As a resident of Lanikai for more than 20 years, and having had both long- and short-term rentals, I’d like to share my opinion on my experience and that of many in any area hosting short-term rentals.
Two of the biggest problems we face as residents are parking and late-night noise. Also, the state in many cases will not see a penny in taxes.
If owners wish to accommodate visitors from around the world and give them an experience above what a legal hotel can offer, then at the very least they would need to be present and reside on said property. This can eliminate any unwanted noise past the 10 p.m. noise ordinance and any other infractions vacationers are oblivious to.
Secondly, the property must have enough room for the guests to park on the property, which would eliminate or minimize overcrowded parking on the already parking disaster we experience on the narrow streets. Emergency vehicles are subject to stopped traffic — this being the current situation in some areas. Seconds can make the difference between life or death.
I believe having a task force to monitor bookings and hold landlords accountable for paying their taxes will also allow funds to enforce all the above and not pull much-needed money from other necessary funds.
Being that many homeowners depend on the cash from short-term rentals and now will have to convert to long-term ones, this will have a huge effect on the housing market and rental market.
There will be a competitive market for long-term rentals, as home owners without permits will be forced to do what the market allows. And now with the new city law, long-term rentals will be flooding the market, and in effect, make renting long-term less expensive. This income for many would lower their monthly take by up to nearly 80% — for example: $300 a night for a short-term rental for 30 days (one- to two-bedroom) would total $9,000, while on Craigslist, the same is going for $2,000 to $3,000 per month.
I also expect that we will see the median price for a home on Oahu to drop significantly due to these changes based on the new short-term rental law. Some 6,000 to 10,000 unregistered vacation homes having to now stop or convert to long-term rentals can have a huge effect on the current market.
In short, on-site management, ample parking on the property and tax control with the help of the listing sites should have a very positive effect on the current transient vacation rental situation. It’s all in the making; the city and state just need to enforce what they say they are going to do.
Donald Quinn, a Lanikai resident, has worked mostly in sales.
