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A city proposal aimed at restricting short-term rentals on Oahu cleared another hurdle at a Honolulu City Council committee meeting on March 23, 2022. 

The latest version of Bill 41 prohibits short-term rental bookings of less than 90 days (down from the current 30 days) in most areas of the island. 

New restrictions, fees and fines will also be introduced. The Zoning Board Chairman’s Committee’s draft has passed its third reading in the Zoning Committee and now heads to the full board for a final vote. 

Under the bill, reservations for rentals of less than 90 days would be allowed only on Oahu in resort areas, as well as in certain residential areas of the Waikiki mauka of Kuhio, in areas near the Ko Olina Resort, and in the single-unit area near Turtle Bay Resort and the North Shore.

The bill would prohibit unregistered landlords from advertising nightly rates, require non-conforming rental units in residential areas to limit visitors to four adults, and require an off-street parking space for each rental room.

The bill has received support from the hotel industry and residents who want to keep vacationers out of residential areas. But it has also drawn sharp criticism from short-term rental landlords, who argue that a law passed in 2019 that would have allowed the licensing of 1,700 new short-term rental units was fairer. 

The new law will not correct the existing regulation

Mainland tourists don’t care that island locals have to deal with a housing crisis and homelessness . 

Critics of the bill also expressed concern that the 90-day reservation period would unnecessarily burden residents traveling between islands, college students, traveling health care workers and others who do not want to stay in hotels. Exceptions for these groups have been addressed but are not included in the current version.

The initial version of the bill introduced by Mayor Rick Blangiardi’s administration drew strong reactions. As written, it required reservations of at least 180 days and required landlords of short-term rentals in condo-hotel buildings to hire a hotel management company.

The administration’s original proposal also allowed short-term rentals in residential areas of the Gold Coast near Diamond Head; requires rental operators to notify property owners within 250 feet that the dwelling is being used for rental purposes; and obtain additional insurance coverage. 

The bill would impose an initial registration fee of $1,000 and a renewal fee of $500 for short-term rentals.

Under the new law, landlords will already pay higher taxes on temporary housing, higher property taxes and could face increased fines. The purpose of the levy should be to cover the cost of public services provided.

The new law also proposed to prohibit tourists in rented cars from parking on public streets in the city. Now any property owner can complain about the occupied parking lot near their home.

All of her amendments were adopted into the out-of-committee version of the bill. 

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