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Hawaii Vacation Rental update 2017
Illegal vacation rentals under scrutiny
Many condominium associations are stepping up enforcement of vacation rental laws in 2017.  Recently I spoke with an investor who used to own and operate one such rental.  Illegal rentals are common on Oahu, talk to enough people and you'll find somebody who either owns, manages or maintains an illegal rental.
In 2014 Makaha Beach Cabanas, once a haven for illegal rentals, announced the association wouldn't allow them going into 2015.  That resulted in a selloff of condos at the building, both good and bad depending on who you are.  For investors, it was bad because they lost their cash cows.  For persons intending to owner occupy or to use their units as second homes, it freed up inventory and made it easier for them to buy.
Makaha Beach Cabanas' resident manager and its board members are actively monitoring guest activity and penalizing owners who violate the house rules.  I spoke with a resident who told me the unit next door to her is a short term rental.  She said the owners are making a good profit and they are willing to pay the occasional penalty when they get caught.
Developments at Makaha Valley Towers in 2017
A letter dated June 30, ... more

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