Utah company, Response LLC, is stirring controversy in Oahu Hawaii. The company offers seminars teaching people how to profit from buying second properties and short-term renting them on Airbnb. Residents fear the seminars will spur an increase in properties being used solely as vacation rental resulting in a shortage of affordable housing for residents.

Oahu’s regulations for short-term rental are set by the City and County of Honolulu. While there exists a requirement for owners to obtain a short-term rental permit, there are no current restrictions limiting the use of primary or second homes for short-term stays. These means investors on the island are free to purchase properties and rental them year-round through Airbnb or any other vacation rental website.

Honolulu Short-term Rental Licensing Requirements (source: Airbnb)
Owners and operators of listings are required by state law to report certain information about their listing and obtain a Certificate of Registration from the Hawaii Department of Taxation. The law also requires hosts to post the tax ID on their listing. You may include your short-term rental permit number on your listing by going to Manage Listing > Calendar and More > Detailed Description. In the “Other Things to Note” field, type in your permit number following the acceptable permit format for Hawaii. The format is: Wxxxxxxxx-xx. An example would be: W12345678-01

Airbnb rentals, such as this one in Kaneohe, Oahu, are very popular for visiting travelers.

While the seminars from Response LLC are perfectly legal, the anti-Airbnb group, Friends Against Illegal Rentals, will likely force the City and County of Honolulu into discussing new regulations limiting the use of second homes for short-term rentals.   Read more….