Overview: Are Short-Term Rentals Allowed in Kailua?

Short-term rentals are strictly limited in Kailua, Hawaii. Kailua operates under the City and County of Honolulu's short-term rental regulations, which permit STRs only in resort-zoned areas and a few specific apartment-zoned locations. Outside these designated zones, short-term rentals (rentals under 30 consecutive days) are prohibited, with very limited exceptions for grandfathered properties operating prior to October 22, 1986.

The legal framework is enforced by the Honolulu Department of Planning and Permitting (DPP), and while recent legislative changes have created some enforcement confusion regarding 30-day vs. 90-day minimums, the practical reality is that non-resort zoned areas, including most of Kailua, do not permit new short-term rental operations.

How to Start a Short-Term Rental Business in Kailua

Starting a legal STR business in Kailua requires careful navigation of restrictive zoning laws and a multi-step compliance process:

1. Zoning Verification

• First and most critical step: Confirm your property is in an eligible zone using Honolulu's STR Eligibility Map
• Kailua properties outside resort zones are generally ineligible for new STR permits
• Only properties in designated resort areas or those with grandfathered NUC status can legally operate

2. Pre-Application Requirements

• Obtain Hawaii State Tax Licenses (TAT and GET)
• Secure $1 million minimum liability insurance
• Designate an on-island licensed agent if you're an off-island owner (required by HRS §521-43(f))
• Verify HOA/condo association rules allow STR operations

3. Registration Process

• Apply through the HNL Build online portal
• Submit complete application with all required documentation
• Pay $1,000 initial registration fee
• Await approval and license issuance

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

• Transient Accommodations Tax (TAT) License: $5 for 1-5 units, $15 for 6+ units
• General Excise Tax (GET) License: $15 fee
• Federal EIN and tax identification

City and County Requirements

• STR Registration Certificate: $1,000 initial fee, $500 annual renewal
• Title Report: Current property ownership documentation
• Insurance Certificate: Minimum $1 million commercial general liability coverage
• Real Property Tax Home Exemption (for B&Bs only)
• Association Authorization: Written proof STRs are permitted by property association

Required Documentation

• Informational Binder containing:
  • Floor plan identifying transient occupant bedrooms and maximum occupancy per room
  • Location of all fire exits
  • Parking plan
  • Trash collection and disposal instructions
  • House rules copy
  • Emergency contact list
• Statement of Compliance: Signed certification of adherence to all regulations
• Site Plan: Property boundaries, structures, setbacks, easements
• Final Approvals: From Building Division for any modifications

Application Materials

• Property address and TMK number
• Owner and operator contact information
• "Reachable person" contact (24/7 response capability)
• Property ownership verification
• Building final approvals

Specific Regulations for Short-Term Rentals

Permitted STR Types

1. Bed and Breakfast Homes (B&Bs)

   • Owner or permanent resident must be present during all stays
   • Maximum 2 rooms rented
   • Maximum 2 adult transient occupants per room
   • Must maintain real property tax home exemption

2. Transient Vacation Units (TVUs)

   • Unhosted/whole home rentals
   • Maximum 2 adult transient occupants per room
   • No resident on-site requirement

Zoning Restrictions

• Resort Zones Only: STRs permitted primarily in designated resort areas (Waikiki, Ko Olina, Turtle Bay, Makaha)
• Apartment Zones: Limited specific apartment-zoned areas with STR approval
• Residential Areas: Generally prohibited except for grandfathered NUC properties

Occupancy and Operational Limits

• Maximum occupancy based on bedroom count and fire safety requirements
• Two adult occupants maximum per room
• No events or parties exceeding posted occupancy limits
• Compliance with all fire safety and building codes

Grandfathered Properties (NUC)

• Nonconforming Use Certificates (NUC): For properties operating prior to October 22, 1986
• Annual Renewal Required: September 1 - October 15 each year
• No New NUCs: New properties cannot obtain NUC status
• Automatic Loss: Failure to renew by October 15 results in NUC cancellation

Recent Legal Developments

• Senate Bill 2919 (2024): Grants counties enhanced authority to regulate STRs
• Enforcement Status: Current 30-day minimum enforcement continues despite some ordinance changes
• Federal Injunction: Protects pre-existing STR operations from retroactive enforcement

Contact Information for Local Authority

Honolulu Department of Planning and Permitting

• Address: 650 South King Street, 7th Floor, Honolulu, Hawaii 96813
• Phone: (808) 768-8000
• Fax: (808) 768-6743
• Website: https://www.honolulu.gov/dpp/permitting/str/
• HNL Build Portal: https://honolulu.my.site.com/s/

Key Staff Contacts:

• Dawn Takeuchi Apuna, Director (Po'o)
• Bryan Gallagher, Deputy Director (Hope Po'o)
• Regina Malepeai, 2nd Deputy Director (Hope Po'o Kualua)

Office Hours: Monday-Friday, 7:45 AM - 4:30 PM

Email: Contact through official DPP website contact forms

Links to Source Pages

Primary Government Sources

• Honolulu DPP STR Homepage
• STR Eligibility Map
• STR Compliance Map
• Land Use Ordinance (PDF)
• Ordinance 22-7 (PDF)
• Ordinance 24-14 (PDF)

Required Forms and Guides

• STR Disclosure Form (PDF)
• Informational Guide for Registration (PDF)
• Statement of Compliance (PDF)
• How to Register Guide (PDF)

Additional Resources

• HNL Build Portal
• STR FAQ Page
• Request for Investigation

Important Disclaimer: The legal landscape for short-term rentals in Kailua and across Oahu remains complex and evolving. Given the extremely restrictive zoning requirements and recent legislative changes, most residential properties in Kailua are not eligible for short-term rental operations. Investors and property owners should consult with local real estate attorneys and the Honolulu Department of Planning and Permitting before proceeding with any STR-related investments or operations.

Enforcement Note: The Department of Planning and Permitting continues to enforce STR regulations as "less than 30 consecutive days across the board," with active citations and penalties for illegal operations ranging from $1,000 to $10,000 per day.