New law turns legal short term rental owners into illegal operators

By Paul Drewes

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    HONOLULU (KITV) — An ordinance which took effect Monday turned some of Oahu’s legal short term vacation rental owners, into illegal operators.

A number of those owners ask for more time to meet new requirements, but the city says all of them should have been prepared.

The clock is ticking for owners of Oahu’s legal short term vacation rentals.

“We are expecting it will take a week or two to gather all the information from every unit,” said Nicole Gross, a property manager at Novation Realty.

The problem is that information was required by the city on Monday, the same day a new short term rental ordinance went into effect.

“A deadline and a timeline would be wonderful. Not just this starts today, here it is, turn it in. You are going to need all of this or you are going to get fined.”

Gross is a property manager for dozens of legal short term rentals, and has been busy fielding calls from owners.

“They are very concerned and there is also confusion.”

Confusion because different documents by the city may request different things.

The city even set up a hotline to answer questions about the more than a dozen required items needed to continue to operate,

but every time KITV 4 Island News called, this is what we heard, “Sorry, DPP short term rental hotline is not available, record your message at the tone.”

What was frustating to some, is several of the items the city requires, is information already being given out.

“They are asking for tax numbers, which we are required to publish on every listing. We have to provide links for all the website platforms, they are already public with registration numbers on them. So it seems like the city is asking us to gather information they already have.”

In fact, owners have to go online to prove they can operate as a short term rental, but only those in zones which allow short term rentals can complete the application process.

“Only mixed-use resort buildings can apply. So if you are illegally operating, you can’t even apply because your application will get kicked back. Only legal operating owners can apply.”

The city now requires items including a million dollar insurance policy, detailed parking plans with illustrations drawn to scale and a binder with condominium documents and house rules – in order to register and get a certificate to operate legally.

Owners who operate without the it, face a $10,000 fine and a fine of $10,000 each day the violation continues – if they are caught.

While some are surprised about the seemingly sudden requirements, the Department of Planning and Permitting Acting Director said they should NOT be new to applicants. In a written statement Dawn Takeuchi Apuna stated, ” The title, condo and all other documents that are required for registration were listed in Ordinance 22-7 when it was passed six months ago.”

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