Airbnb & VRBO Performance in Kehena Hawaii.

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Kehena, Hawaii: Airbnb & VRBO Vacation Rental Market Overview

Despite broader trends showing lower occupancy rates statewide, the short-term rental market in Hawaii, including areas like Kehena, has seen stable to slightly increasing average daily rates and a resilient supply of vacation rentals, indicating a robust and adaptable tourism sector.

Market overview

Kehena, Hawaii: A Resilient Gem in the Short-Term Rental Market

Despite the broader challenges facing Hawaii's short-term rental market, Kehena and its surrounding areas on the Big Island are showing signs of resilience. While specific data for Kehena itself is not provided, the broader trends for the Big Island offer a positive outlook. For instance, in June 2024, the Kaua‘i and Big Island regions, though not Kehena specifically, saw notable performance. On the Big Island, areas like Kona and Hilo/Honoka‘a reported occupancy rates of 40.4% and 43.8%, respectively, with average daily rates (ADR) of $239.63 and $153.21.

This indicates that while occupancy rates may be lower than pre-pandemic levels, the average daily rates have seen significant increases, reflecting a strong demand for quality accommodations. These trends suggest that Kehena, with its unique natural beauty and attractions, remains an appealing destination for visitors, offering a promising outlook for short-term rental operators in the area.

Short Term Regulations

Title: 2024 Short-Term Rental Regulations in Hawaii (Applicable to Kehena and Other Areas)

General Regulations

  • County Authority: Hawaii counties have been granted the power to regulate the time, place, manner, and duration of short-term rentals through zoning ordinances under Senate Bill 2919, signed into law on May 3, 2024.

Zoning and Location

  • Permitted Zones: Short-term rentals are only allowed in specific zones such as Waikiki, resort-commercial zones, and certain designated areas. Properties in residentially zoned neighborhoods are subject to a minimum stay of 6 months.

Licensing and Registration

  • County Permits: Most Hawaii counties require a license or permit for short-term rentals to operate legally. Applications typically include information about the property, owner, operator, emergency contact, site, and safety equipment.
  • Tax Registration: Owners must register with the Hawaii Department of Taxation for a transient accommodations tax (TAT) license and a general excise tax (GET) license.

Tax Obligations

  • Transient Accommodations Tax (TAT) and General Excise Tax (GET): Short-term rental income is subject to state and county TAT as well as GET. Hosts must pay these taxes based on their gross rental proceeds and can pass these taxes on to guests. Hosts are responsible for registering, filing tax returns, and paying taxes to both the state and the county.

Insurance Requirements

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

Phase-Out and Conversion

  • Phase-Out in Residential Zones: Counties have the authority to phase out short-term rentals in residential and agricultural zones. Properties in these zones may be required to convert to long-term rental housing.
  • Specific Phase-Out Plans: For example, Maui County is planning to phase out over 7,000 short-term rentals in apartment-zoned districts by January 1, 2026.

Compliance and Penalties

  • Compliance: Properties must comply with the new regulations to avoid fines. Non-compliance can result in a fine of $10,000 per day.

Additional County-Specific Regulations

  • Hawaii Island (Big Island) Regulations: Short-term vacation rentals on the Big Island are governed by the County of Hawaii short-term rental regulations, including specific zoning districts and requirements.
  • Maui Regulations: Maui has introduced a bill to phase out short-term rentals in apartment districts, with specific deadlines for different areas.
  • Simplification Efforts: The Hawaii County Council is working to simplify the new short-term rental laws, including amendments to registration processes and zoning flexibilities.
Neighborhood Performance

Top Airbnb Revenue-Generating Neighborhoods in the Kehena, Hawaii Area

While specific data on Kehena itself is limited, the surrounding areas and nearby towns provide valuable insights into the most lucrative and appealing neighborhoods for Airbnb investments. Here are some of the top neighborhoods in the broader area:

Pāhoa, HI

  • Why it's appealing: Pāhoa is close to Kehena Black Sand Beach and offers a unique rural Hawaiian experience. Guests can enjoy swimming with wild dolphins, exploring active volcanoes, and experiencing local culture through markets and live music at Uncle Robert's.
  • Revenue Potential: While specific revenue figures for Pāhoa are not provided, its proximity to popular attractions and unique experiences suggest high demand and potential for significant revenue.

Volcano, HI

  • Why it's appealing: Volcano is a nature lover's paradise, offering easy access to Hawaii Volcanoes National Park. The area is known for its natural beauty, hiking trails, and unique volcanic landscapes.
  • Revenue Potential: Volcano has an average daily rate of $184 and an annual revenue of $51,034, with a high occupancy rate of 74%.

Hana, HI

  • Why it's appealing: Hana is renowned for its luxury and unique experiences, including high-end accommodations and stunning natural scenery. Guests are drawn to its pristine beaches, waterfalls, and luxurious amenities.
  • Revenue Potential: Hana boasts an average daily rate of $395 and an annual revenue of $125,885, with an impressive occupancy rate of 86%.

Kapaa, HI

  • Why it's appealing: Kapaa is located on the eastern coast of Kauai and is known for its stunning beaches, hiking trails, and waterfalls. The area attracts tourists year-round due to its warm weather and diverse outdoor activities.
  • Revenue Potential: Kapaa has an average daily rate of $270 and an annual revenue of $89,084, with a high occupancy rate of 93%.

Mountain View, HI

  • Why it's appealing: Mountain View is a growing tourist hotspot with easy access to various attractions. It offers a mix of natural beauty and modern amenities, making it appealing for a wide range of guests.
  • Revenue Potential: Mountain View has an average daily rate of $129 and an annual revenue of $35,327, with a high occupancy rate of 75%.

These neighborhoods are highly appealing due to their unique natural attractions, cultural experiences, and high demand for vacation rentals, making them lucrative options for Airbnb investors.

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Design Tips

Creating an Inviting Airbnb in Kehena, Hawaii: Design and Furnishing Tips

Embrace the Tropical and Bohemian Style

  • Incorporate wooden or bamboo furniture to complement the tropical ambiance of Kehena.
  • Use colorful textiles and local artwork to reflect the island's rich cultural heritage.

Optimize for Natural Light and Ventilation

  • Design open, airy spaces with abundant natural light to create a fresh and welcoming atmosphere.
  • Include features like high-pitched ceilings, screened doors, and screened windows to enhance airflow and natural light.

Highlight Local Materials and Crafts

  • Use materials such as Balinese hardwood floors, interior cedar siding, and Redwood rafters to add a unique and authentic touch to your space.

Focus on Comfort and Relaxation

  • Ensure comfortable beds and stylish decor to enhance the overall aesthetic appeal of your space.
  • Include cozy seating and inviting outdoor lanai areas for relaxation.

Incorporate Outdoor Spaces and Amenities

  • Provide outdoor spaces that offer breathtaking views, such as oceanfront lanais or private pools surrounded by lush greenery.
  • Amenities like hot tubs, swim spas, and outdoor showers can significantly enhance the guest experience.

Proximity and Accessibility

  • Choose locations close to key attractions like Kehena Black Sand Beach, Volcanoes National Park, and local cultural events.
  • Ensure easy access to hiking trails and other adventure spots to cater to guests seeking exploration.

Modern Amenities for Convenience

  • Include essential amenities such as Wi-Fi, air conditioning, and fully equipped kitchens to ensure guests remain connected and comfortable throughout their stay.

Unique Touches and Local Flair

  • Add unique touches like locally sourced art, tropical-themed accents, and custom-built features to create a memorable atmosphere.
  • Consider featuring elements like firepits and private gardens to enhance the guest experience.

Eco-Friendly and Sustainable Design

  • Opt for eco-friendly and sustainable design elements to align with the area's emphasis on natural beauty and tranquility.
  • Incorporate features like deep jetted tubs and oversized rain-showerheads to create an inviting and serene interior.
Insider Tips

Discovering Kehena, Hawaii: Local Attractions and Insider Tips

Local Attractions

Kehena Black Sand Beach

  • Renowned for its unique black sand formed from volcanic activity.
  • Ideal for swimming, snorkeling, and spotting dolphins and sea turtles, but be cautious of strong currents and rough waves.

Pohoiki Beach (Isaac Hale Beach Park)

  • A newly formed black sand beach created by the recent Kilauea volcanic eruption.
  • Features coarse black sand and is suitable for surfing and picnicking.

Lava Tree State Monument

  • Offers scenic trails and a unique glimpse into the island’s volcanic history.
  • A great spot for hiking enthusiasts.

Mackenzie State Park

  • Known for its dramatic volcanic landscape and stunning cliffs.
  • A must-visit for nature lovers and photographers.

Kalani (Kalanimua)

  • Located on the Red Road, offering workshops and classes focused on natural and holistic living, yoga, and spiritual retreats.

Uncle Robert's Awa Bar & Farmers Market

  • A local favorite for dining and shopping, offering a taste of Hawaiian culture.

Star of the Sea Church

  • A historic church with a rich cultural significance, worth a visit for its architectural and historical value.

Insider Tips

Accessing Kehena Beach

  • The trail down to the beach is steep and rocky; wear walking shoes and be extremely careful, especially during high tide.

Clothing-Optional Beach

  • Kehena Beach is known for being clothing-optional, particularly popular with alternative and bohemian lifestyle groups. Be respectful of local customs and practices.

Local Events

  • Sundays are popular for drum circles, hula performances, and community celebrations. Other days are generally quieter.

Safety and Precautions

  • Be mindful of strong currents and rough waves when swimming or snorkeling. The ocean conditions can be challenging for less experienced swimmers.

Exploring the Area

  • Take a drive along the scenic Red Road to explore other attractions like Pahoa town, the Painted Church in Kalapana, and the Sunday Maku’u market outside Pahoa.

Respect for the Environment

  • Enjoy the natural beauty while exercising caution and respect for the environment and local wildlife.

By sharing these tips and attractions, you can help your guests have a memorable and enriching experience in Kehena, Hawaii.

Practical Tips

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

To ensure a smooth and enjoyable experience for both you and your guests in Kehena, 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 to maintain a peaceful environment, especially in residential areas. Include this information in your digital and physical house manual to set clear expectations from the outset.

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 be easily accessible and user-friendly to reduce the number of guest inquiries.

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 clear instructions on how to enter the property. This not only enhances convenience but also reduces the likelihood of lost keys.

Parking Instructions with Photos

Include detailed parking instructions in your house manual, accompanied by photos to help guests navigate the parking area easily. This is particularly important in areas where parking can be limited or complex, ensuring that guests can park their vehicles without hassle.

By implementing these practical tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental business in Kehena, Hawaii.

Local Vendors

While there are no specific house cleaning, repair, or maintenance providers listed that are based in Kehena, Hawaii, here are some services from nearby areas that might be able to serve Kehena:

House Cleaning Services

  • Ohana House Cleaning: Based in Lihue, HI, but serves surrounding areas including Puhi, Wailua Homesteads, Eleele, Wailua, and Lawai. They offer residential cleaning, deep cleaning, and various other cleaning services.
  • Aloha Bliss Cleaning: Based in Kailua Kona, HI, serving Kailua Kona and surrounding areas. They provide residential, vacation rental, and office cleaning services.
  • Big Island Cleaners: Based on the Big Island, they offer cleaning services for residential homes, vacation rentals, offices, and more. They are locally owned and operated.

Restoration and Maintenance Services

  • Koa Restoration & Maintenance: Although not based in Kehena, they operate statewide in Hawaii, including the Big Island. They provide emergency mitigation, restoration, janitorial services, and various maintenance services.

These services may be able to extend their coverage to Kehena, Hawaii, depending on their service areas and availability.

Management fees

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

In Kehena, Hawaii, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, aggressive marketing strategies, and maintenance, tends to be on the higher end of this spectrum, often starting at around 20% of revenue.

Basic services, which may include only the essential management tasks like booking management and guest screening, can be more affordable, starting as low as 10%. Additionally, property owners may incur extra fees for services such as cleaning, repairs, and design, which can further impact the overall cost. These fees are often calculated based on factors like property size, type, location, and the specific needs of the property.

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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 Kehena 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 Kehena.

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