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

Yes, short-term rentals are allowed in Hilo, Hawaii, but with significant restrictions and requirements. Short-term vacation rentals (STVRs) are permitted only in specific zoning districts or under a Nonconforming Use Certificate (NUC) for properties that were legally operating before certain cutoff dates. The regulatory framework is established at the Hawaii County level through Ordinance 2018-114 (Bill 108), which defines where STVRs can operate, establishes operational standards, and provides a path for existing STVRs to continue through a nonconforming use certification process.

How to Start a Short-Term Rental Business in Hilo

Step 1: Pre-Application Due Diligence

• Zoning Verification: Confirm your property is in an permitted zoning district (V, CG, CV districts; Residential and commercial zoning in General Plan Resort and Resort Node areas; RM district for multifamily dwellings with condominium property regime)
• HOA/CC&R Review: Check if your property association prohibits short-term rentals
• Building Compliance: Ensure the property meets all current building codes and safety requirements

Step 2: Obtain Required Licenses and Permits

• Hawaii County STVR Registration: Apply through the Planning Department
• Nonconforming Use Certificate (if applicable): For properties operating before April 1, 2019
• State Tax Licenses: Register for Transient Accommodations Tax (TAT) and General Excise Tax (GET)

Step 3: Property Preparation

• Safety Upgrades: Install required smoke detectors, carbon monoxide detectors, and emergency evacuation plans
• Insurance: Obtain short-term rental insurance with minimum $1,000,000 liability coverage
• Documentation: Prepare site plans, floor plans, and compliance statements

Step 4: Operational Setup

• Property Management: Decide whether to self-manage or hire a licensed property manager
• Platform Registration: Register on Airbnb, VRBO, and other platforms with proper permit numbers
• Tax Systems: Set up systems for collecting and remitting TAT and GET

Required Documents, Permits, Licenses, and Guidelines

Hawaii County Requirements

• STVR Registration Application with supporting documents
• Nonconforming Use Certificate Renewal (annual requirement if applicable)
• STVR Change of Information Application (for property modifications, ownership changes)

Required Documentation Package

1. Property Information:

   • STVR address and Tax Map Key (TMK) number
   • Site plan showing property boundaries, dimensions, setbacks, easements
   • Floor plan identifying room locations and uses
   • Final approvals from Building Division

2. Owner/Operator Information:

   • Applicant's name, address, phone, email
   • Owner's information (if different from applicant)
   • "Reachable Person" contact information (24/7 emergency contact)
   • Owner authorization documentation if applicable

3. Legal and Tax Documents:

   • Hawaii State TAT license
   • Hawaii State GET license
   • Statement of Compliance with applicable regulations
   • Processing fee payment ($500 for initial registration)

4. Safety and Insurance:

   • Proof of minimum $1,000,000 liability insurance
   • Emergency evacuation plans
   • Safety equipment verification

State-Level Requirements

• TAT Registration: $5 for 1-5 units, $15 for 6+ units
• GET Registration: $15 fee
• Federal EIN: Required for tax reporting

Specific Regulations for Short-Term Rentals

Zoning Restrictions

Permitted Zoning Districts:

• V (Resort): Full STVR allowance
• CG (General Commercial): STVR permitted
• CV (Visitor Commercial): STVR permitted
• Residential and Commercial within General Plan Resort and Resort Node areas
• RM (Multiple Family Residential) for condominium properties with proper regime

Prohibited/Restricted Areas:

• Most pure residential districts outside designated resort areas
• Agricultural zoned properties (with limited exceptions)
• Properties without proper zoning clearance

Operational Requirements

• Definition: STVRs must have no more than 5 bedrooms and be rented for less than 30 consecutive days
• Owner Occupancy: Owner or operator does not need to reside on-site (unlike some other Hawaii counties)
• Registration: Non-transferable; new application required for ownership changes
• Record Keeping: Must maintain guest records for inspection

Nonconforming Use Certificate (NUC) Program

• Eligibility: Properties legally operating STVRs before April 1, 2019
• Annual Renewal: Required to maintain operation outside permitted zones
• Fees: $500 initial application, $250 annual renewal
• Limitations: Subject to ongoing regulatory compliance

Safety and Building Requirements

• Fire Safety: Compliance with Hawaii County fire codes
• Building Codes: Must meet current residential building standards
• Emergency Access: Clear emergency evacuation routes required
• Parking: Designated parking spaces must be shown on site plan

Platform Compliance

• Permit Display: NUC number must be prominently displayed in all listings
• Advertising: Must include valid registration numbers in all marketing materials
• Platform Cooperation: Airbnb, VRBO, and other platforms must be used for bookings

Contact Information for Local Authority

Hawaii County Planning Department - East Hawaii (Hilo) Office

Address: Aupuni Center 101 Pauahi Street, Suite 3 Hilo, HI 96720

Phone: 808-961-8288 Fax: 808-961-8742 Email: planning@hawaiicounty.gov

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

West Hawaii (Kona) Office (also handles some Big Island areas): 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

Hawaii Department of Taxation

Website: tax.hawaii.gov Phone: Contact for TAT and GET registration and filing requirements

Links to Source Pages

Primary Official Sources

• Hawaii County Planning Department - Short-Term Vacation Rentals: www.planning.hawaiicounty.gov/resources/short-term-vacation-rentals
• STVR Application Packet: records.hawaiicounty.gov/Weblink/1/edoc/115580/STVR%20Registration%20Form%2003.31.2022.pdf
• STVR Statement of Compliance: records.hawaiicounty.gov/Weblink/1/edoc/115581/STVR%20Registration%20Stmt%20of%20Compliance%2003.31.2022.pdf
• Nonconforming Use Certificate Renewal Application: records.hawaiicounty.gov/Weblink/1/edoc/115578/STVR%20NUC%20Renewal%20Application%2003.31.2022.pdf
• Planning Department Rule 23: www.planning.hawaiicounty.gov/home/showpublisheddocument/301491/637203350591400000
• Ordinance 2018-114 (Bill 108): www.planning.hawaiicounty.gov/home/showpublisheddocument/301489/637203350585600000

Supporting Information Sources

• Real Property Tax Website (for TMK numbers): qpublic.schneidercorp.com/Application.aspx?AppID=1048&LayerID=23618&PageTypeID=2&PageID=9876
• Hawaii County Contact Information: www.planning.hawaiicounty.gov/about-us/contact-us
• Complete Planning Department Rules: records.hawaiicounty.gov/weblink/Browse.aspx?dbid=1&startid=56244

Additional Resources

• Hawaii Life Big Island STR Guide: www.hawaiilife.com/blog/big-island-essentials-the-8-most-asked-questions-about-short-term-rentals/
• Summer STR Guide - Hawaii: www.gosummer.com/post/hawaii-short-term-rental-laws
• Checkmate Rentals Hawaii Guide: www.checkmaterentals.com/blog/short-term-rental-laws-hawaii

Important Note: Short-term rental regulations in Hawaii County are subject to change. Always verify current requirements with the Hawaii County Planning Department before making investment decisions. New legislation is regularly proposed that could affect STVR operations, so ongoing monitoring of regulatory changes is essential for maintaining compliance and protecting your investment.