The Future of Short Term Rentals (STRs) and Disclosures

Short term rentals (STRs), also known as vacation rentals, have long been a topic of debate in Hawaii. Many argue that the proliferation of STRs have so drastically impacted home values and rental prices, that local families can no longer afford the cost of housing. Others have argued that the hotels are simply vying for a monopoly on transient accommodations. Then of course there are the local homeowners that have relied on STR income from their Ohana or Ancillary Dwelling Units (ADUs) to support their way of life for decades.

This brings us to legislation. The passage of Bill 89 in 2019, which, in brief, made even the advertising of a rental outside the resort zone for a term of less than 30 days punishable by hefty fines, along with many other implications. Bill 41, in early 2022 and going into effect on October 23, 2022, restricts rental bookings lasting fewer than 90 days, unless the owner has a Non-Conforming Use Certificate (NUC). Furthermore, the bill requires that any transient occupants park on-site, and not on public streets in the vicinity of the STR.

Changes to the STR laws have investment property owners calculating if they should sell or if renting long-term is a viable option for them. As a full service brokerage with extensive long-term property management experience across O’ahu, Hawaii Sands Realty can assist these property owners by providing a detailed and fact-based analysis. Short term cash-flow vs long-term appreciation should be carefully considered by investment property owners. 

For more information on Short Term rentals, and for resources on navigating this complicated issue, visit the City & County of Honolulu’s website at

The following links lead to maps depicting the specific zoned areas as designated by Ordinance 19-18 (Bill 89)

You may also find a list of approved STRs by area HERE.