Airbnb & VRBO Performance in Lahaina Hawaii.

Short-Term Rental Regulations in Lahaina, Hawaii for 2024

Permitting and Zoning

• Short-term rentals are allowed only in specific zoning districts, such as the Hotel District and certain parts of the Apartment District, and require a Short-Term Rental Home (STRH) permit from the Maui County Planning Department.

Permit Requirements

• The property must be the owner's primary residence.
• The owner must have a designated local contact person available 24/7.
• The property must pass a safety inspection.
• The owner must pay all applicable taxes and fees.

Permit Caps

• The number of STRH permits is limited in each community plan region; for the West Maui Community Plan region, which includes Lahaina, the cap is set at 88 permits.

Waiting Period

• Property owners must wait 5 years before applying for an STRH permit, unless the property is grandfathered in or located in a zoning area that allows short-term rentals without a permit.

Taxation

• Short-term rental operators must register with the State Department of Taxation to obtain a Transient Accommodation Tax (TAT) license and with Maui County to pay the Maui County Transient Accommodations Tax (MCTAT).

New State Legislation

• Hawaii counties now have the authority to regulate, and potentially ban, short-term rentals within their jurisdictions. If rental properties are in residentially zoned neighborhoods, the minimum stay is 6 months.

Enforcement and Penalties

• Operating an STR without the proper permit can result in fines and legal action. Non-compliance with new regulations can incur a fine of $10,000 per day.

Phase-Out of Short-Term Rentals

• Maui Mayor Richard Bissen has proposed legislation to phase out more than 7,000 vacation units by January 1, 2026, to create long-term housing for displaced wildfire survivors and residents.

Incentives for Long-Term Housing

• Maui County has proposed tax incentives for short-term rental owners who convert their properties to long-term housing for displaced residents, offering a property tax exemption from February 20, 2024, to June 30, 2025.

Top Airbnb Neighborhoods in Lahaina, Hawaii: Revenue and Appeal

Neighborhoods Generating the Most Airbnb Revenue

1. Kaanapali

• Known for its stunning beaches and luxurious resorts, Kaanapali is a prime location for upscale rentals. Guests are drawn to its high-end amenities, including access to pools, hot tubs, and oceanfront properties with patios or balconies offering breathtaking views.
• The area's luxurious atmosphere and proximity to top attractions like Ka'anapali Beach and Whalers Village Museum make it highly appealing for guests seeking a premium vacation experience.

2. Napili

• Napili offers a laid-back atmosphere with family-friendly beaches, making it a favorite among visitors looking for a more relaxed experience. The area is known for its picturesque beaches, such as Napili Bay, and outdoor activities like snorkeling and swimming.
• Guests appreciate the tranquil environment and the availability of larger homes that can accommodate multiple guests, making it ideal for families and groups.

3. Lahaina Town

• Steeped in historical significance, Lahaina Town is popular for its vibrant arts scene, restaurants, and shops. Guests are attracted to the area's rich cultural heritage, including historic sites like the Lahaina Historic District and Front Street, which is lined with shops, restaurants, and galleries.
• The town's dynamic atmosphere, coupled with its proximity to various events like the Lahaina Arts Festival, makes it a magnet for tourists eager to explore local culture.

Why These Neighborhoods Are Appealing

• Proximity to Beaches and Outdoor Activities: All three neighborhoods offer easy access to beautiful beaches and a range of outdoor activities such as snorkeling, surfing, and hiking, which are major draws for tourists.
• High-Quality Amenities: Properties in these areas often feature high-quality furnishings, modern appliances, and amenities like pools and hot tubs, which enhance the guest experience and justify higher daily rates.
• Cultural and Historical Significance: Lahaina Town's historical sites and vibrant arts scene, along with the overall charm of the area, provide a unique and enriching experience for guests.
• Diverse Accommodation Options: From luxurious oceanfront condos to larger family-friendly homes, these neighborhoods cater to a wide range of travelers, including couples, families, and groups.

Tips for Furnishing and Designing an Inviting Airbnb in Lahaina, Hawaii

Understand the Local Market and Guest Preferences

• Lahaina attracts a diverse array of guests, including families, couples, groups, and solo travelers. Tailor your furnishings to cater to these various demographics.

Embrace Coastal and Tropical Decor

• Use natural materials like wood and rattan to create a seamless indoor-outdoor living experience.
• Incorporate bright, cheerful colors such as aqua, coral, and sandy neutrals to evoke a beachy feel.

Highlight Local Culture and Art

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

Prioritize Comfort and Modern Functionality

• Invest in high-quality furniture, modern appliances, and comfortable linens to promote guest comfort and relaxation.
• Ensure well-equipped kitchens to allow guests to prepare their meals.

Utilize Outdoor Spaces Effectively

• Properties with outdoor spaces like patios or balconies, especially those with ocean views, are highly sought after.
• Include amenities like pools, hot tubs, and BBQ areas to enhance the guest experience.

Choose Eco-Friendly and Local Products

• Appeal to environmentally conscious travelers by incorporating eco-friendly or local products into your furnishings and decor.

Focus on Family and Group-Friendly Layouts

• Design your space to accommodate multiple guests comfortably, as larger homes are in high demand.

Select the Right Neighborhood

• Invest in neighborhoods like Kaanapali, Napili, and Lahaina Town, each offering unique advantages such as luxurious resorts, family-friendly beaches, and a vibrant arts scene.

Add Personal Touches

• Incorporate indoor plants and rustic wooden accents to enhance the cozy and inviting atmosphere.
• Use floor-to-ceiling windows to bring in stunning ocean views and natural light.

Balance Modern Comfort with Traditional Elements

• Blend modern functionality with traditional Hawaiian elements to create a uniquely local experience that resonates with guests.

Invest in Quality Over Quantity

• While budget is important, splurge on statement pieces like couches, coffee tables, and dining room tables that define the space and enhance guest satisfaction.

Discovering Lahaina, Hawaii: Local Attractions and Insider Tips for Your Guests

Historic Landmarks and Cultural Experiences

• Self-Tour of Historic Lahaina: Guide your guests through 62 historic landmarks, including the Old Courthouse, which serves as a visitor center and museum. Encourage them to pick up a guide at the Lahaina Visitor Center.
• Lahaina Banyan Tree: This iconic tree, planted in 1873, is a must-visit. It covers over 2/3 of an acre and provides ample shade and photo opportunities.
• Lahaina Historic Trail: Recommend a self-guided tour to explore old mission houses, the jailhouse for sailors (Hale Paahao), and other historic sites.

Beaches and Water Activities

• D.T. Fleming Beach Park: Known for its excellent swimming and surfing conditions, this beach is perfect for a picnic and offers amenities like tables, restrooms, and showers.
• Black Rock on Ka’anapali Beach: A popular spot for snorkeling and scuba diving, with clear waters and abundant marine life.
• Kapalua Beach (Old Fleming Beach): Great for swimming, snorkeling, and surfing, with a nearby resort for refreshments.
• Launiupoko Beach Park: Ideal for families with young children, featuring a natural pool created by lava rock enclosures and calm waters.
• Lahaina Harbor: Suggest whale watching tours, fishing charters, snorkeling tours, and boat excursions from this historic harbor.

Local Culture and Entertainment

• Free Hula Lessons and Shows: Direct guests to the Lahaina Cannery Mall for free hula lessons on Thursdays and hula shows on Saturdays and Sundays.
• Ukulele Classes: Recommend the free ukulele classes at the Lahaina Cannery Mall on Tuesdays.
• Luau Experiences: Encourage guests to attend a traditional Hawaiian luau at places like the Old Lahaina Luau or the Royal Lahaina Resort Luau.
• Sunset Ceremony at Fleetwoods: Suggest attending the sunset ceremony on the rooftop of Fleetwoods, which includes a Kumu or Scottish bagpiper and the lighting of tiki torches.

Shopping and Art

• Front Street Shopping: Guide guests to explore the numerous shops, restaurants, art galleries, and local artisans along Front Street.
• Lahaina Art Galleries: Recommend visiting the 40 art galleries in Lahaina, such as Village Galleries and Martin Lawrence Galleries, for local artwork and souvenirs.
• Lahaina Cannery Mall Art Fair: Suggest visiting the art fair at the Lahaina Cannery Mall on weekends to support local artists and find unique souvenirs.

Unique Activities

• Atlantis Submarine Tour: Recommend this unique underwater experience that takes guests up to 100 feet deep to observe marine life.
• Segway Tour: Suggest a Segway tour to explore Lahaina’s historic sites, harbor, and beaches without the need for walking.
• Farm Tours: Direct guests to local farm tours, such as Maui Ku’ia Chocolate Estate and Punakea Palms, for a taste of local farming and products.

Insider Tips

• Gallery Hop on Friday Nights: Inform guests about the gallery hop on Friday nights, where they can enjoy wine and champagne while exploring the local art scene.
• Catch a Sunset: Encourage guests to watch the sunset every night, either from a beach, a sailboat, or a spot like Fleetwoods.
• Local Dining: Recommend popular local restaurants like Mala Grill for its delectable menu and ocean views.

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

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

To ensure a successful and compliant short-term rental business in Lahaina, Hawaii, several practical tips can be implemented. First, it is crucial to adhere to noise regulations by informing guests about quiet hours through clear communication in both digital and physical house manuals. These manuals should also include essential instructions, Wi-Fi passwords, and other pertinent information to enhance the guest experience.

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 detailed parking instructions accompanied by photos can help reduce confusion and ensure a smooth start to the guest's stay.

By focusing on these aspects, you can maintain a positive relationship with your guests, comply with local regulations, and contribute to a respectful and peaceful community environment in Lahaina.

Here is a brief list of house cleaning, repair, or maintenance providers in Lahaina, Hawaii:

House Cleaning Services

People Who Clean

• Offers home, condo, office, and commercial cleaning services.
• Available for one-time or ongoing contract services.
• Contact: 800-284-0859 or 808-661-3760.

West Maui Cleaning

• Provides professional housekeeping services for homes.
• Offers tailored services, commercial-grade equipment, and a 100% satisfaction guarantee.
• Contact: Book an appointment online or visit their website.

Luna Cleaning Maui

• Locally owned and operated, serving West Maui.
• Offers residential, commercial, and vacation rental cleaning services.
• Contact: (808) 495-1899.

Specialized Cleaning and Maintenance

CSI Carpet Cleaners

• Provides deep steam carpet cleaning, upholstery maintenance, and tailored cleaning solutions.
• Contact: Visit their website for more details.

Managing Short-Term Rentals in Lahaina, Hawaii: Understanding Management Fees

In Lahaina, Hawaii, managing a short-term rental can come with a range of fees, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. 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 falling between 20% to 30% of the rental income.

Basic services, which may only include listing and booking management, can be less expensive, usually around 10% to 15%. Additionally, property owners may incur extra fees for services like cleaning, repairs, and design enhancements. These fees are part of the overall cost of ensuring the property is well-maintained and attractive to potential guests, which is crucial for maximizing rental revenue in a competitive market like Lahaina.