Airbnb & VRBO Performance in Kohala Coast Hawaii.

Short-Term Rental Regulations in Kohala Coast, Hawaii for 2024

Registration and Permitting

• All short-term rentals, those rented for 180 days or fewer, must be registered with the county.
• Property owners must obtain an STVR permit, contingent on the property’s zoning designation and adherence to specific regulations.

Zoning Restrictions

• Owner-hosted rentals can be started in any zoning district if the owner lives on the property and uses it as their primary residence.
• Newly opened operator-hosted TARs are limited to resort and commercial areas, while existing ones can be grandfathered in with the right paperwork and fees.
• Properties in agricultural districts, such as farm dwellings, cannot be used as short-term vacation rentals according to the Hawaiʻi Supreme Court ruling.

Operational Standards

• Guest limits, off-street parking requirements, noise restrictions, and limits on events are mandated.
• Enhanced enforcement mechanisms and higher penalties for non-compliance, including fines and potential registration revocation for repeat offenders.

Tax Compliance

• Short-term rentals are subject to the Transient Accommodation Tax (TAT) and the General Excise Tax (GET).
• Hosting platforms such as Airbnb and VRBO must include registration numbers on all listings and provide regular reports to the Hawai‘i County Planning Department.

Grandfather Clauses

• Existing operator-hosted TARs can be grandfathered in if they meet the necessary paperwork and fee requirements.
• Property owners who operate TARs in auxiliary units can be grandfathered in, but new ones cannot be started unless used for long-term housing.

Community and Economic Considerations

• The regulations aim to balance tourism, the county’s economy, lifestyle, and housing needs.
• A comprehensive economic study has been proposed to assess the positive economic impacts of short-term rentals on the Big Island.

Compliance and Enforcement

• Detailed documentation, proof of tax compliance, and adherence to specific operational guidelines are required.
• Failure to comply with these laws can result in hefty fines, suspension of rental operations, and even legal action.

Top Neighborhoods for Airbnb Revenue on the Kohala Coast, Hawaii

1. Waikoloa Village

• High Revenue Potential: Waikoloa Village is known for its high-end condos and resorts, which attract a affluent clientele. The average annual revenue for Airbnb listings in this area is around $48,822, with an average daily rate of $202 and an occupancy rate of 69%.
• Amenities and Attractions: This area offers luxurious amenities such as infinity pools, golf courses, and proximity to upscale shopping and dining. Guests are drawn to the serene tropical environment and easy access to beaches and other attractions.

2. Waikoloa Beach

• Luxury and High Demand: Waikoloa Beach is a prime location with luxury condos and villas that command high rental rates. The area boasts an average daily rate of $418 and an occupancy rate of 87%, indicating strong demand for accommodations.
• Beach and Golf Access: Guests are attracted to the direct beach access, golf packages, and the overall upscale Hawaiian experience. The area's high-end amenities and services make it a favorite among tourists.

3. Mauna Lani

• High-End Accommodations: Mauna Lani is renowned for its luxury resorts and vacation rentals. The area offers a range of high-end amenities, including golf courses, spas, and fine dining.
• Strong Occupancy Rates: With its prime location and luxurious offerings, Mauna Lani sees high occupancy rates, making it an attractive investment for Airbnb hosts. Guests appreciate the area's natural beauty, luxury amenities, and convenient access to various activities.

4. Kailua-Kona (adjacent to Kohala Coast)

• Versatile Accommodations: While technically part of the Kona Coast, Kailua-Kona's proximity to the Kohala Coast and its diverse range of accommodations make it a significant contributor to the region's Airbnb revenue. The area offers everything from luxury beachfront villas to cozy condos.
• Historical and Cultural Appeal: Guests are drawn to Kailua-Kona's historical sites, vibrant oceanfront activities, and the opportunity to experience local Hawaiian culture. The strong tourism demand ensures a steady flow of visitors throughout the year.

5. Waimea

• Rural Charm and Accessibility: Located slightly inland but still within the broader Kohala Coast area, Waimea offers a unique blend of rural charm and accessibility to coastal attractions. The area features cozy condos and townhouses that appeal to a variety of guests.
• High Guest Satisfaction: Waimea's vacation rentals often receive high ratings for their cleanliness, location, and overall guest experience. This area is particularly appealing for those seeking a quieter, more laid-back Hawaiian experience while still being close to major attractions.

Creating an Inviting Airbnb Space on the Kohala Coast, Hawaii: Design and Furnishing Tips

Define Your Property's Aesthetic

• Align your property's aesthetic with the local culture and natural beauty of the Kohala Coast. Opt for modern coastal, Hawaiian-themed decor, or rustic island charm to reflect the unique style of the area.

Choose Functional and Comfortable Furnishings

• Invest in high-quality, eye-catching decor that emphasizes natural materials, bright colors, and locally sourced art. Ensure furnishings are both stylish and functional to enhance the guest experience.

Highlight Local Charm

• Incorporate elements that showcase the local culture, such as traditional Hawaiian fabrics, bamboo or teak furnishings, and artwork by local artists. This helps create a welcoming and authentic atmosphere.

Optimize Lighting

• Design lighting that is both functional and mood-enhancing. Use overhead lights, table lamps, and wall sconces to create a well-lit and inviting space, especially in areas like the kitchen, bathroom, and entryway.

Add Warm and Welcoming Touches

• Use textiles such as soft rugs, plush bath mats, and throw blankets to add warmth and texture to the space. These elements can make hardwood, tile, or laminate flooring feel more luxurious and cozy.

Create a Welcoming Entryway

• Ensure the entryway is well-organized, clutter-free, and well-lit. Add a table, chest of drawers, or shelving for guests to set down their belongings. Include a soft rug, mirror, potted plant, and artwork to make the entryway feel welcoming.

Enhance Outdoor Spaces

• Since the Kohala Coast is known for its stunning natural beauty, make the most of outdoor spaces. Include amenities like BBQ grills, pools, hot tubs, and scenic views to enhance the guest experience.

Pay Attention to Details

• Focus on the small details that make a room comfortable. Ensure the kitchen is well-equipped with easily accessible appliances and supplies. In the bathrooms, provide extra towels, soaps, shampoos, and personal care products.

Utilize Local and Natural Elements

• Incorporate natural elements such as potted plants and locally sourced materials to bring the outdoors in and create a seamless transition between the interior and exterior spaces.

Ensure Proximity to Local Attractions

• Choose properties in neighborhoods that offer a blend of local charm and accessibility to outdoor activities and main attractions. This can significantly enhance the guest experience and increase the appeal of your Airbnb.

Discovering the Kohala Coast: Local Attractions and Insider Tips

Top Local Attractions

Natural Attractions

• Pololu Valley Lookout: Offers sweeping views of dramatic cliffs and lush valleys. Hike down to the beach for breathtaking vistas of the rugged coastline.
• Kiholo Bay Scenic Overlook: A scenic spot with a unique blend of sea and freshwater, surrounded by lava flows from the 1859 Mauna Loa eruption.
• Hapuna Beach State Park: One of Hawaii’s finest white sand beaches, perfect for swimming, snorkeling, and sunbathing.
• Mauna Kea Beach: A picturesque beach known for its clear waters and abundant marine life.

Historical and Cultural Sites

• Lapakahi State Historical Park: Explore the remnants of an ancient Hawaiian fishing village and learn about traditional customs and practices.
• Puukohola Heiau: A sacred place of worship built by King Kamehameha between 1790-91, offering insights into early Hawaiian history.
• Waikoloa Petroglyph Preserve and Puako Petroglyph Archaeological Preserve: Discover thousands of lava rock carvings created by ancient Hawaiians.

Man-Made Attractions

• Statue of King Kamehameha: A significant landmark in North Kohala commemorating one of Hawaii’s greatest leaders.
• Kohala Mountain Road: Enjoy scenic drives with panoramic views of the island’s northern tip, rolling pastures, and ocean vistas.

Insider Tips

Activities and Adventures

• Hiking and Trails: Explore the Kohala Forest Reserve with trails for all skill levels, revealing hidden waterfalls and spectacular views.
• Water Activities: Enjoy snorkeling, scuba diving, and whale watching. Keokea Beach Park and Hapuna Beach are prime spots for snorkeling and scuba diving.
• Zip-Lining and Horseback Riding: Experience the rugged terrain through zip-lining and horseback riding tours.
• Fishing and Boat Tours: Engage in deep sea fishing, sunset cruises, and sailboat tours to explore the tropical waters.

Local Experiences

• Visit Hawi Town: Explore this charming town with its historic attractions, local shopping, and great restaurants. It’s a good base for nearby activities like ziplining and farm tours.
• Farmers Markets: Check out the fresh produce and handcrafted local goods at farmers markets in Hawi, Waimea, and the Waikoloa Beach Resort area.

Practical Tips

• Rent a Car: Highly recommended to fully explore Kohala’s diverse attractions.
• Respect Local Customs: Participate in cultural events and visit historical sites with respect, learning about local customs and traditions to enrich your experience.
• Sun Protection: Always carry water, wear sunscreen, and wear a hat while exploring outdoors due to the intense Hawaiian sun.
• Book Activities in Advance: Popular activities like zip-lining, whale-watching tours, and guided hikes can fill up quickly, so book in advance to ensure your spot.

Best Time to Visit

• The best time to visit Kohala is from May to October when the weather is drier and the ocean conditions are ideal for water activities.

Practical Tips to Run a Successful Short-Term Rental Business on the Kohala Coast, Hawaii

To ensure a smooth and profitable short-term rental business on the Kohala Coast, Hawaii, several practical tips can make a significant difference. Here are some key considerations:

Noise Regulations and Quiet Hours

Inform your guests about noise regulations and quiet hours to maintain a peaceful environment and comply with local laws. Include clear guidelines in your digital and physical house manual to avoid any misunderstandings.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also highlight the unique features and amenities of your property, ensuring guests can fully enjoy their stay.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with detailed instructions on how to access the property, along with photos to help them navigate any specific steps, such as parking and entry procedures.

Clear Parking Instructions

Include parking instructions with photos in your house manual to guide guests on where and how to park their vehicles. This helps prevent any confusion and ensures that guests can park safely and conveniently.

By implementing these strategies, you can enhance the guest experience, reduce potential issues, and maintain a high level of satisfaction and repeat bookings for your short-term rental on the Kohala Coast.

Here is a brief list of house cleaning providers in the Kohala Coast area of Hawaii:

House Cleaning Providers in Kohala Coast, Hawaii

Pacific Island Cleaning

• Although primarily based in a broader Hawaii context, they offer commercial and residential cleaning services, including medical facilities and other specialized cleanings.

Kona Paradise Cleaning

• Provides quality, professional, and reliable cleaning services for homes, offices, and vacation rentals in the Kailua Kona area, which is near the Kohala Coast.

Eco Clean Big Island

• Specializes in using less invasive products to deeply clean luxury rental homes, including polishing, sanitizing, dusting, and detailing. They serve the South Kohala area.

Weekly Maid Service by South Kohala Management

• Offers weekly maid services for vacation rentals with 2+ bedrooms in the South Kohala area, which includes the Kohala Coast.

Short-Term Rental Management Fees on the Kohala Coast, Hawaii

On the Kohala Coast of 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, marketing, pricing optimization, and maintenance, tends to be on the higher end of this spectrum, often around 15% to 30%.

In contrast, basic services that may only include booking management and minimal support can cost less, usually around 10% of the rental revenue. Additional fees may also apply for specific services like cleaning, repairs, or interior design, further customizing the management package to the property owner's needs. Companies such as MasterHost and ResorticaHawaii offer a range of services, ensuring that property owners can choose the level of management that best fits their requirements and budget.