Airbnb & VRBO Performance in Lihue Hawaii.

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Lihue, Hawaii: Airbnb & VRBO Vacation Rental Market Overview

In Lihue, Hawaii, short-term rental performance has shown resilience, with a 44% increase in unit night supply and a 53.7% rise in unit demand in June 2024, despite a slight drop in occupancy rates.

Market overview

Thriving Short-Term Rental Market in Lihue, Hawaii

Despite broader trends in Hawaii's vacation rental market, Lihue on the island of Kauai continues to exhibit strong performance in the short-term rental sector. As of the latest data, a typical short-term rental listing in Lihue boasts an impressive median occupancy rate of 81%, indicating high demand and consistent booking activity. The average daily rate for these rentals stands at $267, contributing to an annual revenue of approximately $73,000 per host. This stability and profitability are further enhanced by lenient local regulations, making Lihue an attractive and reliable destination for investors in short-term rentals.

Short Term Regulations

Short-Term Rental Regulations in Lihue, Hawaii for 2024

General Regulations

  • Zoning Restrictions: Short-term rentals are only allowed in specific zones, such as Visitor Destination Areas (VDAs) and not in single-family residential or agricultural zones.
  • Permit Requirements: All short-term rentals must have a valid permit. For properties outside of VDAs, existing permits must have been obtained before specific deadlines (e.g., before March 2008 for grandfathered non-conforming use certificates).

Specific Requirements for Lihue, Kauai

  • Prohibited Areas: Short-term rentals of less than 180 days are not permitted outside of Visitor Destination Areas (VDAs).
  • Application and Renewal Process:
  • Owners must submit renewal applications via certified mail, return receipt requested, at least 2 months prior to the renewal date.
  • The application must include all required documentation, and incomplete applications will be returned.
  • Documentation: The seller must provide the buyer with a copy of the complete file that originally documented the TVR use, the most recent completed renewal application, and the renewal letter issued by the Planning Department.
  • Cease & Desist and Notice of Forfeiture: Failure to renew permits will result in a Cease & Desist and Notice of Forfeiture. There is no grace period for late renewals.

New Legislation

  • County Authority: Under new legislation (Senate Bill 2919), counties have the power to regulate the time, place, manner, and duration of short-term rentals through zoning ordinances. Counties can also phase out transient accommodation uses in residential or agricultural zoned areas.
  • Minimum Stay in Residential Zones: If rental properties are in residentially zoned neighborhoods, the minimum stay is 6 months.

Compliance and Enforcement

  • Fines for Non-Compliance: Non-compliance with the new regulations can result in fines of $10,000 per day.
  • Inspections and Reporting: Property owners must provide detailed information to the Planning Department, including property details, owner information, and safety equipment details.

Additional Requirements

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

Top Neighborhoods Generating Airbnb Revenue in Lihue, Hawaii

1. Princeville

  • Appeal: Princeville is a master-planned resort community on Kauai's North Shore, known for its luxurious amenities, world-class golf courses, and stunning ocean and mountain views. Guests are drawn to the area's tranquility, proximity to beaches, and access to high-end resorts like The Westin Princeville Ocean Resort Villas and Wyndham Bali Hai.
  • Popular Listings: Include the "Ocean View Golf Course Townhouse" and "The Surfshack~" with breathtaking ocean views, both highly rated for their luxurious appointments and scenic views.

2. Lihue (Kalapaki Beach)

  • Appeal: Located near the heart of Lihue, Kalapaki Beach offers easy access to beaches, restaurants, shopping, and beach activities. Guests appreciate the convenient location, clean and well-maintained condos, and the vibrant atmosphere of the area.
  • Popular Listings: Include the "Perfect location for exploring. Steps to beach!" condo and the "Amazing Views from this Oceanfront Home" which offer stunning ocean and mountain views, and are highly rated for their cleanliness and location.

3. Poipu

  • Appeal: Poipu is a family-friendly area on Kauai's South Shore, known for its temperate waters, local restaurants, and shops. Guests like the affordable accommodations, open and covered parking, and the quiet, friendly environment that allows for complete freedom to explore the island.
  • Popular Listings: Include the "Garden Isle Condo" and "Spacious Poipu Condo 1400 sqft w/Soaring Ceilings", which are praised for their affordability and proximity to local amenities.

4. Kapaa

  • Appeal: Kapaa, on Kauai's Royal Coconut Coast, is appealing due to its oceanfront properties, mountain views, and access to the ocean bike path. Guests enjoy the variety of restaurants, pool and beach access, and the opportunity to hike nearby Sleeping Giant Mountain.
  • Popular Listings: Include the "Ocean front studio condo with pool & beach access" which offers a great location and various amenities like a poolside bar and beach activities.

5. Koloa

  • Appeal: Koloa, another area on Kauai's South Shore, is attractive for its luxury villas, air-conditioned condos, and beachfront properties. Guests appreciate the walking distance to beaches, the availability of resort amenities, and the serene environment.
  • Popular Listings: Include the "Luxury Poipu 4br Villa with AC Walk to the Beach" and "Deluxe Air Conditioned 2 Bedroom Poipu Condo", which are highly rated for their luxury and convenience.

These neighborhoods are highly appealing due to their combination of natural beauty, convenient locations, and a range of amenities that cater to different preferences and needs of guests.

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Design Tips

Furnishing and Design Tips for an Inviting Airbnb in Lihue, Hawaii

1. Choose Timeless and Durable Furniture

  • Invest in high-quality, solid wood furniture for high-touch areas like coffee tables, dining tables, and nightstands. This ensures longevity and can withstand guest use.

2. Reflect Local Aesthetic

  • Incorporate modern coastal aesthetics, Hawaiian-themed decor, or rustic island charm to create a welcoming atmosphere that resonates with the local culture. Use natural materials, bright colors, and locally sourced art to enhance the space.

3. Optimize Lighting

  • Use lighting to create an illusion of spaciousness. Employ different fixtures such as hanging bulbs, table lamps, and spotlights to illuminate each area. Invest in energy-efficient LED bulbs for longevity and eco-friendliness.

4. Select Practical and Easy-to-Clean Materials

  • Use performance fabrics, especially darker hues, for upholstery to hide dirt and stains. Consider outdoor-grade fabric for indoor furniture as it is more durable and easy to clean. Use washable rugs and treat upholstery with products like Vectra for added protection.

5. Enhance Storage and Organization

  • Incorporate smart storage solutions such as beds with drawers, wall hooks, pegboards in the kitchen, and stackable containers. This helps keep the space tidy and provides guests with designated spots for their personal items.

6. Create a Bright and Open Feel

  • Replace outdated elements like beige tile with updated wood flooring, such as high-end LVP flooring, which is budget-friendly and resistant to humidity. Remove upper cabinets and add floating shelves to make the kitchen feel more open and bright.

7. Invest in Quality Bedding and Linens

  • Use high-quality, durable towels in neutral colors that can be bleached. Opt for cozy bedding, such as linen sets, and ensure you have backup sets for your cleaning team. Consistency in linens, such as all-white or a single color scheme, is key.

8. Prioritize Kitchen and Bathroom Essentials

  • Equip the kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Stock up on basic cookware, utensils, and dinnerware. In the bathroom, provide high-quality towels, basic toiletries, and a first-aid kit.

9. Consider Guest Comfort and Practicality

  • Choose a sturdy and comfortable dining table that can withstand stains and spills. Opt for comfy, lightweight chairs that are easy to move around. Ensure the living room furniture is comfortable and inviting for family gatherings.

10. Ensure Accessibility and Safety

  • Make your Airbnb accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms. Install smoke detectors, carbon monoxide detectors, and provide a first aid kit.
Insider Tips

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

Top Attractions in Lihue

Natural Wonders

  • Wailua Falls: An 80-foot cascading waterfall, often featured in publications and a symbol of Kauai's stunning landscape. It's a 13-minute drive from Lihue's center via State Highway 583.
  • Kalapaki Beach: The main beach in Lihue, walkable from many hotels, and a hub for watersports. Ideal for families due to its calm surf and relaxed vibe.

Historical and Cultural Sites

  • Grove Farm Homestead Museum: A meticulously restored plantation village showcasing the history of sugar farming on Kauai. Guided tours are available on Monday, Wednesday, and Thursday.
  • Kauai Museum: Located in the center of Lihue, this museum offers insights into Kauai's history, heritage, and indigenous culture. It also features works by local artists.
  • Alekoko Menehune Fishpond: One of Hawaii’s most important cultural sites, built over 1,000 years ago. It's a great spot to learn about ancient Hawaiian aquaculture.

Plantations and Farms

  • Kilohana Plantation: An old sugar cane plantation now home to various attractions, including the Luau Kalamaku, a vintage train tour, and the Koloa Rum Company. Kids can enjoy the plantation train, while adults can sample local rum.
  • Kīpu Ranch: A 3,000-acre privately-owned cattle ranch offering ATV tours through various ecosystems, including waterfalls and scenic viewpoints.

Insider Tips and Activities

Food and Drink

  • Jammin’ Banana Bakery & Cafe: Known for delicious breakfast options, banana bread, and banana pudding. Located in Anchor Cove Shopping Center.
  • Konohiki Seafood: The best place to grab fresh poke bowls, sushi, and other local dishes. Ideal for a quick, delicious meal before heading out.
  • The Fish Express: Offers island-style and Asian-fusion dishes featuring fresh seafood. Try their fish specials or gourmet bentos.

Unique Experiences

  • Luau Kalamaku: Held at Kilohana Plantation, this luau takes you on a journey through traditional dance, drumming, and fire dancing. Enjoy an open bar and full buffet.
  • Bubbles Below Scuba Tour: For certified divers, explore Kauai’s breathtaking reefs and swim alongside sea turtles or gentle reef sharks.
  • Hulē‘ia River Kayak Tour: Explore the jungle ecosystem and national wildlife refuge via kayak tours, with opportunities to hike and visit waterfalls.

Free Activities

  • Ninini Point Lighthouse: Hike to the lighthouse for panoramic ocean views and spot humpback whales during migration season. Explore the surrounding tide pools.
  • Kapaia Swinging Bridge: A fun stop near Sunrise Coffee & Donuts, this swinging bridge is one of the only ones in Hawaii and offers a glimpse into the area's sugarcane plantation history.

Additional Tips

  • Transportation: Many attractions are within a short drive or walk from Lihue's center. Consider renting equipment for watersports or using taxi/rideshare services for longer trips.
  • Local Culture: Engage with the local culture by visiting museums, attending a luau, or exploring historical sites to get a deeper understanding of Kauai's rich heritage.

By sharing these attractions and insider tips, you can help your guests make the most of their visit to Lihue, Hawaii, and experience the full charm of the Garden Isle.

Practical Tips

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

To ensure the success and smooth operation of a short-term rental business in Lihue, Hawaii, several practical tips can be implemented:

Noise Regulations and Quiet Hours

Inform your guests about noise regulations and quiet hours to maintain a peaceful environment for both the guests and the neighbors. Clearly communicate these rules in your house manual and through pre-arrival messages to avoid any misunderstandings.

Digital and Physical House Manual

Create a comprehensive digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details. This manual should cover everything from appliance usage to emergency contact information, ensuring guests have all the necessary information at their fingertips.

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 of the lock and any other relevant features.

Parking Instructions

Include detailed parking instructions with photos in your house manual. This helps guests understand where to park, how to access parking areas, and any specific rules or restrictions, reducing the likelihood of parking-related issues.

By implementing these strategies, you can enhance the guest experience, reduce potential conflicts, and ensure your short-term rental business in Lihue, Hawaii, runs efficiently and successfully.

Local Vendors

Here is a brief list of house cleaning, repair, and maintenance providers in Lihue, Hawaii:

Ohana House Cleaning

  • Address: 3864 Hoohuki St, Lihue, HI 96766
  • Phone: (808) 481-5340
  • Services: Residential Cleaning, Commercial Cleaning, Carpet Cleaning, Drywall Cleaning, Power Washing, Mold Removal, Window and Gutter Cleaning, Deep Cleaning, Housekeeping, Restaurant Cleaning, Post Construction Cleaning, Apartment Cleaning, Airbnb Cleaning.

Kauai Cleaning Co.

  • Main Office: Lihue, HI 96766
  • Phone: (808) 320-5020
  • Services: Residential Deep Cleaning, Recurring Maid Services, Vacation Rental Cleaning, Airbnb Cleaning, Post Construction Cleanup, Carpet and Upholstery Cleaning, Interior/Exterior Window & Glass Cleaning, Home Renovation Cleaning, and more.

Kauai Cleaning and Maintenance

  • Address: Lihue, HI 96766
  • Phone: Not specified
  • Services: Deep Cleaning, Window Cleaning, Carpet and Upholstery Cleaning, Post Construction Cleaning, Home Renovation Cleaning. Known for thorough and professional service.
Management fees

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

Managing a short-term rental in Lihue, 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 Lihue range from 10% to 30% of the rental revenue. Full-service management companies, which handle all aspects including guest communication, marketing, and maintenance, tend to charge fees on the higher end of this spectrum, often starting at around 20% of the revenue.

In contrast, basic services or DIY management approaches can result in lower fees, but these may not include the comprehensive support offered by full-service providers. Additional costs to consider include cleaning fees, which can be charged separately and may not be included in the management fee calculation, as well as potential fees for repairs, design services, and other consumables. Understanding these fees is crucial for property owners to ensure they are maximizing their rental income while complying with the stringent regulations governing short-term rentals in Kauai.

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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 Lihue should generate as a short term rental and look at the performance of properties around yours.

35,000+ Properties
Hosts stay with RedAwning
1,000,000,00 Nights Booked
RedAwing knows how to get bookings
50+ Top Booking Channels
More than any other platform available

Furnishing checklist

This comprehensive checklist ensures that your rental is guest-ready with all the essentials to create a comfortable and memorable experience in Lihue.

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