In Kamuela, Hawaii, the short-term rental market is showing resilience, with vacation rental demand increasing by 8.5% compared to 2023, despite lower occupancy rates, and average daily rates rising by 3.9% to $393.
Strong Resilience in Kamuela's Short-Term Rental Market
Despite the broader challenges facing Hawaii's short-term rental industry, Kamuela, located on the Big Island, has shown notable resilience. In the first half of 2024, the vacation rental market in the Hilo/Honoka‘a area, which includes Kamuela, demonstrated stable performance. The unit demand in this region saw a 6.0% increase compared to the same period in 2023, resulting in an occupancy rate of 43.8%.
The average daily rate (ADR) for vacation rentals in the Hilo/Honoka‘a area has also remained robust, standing at $153.21, which is a 13.5% increase compared to the same period in 2023. These figures indicate that Kamuela continues to attract visitors and maintain a competitive edge in the vacation rental market, highlighting the area's enduring appeal and the adaptability of local rental operators.
Short-Term Rental Regulations in Kamuela, Hawaii for 2024
General Regulations
- County Jurisdiction: Short-term rental regulations in Kamuela, which is part of Hawaii County, are governed by the County of Hawaii's ordinances and state laws.
Licensing and Registration
- Registration Requirement: All transient accommodations, including short-term rentals, must be registered with the county. This involves submitting various documents and paying registration fees.
- State Licenses: Owners must register with the Hawaii Department of Taxation for a transient accommodations tax (TAT) license and a general excise tax (GET) license.
Zoning Restrictions
- Permitted Zones: Short-term vacation rentals are permitted in specific zoning districts, including V, CG, and CV districts, as well as residential and commercial zoning districts situated in the General Plan Resort and Resort Node areas, and RM districts for multifamily dwellings with a condominium property regime.
Operational Standards
- Categories of Rentals: Bill 121 proposes categorizing short-term rentals into hosted and unhosted types, with different regulations and fees for each category. Owner-hosted rentals require the homeowner to live on the same property.
- Standards of Conduct: The regulations define standards of conduct and set out fines for violations.
Safety and Insurance
- Safety Equipment: Properties must have necessary safety equipment as part of the registration process.
- Liability Insurance: Eligible properties must have short-term rental insurance providing at least $1,000,000 in general liability coverage.
Fees and Taxes
- Registration Fees: Fees are associated with the registration process, although some amendments aim to simplify and reduce these requirements.
- Taxes: Owners must pay the transient accommodations tax (TAT) and general excise tax (GET).
Community Impact
- Affordable Housing: The regulations aim to address the affordable housing crisis by limiting speculative property investment in residential and agricultural areas and reducing the inflationary pressure on long-term rental rates.
- Community Character: The rules seek to preserve the character of residential and agricultural areas.
Amendments and Simplifications
- Simplified Registration: Recent amendments aim to simplify the registration process by omitting the submission of floor plans and current construction code requirements.
- Owner-Hosted Flexibilities: Amendments propose allowing owner-hosted STRs to be rented out for up to a month even if the owners are not present, though this is subject to debate.
Top Airbnb Revenue-Generating Neighborhoods in Kamuela, Hawaii
While the specific neighborhoods within Kamuela, Hawaii, are not extensively detailed in the sources, here are some insights into why Kamuela and its surrounding areas are appealing for Airbnb investments and guests:
Kamuela, HI
Why It's Appealing:
- Proximity to Tourist Attractions: Kamuela is close to popular tourist destinations such as Mauna Kea and Waipio Valley, making it an attractive location for visitors interested in astronomy, natural beauty, and outdoor activities.
- Year-Round Warm Weather: The area enjoys a consistent warm climate, which is a significant draw for tourists seeking a tropical getaway.
- Natural Scenery: The stunning natural scenery, including volcanic landscapes and scenic valleys, offers unique experiences for guests.
Key Statistics:
- Average Daily Rate: $874 (one of the highest in Hawaii)
- Annual Revenue Potential: High due to the area's popularity and limited accommodation options.
Surrounding Neighborhoods and Areas
While specific neighborhoods in Kamuela are not listed, here are some nearby areas that contribute to the overall appeal:
Waipio Valley
- Unique Cultural and Natural Experiences: Offers a deep cultural and historical significance, along with breathtaking natural beauty, making it a unique destination for guests.
Mauna Kea
- Astronomy and Scenic Views: Known for its world-class stargazing opportunities and stunning scenic views, attracting visitors interested in astronomy and nature.
General Appeal of Kamuela Area
- Luxury and Unique Experiences: The area is known for offering luxury accommodations and unique experiences, such as stargazing tours and visits to natural reserves, which attract high-paying guests.
- Limited Accommodation Options: The relative scarcity of hotel rooms and other accommodations in the area makes Airbnb rentals particularly appealing and profitable.
These factors combined make Kamuela and its surrounding areas highly attractive for both guests and Airbnb investors.
Creating an Inviting and Stylish Airbnb in Kamuela, Hawaii: Design and Furnishing Tips
1. Incorporate Local and Natural Elements
- Use tropical-themed decor featuring light, airy colors and natural materials such as bamboo, acacia wood, and rustic wooden accents to reflect the vibrant surroundings of Hawaii.
2. Blend Modern Comfort with Traditional Hawaiian Elements
- Combine modern amenities with traditional Hawaiian decor to create a uniquely local experience. This can include Hawaiian art, indoor plants, and earth-toned furniture.
3. Emphasize Outdoor Spaces
- Ensure the property has well-equipped outdoor spaces for relaxation, such as lanais (verandas) with barbecue facilities, hot tubs, and scenic views. These areas are highly valued by guests for unwinding after a day of exploration.
4. Focus on High-Quality Linens and Comfortable Seating
- Invest in high-quality linens and comfortable seating to enhance the guest experience. Updated appliances and modern kitchen facilities are also crucial for positive reviews and repeat bookings.
5. Highlight Scenic Views and Proximity to Attractions
- If possible, choose properties with scenic ocean views or proximity to attractions like Mauna Kea, Hawaii Volcanoes National Park, and local beaches. These features significantly enhance the appeal of the rental.
6. Add Subtle Hawaiian Touches
- Avoid overused elements like rattan or flowery upholstery. Instead, opt for subtle Hawaiian touches such as modern leafy patterns, local hardwood woodwork, and Carrera marble counters to maintain a sophisticated yet local feel.
7. Ensure Cleanliness and Attention to Detail
- Pay close attention to cleanliness and detail in the design and furnishings. Guests highly rate properties that are well-maintained and have thoughtful touches such as stocked kitchenettes and bathrooms with all necessary amenities.
8. Incorporate Eco-Friendly and Sustainable Elements
- Incorporate eco-friendly accommodations and sustainable practices to appeal to guests who want to immerse themselves in the natural beauty of the area. This can include solar-powered features and natural building materials.
9. Create a Cozy and Inviting Atmosphere
- Use elements like skylights, spacious bathrooms with custom tile work, and private gardens to create a cozy and inviting atmosphere. These features can make the space feel more like a home than a rental.
10. Reflect the Local Culture and Events
- Decorate the space to reflect local cultural events and traditions, such as the Merrie Monarch Festival. This can be done through local art, traditional Hawaiian decor, and informational materials about local events and attractions.
Discovering Kamuela, Hawaii: Local Attractions and Insider Tips
Local Attractions
Historical and Cultural Sites
- Pu'ukohola Heiau National Historic Site: A historic park with a visitor center and a trail leading to an ancient temple site built by King Kamehameha. It offers a short hike and sweeping ocean views.
- Lapakahi State Historic Park: A free-to-visit park featuring a small visitor center and a trail to an ancient fishing village site. It's also a popular spot for whale watching during peak season (November–April).
Natural Wonders
- Waipiʻo Valley: A stunning valley accessible via guided tours. It is known for its deep green cliffs and plunging waterfalls.
- Pololū Valley: More easily accessible than Waipiʻo Valley, this valley offers breathtaking views and hiking opportunities.
- Mauna Kea: Home to astronomical observatories and a site for stargazing. Drive to the Onizuka visitor center for optimal viewing conditions.
- Rainbow Falls: Located in Hilo, but worth the drive for its spectacular waterfall views.
Beaches
- Hāpuna Beach State Recreation Area: A popular white sand beach just a short drive from Waimea.
- Mauna Kea Beach: Known for its clear waters and scenic views.
- Waialea Beach (Beach 69): Another beautiful white sand beach in the area.
Outdoor Activities
- Parker Ranch: The largest privately owned cattle ranch in the U.S., offering horseback riding tours and insights into Hawaiian cowboy (paniolo) culture.
- ATV Tours: Explore the countryside on an ATV, a fun and adventurous way to see the local landscape.
- Ziplining: Options include Umauma Falls zipline course along the Hamakua coast or Kohala Zipline over the Kohala countryside.
Markets and Local Eats
- Waimea Farmers Markets: Three markets throughout the week offering local produce, crafts, and delicious food from food trucks.
- Big Island Brewhaus: A local brewery and Mexican restaurant serving homemade beers and tasty food.
- Manuela Malasada Co: Try traditional Hawaiian malasadas at this donut stand near Hapuna Beach.
Insider Tips
Stargazing
- Drive to a dark spot outside of town or visit the Onizuka visitor center on Mauna Kea for exceptional stargazing opportunities.
Whale Watching
- Visit Pu'ukohola Heiau National Historic Park, Lapakahi State Historic Park, or Kapaʻa Beach Park for shore-based whale watching from December to March.
- Consider a whale watching cruise with companies like Body Glove for a closer and more guided experience.
Local Events
- Attend the annual Fourth of July rodeo at Parker Ranch or the Waimea Cherry Blossom Heritage Festival in February.
Exploring the Area
- Use Hawaii Route 19 and 190 to navigate between Waimea, Hilo, and Kailua-Kona, exploring the island's diverse landscapes.
By sharing these attractions and tips, you can help your guests make the most of their visit to Kamuela, Hawaii, and experience the unique culture, history, and natural beauty of the area.
Practical Tips to Run a Successful Short-Term Rental Business in Kamuela, Hawaii
To ensure a smooth and enjoyable experience for both you and your guests in Kamuela, 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 through clear communication in your listing and a welcome message. This can help maintain a peaceful environment for both your guests and the local community. Include a section in your house manual outlining the quiet hours and any specific noise restrictions.
Digital and Physical House Manual
Create a comprehensive 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, to ensure guests are well-informed and respectful of the property.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with a unique access code and detailed instructions on how to enter the property. This not only enhances convenience but also reduces the likelihood of key-related issues.
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 parking violations, ensuring a hassle-free stay for your guests.
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 Kamuela, Hawaii.
Here is a brief list of house cleaning services in Kamuela, Hawaii, based on the available sources:
House Cleaning Services in Kamuela, HI
South Kohala Housekeeping
- Located at 62-3275 Hulukupuna St, Kamuela, HI.
Other Listed Services
- Various providers listed on Care.com, starting at $25.00/hr.
- Top-rated house cleaners on Angie's List, with real reviews and ratings.
- Multiple services listed on Yellow Pages, including South Kohala Housekeeping.
- Top-rated cleaning services on HomeAdvisor, with homeowner reviews and comparisons.
For specific names and detailed reviews, it is recommended to check the sources directly.
Short-Term Rental Management Fees in Kamuela, Hawaii: A Guide to Service Levels and Costs
Managing short-term rentals in Kamuela, 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 this area range from 10% to 30% of the rental revenue. Full-service management, which includes comprehensive services such as guest communication, marketing, property maintenance, and emergency response, tends to be on the higher end of this spectrum, often around 20-25% of the revenue.
Basic services, which might only include minimal management and oversight, can be more affordable, starting at around 10% of the revenue. Additionally, hosts may incur extra fees for cleaning, repairs, and design or renovation services. For instance, a consumables fee might be charged to cover items like linens, toiletries, and light bulbs, and there could be separate charges for property inspections, accounting, and tax filings.
Understanding these fee structures is crucial for hosts to maximize their revenue and ensure compliance with local regulations, which in Kamuela include stringent requirements such as obtaining a Nonconforming Use Certificate and adhering to specific advertising guidelines.