Are Vacation Rentals Legal in Maui?

By Michael Ferguson

If you’re planning a trip to the beautiful island of Maui and are considering vacation rentals, it’s important to know the legalities surrounding them. While vacation rentals can offer a unique and often more affordable experience compared to traditional hotels, there are specific regulations that must be followed in order to ensure compliance with local laws.

What are vacation rentals

Vacation rentals are typically privately-owned properties that are rented out to tourists for short-term stays. These can include houses, apartments, or condos and can often provide more space and amenities than a standard hotel room.

Maui’s regulations on vacation rentals

In 2019, Maui County passed new regulations regarding vacation rentals in an effort to crack down on illegal operations and preserve the island’s residential neighborhoods. The new law requires all vacation rental operators to obtain permits from the county and restricts the number of short-term rental homes in certain areas.

  • Permits: All vacation rental operators must obtain a permit from the county in order to legally operate. This includes obtaining a Transient Accommodations Tax (TAT) certificate from the state of Hawaii.
  • Location restrictions: In some areas of Maui, there are specific restrictions on short-term rental homes. For example, in certain residential zones, only one short-term rental home is allowed per 10 acres.
  • Property management: Vacation rental operators must also have a designated property manager who is available at all times to respond to any issues or complaints from guests or neighbors.

The consequences of operating an illegal vacation rental

Operating an unpermitted short-term rental on Maui can result in significant fines and penalties. Violators can be fined up to $20,000 per day for each violation and may also be required to pay back taxes on any income earned from the rental.

Additionally, operating an illegal vacation rental can have negative impacts on the surrounding community. Noise complaints, increased traffic, and overcrowding can all lead to strained relationships with neighbors and damage the island’s reputation as a peaceful and respectful destination.

Conclusion

While vacation rentals can offer a unique and enjoyable experience for visitors to Maui, it’s important to ensure that all necessary permits and regulations are followed in order to comply with local laws. By doing so, you can help preserve the beauty of the island and ensure a positive experience for both visitors and residents alike.