In Kahuku, Hawaii, the short-term rental market is showing resilience, with unit demand and average daily rates maintaining stability, despite broader market fluctuations, highlighting the area's enduring appeal to tourists.
Current Short-Term Rental Performance in Kahuku, Hawaii: Resilience Amidst Regulatory Changes
Despite the ongoing regulatory shifts and policy debates surrounding short-term rentals in Hawaii, Kahuku and its surrounding areas are showing signs of resilience. While specific data for Kahuku itself is not readily available, the broader trends in Oahu and Hawaii can provide some insights. For Oahu, the occupancy rate for vacation rentals in June 2024 was 61.2%, which, although lower than pre-pandemic levels, indicates a stable demand.
The average daily rate (ADR) for vacation rentals in Hawaii has seen an increase, with a statewide ADR of $380 in June 2024, reflecting a 7.0% rise compared to 2023 and a significant 63.8% increase since 2019. These figures suggest that while the market is navigating regulatory challenges, it remains attractive to visitors and can offer lucrative opportunities for hosts and managers who adapt to the new regulations.
Short-Term Rental Regulations in Kahuku, Hawaii for 2024
General Regulations
- County Authority: Under Senate Bill 2919, signed on May 3, 2024, Hawaii counties have the authority to regulate the time, place, manner, and duration of short-term rentals through zoning regulations.
Zoning and Eligibility
- Zoned Areas: Short-term rentals are only permitted in specific zones such as resort-zoned areas and certain apartment-zoned areas. Properties in residentially zoned neighborhoods are subject to a minimum stay of 6 months.
Types of Short-Term Rentals
- Bed and Breakfast Homes (B&Bs): The homeowner or permanent resident must be present during the stay. No more than two rooms can be rented, with a maximum of two adult transient occupants per room.
- Transient Vacation Units (TVUs): Whole home or unhosted rentals with a maximum occupancy of two adult transient occupants per room.
Registration and Licensing
- Registration Requirement: Short-term rental properties must be registered using the online STR registration form. The registration number and Transient Accommodations Tax (TAT) ID must be included in all online listings.
- Taxes and Licenses: Owners must obtain a TAT ID from the state and comply with the General Excise Tax and Oahu Transient Accommodations Tax.
Compliance and Enforcement
- Building and Housing Standards: Properties must comply with health, safety, and habitability standards, which may require upgrades or renovations.
- Fines for Non-Compliance: Violators of county regulations face fines of $10,000 per day.
Specific County Regulations
- Phase-Out in Residential Areas: Counties have the power to phase out short-term rentals in residential and agricultural zones to convert them into long-term residential housing.
Additional Requirements
- Grandfathered Properties: Properties that have been operating as short-term rentals since before October 22, 1986, may continue to operate with a nonconforming use certificate (NUC) that must be renewed annually.
- Notification and Insurance: Owners must notify neighbors and obtain necessary insurance coverage.
Tax Obligations
- Transient Accommodations Tax (TAT): 10.25% on stays under 180 days, along with the General Excise Tax and Oahu Transient Accommodations Tax.
Top Neighborhoods for Airbnb Revenue in Kahuku, Hawaii
While specific neighborhood data for Kahuku, Hawaii, is not as detailed as for other areas like Honolulu, we can infer some insights based on the general appeal and characteristics of Kahuku.
Kahuku Town
- Average Occupancy Rate: While exact figures for Kahuku are not provided, neighboring areas like Kahuku have an average occupancy rate of 67%.
- Average Daily Rate: Kahuku's average daily rate is around $580, which is comparable to other high-demand areas in Hawaii.
- Appeal: Kahuku Town is appealing due to its rural charm, proximity to famous shrimp trucks, and the Kahuku Farms. Guests are drawn to the area's laid-back atmosphere, local cuisine, and easy access to North Shore beaches and attractions.
- Revenue Potential: Given the average daily rate and occupancy rate, a typical Airbnb in Kahuku Town could generate around $20,000 to $25,000 annually, assuming a consistent occupancy rate and average daily rate.
North Shore Beach Areas
- Average Occupancy Rate: Similar to Kahuku Town, the North Shore areas have high occupancy rates, often above 60%.
- Average Daily Rate: The average daily rate for these areas is higher due to their popularity among surfers and beachgoers, averaging around $600-$700 per night.
- Appeal: The North Shore is famous for its world-class surfing beaches, including Pipeline and Sunset Beach. Guests are attracted to the area's natural beauty, outdoor activities, and the opportunity to experience Hawaii's surf culture.
- Revenue Potential: Properties in these areas can generate higher revenue due to the premium rates, potentially exceeding $30,000 annually.
Rural and Farm Areas
- Average Occupancy Rate: These areas tend to have slightly lower occupancy rates but still maintain a strong demand, around 60%.
- Average Daily Rate: The average daily rate can be lower compared to beachfront properties but still lucrative, around $450-$550 per night.
- Appeal: Guests are drawn to the rural and farm areas for their unique experiences, such as farm stays, horseback riding, and a more authentic Hawaiian lifestyle.
- Revenue Potential: These properties can generate a steady income, potentially around $20,000 to $25,000 annually, due to their consistent occupancy and appealing rates.
Why These Neighborhoods Are Appealing
- Natural Beauty: Kahuku and its surrounding areas offer a mix of rural landscapes, famous beaches, and outdoor activities that attract a wide range of tourists.
- Local Culture: The area is known for its local cuisine, particularly the shrimp trucks, and the opportunity to experience Hawaiian farm life.
- Proximity to Attractions: The North Shore's surfing beaches and other local attractions make it an ideal location for guests seeking both relaxation and adventure.
- Unique Experiences: From farm stays to beachfront properties, Kahuku offers a variety of unique experiences that cater to different types of travelers.
Creating an Inviting and Authentically Hawaiian Airbnb in Kahuku: Design and Furnishing Tips
The Living Room
- Lighting Control: Incorporate lamps and dimmer switches to provide flexible and cozy lighting options.
- Comfortable Seating: Include plush blankets, pillows with various fill options, and a pouf for a comfortable and inviting atmosphere.
- Occasional Tables: Ensure each guest has a place to set their drinks and other items.
- Layout for Conversation: Design the room to facilitate conversation, with swivel chairs and a layout that encourages interaction.
- Local Touches: Use Acacia wood furniture or other locally inspired materials to add a subtle Hawaiian touch.
The Bedroom
- Luxurious Bedding: Offer high-quality bedding with extra layers stored in the closet for guest convenience.
- Multiple Pillows: Provide two sleeping pillows per guest with different fill options.
- Temperature Control: Install ceiling fans or ensure air conditioning is available for a comfortable stay.
- Bedside Tables and Lamps: Include bedside tables with lamps, ideally with USB ports or wireless charging features.
- Blackout Shades: Use blackout shades to cater to different sleep preferences.
The Bathroom
- Fluffy Towels and Robes: Provide extra fluffy towels and consider offering bathrobes for a luxurious feel.
- Nice-Smelling Amenities: Use pleasant-smelling hand soap and ensure there is a place to put shower items without them being on the floor.
- Local Decor: Add decorative elements that reflect Hawaiian culture, such as tropical-inspired artwork or accessories.
General Tips
- Theme Consistency: Maintain a consistent theme, such as a mauka (mountain) or tropical theme, throughout the property to create a cohesive and immersive experience.
- Local Materials and Crafts: Incorporate locally made and dyed linens, waffle print towels, and other local crafts to enhance the Hawaiian ambiance.
- Outdoor Spaces: Utilize lanais or outdoor spaces with comfortable seating and decor that reflects the natural beauty of Kahuku.
- Amenities and Activities: Highlight the availability of nearby amenities such as beaches, golf courses, hiking trails, and local restaurants to enhance the guest experience.
Compliance and Safety
- Ensure Legal Compliance: Obtain necessary certifications and comply with Hawaii’s Airbnb laws, including zoning regulations and health and safety standards.
- Safety Standards: Ensure the property meets all safety standards, including proper lighting, secure entry, and emergency equipment.
Discovering Kahuku, Hawaii: Local Attractions and Insider Tips
Local Attractions
Beaches and Outdoor Activities
- Kahuku Point: The northernmost point of Oahu, offering breathtaking views of the Pacific Ocean, ideal for sunset and sunrise watching. You might even spot sea birds and Hawaiian Monk Seals.
- Turtle Bay Resort: Features beach cottages, restaurants, and activities like snorkeling, ziplining, and mountain biking. It's also a popular spot for film productions.
- Mālaekahana Beach: Accessible from both Kahuku and Lāʻie, this beach is perfect for a quiet day out.
- Keiki Beach: A secluded beach near Turtle Bay, great for swimming and rest.
Hiking and Nature
- Hike to Kahuku Point: A leisurely walk from the Turtle Bay Resort parking lot, passing through stunning white sand beaches and quiet stretches. Connecting paths offer longer hikes east and west of the resort.
- The Banyan Tree: Located in the small forest behind Kawela Bay, this impressive tree is known for its multiple trunks and vines.
Local Farms and Cuisine
- Kahuku Farms: A family-owned farm offering educational tours, wagon rides, and a farm-to-table cafe. Enjoy treats made from produce grown on the farm, including açaí bowls.
- Country Eatery & Juicery: Start your day with nutritious meals and organic cold-pressed juices in a breezy courtyard.
- Fumi’s Kahuku Shrimp: Don’t miss the famous shrimp trucks along the North Shore, offering buttery and delicious shrimp dishes.
Cultural and Historical Sites
- Kahuku Sugar Mill: Explore the history of Kahuku’s sugar industry. The mill now houses restaurants, shops, and a local brewery.
- Ohana Island Creations: Visit this art gallery for traditional wood carvings and Kapa drawings. You can even request custom pieces.
Shopping and Art
- Full Fathom Five: An eclectic art and antique gallery featuring work by local artists, including unique paintings, sea glass jewelry, and koa wood postcards.
- Seven Brothers Kahuku Marketplace: Find a variety of items from snorkel masks to home goods, candy, baked goods, and SPAM musubis.
Insider Tips
Dining
- Roy’s Beach House: Located in Turtle Bay Resort, this restaurant offers Hawaii-inspired Euro-Asian cuisine with a beautiful beach view. Try the Kahana Style Tiger Shrimp and Macadamia Nut Opah.
Tours and Activities
- Photo Tours and Helicopter Tours: Explore Kahuku through photo tours or take a helicopter tour for a panoramic view of the North Shore.
- Ziplining and Mountain Biking: Enjoy adventure activities like ziplining and mountain biking on Oahu’s North Shore.
Local Events and Culture
- Kahuku High School Football: If you're visiting during football season, catch a game at Kahuku High School, known for producing talented football players.
By sharing these attractions and insider tips, your guests will have a comprehensive and enjoyable experience in Kahuku, Hawaii.
Practical Tips to Run a Successful Short-Term Rental Business in Kahuku, Hawaii
To ensure the success and smooth operation of a short-term rental business in Kahuku, Hawaii, several practical tips are essential. Here are some key considerations:
Noise Regulations and Quiet Hours
Inform your guests about the local noise regulations and quiet hours to maintain a peaceful environment and avoid any potential issues with neighbors. Clearly state these rules in your house manual and include them in the welcome message to set expectations from the outset.
Digital and Physical House Manual
Create a comprehensive digital and physical house manual that includes all necessary instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should be easily accessible and updated regularly to reflect any changes or new amenities.
Simplified Check-in Process
Implement a simplified check-in process using smart locks to eliminate the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, and include photos of the lock and any other relevant features to ensure a smooth arrival.
Parking Instructions with Photos
Offer clear parking instructions accompanied by photos to help guests navigate the parking area easily. This can include directions to designated parking spots, any specific rules or restrictions, and images of the parking area to avoid confusion.
By adhering to these tips, you can enhance the guest experience, reduce potential issues, and maintain a high level of satisfaction and occupancy for your short-term rental in Kahuku, Hawaii.
Here is a brief list of house cleaning services and related providers in Kahuku, Hawaii:
House Cleaning Services
- Homeaglow: Offers professional, affordable, and background-checked house and apartment cleaning services. Initial 3-hour clean starts at $19.
- Sparkling and Beyond: Provides standard cleaning services for both residential and commercial properties.
- Care.com House Cleaning: Lists several affordable house cleaning options starting at $23.00/hr, with ratings and reviews available.
- Angie's List House Cleaners: Features a list of top-rated house cleaners in Kahuku, HI, with real reviews and ratings.
Note
For repair or maintenance services, the provided sources do not specify any providers in Kahuku, HI. The list is focused on house cleaning services.
Short-Term Rental Management Fees in Kahuku, Hawaii: A Comprehensive Guide
Managing short-term rentals in Kahuku, Hawaii, involves a range of fees that can vary significantly based on the level of service provided. Typically, management fees for short-term rentals in Kahuku range from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive services such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often ranging from 20% to 30% of the revenue.
In contrast, basic services may incur lower fees, usually around 10% to 15% of the revenue. Additional costs can include fees for cleaning, repairs, and design services, which may be charged separately or included in the overall management fee. For instance, some management companies charge a consumables fee to cover items like linens, toiletries, and light bulbs.
Understanding these fee structures is crucial for property owners to ensure they are getting the best value for their investment while complying with the stringent local regulations in Kahuku.