Airbnb & VRBO Performance in Kapalua Hawaii.

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Kapalua, Hawaii: Airbnb & VRBO Vacation Rental Market Overview

Despite challenges, Kapalua, Hawaii, saw vacation rentals in the broader Maui County maintain an Average Daily Rate (ADR) of $360 in May 2024, a 56.3% increase from pre-pandemic levels, although occupancy rates were at 49.5% due to various market and regulatory factors.

Market overview

Strong Resilience in Kapalua's Short-Term Rental Market Despite Statewide Trends

Despite the broader challenges facing Hawaii's short-term rental market, Kapalua, a prestigious area in Maui, is showing signs of resilience. While Maui County as a whole experienced a vacation rental occupancy rate of 49.5% in May 2024, which is down from previous years, the average daily rate (ADR) for these rentals has seen a significant increase. In May 2024, the ADR for Maui County vacation rentals stood at $360, a 4.6% increase from 2023 and a 56.3% increase from pre-pandemic levels in 2019.

This uptick in ADR suggests that visitors are still willing to pay a premium for the unique experiences and amenities that Kapalua and surrounding areas offer. Although occupancy rates are lower than in previous years, the higher ADR indicates a strong demand for quality vacation rentals, highlighting the enduring appeal of Kapalua as a desirable vacation destination.

Short Term Regulations

Short-Term Rental Regulations in Kapalua, Hawaii for 2024

General Regulations

  • Zoning Requirements: Short-term rentals are allowed in areas zoned for hotel use. In Kapalua, properties such as Montage Residences, Kapalua Bay, and Ritz-Carlton Kapalua are located in hotel-zoned areas and are permitted for short-term rentals.
  • Taxes: All short-term rentals must pay the State of Hawaii General Excise Tax (GET) and Transient Accommodation Tax (TAT).

Permit Requirements

  • Short-Term Rental Home Permit: Properties outside of hotel-zoned areas may require a Short-Term Rental Home Permit, Bed & Breakfast Permit, or Conditional Permit to operate. Each of these permits has specific operating requirements.
  • Designated Manager: All short-term rental operations must have a designated manager available by telephone at all times and able to arrive onsite within one hour if called.

Operational Requirements

  • Parking: All parking must be onsite; no parking is allowed on the street.
  • Advertising: All advertisements for short-term rentals must include the short-term rental home permit number.

Upcoming Changes

  • Phase-Out of Apartment-Zoned Rentals: While hotel-zoned properties like those in Kapalua are not affected, properties in apartment-zoned areas elsewhere on Maui will be phased out as short-term rentals by July 1, 2025, for West Maui and January 1, 2026, for the rest of Maui County. This does not impact hotel-zoned areas.

Compliance

  • Community Plans and Zoning Ordinances: Operations must comply with current County of Maui zoning ordinances, Community Plans, General Plan, and State law. It is recommended to inquire with the owner to ensure compliance with all current laws.

Additional Considerations

  • Minatoya List: Properties previously grandfathered under the Minatoya List may face new restrictions if the proposed bill is approved. However, this primarily affects apartment-zoned properties, not hotel-zoned areas like Kapalua.
  • On-Island Property Manager: Properties must have an on-island property manager, and if the manager handles multiple properties, they must hold an active real estate license.
Neighborhood Performance

Top Airbnb Revenue-Generating Neighborhoods in Lahaina, Hawaii (including the Kapalua area)

While the specific term "Kapalua" is often associated with a broader area that includes parts of Lahaina, here are the top neighborhoods in the Lahaina area that generate significant Airbnb revenue and their appeal to guests:

Kaanapali

  • Average Daily Rate: High, given the luxurious resorts and amenities.
  • Occupancy Rate: High, due to its popularity among tourists.
  • Appeal: Known for its stunning beaches and luxurious resorts, Kaanapali attracts guests seeking an upscale vacation experience. The area offers numerous amenities, including golf courses, spas, and fine dining options.

Napili

  • Average Daily Rate: Competitive, reflecting the area's family-friendly atmosphere.
  • Occupancy Rate: High, especially during peak travel seasons.
  • Appeal: Napili offers a laid-back atmosphere with family-friendly beaches, making it ideal for visitors seeking a more relaxed experience. The area is also close to natural attractions and outdoor activities.

Lahaina Town

  • Average Daily Rate: Varied, depending on the type of accommodation.
  • Occupancy Rate: High, driven by the town's historical and cultural significance.
  • Appeal: Steeped in historical significance, Lahaina Town is popular for its vibrant arts scene, restaurants, shops, and cultural events. Guests are drawn to the area's rich history, local culture, and various attractions such as the historic Front Street.

These neighborhoods are highly appealing due to their unique blend of natural beauty, cultural richness, and modern amenities, making them prime locations for generating significant Airbnb revenue in the Lahaina area.

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Design Tips

Tips for Furnishing and Design of an Airbnb in Kapalua, Hawaii

To create an inviting and authentic Airbnb space in Kapalua, Hawaii, consider the following tips:

Embrace Coastal and Island Decor

  • Use coastal decor that incorporates natural materials like wood, bamboo, and rattan to create a seamless indoor-outdoor living experience.

Bright and Cheerful Color Scheme

  • Incorporate bright, cheerful colors such as aqua, coral, and sandy neutrals to evoke a beachy feel and reflect the island's vibrant atmosphere.

Local Art and Cultural Artifacts

  • Integrate local art and cultural artifacts to celebrate Hawaii's rich heritage and add a unique touch to the property.

Modern Functionality

  • Ensure the space includes modern appliances and comfortable furniture to provide both functionality and comfort for guests.

Open and Airy Layouts

  • Opt for open and airy layouts to enhance the sense of space and take advantage of the natural light and ocean views.

Outdoor Spaces

  • Include outdoor spaces such as patios, balconies, or gardens with ocean views to maximize the guest experience and provide additional living areas.

High-Quality Furnishings

  • Invest in high-quality furnishings that promote comfort and relaxation. This can include luxurious bedding, comfortable seating, and well-equipped kitchens.

Eco-Friendly Options

  • Consider using eco-friendly or local products to appeal to environmentally conscious travelers and enhance the property's unique charm.

Proximity to Amenities

  • Ensure the property is close to desirable amenities such as beaches, golf courses, tennis facilities, hiking trails, and local restaurants to enhance guest satisfaction.

Family and Group-Friendly Layouts

  • Design the space with family and group-friendly layouts in mind, as there is a growing demand for larger homes that can accommodate multiple guests.

Additional Amenities

  • Provide access to pools, hot tubs, and other amenities that make the listing more attractive and enhance the overall guest experience.
Insider Tips

Local Attractions and Insider Tips for Kapalua, Hawaii

Must-Visit Attractions

Beaches

  • Kapalua Bay: Often voted as one of the best beaches in the world, known for its gentle waves, soft white sand, and excellent snorkeling opportunities. It's a protected bay, making it ideal for swimming and spotting sea turtles and Hawaiian Monk Seals.
  • Honolua Bay: A premier snorkeling and surfing spot, especially during winter months. It's part of a marine life conservation district, offering a diverse array of fish and sea life.
  • Napili Bay: A family-friendly beach great for swimming, snorkeling, and paddle boarding. It's also known for its Hawaiian green sea turtles.
  • D.T. Fleming Beach: A beach with lifeguards on duty, ideal for swimming and watersports.

Trails and Hikes

  • Kapalua Coastal Trail: A 3.5-mile trail that runs along the coastline, passing through Kapalua Bay, Namalu Bay, Oneloa Bay, and Honokahua Bay. The trail is mostly flat and easy to traverse, making it suitable for families.
  • Honolua Bay Access Trail: A short walk through jungle scenery to reach Honolua Bay.
  • Nakalele Blowhole Trail: Offers scenic views and a unique natural blowhole.
  • Mahana Ridge Trail: For those looking for a more challenging hike with stunning views.

Other Activities

  • Kapalua Ziplines: An exhilarating ziplining experience with dual lines, offering panoramic views of the island. Choose from 4-line or 6-line tours.
  • Golfing: Kapalua is home to two renowned golf courses, the Bay Course and the Plantation Course, both offering ocean views and challenging play.

Insider Tips

Dining and Shopping

  • Honolua Store: A historic landmark offering a variety of local products, fresh produce, coffee, baked goods, and souvenirs. Enjoy a meal on their lanai or try their famous Spam Musubi.
  • Local Farmers Market: Visit the Napili Farmers Market every Wednesday for all-local produce, smoothies, and other local specialties.

Cultural Experiences

  • Old Lahaina Luau: While not in Kapalua, it's a short drive away and offers an authentic traditional luau experience with award-winning food and entertainment.

Adventure and Leisure

  • Cliff Jumping at Namalu Bay: For the adventurous, cliff jumping is available at Namalu Bay, but exercise caution and only jump when conditions are favorable.
  • Dragon’s Teeth (Makaluapuna Point): A natural attraction near the Kapalua Coastal Trail, featuring unique lava formations that resemble dragon’s teeth.

Practical Tips

  • Sunset Viewing: Kapalua Bay is a perfect spot to watch the sunset. Finish your walk on the Kapalua Coastal Trail here for an unforgettable experience.
  • Free Shuttle: If you're too tired to walk back after your hike, use the free shuttle service available in the area.
  • Early Start at Honolua Bay: Arrive early at Honolua Bay to secure parking, especially during peak season.

By sharing these attractions and tips, you can help your guests make the most of their stay in Kapalua, Hawaii.

Practical Tips

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

To ensure a smooth and profitable short-term rental business in Kapalua, Hawaii, several key practices can be implemented. First, it is crucial to adhere to and communicate local regulations, such as noise regulations. Informing guests about quiet hours through clear notices and house rules can help maintain a peaceful environment and avoid potential fines.

Creating both digital and physical house manuals is essential for a seamless guest experience. These manuals should include detailed instructions on using appliances, Wi-Fi passwords, and other essential information about the property. This proactive approach reduces the likelihood of guest inquiries and enhances overall satisfaction.

A simplified check-in process can significantly improve guest experience. Utilizing smart locks eliminates the need for physical key exchanges, allowing guests to check in independently. Additionally, providing detailed parking instructions accompanied by photos can help guests navigate the property effortlessly, reducing confusion and stress.

By focusing on these aspects, you can optimize your short-term rental operations, enhance guest satisfaction, and ensure compliance with local regulations, ultimately leading to a successful and profitable business in Kapalua, Hawaii.

Local Vendors

Here are some house cleaning services that serve the Kapalua, Hawaii area, although they may not be based directly in Kapalua:

House Cleaning Services

Precision House Cleaning

  • Based in Kahului, Maui, but serves the entire island, including the Kapalua area.
  • Offers residential, vacation rental, and commercial cleaning services.
  • Known for their reliable, eco-friendly, and detail-oriented cleaning.

West Maui Cleaning

  • Located in West Maui, providing services to various areas including Kapalua.
  • Offers a wide range of cleaning and housekeeping services with a 100% Quality Service Guarantee.

The Maids (Honolulu)

  • While primarily based in Honolulu, Oahu, they do not explicitly state they serve Maui. However, if you are looking for a well-established company with a wide range of services, you might consider contacting them to see if they have any partnerships or recommendations for Maui.
  • Provides housecleaning, apartment cleaning, spring cleaning, and window cleaning services.

For local and more specific options in Lahaina, which is nearby Kapalua, you can also refer to the listings on Care.com:

Local House Cleaning Services (Lahaina)

  • Several house cleaning services listed in Lahaina, HI, which might also serve the Kapalua area. These services can be compared based on rates, reviews, and experience.
Management fees

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

In Kapalua, Hawaii, managing short-term rentals involves a range of fees that can vary significantly based on the level of service provided. Typically, management fees for short-term rentals 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 starting at around 20% of the revenue.

Basic services, which may include only reservation management and minimal support, can be less expensive, potentially starting at around 10%. In addition to the management fees, owners may also incur additional costs for cleaning, repairs, and design or renovation services. For instance, cleaning fees are usually charged per reservation and can vary based on the number of bedrooms in the unit. Other fees, such as consumables fees for items like linens and toiletries, may also apply.

Understanding these fee structures is crucial for property owners to effectively manage their expenses and optimize their rental income in the competitive Kapalua vacation rental market.

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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 Kapalua 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 Kapalua.

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