With the B&B and STRH ordinances now law, many homeowners have questions. We will try to answer some of them in this section.
I read that it’s OK to have a B&B on the property that I live on. Can I start operating?
No! The B&B ordinance allows property owners in most zoning areas to be able to apply for a B&B permit that will allow them to be in compliance with local zoning regulations, but before operating, one must first obtain a permit. The process of obtaining a permit, while more streamlined than before, is still a complicated multi-step process that will take several months to complete. MVRA will be working with our members to help guide them through this process most efficiently.
I own my property and live in the ohana and would like to rent out the main house to visitors. Can I get a B&B permit for this use?
If your property is located in residential, urban, rural or Ag zoning, you may be eligible to obtain a B&B permit for this type of use. The B&B ordinance allows you to live in one dwelling on your property and rent out rooms on the property to visitors.
I would like to get a B&B permit, but I heard that my property taxes would go up. Is this true?
The B&B ordinance calls for the loss of your home-owner exemption of $200,000 and home owner tax rate ($2.86/$1000) upon the issuance of a permit. This means that if you have been receiving a home-owner exemption, your property taxes will go up. How much they go up is determined each year at budget time. MVRA is working on behalf of our members to ensure that the designated tax rate each year is fair.
This additional taxation will become a component that you consider when setting your rental rate. For example should your taxes go up by $2400/year and you rent 2 rooms, then you would have to raise your room rates by $5/night to make up this difference (assuming that you have about 65% occupancy).
I have a property that I live in part of the year and would like to rent out to visitors when I am not in Maui. Can I get a B&B permit to do this?
No! If you do not live on the property full time (as your primary residence), you are not eligible for a B&B permit. Renting an entire house for a term of less than 6 months without the owner living on the property is requires a STRH permit. As with the B&B permit, you cannot begin to operate until the permit is issued.
Why should I join MVRA, what can the organization do for me?
MVRA is recognized by the industry, the press, and the County as the primary organization that represents the vacation rental industry. As a result we have an established voice in what happens to our industry. The more participation that the organization has both through a strong membership base and through the volunteer efforts of the members, the more we can get accomplished for the industry.
When did the B&B Ordinance pass in Maui?
In 2008 we were pleased to have participated in the passage of a meaningful B&B ordinance that should allow most people living on their property the opportunity to obtain a B&B permit. Without MVRA’s participation in this process, there would not have been a new ordinance or the one that would have been passed would have continued the highly restrictive nature that excluded most operations from compliance.
When did the STRH Ordinance pass in Maui?
In 2011 MVRA focused our efforts on achieving the same kind of ordinance for STRH (short term rental home) properties, to allow the legitimate existence of STRHs outside of the hotel district. The ordinance was passed in 2012, allowing legal STRH homes with restrictions to protect surrounding neighborhoods. These homes are blending into their neighborhoods with no disruption to the surrounding area.
As we go forward the goals of MVRA are to continue to protect the industry and to provide information and services that will benefit our members. Without the broad based support of those in the industry, we risk the possibility that there will be no industry.
Please support our efforts to keep legislation and taxation of short term rental properties fair. Join MVRA today. If you are already a member please ask us how you can help with your time and efforts in this ongoing process.