board Games or Books: Entertainment for guests
Umbrella & Flashlight
Iron & Ironing Board
Laundry: Washer, dryer, and detergent (if available)
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⇤ Airbnb Statistics for Hawaii