Airbnb & VRBO Performance in Kihei Hawaii.

Short-Term Rental Regulations in Kihei, Hawaii for 2024

General Regulations

• Definition of Short-Term Rentals: Any rental period of less than 180 consecutive days.

Permitting Requirements

• Short-Term Rental Home (STRH) Permit: Required for most properties. The property must have been built at least five years prior to the application date, and the owner must have owned the property for at least five years.
• Application involves submitting detailed documentation, including completed application form, proof of ownership and property tax payments, site and floor plans, House Policies and Rules for guests, and a Neighbor Notification Letter.
• Application fee: $400 (non-refundable), with an annual renewal fee of $200.

Community Plan Limits

• Kihei-Makena Community Plan: Caps the number of permitted short-term rentals at 100. As of April 2024, there is a waitlist for new permits.

Exemptions

• Hotel District: Properties located within the Hotel District are exempt from needing an STRH permit, as they are zoned for transient vacation rentals. These are typically condotels or condo complexes.
• Bed & Breakfast Permit: An alternative to the STRH permit, allowing rentals of bedrooms within an owner-occupied home. The owner must live on-site, and it is limited to a maximum of two bedrooms and four guests at one time.

Compliance and Enforcement

• Fines and Penalties: Failure to comply with regulations can result in significant fines, including an initial fine of up to $20,000 plus $10,000 per day for each day the unlawful operation persists.
• Monitoring and Investigations: The county actively monitors vacation rental websites and investigates complaints to identify and shut down illegal rentals.

Phase-Out of Short-Term Rentals in Apartment-Zoned Districts

• Proposed Phase-Out: Starting July 1, 2025, for West Maui, and January 1, 2026, for the rest of Maui County, short-term rental use in apartment-zoned districts will be repealed. Affected properties must either be sold, converted to long-term rentals, or left vacant.

Additional Taxes

• State of Hawaii General Excise Tax (GET) and Transient Accommodation Tax (TAT): All short-term rentals are required to pay these taxes.

Top Airbnb Revenue-Generating Neighborhoods in Kihei, Hawaii

Why Kihei is Appealing for Guests

Kihei, Hawaii, is a highly sought-after destination for tourists due to its year-round warm weather, beautiful beaches, and proximity to popular tourist attractions such as Haleakala National Park and the Road to Hana. Here are the key neighborhoods in Kihei that generate significant Airbnb revenue:

Key Neighborhoods

1. Central Kihei

• Average Daily Rate: $259-$431
• Occupancy Rate: 83%-68%
• Annual Revenue: $79,207-$61,160
• Appeal: Central Kihei offers easy access to beaches, shopping centers, and dining options. Its central location makes it ideal for guests looking to explore the area without needing a car.

2. Maalaea

• Average Daily Rate: Similar to central Kihei, around $259-$431
• Occupancy Rate: High, similar to central areas, around 83%-68%
• Annual Revenue: Comparable to central Kihei, around $79,207-$61,160
• Appeal: Maalaea is known for its harbor and is a popular spot for whale watching and snorkeling tours. Guests appreciate its scenic views and water activities.

3. Kihei Town

• Average Daily Rate: $259-$431
• Occupancy Rate: High, around 83%-68%
• Annual Revenue: $79,207-$61,160
• Appeal: Kihei Town offers a mix of local shops, restaurants, and beaches. It is a vibrant area that provides guests with a authentic Hawaiian experience.

4. Wailea Border

• Average Daily Rate: Slightly higher due to proximity to luxury resorts, around $300-$400
• Occupancy Rate: High, around 80%-70%
• Annual Revenue: $70,000-$60,000
• Appeal: This area is appealing due to its proximity to the luxury resorts of Wailea, offering guests access to high-end amenities and beautiful beaches.

General Appeal of Kihei

• Year-Round Warm Weather: Kihei's climate is attractive to tourists seeking a warm vacation.
• Beautiful Beaches: Kihei is renowned for its stunning beaches, such as Kamaole Beach Park.
• Proximity to Attractions: Easy access to Haleakala National Park, the Road to Hana, and other local attractions.
• High Demand for Vacation Rentals: The area has a strong tourism industry and limited hotel rooms, making vacation rentals highly sought after.

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

Entryway

• First Impressions Matter: Design the entryway to make guests feel welcomed and special. Add elements like a warm greeting, fresh flowers, or a local welcome gift.
• Clear Instructions: Provide clear instructions on how to enter the property and any essential information about the space.

Living Room

• Lighting Control: Install lamps and dimmer switches to offer flexible lighting options.
• Comfortable Seating: Include plush blankets, pillows with various fill options, and comfortable seating areas.
• Conversation-Friendly Layout: Arrange furniture to facilitate conversation and ensure everyone has a place to put their drinks and belongings.
• Local Touches: Incorporate Hawaiian decor and elements that reflect the local culture.

Bedroom

• Luxurious Bedding: Offer high-quality bedding and provide extra layers stored in the closet for guest convenience.
• Temperature Control: Ensure each room has adequate temperature control, such as ceiling fans or air conditioning.
• Bedside Amenities: Provide bedside tables and lamps for each guest, including features like USB ports or wireless charging.
• Blackout Shades: Install blackout shades to cater to different sleep preferences.

Kitchen

• Fully Stocked: Ensure the kitchen is fully stocked with modern appliances and all necessary utensils and cookware.
• Local Flavors: Include some local spices, oils, and other ingredients to enhance the cooking experience.

Outdoor and Shared Spaces

• Beach Equipment: Provide beach equipment such as chairs, umbrellas, and boards to enhance the beach experience.
• BBQ and Outdoor Amenities: Include a BBQ area and other outdoor amenities like hot tubs or pickle ball courts if possible.
• Private Outdoor Spaces: Create private outdoor spaces like lanais or decks with comfortable seating and ocean views.

Additional Touches

• Attention to Detail: Pay attention to small details that make a big difference, such as extra linens, toiletries, and a well-organized space.
• Local Recommendations: Provide guests with recommendations for local restaurants, beaches, and attractions to enhance their stay.
• Responsive Hosting: Be responsive to guest needs and ensure that the space is clean, well-maintained, and ready for their arrival.

Unique Kihei Style

• Hawaiian Decor: Incorporate traditional Hawaiian elements such as tropical decor, bamboo accents, and local artwork.
• Natural Materials: Use natural materials like wood and coconut palms to create a cohesive and authentic Hawaiian atmosphere.
• Ocean Views: Highlight ocean views from balconies or lanais to maximize the beachfront experience.

Local Attractions and Insider Tips for Kihei, Hawaii

Beaches and Water Activities

• Keawakapu Beach: A hidden gem with golden sands, perfect for sunbathing, snorkeling, and spotting sea turtles. Note: No bathrooms, but there is a shower for rinsing off.
• Kamaole Beach Parks: A series of three beaches popular for swimming, sunbathing, and beach barbecues. Great spot for sunset views and family activities.
• Molokini Crater: A must-visit for snorkeling and diving, known for its excellent visibility and abundant marine life. Take a guided tour for the best experience.
• Kayaking and Paddleboarding: Rent equipment or join a guided tour to explore Maui’s coastal waters and spot sea turtles and humpback whales.

Nature and Wildlife

• Humpback Whale Sanctuary: Learn about and observe humpback whales in their natural habitat. A great educational experience.
• Kealia Pond National Wildlife Refuge: A protected area for endangered birds like the Hawaiian stilt and Hawaiian Coot. Take a stroll on the Kealia Coastal Boardwalk for stunning views.

Food and Drink

• South Maui Gardens Food Truck Park: Dine amidst tropical plants with a variety of food options, including gourmet, pizza, Indian, Argentine, and coffee. Live music on the second Saturday of each month.
• Local Eats: Try traditional Hawaiian dishes like Loco Moco, Poke, Kalua Pig, and Laulau. Recommended spots include Da Kitchen, Ululani’s Shave Ice, Kihei Caffe, and Eskimo Candy.
• Maui Brewing Company: Enjoy local craft beers and support a brewery committed to environmental sustainability.

Cultural and Community Events

• Kihei Fourth Friday Town Party: Attend this monthly event for live music, local vendors, and food from some of Maui’s best food trucks.
• Island Art Party: Participate in painting classes with a fully stocked bar, a great way to meet new people and express your creativity.

Shopping and Leisure

• Kihei Kalama Village: An open-air shopping pavilion with kiosks, boutique shops, and restaurants. Perfect for souvenir shopping and casual dining.
• Happy Hour at Three’s Bar & Grill: Enjoy half-priced appetizers, live music, and discounted drinks in a lively atmosphere.

Unique Experiences

• Hawaii Mermaid Adventures: Take mermaid swimming lessons, a fun and unique experience for both kids and adults.
• Surf and SUP Lessons: Learn to surf or stand-up paddleboard with lessons from local operators like Hawaiian Paddle Sports and Maui Surfer Girls.

Additional Tips

• Sunset Views: Kamaole III Beach Park is highly recommended for sunset viewing, with great views of Haleakala.
• Local Markets: Visit the farmers market near Kihei Kalama Village for fresh produce and artisanal crafts.
• Nightlife: Check out the South Shore Tiki Lounge for the best pizza, pau hana, and bar experience on Maui.

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

To ensure a smooth and enjoyable experience for both you and your guests, several practical tips are essential when running a short-term rental business in Kihei, Hawaii. First, it is crucial to inform your guests about the local noise regulations, including quiet hours from 9 pm to 8 am, to avoid any potential fines or complaints from neighbors. Creating a comprehensive digital and physical house manual is also vital; this should include instructions on how to use appliances, Wi-Fi passwords, and other essential information to make your guests' stay hassle-free.

A simplified check-in process can significantly enhance guest satisfaction. Utilizing smart locks eliminates the need for physical key exchanges, allowing guests to check in at their convenience. Additionally, providing clear parking instructions accompanied by photos can help avoid confusion and ensure that guests comply with the minimum requirement of two off-street parking spaces per rental unit.

By implementing these strategies, you can maintain a positive relationship with your guests, comply with local regulations, and ensure your short-term rental business in Kihei operates efficiently and successfully.

Here is a brief list of house cleaning providers in Kihei, Hawaii:

House Cleaning Services

Kihei Clean

• Offers residential cleaning, vacation rental cleaning, move out cleaning, and post construction cleaning services.
• Serves Kihei, Maui Meadows, Wailea, and Makena.
• Known for professional and high-quality cleaning.

Maui Cleaning Care

• Licensed, bonded, and insured in the state of Hawaii.
• Provides customized cleaning services, including residential and commercial cleaning.
• Offers free in-home or on-site estimates and 100% satisfaction guarantee.
• Family owned and operated with over 25 years of experience.

Various House Cleaning Services Listed on Care.com

• A list of 10 house cleaning services in Kihei, HI, with average rates starting at $19.62/hr.
• Services vary by provider, but generally include house cleaning and maid services.

Lala's Cleaning Services LLC

• Specializes in commercial cleaning and janitorial facility cleaning services.
• While primarily commercial, they may offer some residential services upon inquiry.

Short-Term Rental Management Fees in Kihei, Hawaii: A Comprehensive Guide

In Kihei, 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 companies, such as MasterHost and GoSummer, which handle everything from guest communication and marketing to property maintenance and concierge services, tend to charge on the higher end of this spectrum, often around 20-30% of the revenue.

In contrast, basic services that may only include listing creation, booking management, and minimal support can be found at the lower end, sometimes starting as low as 8-10%. Additional fees may apply for services such as cleaning, repairs, and interior design, which can be charged separately or included in the overall management fee. Understanding these fee structures is crucial for property owners to ensure they are maximizing their rental income while complying with the stringent regulations governing short-term rentals in Kihei.