Overview: Are Short-Term Rentals Allowed in Naalehu, HI?

Yes, short-term rentals are allowed in Naalehu, HI, but they are subject to Hawaii County regulations. Naalehu, located in the Ka'u district on the Big Island, falls under the County of Hawaii's short-term vacation rental (STVR) framework established by Ordinance 2018-114. This means that while Naalehu itself does not have city-specific regulations, short-term rental operators must comply with county-wide requirements that govern where STVRs can operate, what permits are needed, and ongoing compliance obligations.

It's important to understand that Naalehu is in a rural, southern location on the island, and the permitted zoning districts for STVRs are limited. Property owners must verify their zoning before investing in or operating a short-term rental in this area.

How to Start a Short-Term Rental Business in Naalehu, HI

Starting a short-term rental business in Naalehu requires following a structured process that begins with property due diligence and continues through permit acquisition, tax registration, and ongoing compliance management.

Initial Planning and Zoning Verification

Before purchasing or converting any property in Naalehu for short-term rental use, conduct thorough zoning verification. Contact the Hawaii County Planning Department to confirm whether your specific property is located in a permitted zoning district. The permitted zones for STVRs include:

• V (Visitor) districts
• CG (General Commercial) districts
• CV (Village Commercial) districts
• Residential and commercial zoning districts situated in the General Plan Resort and Resort Node areas
• RM (Multi-Family Residential) district for multifamily dwellings with a condominium property regime

If your property is not in a permitted zone but was operating as an STVR before April 1, 2019, you may be eligible for a Nonconforming Use Certificate (NUC), which would allow continued operation.

Business Entity and Tax Registration

Establish your business entity and register for required state tax licenses:

1. Register for a Federal EIN (Employer Identification Number) with the IRS
2. Apply for a Hawaii Transient Accommodations Tax (TAT) license ($5 for 1-5 units, $15 for 6+ units)
3. Register for a Hawaii General Excise Tax (GET) license ($15 fee)
4. Obtain any required state or county business registrations

Property Preparation and Safety Compliance

Prepare your property to meet safety and habitability standards:

• Ensure the property meets all building, fire, and safety codes
• Install required safety equipment (smoke detectors, fire extinguishers, etc.)
• Verify adequate parking for guests
• Prepare comprehensive house rules and emergency procedures
• Consider hosting orientation or training for local property management

Application and Permit Process

Submit complete applications to the Hawaii County Planning Department, including all required documents, fees, and supporting materials. Monitor application status and respond promptly to any requests for additional information or modifications.

Required Documents, Permits, Licenses, and Guidelines

Primary Permits and Licenses

Short-Term Vacation Rental Registration (STVR)

• Required for all new STVR operations in permitted zoning districts
• Registration fee: $500 (non-refundable)
• Registration is not transferable and does not expire annually
• Must be renewed only if property changes ownership, the "reachable person" changes, or property modifications occur

Nonconforming Use Certificate (NUC)

• Required for properties operating as STVRs before April 1, 2019, that are located outside permitted zoning districts
• First-time application fee: $500
• Annual renewal fee: $250
• Must be renewed every year to maintain legal operation

State Tax Licenses

• Transient Accommodations Tax (TAT) license
• General Excise Tax (GET) license

Required Documentation Package

Property and Ownership Information:

• STVR property address
• Tax Map Key (TMK) number
• Proof of property ownership (title report or deed)
• Owner's name, address, phone number, and email
• Property manager or "reachable person" contact information

Required Plans and Drawings:

• Detailed site plan showing property boundaries, dimensions, setbacks, easements, and location of all structures
• Floor plan identifying the location and use of all rooms, maximum occupancy per bedroom, and fire exits
• Designated parking plan
• Emergency contact and procedure documentation

Compliance Documentation:

• Final approvals from Building Division
• State TAT and GET license copies
• Statement of Compliance with all applicable regulations
• Insurance documentation showing minimum $1,000,000 liability coverage
• Proof that property is permitted by applicable homeowners associations or condominium associations

Application Forms:

• Completed STVR Registration Application Packet
• Completed Statement of Compliance
• For NUC properties: Annual NUC renewal forms
• For property changes: Change of Information Application Form

Specific Regulations for Short-Term Rentals in Naalehu, HI

County-Level Regulations (Hawaii County Ordinance 2018-114)

Definition and Scope: STVRs in Hawaii County are defined as dwelling units with no more than five bedrooms for rent, rented for periods of less than 30 consecutive days, where the owner or operator does not reside on the building site. This definition applies to all areas of the county, including Naalehu.

Zoning Restrictions: STVRs are prohibited in single-family residential (RS) and agricultural (A) zoning districts. Properties in these districts that were operating as STVRs before April 1, 2019, may qualify for a Nonconforming Use Certificate to continue operation.

Operational Standards:

• Maximum of five bedrooms for rent per property
• Minimum stay period of less than 30 consecutive days
• Owner or operator must not reside on-site
• Must comply with all applicable building, health, and safety codes
• Required to maintain general liability insurance of at least $1,000,000
• Must comply with all applicable homeowners association or condominium association rules

Nonconforming Use Certificate (NUC) Requirements: Properties operating as STVRs outside permitted zones before April 1, 2019, must:

• Submit annual NUC renewal applications
• Pay annual renewal fees of $250
• Maintain continuous operation since the qualifying date
• Comply with all other applicable regulations

State-Level Regulations (Hawaii)

Tax Requirements:

• Transient Accommodations Tax (TAT): 10.25% of gross rental income
• Hawaii County Transient Accommodations Tax (HCTAT): 3% of gross rental income
• General Excise Tax (GET): 4% of gross rental income
• Total combined tax rate: 17.25% of gross rental income

Tax Collection and Remittance:

• Taxes must be collected from guests and remitted monthly to the Hawaii Department of Taxation
• Operators must file monthly tax returns even if no rentals occurred during the reporting period
• Penalties and interest apply for late payments or filings

Specialized Regulations for Naalehu Area

Rural Character Considerations: As a rural community, Naalehu has specific considerations that may affect STVR operations:

• Properties must maintain rural character and comply with local design guidelines
• Noise ordinances and quiet hours are strictly enforced
• Agricultural land use regulations may apply to properties adjacent to active farming operations

Environmental and Natural Resource Protection:

• Properties near Punalu'u Black Sand Beach must comply with coastal zone management regulations
• Properties in or near Special Management Areas (SMA) require additional permits
• Protection of native Hawaiian cultural sites and artifacts is mandatory

Contact Information for Local Authority in Charge of STRs

Hawaii County Planning Department - Short-Term Vacation Rentals Division

Main Office (Hilo)

• Address: Aupuni Center, 101 Pauahi Street, Suite 3, Hilo, HI 96720
• Phone: (808) 961-8288
• Fax: (808) 961-8742
• Email: planning@hawaiicounty.gov
• Hours: Monday-Friday, 7:45 AM - 4:30 PM

West Hawaii Office (Kona)

• Address: West Hawaii Civic Center, Building E, 2nd Floor, 74-5044 Ane Keohokalole Highway, Kailua-Kona, HI 96740
• Phone: (808) 323-4770
• Fax: (808) 327-3563
• Hours: Monday-Friday, 7:45 AM - 4:30 PM

Online Resources:

• Website: planning.hawaiicounty.gov
• STVR Information: planning.hawaiicounty.gov/resources/short-term-vacation-rentals
• Contact Forms: planning.hawaiicounty.gov/about-us/contact-us

Hawaii Department of Taxation

Main Office

• Address: 830 Punchbowl Street, Honolulu, HI 96813
• Phone: (808) 587-4242
• Toll-Free: (800) 222-3225
• Website: tax.hawaii.gov

Online Services:

• TAT Registration: tax.hawaii.gov/eservices/slr_e_services/
• Tax Filing: tax.hawaii.gov/eservices/tax_data_search/

Hawaii County Finance Department (TAT Collections)

• Address: 25 Aupuni Street, Room 105, Hilo, HI 96720
• Phone: (808) 961-8211
• Website: hawaiicounty.gov/departments/finance/transient-accommodations-tax-tat

Links to Source Pages

Primary Regulatory Documents

• Hawaii County Planning Department - Short-Term Vacation Rentals
• Ordinance 2018-114 (Bill 108)
• Planning Department Rule 23

Application Forms and Resources

• Short-Term Vacation Rental Application Packet
• STVR Statement of Compliance
• Nonconforming Use Certificate Renewal Application
• NUC Annual Renewal Statement of Compliance
• STVR Change of Information Application

Tax and Zoning Resources

• Hawaii Department of Taxation
• Transient Accommodations Tax Information
• Real Property Tax Website (TMK Lookups)
• Hawaii County Zone Maps

This comprehensive guide provides all the essential information needed to understand, establish, and maintain a compliant short-term rental operation in Naalehu, Hawaii. Always verify current regulations and requirements with the Hawaii County Planning Department, as regulations may change and individual property circumstances can affect compliance obligations.