Despite challenges, Keauhou, Hawaii, has seen stable average daily rates for vacation rentals, with rates in nearby areas like Kona maintaining a steady demand, though overall occupancy rates have been impacted by broader market and policy dynamics.
Keauhou, Hawaii: Resilient Short-Term Rental Market Shows Promising Trends
Despite the broader challenges facing Hawaii's vacation rental market, Keauhou is exhibiting some positive signs. While specific data for Keauhou is not isolated in the recent reports, the overall trends in nearby areas suggest a resilient market. For instance, in the first half of 2024, Hawaii's vacation rental market saw an average daily rate (ADR) of $324, a 3.2% increase from 2023 and a significant 55.8% rise from 2019.
On the Big Island, where Keauhou is located, areas like Kona and Hilo/Honoka‘a have shown stable occupancy rates. In May 2024, Kona reported an occupancy rate of 43.4% with an ADR of $233.28, indicating a steady demand despite broader market fluctuations. These figures suggest that while the market is navigating policy changes and other challenges, there are pockets of stability and growth, particularly in regions like Keauhou that continue to attract visitors with their unique attractions and amenities.
Short-Term Rental Regulations in Keauhou, Hawaii for 2024
General Regulations
- County Authority: Regulations are governed by the County of Hawaii, as the state of Hawaii has given counties the authority to regulate short-term rentals through zoning ordinances and other measures.
Registration and Licensing
- Registration Requirement: All transient accommodations, including short-term rentals, must be registered with the county. This includes submitting a registration form and paying the associated fees.
- Licenses: Operators must have a valid State of Hawaii general excise tax license and a transient accommodation tax (TAT) license.
Zoning Restrictions
- Permitted Areas: Short-term vacation rentals (STVRs) are generally allowed in resort, commercial, and specific zoning districts such as V, CG, and CV districts. They are typically prohibited in residential and agricultural zones unless the property has a non-conforming use (NCU) certificate.
Operational Standards
- Owner-Occupancy Requirements: In some residential areas, only owner-occupied properties can be used as STVRs to preserve the residential character of neighborhoods.
- Maximum Occupancy: There are limits to the number of renters per bedroom in an STR, though specific numbers can vary by county regulations.
Specific Requirements for Different Types of Rentals
- Homestays: These require the owner to reside on the property and be available to address guest needs. Homestays are limited to no more than three guest rooms.
- Single Family Transient Vacation Rentals (SFTVRs): These do not require the owner to be present on site during rental activities. Properties operational before July 31, 2009, can continue with an NCU certificate renewed annually.
Additional Documentation and Fees
- Non-Conforming Use Certificates (NUCs): Properties that were operational before the regulations were enacted can continue operating with an NCU, which needs to be renewed annually for a fee (e.g., $750 for Kauai).
- Registration Fees: Fees vary by type of rental and county, but for example, Honolulu charges an initial registration fee of $1,000 and an annual renewal fee of $500.
Compliance and Enforcement
- Operational Standards and Fines: The regulations include standards of conduct and set out fines for those in violation of the rules. This aims to ensure safe, legal, and standardized operations.
- Insurance and Other Requirements: Evidence that the use as a short-term rental is covered by an insurance carrier and compliance with HOA or other relevant regime articles, bylaws, or house rules is often required.
Recent Legislative Changes
- SB 2919: This state law allows counties to regulate the time, place, manner, and duration of transient accommodations, including the ability to phase out such uses in residential or agricultural areas.
Top Neighborhoods for Airbnb Revenue in Honolulu, Hawaii (Note: Keauhou is not specified, but here are the top neighborhoods in Honolulu)
1. Hawaii Kai
- Estimated Annual Revenue: $83,000
- Average Daily Rate: $350
- Average Occupancy Rate: 65%
- Appeal: Hawaii Kai is an affluent neighborhood with scenic beaches, hiking trails, and proximity to attractions like Hanauma Bay and the Koko Crater Trail. It offers an upscale and nature-oriented experience, making it ideal for guests seeking a more luxurious stay.
2. North Shore
- Estimated Annual Revenue: $75,000
- Average Daily Rate: $300
- Average Occupancy Rate: 68%
- Appeal: The North Shore is famous for its stunning beaches, laid-back vibe, and world-class surfing. Attractions like the Polynesian Cultural Center, Waimea Valley, and the charming town of Haleiwa draw tourists seeking an authentic Hawaiian experience.
3. Kailua
- Estimated Annual Revenue: $72,300
- Average Daily Rate: $275
- Average Occupancy Rate: 72%
- Appeal: Kailua offers a more laid-back atmosphere with beautiful beaches, outdoor activities, and close proximity to attractions like the Lanikai Pillbox Hike. It is becoming increasingly popular among tourists seeking a more authentic Hawaiian experience.
4. Waikiki
- Estimated Annual Revenue: $69,800
- Average Daily Rate: $245
- Average Occupancy Rate: 78%
- Appeal: Waikiki is the most popular tourist destination in Honolulu, known for its world-famous beach, vibrant nightlife, and abundance of shopping and dining options. It attracts millions of visitors each year.
5. Kakaako
- Estimated Annual Revenue: $51,100
- Average Daily Rate: $200
- Average Occupancy Rate: 70%
- Appeal: Kakaako is an up-and-coming neighborhood with a vibrant street art scene, trendy restaurants, and proximity to popular attractions like Ala Moana Beach Park and the Ward Village shopping center. It attracts a growing number of tourists looking for a unique urban experience.
Creating an Inviting Airbnb in Keauhou, Hawaii: Design and Furnishing Tips
To craft an Airbnb in Keauhou, Hawaii, that is both inviting and reflective of the city's unique style, consider the following tips:
Entryway
- Design the entryway to make a strong first impression. Ensure it feels welcoming and special.
- Add a few simple yet thoughtful touches such as a welcome note, fresh flowers, or a small local gift.
Living Room
- Lighting Control: Incorporate lamps and dimmer switches to create a warm and adjustable ambiance.
- Comfortable Seating: Include plush blankets, pillows with various fill options, and a pouf for guests to put their feet up.
- Occasional Tables: Ensure there is a place for everyone to set their drinks.
- Layout: Arrange the room to facilitate conversation and different activities, such as reading or playing games.
- Local Touches: Incorporate elements that reflect Hawaiian culture and style, like tropical plants or local artwork.
Bedroom
- Bedding: Offer high-quality bedding options and provide extra layers in the closet for guest convenience.
- Pillows: Provide two sleeping pillows per guest with different fill options.
- Temperature Control: Install ceiling fans or air conditioning to ensure a comfortable temperature.
- Bedside Tables and Lamps: Ensure each guest has a bedside table with a lamp, ideally with USB ports or wireless charging features.
- Blackout Shades: Use blackout shades to cater to different sleep preferences.
Bathroom
- Luxurious Amenities: Add fluffy bathrobes and nice-smelling hand soap to enhance the guest experience.
- Towel Quality: Provide extra, fluffy towels.
- Shower Organization: Ensure there is a place to put shower items without them being on the floor.
General Tips
- Air Conditioning and Ventilation: Given Hawaii's climate, ensure the space is well-ventilated and consider air conditioning for comfort.
- Local Amenities: Offer amenities like beach and snorkel gear, and highlight nearby attractions and activities.
- Outdoor Spaces: If available, make the most of outdoor spaces like lanais, pools, or gardens. These areas should be well-furnished and inviting.
- Cleanliness and Maintenance: Maintain high standards of cleanliness and ensure all facilities are in good working order.
Unique Keauhou Touches
- Tropical Decor: Use tropical furnishings, artwork, and plants to reflect the local environment.
- Ocean Views: If possible, highlight ocean views from windows, lanais, or other areas of the property.
- Cultural Elements: Incorporate elements of Hawaiian history and culture into the decor and amenities.
By following these tips, you can create an Airbnb in Keauhou that not only feels inviting but also authentically reflects the unique charm of the area.
Discover Keauhou, Hawaii: Local Attractions and Insider Tips
Local Attractions
Keauhou Bay
- A historic and culturally significant bay where Kamehameha III was born. It features a small beach, picnic tables, sand volleyball courts, and facilities including restrooms and outdoor showers.
- Launch point for various tour cruises and snorkeling excursions.
Kahaluʻu Bay
- Located just north of Keauhou, this bay is renowned for its excellent snorkeling and scuba diving opportunities due to its clear and calm waters.
Ahu A Umi Heiau
- A restored heiau (temple) in the uplands, offering insights into native Hawaiian culture and history.
Keauhou Holua Slide
- A National Historic Landmark, this ancient lava slide was used by Hawaiian royalty for recreational purposes.
Kona Coffee Country
- Explore the famous coffee farms of Hōlualoa, located just up the slopes of Hualālai volcano.
Insider Tips
Night Snorkeling with Manta Rays
- Take a snorkeling or diving excursion at night to swim with manta rays that feed on microscopic plankton in the area's waters.
Cultural Experiences
- Visit the unstaffed cultural center at Keauhou Bay to learn about native Hawaiian culture, including temple building, cultivation, and fishing practices.
Outdoor Activities
- Enjoy snorkeling, scuba diving, and kayaking in the perfect waters of Keauhou and Kahaluʻu Bay.
- Use Aliʻi Drive for scenic road cycling or as a stop for snorkeling along the coast.
Historical Sites
- Explore the site where Kamehameha III was born, marked by a plaque against the hillside at Keauhou Bay.
Local Events and Activities
- Check out local events such as the Hawaii Triathlon and other sporting activities in the area.
Additional Tips for Guests
- Getting Around: Use the small pier at Keauhou Bay as a departure point for various tours and cruises.
- Dining and Shopping: Visit the Keauhou Shopping Center for local amenities, including a post office and a small museum.
- Community Engagement: Engage with locals at the picnic tables and sand volleyball courts at Keauhou Bay.
By sharing these attractions and tips, you can enhance your guests' experience and help them make the most of their visit to Keauhou, Hawaii.
Practical Tips to Run a Successful Short Term Rental Business in Keauhou, Hawaii
To ensure a smooth and enjoyable experience for both you and your guests in Keauhou, Hawaii, several practical tips can be implemented. First, it is crucial to adhere to and communicate noise regulations, including informing guests about quiet hours to maintain a respectful environment for neighbors. Creating a comprehensive digital and physical house manual is also essential; this should include detailed instructions, Wi-Fi passwords, and other pertinent information to help guests navigate the property effortlessly.
A simplified check-in process can be achieved by utilizing smart locks, which eliminate the need for physical key exchanges and provide guests with immediate access upon arrival. Additionally, providing clear parking instructions accompanied by photos can help avoid confusion and ensure that guests park in the designated areas.
By implementing these measures, you can enhance guest satisfaction, reduce potential issues, and maintain a positive reputation for your short-term rental business in Keauhou.
Here is a brief list of house cleaning, and related services providers in or around Keauhou, Hawaii:
House Cleaning Services
- Aloha Bliss Cleaning: A locally owned, licensed, and insured cleaning company serving Kailua Kona and surrounding areas, including Keauhou. They offer house cleaning, vacation rental cleaning, and other services.
- Hawaii Pristine Cleaning Services, LLC: Provides premium cleaning services including house cleaning, vacation rental cleaning, carpet cleaning, and more in Kailua-Kona and the surrounding areas, including Keauhou.
Additional Resources
- Care.com: Lists various house cleaning services and housekeepers in Keauhou, with options starting at $26.00/hr.
- Angi: Offers a list of top-rated home cleaning services in Keauhou, with real reviews and ratings.
Note
While the listed services primarily focus on cleaning, Hawaii Pristine Cleaning Services, LLC also offers additional services such as window washing, pressure washing, and landscaping, which can be considered under maintenance and repair categories.
Short-Term Rental Management Fees in Keaau, Hawaii: A Comprehensive Guide
Managing short-term rentals in Keaau, 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 strategies, and property maintenance, tends to be on the higher end of this spectrum, often around 20-30%.
In contrast, basic services that may only include listing management and minimal support can be more affordable, starting at around 10% of the rental revenue. Additionally, property owners may incur extra fees for services like cleaning, repairs, and interior design, which can further impact the overall cost of management. Compliance with local regulations, such as registering the property and paying the Transient Accommodations Tax (TAT) and General Excise Tax (GET), is also crucial and may be included in the management services or handled separately by the owner.