RESIDENTIAL SHORT TERM RENTAL

(Less than 30 Day Periods)

What is a residential short-term rental?

These are properties that are not physically in a short-term rental zone but have a “Non-Conforming Use Certificate” (NUC) that allows them to rent it for shorter than 30 days.

These properties look more like a residential condo, rather than a hotel. Each building has a different set of rules within their property, so be sure to clarify any policies before purchasing.

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Buildings with Non Conforming Use Certificates

Only a limited amount of units in these buildings will have an NUC. Waikiki Banyan, Waikiki Sunset, and Island Colony are an exception where every unit can be rented out short-term. (More terms apply for the Island Colony Rental Program).

    • WAIKIKI MARINA TOWER

    • ALOHA TOWERS

    • FOUR PADDLE

    • ROYAL KUHIO

    • FAIRWAY VILLA

    • ISLAND COLONY

    • 444 NAHUA

    • MONTE VISTA

    • WAIKIKI BANYAN

    • WAIKIKI SUNSET

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PROS AND CONS

PROS:

  • Maximize Rental Income

  • Ability to self-manage (Depends on building rules)

  • Typically lower HOA

  • Typically comes with parking

  • Easier to find financing

  • Typically rooms have a full kitchen

CONS:

  • Higher pricing

  • Rental Taxes

  • NUC Renewal Fees

  • Property Management quality can differ based on the company

  • High cleaning fees (Due to not having an in-house staff)

Taxes on Hawaii rentals

  • This tax applies for any business activity in Hawaii. It works as not only our sales tax, but for anything requiring a transaction. Depending on your revenue, your filing frequency will vary. It is best to consult with a licensed CPA for any tax matters.

  • The State of Hawai’i defines “transient” accommodation as:

    “A transient accommodation is a room, apartment, house, condominium, beach house, hotel room, suite, or similar living accommodation rented to a transient person for less than 180 consecutive days.”

    It is best to consult with a licensed CPA for any tax matters.

  • OTAT is in addition to the TAT. Taxpayers who are registered with the State and have a valid State TAT number will already be registered for OTAT.