Airbnb & VRBO Performance in Kailua Kona Hawaii.

Short-Term Rental Regulations in Kailua Kona, Hawaii for 2024

General Regulations

• Registration Requirement: All transient accommodations in Hawaii County must be registered. This includes hosted and unhosted short-term rentals.
• Registration Fees: Different types of short-term rentals have specific registration fees associated with them.

Zoning Restrictions

• Permitted Zones: Short-term vacation rentals are permitted in V, CG, and CV districts, as well as in residential and commercial zoning districts situated in the General Plan Resort and Resort Node areas. They are also allowed in RM districts for multifamily dwellings with a condominium property regime.
• Prohibited Zones: STRs are generally prohibited in residential and agricultural zoned areas, except for grandfathered vacation rentals that have been operating since before October 22, 1986.

Operational Standards

• Standards of Conduct: The regulations define standards of conduct for short-term rentals, including quiet hours and guest limits.
• Safety Equipment: Properties must have the necessary safety equipment as part of the registration process.

Tax Compliance

• Transient Accommodations Tax (TAT): Owners must register with the Hawaii Department of Taxation for a TAT license and pay the associated taxes.
• General Excise Tax (GET): Owners must also register for a GET license and pay the associated taxes.

Insurance Requirements

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

Categories of Short-Term Rentals

• Hosted Rentals: These are rentals where the homeowner is present on the same property. They are subject to cheaper registration fees and more zoning flexibilities.
• Unhosted Rentals: These are rentals where the homeowner is not present on the property. They are subject to stricter regulations and higher fees.

Enforcement and Penalties

• Compliance: Property owners must comply with all regulations, including zoning restrictions, operational standards, and tax obligations. Non-compliance can result in hefty fines, suspension of rental operations, and even legal action.
• Amendments and Updates: The regulations are subject to ongoing amendments and updates, with a focus on simplifying the registration process and addressing community concerns.

Additional Provisions

• 'Ohana Dwellings: The regulations aim to make it easier to build ‘ohana units (Additional Dwelling Units) for family or long-term rental use.
• Grandfathered Rentals: Existing vacation rentals that have been operating since before specific dates (e.g., October 22, 1986) may be grandfathered into the new regulations.

Top Neighborhoods for Airbnb Revenue in Kailua Kona, Hawaii

1. Downtown Kailua Kona

• Appeal: Downtown Kailua Kona is highly appealing due to its proximity to various amenities, including restaurants, shops, and beaches. Guests can easily walk to key attractions, making it a convenient and vibrant location.
• Revenue Potential: Properties in this area benefit from high demand, with guests willing to pay a premium for the convenience and lively atmosphere. Average daily rates are typically higher, contributing to significant annual revenue.

2. Alii Drive and Surrounding Areas

• Appeal: Alii Drive is known for its stunning ocean views, beautiful sunsets, and easy access to beaches. Properties here, such as those in White Sands Village, offer tranquility and privacy while being close to the ocean and local amenities.
• Revenue Potential: The combination of ocean views, quiet locations, and proximity to the beach drives high occupancy rates and revenue. Guests are attracted to the serene and picturesque environment, leading to high average daily rates and annual revenues.

3. Waikoloa Village

• Appeal: Waikoloa Village is appealing due to its luxury amenities, including golf courses, pools, and beach access. It offers a more secluded and exclusive experience, which attracts guests looking for a high-end vacation.
• Revenue Potential: The luxury nature of Waikoloa Village properties commands high rental rates. The area's amenities and scenic beauty ensure high occupancy rates, resulting in substantial annual revenue for Airbnb hosts.

4. Kona Coastline and Oceanfront Properties

• Appeal: Properties directly on the Kona coastline, such as those in Sea Village, offer breathtaking ocean views, direct beach access, and a tranquil atmosphere. These features are highly sought after by guests looking for a relaxing beach vacation.
• Revenue Potential: Oceanfront properties in Kailua Kona generate significant revenue due to their high demand and premium pricing. Guests are willing to pay more for the unique experience of living directly on the ocean, leading to high average daily rates and annual revenues.

These neighborhoods in Kailua Kona are particularly appealing to guests due to their combination of convenience, scenic beauty, and luxury amenities, which in turn drive high Airbnb revenue.

Tips for Furnishing and Designing an Inviting Airbnb in Kailua Kona, Hawaii

Design Inspiration and Local Flavor

• Reflect the Local Culture: Incorporate elements that highlight Kailua Kona's unique cultural and natural beauty. Use tropical flowers, local artwork, and traditional Hawaiian decor to create an authentic atmosphere.

Functional and Durable Choices

• Choose Functional and Durable Items: Select furniture and decor that are easy to clean, multipurpose, and durable to handle the high turnover of guests. Consider shopping at local stores to avoid long shipping times.

Inviting Entryway

• Create an Inviting Entryway: Use a mirror, baskets for keys and shoes, and other organizational items to make the entryway welcoming and practical.

Comfortable and Well-Equipped Spaces

• Designate a Coffee Station: Ensure the kitchen is stocked with extra coffee and filters, and consider adding a designated coffee station to enhance guest comfort.
• Provide Local Guides and Amenities: Offer local travel guides, beach equipment, and other amenities that guests might appreciate, such as snorkeling gear or beach towels.

Aesthetic and Ambiance

• Use Neutral and Bohemian Vibe: Incorporate neutral shades and an open-air feel to create a soft, bohemian vibe that complements the tropical environment.
• Add Artwork and Plants: Use artwork, including vintage and watercolor prints, and both real and faux plants to create a unique and welcoming space. Opt for low-maintenance real plants.

Outdoor and Shared Spaces

• Utilize Outdoor Spaces: Ensure outdoor areas, such as lanais, are well-furnished and offer amenities like gas BBQs, ocean views, and tropical breezes.
• Create a Gallery Wall: Use a mix of frame sizes and styles to create a gallery wall featuring local artwork or prints, which can add a personal touch to the space.

Guest Convenience

• Provide Welcome Baskets: Offer welcome baskets with essentials like coasters, books, soap, shampoos, and towels to make guests feel welcome and reduce the need for them to search for these items.
• Ensure Modern Amenities: Include amenities such as fast WiFi, air conditioning, in-unit washer and dryer, and beach equipment to enhance guest comfort and convenience.

Compliance and Maintenance

• Adhere to Local Regulations: Ensure compliance with Kailua Kona's short-term rental regulations, including obtaining a transient accommodation permit and paying lodging taxes. Also, adhere to zoning and parking regulations.
• Maintain High Standards of Cleanliness: Regularly clean and maintain the property, especially during busy seasons, to ensure a positive guest experience.

Discover Kailua Kona: Local Attractions and Insider Tips

Activities and Attractions

Historical and Cultural Sites

• Hulihe’e Palace: Explore the historic palace that once served as the seat of Hawaiian royalty.
• Ahu‘ena Heiau: Visit this sacred ancient Hawaiian temple located near Kailua Pier.
• Puʻuhonua o Hōnaunau National Historical Park: Learn about Hawaiian history and culture at this national historical park.

Coffee and Local Products

• Kona Coffee Tours: Take a tour of local coffee plantations to learn about the coffee-making process and sample some of the world’s best coffee.
• Original Hawaiian Chocolate Factory: Go on a farm tour to see how Hawaiian chocolate is grown, harvested, and processed.

Beaches and Water Activities

• Kealakekua Bay: Snorkel, hike, or take a kayak tour in this marine sanctuary, one of the top snorkeling destinations in Hawaii.
• White Sands Beach Park (Laʻaloa Beach): Enjoy surfing, swimming, and snorkeling at this versatile beach.
• Hookena Beach Park: Ideal for camping, swimming, and snorkeling.
• Kiholo Bay: An off-the-beaten-track beach with pristine turquoise waters and a unique landscape.

Unique Experiences

• Manta Ray Night Snorkel/Dive: A once-in-a-lifetime opportunity to swim with manta rays under the stars.
• Seahorse Farm Tour: Learn about sustainable seahorse farming at Ocean Rider.
• Helicopter Tour: Take to the sky for a bird's-eye view of the island’s stunning landscapes.

Outdoor Adventures

• Hiking Trails: Explore trails through lava fields, tropical forests, and historic sites, including a private tour of Hualalai Volcano.
• Stand Up Paddleboarding (SUP) and Kayaking: Enjoy these activities along the scenic coast of Kailua-Kona.
• Whale Watching: Seasonal whale watching tours available from December to May.

Local Events and Shopping

• Kokua Kailua: Participate in this monthly art stroll through historic Kailua Village, featuring local artisans and craftspeople.
• Ali’i Drive: Shop, dine, and enjoy local cuisine along this lively street in Kailua-Kona.

Insider Tips

Getting Around

• Avoid Long Drives: Instead of taking day trips to distant locations like Volcanoes National Park, consider spending at least one night in Volcano Village to make the most of your time.

Dining and Nightlife

• Local Cuisine: Enjoy local flavors and historical dining experiences, including attending a Luau show in or near Kona.
• Sunset Cruises: Charter a boat to toast the sunset or take a glass-bottom boat tour to see the underwater life.

Hidden Gems

• Kaloko-Honokohau National Historical Park: A lesser-known national park with significant ancient Hawaiian sites and a large fishpond.
• Three Ring Ranch Exotic Animal Sanctuary: A quiet park near downtown Kailua-Kona, perfect for picnicking, jogging, and fishing.

Seasonal Activities

• Kona Coffee Festival: Attend this festival for a delicious and enlightening experience celebrating Kona coffee.
• Ironman World Championship: If visiting in October, catch the excitement of this world-famous triathlon event.

By sharing these attractions and tips, you can help your guests make the most of their stay in Kailua Kona and experience the best that this beautiful region has to offer.

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

To ensure a smooth and profitable short-term rental business in Kailua Kona, Hawaii, several practical tips can make a significant difference. First, it is crucial to adhere to and inform guests about local noise regulations, including quiet hours, to avoid any potential issues with neighbors and local authorities. Creating a comprehensive digital and physical house manual is also essential; this should include detailed instructions, Wi-Fi passwords, and other important information to help guests navigate the property comfortably.

Streamlining the check-in process is vital for a positive guest experience. Utilizing smart locks can eliminate the need for physical key exchanges, making the arrival process seamless. Additionally, providing clear parking instructions accompanied by photos can help guests find and use the parking facilities without confusion.

By implementing these measures, you can enhance guest satisfaction, reduce potential conflicts, and ensure your short-term rental business operates efficiently and successfully in Kailua Kona.

Here is a brief list of house cleaning, repair, and maintenance providers in Kailua Kona, Hawaii:

House Cleaning Services

• Hawaii Pristine Cleaning Services, LLC: Offers residential cleaning, vacation rental cleaning, commercial cleaning, window washing, housekeeping, and janitorial services.
• Kona Paradise Cleaning: Provides quality, professional, and reliable cleaning services for homes, offices, and vacation rentals.
• Aloha Bliss Cleaning: A locally owned, licensed, and insured cleaning company serving Kailua Kona and the surrounding areas.

Additional Services

• Hawaii Pristine Cleaning Services, LLC: Also offers pressure washing, landscaping, property management, car detailing, and other related services.

Vacation Rental Cleaning

• Turno's Marketplace: Connects clients with screened and experienced vacation rental cleaners for short-term rental cleaning needs.

Individual Cleaners

• Various individual house cleaning services listed on Care.com, including Lianna S., Dorien V., and Diane M., among others.

Short-Term Rental Management Fees in Kailua-Kona, Hawaii: A Comprehensive Overview

In Kailua-Kona, Hawaii, the fees for short-term rental management can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level and scope of services provided. Full-service management companies, such as MasterHost and Awning, which handle everything from guest communication and marketing to property maintenance and concierge services, usually charge higher fees, often starting at 12% to 15% of the revenue.

On the other hand, basic or half-service management options, like those offered by Big Island Rental Management, may charge lower fees, starting at around 10% of collected rents, but these services often leave more of the day-to-day tasks to the property owner.

Additionally, property owners may incur extra fees for services such as cleaning, repairs, and interior design, which can be billed separately or included in the overall management fee. Understanding these fee structures and the associated services is crucial for property owners to maximize their rental income while minimizing the hassle of managing their properties in Kailua-Kona's dynamic vacation rental market.