On this important Hawaii Vacation Connection Podcast, Aloha Bruce and Emmy Award winner Lanai Tabura go deep into the impact that a new law regulating vacation rental properties through AirBnB, VRBO and others is having within the visitor and residential housing industry on Oahu. With their expert local knowledge, our hosts break down the new law and what Aloha Bruce calls the Oahu Vacation Rental Crises.

Bruce begins the podcast with a story about a woman who called him about a cancelled AirBnB reservation due to the new law. She had been planning her Hawaii family vacation for many months, having purchased airline tickets and other incidentals for ten people one year before her planned arrival date. The loss of accommodations created considerable difficulties (of course, Bruce was able to help).

Our hosts note that two main reasons for the new law and its enforcement were the huge amount of unreported income generated by short-term vacation rentals (and loss of tax revenue for the City), and the impact of short-term rental properties on the shrinking availability and soaring costs of rental units for Oahu residents. Lanai discusses the vast difference in income between a short-term vacation rental and a residential rental property.

Essentially, the new law means that vacation rentals under 30 days must be licensed/permitted and must be within designated resort areas like Waikiki and Ko Olina. This eliminates a massive part of the inventory of vacation rentals available to Oahu visitors. Property owners who are found in violation of the new law (through electronic “sting” operations) face fines up to $10,000.

Aloha Bruce notes that Hawaii Aloha Travel owns and maintains deluxe vacation rental condos in Waikiki at the Luana that are unaffected by the new law. Bruce says that HAT can help visitors finding themselves with cancelled find the best alternatives.

Among the properties mentioned as being legal and available on Oahu include The Waikiki Shores and others along Ala Moana Boulevard. Large vacation groups are likely to have the most difficulty finding suitable accommodation alternatives if a short-term vacation rental has been cancelled.

Bruce and Lanai offer their tips on how to determine whether a vacation rental is licensed and legal. Our hosts talk about the shrinking availability of short-term vacation rentals for Oahu visitors. Hawaii Aloha Travel has the resources and local knowledge to help any Hawaii visitors feeling the impact of the vacation rental crisis.