Hawaii's Tvu Law: Does It Reach Neighboring Islands?

does tvu law apply to neighbor islands

The Transient Vacation Unit (TVU) law applies only to Oʻahu. Each of the other Hawaiian islands, known as the 'Neighbour Islands', have their own approaches to how they manage vacation rentals.

Characteristics Values
Does TVU law apply to neighbor islands? Only to Oʻahu. Each of the Neighbor Island counties has its own approach to how they manage vacation rentals.

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What is a TVU?

A TVU, or Transient Vacation Unit, is a whole-home rental, where the homeowner is not present. In Oʻahu, TVUs are limited to a maximum of two adult occupants per room.

In 2019, a new law was passed on Oʻahu, requiring TVU bookings in residential areas to be at least 90 days. This was to address the thousands of vacation rentals that were operating outside of designated resort areas. The new law, Ordinance 19-18, also known as Bill 89, was passed by the Honolulu City Council and signed by Mayor Rick Blangiardi.

The new law has increased the minimum stay for short-term rentals, such as Airbnb or Vrbo, in non-resort areas from 30 to 90 days. This change aims to protect residential neighbourhoods and manage tourism on the island.

It is important to note that this law only applies to Oʻahu, and the other Neighbour Island counties have their own approaches to managing vacation rentals.

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What is a B&B?

A B&B, or bed and breakfast, is a small lodging establishment that offers overnight accommodation and breakfast. B&Bs are typically housed in a large family home with a limited number of rooms, and the hosts often live in the house. They are regulated small inns subject to state or local lodging laws.

In the US, a B&B is a small hotel with a few extra perks and personal touches. The host is directly involved in almost every aspect of the guest’s stay, from asking for their preferences to serving them breakfast. B&Bs offer hospitality services on a personal level, allowing hosts to establish a stronger connection with their guests. For example, a host can make necessary preparations to accommodate a guest’s dietary restrictions, room preferences, or physical limitations.

In the UK, B&Bs can be townhouses, farmhouses, or country houses. There are about 3,000 B&Bs spread throughout the country, 750 of which are certified for meeting quality standards.

In China, expatriates have remodelled traditional structures in quiet picturesque rural areas and opened rustic boutique hotels with minimum amenities. Most patrons are foreign tourists, but they are growing in popularity among Chinese domestic tourists.

In India, the government is promoting the concept of B&Bs to increase tourism, especially keeping in view the demand for hotels during the 2010 Commonwealth Games in Delhi. They have classified B&Bs into two categories: Gold B&Bs, and Silver B&Bs. All B&Bs must be approved by the Ministry of Tourism, which will then categorise them as Gold or Silver based on a list of predefined criteria.

In Ireland, the Israeli equivalent of a B&B is known as a zimmer, which is German for 'room'. In the last decade, bed and breakfasts have also emerged in southern Israel's Negev region.

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What is a short-term rental?

A short-term rental, or STR, is a furnished self-contained apartment or house that is rented for a short period of time, typically less than a month (30 days). They are often seen as an alternative to hotels and are usually listed on online platforms such as Airbnb, Vrbo, and HomeAway.

There are two main types of short-term rentals: transient vacation units (TVUs) and bed and breakfast homes (B&Bs). A TVU is a whole-home rental, with a maximum of two adult occupants per room. A B&B is a rental where the homeowner or permanent resident rents out rooms in their house, with a maximum of two rooms and two adults per room, and the owner must be living there.

Short-term rentals can be further categorised as either owner-occupied dwellings or non-owner-occupied dwellings. An owner-occupied dwelling is when the owner designates the property as their homestead for 51% of the time or more. A non-owner-occupied dwelling is when the owner spends most of their time at the property but occasionally rents out the whole home for a few days or weeks, or if an absentee owner rents out the property for short stays.

The definition of a short-term rental can vary between jurisdictions, with some areas differentiating between single-family and multi-family homes, and others making a distinction between properties located in residential areas and those in commercial or multi-use areas.

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What is a non-conforming use certificate?

A non-conforming use certificate (NUC) is a certificate that was previously given to existing transient vacation units (TVUs) and bed and breakfast homes (B&Bs) in the 1990s. These certificates allowed short-term rentals to continue operating despite not meeting the requirements of new zoning laws. However, these certificates are no longer issued.

In the context of Oahu's short-term rental regulations, a non-conforming use certificate is critical. Oahu's zoning laws, defined by the Land Use Ordinance (LUO), typically require a minimum rental period of 30 consecutive days for residential dwellings outside of 'resort/resort mixed-use districts'. However, properties with a non-conforming use certificate are exempt from this rule and can offer short-term rentals of less than 30 days.

It is important to note that Oahu's new short-term rental regulation, Bill 89, became law as Ordinance 19-18 in 2019, has tightened the rules. While advertising an illegal short-term rental was previously not an issue, it now triggers stiff fines. Additionally, only a limited number of owner-occupied, hosted B&Bs will be permitted outside of resort zones, and these will be subject to strict application and approval processes, as well as annual renewal fees.

While the focus of this discussion has been on Oahu, it is worth noting that the Neighbor Island counties have their own approaches to managing vacation rentals.

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What is a resort-zoned area?

A resort-zoned area is a specific geographical region that is deemed by the city to be far enough away from residential neighbourhoods and already have the infrastructure to accommodate an influx of visitors. These areas are typically located near beaches, spas, or other vacation spots.

In the context of Oahu, Hawaii, a resort-zoned area refers to places like Waikīkī, Ko ʻOlina, Mākaha, and areas surrounding Turtle Bay Resort on the North Shore. Short-term rentals in these areas, such as transient vacation units (TVUs) and bed and breakfast homes (B&Bs), are exempt from minimum-stay requirements.

Zoning laws, enacted by local governments or municipalities, dictate acceptable methods of land use within these designated zones. While residential zones may have regulations regarding the types of dwellings and the number of animals allowed, commercial zones may restrict the types of businesses operating within the area and regulate aspects such as parking availability and building height.

It is important to note that the zoning laws for short-term rentals in Oahu specifically refer to areas outside of the 'resort/resort mixed-use district'. These regulations aim to protect the integrity of residential communities and ensure that tourism is managed effectively.

Frequently asked questions

A TVU is a whole-home rental. Oʻahu allows a maximum of two adult occupants per room.

A B&B is a rental where the homeowner or permanent resident rents out rooms in the house. Only up to two rooms may be rented, with a maximum of two adults per room, and the owner or permanent resident must be living there.

These are areas deemed by the city to be far enough away from residential neighbourhoods and already have the infrastructure for an influx of visitors. Examples include Waikīkī, Ko ʻOlina, Mākaha and areas surrounding Turtle Bay Resort on the North Shore. Short-term rentals in these areas don't have any minimum-stay requirements.

No, this law—Ordinance 22-7—applies only to Oʻahu. Each of the neighbour islands has its own approach to how they manage vacation rentals.

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