Honolulu prohibits short-term rentals (under 90 days outside resort districts, under 30 days in resort districts) of Bill 7 ADUs under both the recorded long-term rental covenant in LUO Sec. 21-5.730 and Bill 89 (2019) / Bill 41 (2022) STR enforcement. ADUs must be rented for 180 days or longer per the recorded covenant. Hawaii state General Excise Tax (GET) and Transient Accommodations Tax (TAT) apply to rentals.
Honolulu has among the strictest STR rules in the U.S. Bill 89 (Ord. 19-18) and Bill 41 (Ord. 22-7) amended LUO Chapter 21 to ban rentals shorter than 90 days outside designated resort districts (Waikiki, Ko Olina, Turtle Bay resort areas), with limited Bed and Breakfast and Transient Vacation Unit permitting available only in those resort zones. Bill 7 ADUs under LUO Sec. 21-5.730 carry a recorded covenant requiring leases of 180 days or longer, even stricter than the citywide 90-day floor. ADU operators must obtain a State of Hawaii General Excise Tax license (4.712% on Oahu) and, if any portion is rented under 180 days (which would violate the covenant), Transient Accommodations Tax registration (10.25% state TAT plus 3% Oahu TAT). Hawaii does not have statewide rent control - HRS Chapter 521 (Residential Landlord-Tenant Code) governs lease relationships but does not cap rent. The Department of Planning and Permitting Enforcement Branch and Residential Code Enforcement Branch investigate STR violations using listing data and complaints.
Renting a Bill 7 ADU shorter than 180 days violates the recorded covenant and triggers daily civil fines, listing removal orders, and revocation of the ADU permit. Bill 89/Bill 41 STR violations carry fines up to $10,000 per day under ROH Sec. 21-2.150. Failure to remit GET or TAT triggers Hawaii Department of Taxation penalties and interest.
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