Despite lower occupancy rates, Kahului's short-term rental market in 2024 has seen increases in average daily rates, with Maui County reporting an ADR of $360 in May 2024, a significant rise from pre-pandemic levels.
Strong Performance in Kahului's Short-Term Rentals Despite Challenges
Kahului, Hawaii, is witnessing a resilient performance in its short-term rental market, despite some broader industry challenges. In April 2024, the vacation rental supply in the area saw notable trends. While the overall demand for vacation rentals in Kahului was affected, with a demand of 34,831 unit nights, this still resulted in a respectable occupancy rate of 43.8%.
The average daily rate (ADR) for these rentals remained robust, standing at $250, which is a 6.5% increase compared to April 2023 and a significant 53.1% increase from pre-pandemic levels in 2019. These figures indicate that Kahului's short-term rental market is adapting well to current conditions, offering attractive options for visitors while maintaining a strong economic contribution to the local tourism sector.
Short-Term Rental Regulations in Kahului, Hawaii for 2024
Overview of Regulations
- State-Level Authority: Hawaii has given counties the authority to regulate short-term rentals through Senate Bill 2919, signed into law on May 3, 2024. This bill allows counties to regulate the time, place, manner, and duration of short-term rentals through zoning ordinances.
Specific Regulations for Maui County (Including Kahului)
Permit Requirements
- All types of short-term rentals in Maui require a permit. For short-term rental homes (STRHs), the single-family dwelling must have been constructed at least 15 years before the date of application, and the applicant must have owned the dwelling for at least 15 years.
Ownership and Management
- The owner or a designated manager must manage the short-term rental home. For bed and breakfast homes, the owner or manager must live on site.
Zoning Restrictions
- Short-term rentals are permitted in specific zoning districts such as V, CG, and CV districts, and in residential and commercial zoning districts situated in the General Plan Resort and Resort Node areas. Multifamily dwellings with a condominium property regime in the RM district are also allowed.
Phase-Out of Transient Vacation Rentals in Apartment Districts**
- A proposed bill, recommended by the Maui Planning Commission, aims to phase out over 7,100 short-term rentals in apartment-zoned districts, primarily in South and West Maui. This phase-out will be effective by July 1, 2025, for West Maui and January 1, 2026, for the rest of Maui County. Affected properties may need to transition to long-term rentals.
Minatoya List**
- Properties on the "Minatoya List" (apartment-zoned condos built before 1992 that were previously approved for short-term rentals) may face new restrictions and potential phase-out under the proposed regulations.
Economic, Social, and Environmental Considerations**
- The Maui County Council is to consider economic, social, cultural, environmental, and quality of life impacts of the phase-out proposal, as recommended by the planning commissions.
Exclusions**
- Properties zoned for hotel use or partially zoned as hotels will be excluded from the phase-out.
Caps on Permits**
- There are caps on the number of short-term rental permits allowed in each community plan area, and these permits are not transferable.
Top Neighborhoods Generating Airbnb Revenue in Kahului, Hawaii
1. Kihei
- Appeal: Kihei is highly appealing due to its central location, year-round sunny weather, and proximity to some of Maui's most popular beaches, such as Charlie Young Beach and Kamaole Beaches. Guests love the variety of restaurants, shops, and recreational activities like snorkeling, swimming, and surfing.
- Amenities: Many rentals in Kihei offer amenities like pools, hot tubs, air conditioning, free WiFi, and dedicated workspaces, making them ideal for families, couples, and business travelers.
2. Kahului (including Hoaloha Park Beach area)
- Appeal: Kahului attracts guests with its convenient location close to the airport and major attractions. The Hoaloha Park Beach area is particularly popular for its beachfront properties, swimming pools, and on-site dining options. These rentals often accommodate large groups and offer pet-friendly facilities.
- Amenities: Amenities include swimming pools, bars, daily housekeeping, fitness centers, and pet-friendly accommodations, making these rentals highly desirable for families and larger groups.
3. Wailuku
- Appeal: Wailuku is appealing for its unique charm, central location, and access to amenities like private tennis courts, lush gardens, and spacious outdoor dining areas. Guests appreciate the modern amenities and the comfortable, spacious layouts of the rentals.
- Amenities: Rentals in Wailuku often feature fully equipped kitchens, air conditioning, private gardens, high-speed internet, and complimentary beach towels and chairs, ensuring a comfortable and enjoyable stay.
4. Lahaina
- Appeal: Lahaina is a favorite among guests due to its eclectic neighborhood, walking and jogging paths, and central location between Kaanapali and Kapalua. The area offers easy access to shopping, restaurants, and beach activities, including sandy beach access and turtle sightings.
- Amenities: Rentals in Lahaina often include fully equipped kitchens, washer/dryers, air conditioning, and stunning ocean views, making them perfect for couples and solo adventurers.
5. Haiku-Pauwela
- Appeal: Haiku-Pauwela is attractive for its quiet, family-oriented environment and spacious homes with large windows and inviting lanais. Guests enjoy the proximity to the Pauwela Cannery, Haleakala crater, and the scenic drive to Hana.
- Amenities: These rentals typically offer amenities such as air conditioning, WiFi, cable TV, and private pools, making them ideal for couples, families, and outdoor enthusiasts.
Each of these neighborhoods offers a unique blend of location, amenities, and activities that cater to a wide range of guest preferences, contributing to their high revenue generation on Airbnb.
Creating an Inviting Airbnb in Kahului, Hawaii: Design and Furnishing Tips
Local and Cultural Touches
- Incorporate Hawaiian-themed decor, artwork, and local products to give guests a genuine taste of the island's charm and culture.
Thoughtful Interior Design
- Hire a professional interior designer who understands the island lifestyle and its unique challenges, such as humidity and salt air, to ensure a cohesive and functional design.
- Use layouts and storage solutions that prioritize ease of use, especially in kitchens and bathrooms.
Ambiance and Comfort
- Create a relaxing and indulgent atmosphere with comfortable and high-quality furnishings, plush bedding, and luxurious amenities. Add thoughtful details like scented candles, soothing music, or a collection of books and games.
Color Scheme and Lighting
- Use vibrant and light, trendy paint colors to make the space feel more spacious and inviting. Consider a bright accent wall or cheerful colors in key areas like the kitchen or living room.
Guest-Friendly Amenities
- Provide amenities such as high-speed internet, cable or streaming services, beach gear, and bikes to enhance the guest experience. Also, offer welcome baskets with local goodies, snacks, and toiletries.
Wellness and Recreation
- Add wellness features like a small gym area, yoga mats, or a meditation corner. If possible, include a private swimming pool or access to a shared pool.
Pet-Friendly Considerations
- If your property allows pets, provide amenities such as pet beds, food bowls, and a fenced-in yard to accommodate pet owners.
Outdoor Spaces
- Define outdoor areas to invite guests to relax and enjoy Hawaii’s natural beauty. This could include a lanai (balcony), a hammock, or an outdoor shower.
Cleanliness and Maintenance
- Maintain a clean and well-maintained property. Regularly inspect and clean the rental, ensuring everything is in excellent working order. Pay attention to details like fresh linens, spotless bathrooms, and well-stocked kitchen supplies.
Personalized Touches
- Add personalized touches that reflect the local culture and create a sense of authenticity. Consider asking guests about their preferences and adding elements that remind them of their home.
Functional and Multipurpose Furniture
- Use flexible furniture solutions like sleeper sofas or modular seating to cater to groups of varying sizes. Ensure furniture is functional, durable, affordable, and easy to clean.
Local Art and Decor
- Decorate with local artwork, handcrafted accessories, and tropical-inspired color palettes to immerse guests in the spirit of Aloha.
Discovering Kahului, Maui: Local Attractions and Insider Tips
Local Attractions
Natural Wonders
- Iao Valley State Park: A lush, tropical paradise featuring the historic Iao Needle. Hike through trails, admire stunning views, and learn about the area's cultural significance.
- Kanaha Beach Park: A popular spot for surfing, paragliding, kitesurfing, and relaxing on the beach. Enjoy the sun, sand, and scenic views.
- Kanaha Pond State Wildlife Sanctuary: A 143-acre wetlands area home to Hawaii's native birds such as the Hawaiian duck, coot, and stilt. Ideal for bird enthusiasts.
Cultural and Historical Sites
- Maui Arts & Cultural Center (MACC): A hub for performing arts, exhibitions, and cultural events. Catch live performances, attend festivals, or explore art galleries.
- Alexander & Baldwin Sugar Museum: Learn about the history and growth of the Maui sugar industry through exhibits and interactive displays.
Shopping and Markets
- Maui Swap Meet: Held every Saturday at Maui Community College, offering local crafts, souvenirs, fresh produce, and Maui foods.
- Queen Ka’ahumanu Center: A major shopping mall with department stores and various retail outlets.
Outdoor Activities
- Maui Lani Golf Course: A challenging golf course for enthusiasts, set amidst scenic dunes.
- Maui Zipline Company: A family-friendly zipline course located at the Maui Tropical Plantation, suitable for guests as young as five years old.
Other Attractions
- Maui Nui Botanical Gardens: Explore local flora and fauna in a serene botanical garden setting.
- Maui Tropical Plantation: A 60-acre plantation with tropical fruits and plants, farm tours, dining, and coffee tasting.
Insider Tips
Food and Drink
- Local Cuisine: Try Kahului's favorites such as Lima Manju, Dry Mein, and Saimin. Visit Tasaka Guri-Guri for a unique frozen dessert.
- Coffee Culture: Visit Maui Coffee Roasters for artisan coffee blends and fresh-baked pastries. Alternatively, check out the Tea Box for exceptional tea blends.
Events and Markets
- Farmers’ Markets: Explore local farmers’ markets for fresh produce, handmade crafts, and a taste of Hawaii’s agricultural scene.
- Cultural Events: Check the calendar at the Maui Arts & Cultural Center for various events, including concerts, readings, and musicals.
Leisure Activities
- Sunset Views: Find lesser-known spots to watch the sunset and enjoy a more intimate experience.
- Nature Walks: Take leisurely strolls in parks and botanical gardens that are not often visited by tourists.
Local Hangouts
- Kahului Ale House: A sports bar with live music, happy hours, and a late-night menu. Ranked as one of the best sports bars on the island.
- Local Art Galleries: Explore Kahului’s art galleries to discover unique works by local artists, including paintings, sculptures, and jewelry.
By sharing these attractions and tips, you can help your guests make the most of their visit to Kahului, Maui, and experience the rich culture, natural beauty, and local charm of the area.
Practical Tips to Run a Successful Short Term Rental Business in Kahului, Hawaii
To ensure a smooth and enjoyable experience for both you and your guests, here are some practical tips for running a successful short-term rental business in Kahului, Hawaii.
Noise Regulations and Quiet Hours
Inform your guests about noise regulations and quiet hours to maintain a peaceful environment for neighbors. Include this information in your digital and physical house manual, and consider posting reminders in the rental property.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover house rules, including noise regulations and quiet hours.
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 necessary access codes before their arrival.
Parking Instructions with Photos
Include detailed parking instructions in your house manual, accompanied by photos to help guests understand where and how to park. This can prevent confusion and potential issues with neighbors or local authorities.
By implementing these strategies, you can enhance the guest experience, reduce potential conflicts, and ensure your short-term rental business operates smoothly and efficiently in Kahului, Hawaii.
Here is a brief list of house cleaning, and related maintenance providers in Kahului, Hawaii:
House Cleaning Services
People Who Clean
- Provides home, condo, office, and commercial cleaning services.
- Available for one-time or ongoing contract services.
- Serving Maui, with an office address at 300 Pakana St., Wailuku, HI 96793.
- Contact: 808-661-3760 or Toll Free: 800-284-0859.
Precision House LLC
- Offers residential, condo, and commercial cleaning services.
- Eco-friendly and detail-oriented, with online estimates available.
- Based in Kahului, with services including vacation rental cleaning and office/classroom cleaning.
- Contact: Through their online portal or at PO Box 1774, Kahului HI-96733.
CSI Carpet Cleaners
- Provides professional, reliable, and eco-friendly house cleaning services.
- Also offers carpet cleaning and other related services.
- Based in Kahului, HI.
Additional Resources
For more options and reviews, you can also check:- Care.com for a list of local house cleaning services in Kahului.- Angie's List for top-rated house cleaners in Kahului, HI.
Short-Term Rental Management Fees in Kahului, Hawaii: A Comprehensive Overview
In Kahului, Hawaii, managing short-term rentals comes with a range of fees that can significantly impact your revenue. Typically, these management fees range from 10% to 30% of the rental revenue, varying widely 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 from 25% to 30% of the rental income. In contrast, basic services may incur lower fees, usually around 10% to 15%. Additionally, property owners may need to account for extra fees such as cleaning, repairs, or design services, which can further reduce their net earnings. Understanding these fee structures is crucial for maximizing profitability in the competitive short-term rental market in Kahului.