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No more rentals on Maui north shore?
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Joined: 28 Mar 1999
Posts: 32

PostPosted: Fri Aug 17, 2007 9:04 am    Post subject: don't see the issue Reply with quote

I don't see the issue here. If someone is making money, then that's called a viable business and businesses must pay some kind of business tax and/or fee. Even Uncle Sam treats it that way at tax time, i.e. more taxes on rentals. The complaint I see is that people illegally operating "a business" want to continue illegally operate them. If they have made the investment then paying a fee/tax should not be an issue if rental and making money, i.e. paying the mortgage, is the goal. Maui has nearly tripled in market value over the last 7-8 years. The complaint to pay a legitimate fee/tax from the very beginning is questionable, at best.

But to many other points made here, the drive from Kihei is barely 20-30 minutes depending on traffic and north/south location. Hardly a problem. At night, anything you can see in the sky on the north shore you can basically see from the south side. It's just something of preference. Each side has advantages/disadvantages. Having said that, Kihei has had just as good and maybe even better/steadier winds over the past month. Winds this year have been very, very northerly which makes for much more difficult sailing on the north shore. By contrast, these northerly winds have translated in to really, really great sailing at Kihei. Plus, Kihei has barely a handful of sailors at any point in time.


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Joined: 10 Sep 2000
Posts: 2550

PostPosted: Fri Aug 17, 2007 11:32 am    Post subject: Reply with quote

From what I read, I don't think the owners are trying to avoid a rental permit or paying tax. The complaint is the law won't let them get a permit unless they live in the house. So you have people who bought homes on the north shore as investments or planed retirement homes and they were using the rental income to pay the loans. Now the government is enforcing a law that has been on the books but not enforced so the owners will be forced to sell the homes if they can't rent them.

So here is the issue. I buy a house and plan on renting it out. Nobody, including the government tell me there is a law prohibiting my property from being rented so I buy the house and rent it. Ten years later the government decides they are going to enforce the law and I can no longer rent the house.

It is a sad issue and nobody knows how many people it is going to hurt.

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Joined: 10 Jul 2005
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PostPosted: Fri Aug 17, 2007 2:52 pm    Post subject: Reply with quote

Worth noting that you can still rent your house but can not operate as a short term hotel in most zonings.
Maui is full of illegal non tourist rentals, mostly several cottages on a property not zoned for that. It is the ones operating in the open as hotels that are catching the heat right now. Most pay no income tax and a few even have the balls to charge the mandated goverment tax and then pocket that, too. Starting to see why the County is annoyed at us?
Through the years I have stayed in about 15 vacation rentals. I would be surprised if any of the ohanas (Guest houses) didn't know they were operating without a permit. There was a big bust four years ago when most who advertised on the web got letters.
The owner-don't- live- there tourist hotel rentals were the most likely to get out of control and helped spark this problem. They are taking the most heat as a result.
This is a an advertising problem. If you wrote down the contact info with the owners you are likely to find they will still rent to you. Mostly the agencies are halting biz. The owners who aren't making a big point of giving up in public are mostly just renting in private like they did before the web and the agencies made it a big- though illegal- biz.
Many folks decided to buy a overpriced house and convert to an no permit hotel with as many as 10 units. Some made good money but they knew that all illegal businesses conducted in public have a last day.
I know a guy with 27 mostly unpermitted units who has never been on the web or with agencies because he knows how to weather a storm. He doesn't get letters and has no complaints with gov.
This is not a Maui -only problem. I have stayed in unpermitted rentals all over the world but they kept their heads down. You have to know how to run an illegal business if you want to succeed at it over the long term
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