Volcano, Hawaii
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Volcano, HI
Generally Investor Friendly
Local STR Agent
STR Regulations for Volcano, Hawaii
Overview: Are Short-Term Rentals Allowed in Volcano, HI?
YES, short-term rentals are explicitly allowed in Volcano, Hawaii. Volcano properties can operate legally as short-term vacation rentals (STVRs) under Hawaii County regulations. The Volcano market is primarily driven by tourism, with visitors seeking nature-oriented experiences, particularly those accessing Hawaii Volcanoes National Park. Popular property types include cabins and unique accommodations that appeal to tourists interested in volcanic landscapes and natural attractions.
How to Start a Short-Term Rental Business in Volcano
Starting an STR business in Volcano requires following Hawaii County's regulatory framework established under Bill 108 (Ordinance 2018-114) and implemented through Planning Department Rule 23. Here is the step-by-step process:
1. Property Zoning Verification
Before proceeding, confirm your property is located in an approved zoning district. STVRs are permitted in:
- V (Village) districts
- CG (General Commercial) districts
- CV (Village Commercial) districts
- Residential and commercial zoning districts in General Plan Resort and Resort Node areas
- RM districts for multifamily dwellings with condominium property regime
2. State Tax Registration
Register for required state tax licenses:
- Transient Accommodations Tax (TAT) License: $5 for 1-5 units, $15 for 6+ units
- General Excise Tax (GET) License: $15 fee
These licenses must be obtained before applying for local STVR registration.
3. County STVR Registration Application
Submit complete application to Hawaii County Planning Department including all required documentation and fees.
4. Compliance Setup
Implement required safety measures, insurance coverage, and operational procedures.
Required Documents, Permits, Licenses, and Guidelines
Essential Documents for STVR Registration:
Property Information:
- STVR property address
- Tax Map Key (TMK) number - obtain from Real Property Tax website
- Site plan including property boundaries, dimensions, setbacks, easements, structures, driveway access, parking spaces
- Floor plan identifying room locations and uses
Owner and Operator Information:
- Applicant's name, address, phone number, and email
- Property owner's name, address, phone number, and email
- "Reachable person's" contact information (24/7 emergency contact)
- Owner authorization if applicable
Licenses and Approvals:
- Hawaii State TAT license
- Hawaii State GET license
- Final approvals from Building Division
Compliance Documentation:
- Statement of Compliance with applicable regulations
- Processing fee payment ($500)
Available Application Forms:
- STVR Registration Application Packet (includes instructions and forms)
- STVR Statement of Compliance
- Nonconforming Use Certificate (NUC) Renewal Application (for properties operating before April 1, 2019)
- STVR Change of Information Application (for ownership or property modifications)
Insurance Requirements:
- Minimum $1,000,000 general liability coverage
- Short-term rental insurance policy
Specific Regulations for Short-Term Rentals
County-Level Regulations (Hawaii County):
Property Limitations:
- Maximum of 5 bedrooms for rent on building site
- Rental periods must be less than 30 consecutive days
- Owner/operator does not need to reside on building site (non-owner occupied allowed)
Operational Requirements:
- Registration is not transferable
- New application required for ownership changes, reachable person changes, or property modifications
- Annual renewal required for Nonconforming Use Certificates ($250 fee)
- Initial NUC application fee: $500
Grandfathering Provisions:
- Properties operating outside permitted zones before April 1, 2019 can continue with NUC
- NUC holders must renew annually to maintain operation rights
State-Level Regulations (Hawaii):
Tax Obligations:
- Hawaii State TAT: 10.25% of gross rental income
- State GET: 4% of gross rental income
- County TAT: Varying rates
- County GET surcharge: Varying rates
Definition Compliance:
- Must comply with statewide definition of transient accommodations (fewer than 180 consecutive days)
- County regulations are more restrictive (30-day minimum for STR classification)
Recent Legislative Changes:
- Senate Bill 2919 (May 2024): Empowered counties with greater authority to regulate STRs
- Counties now have increased power to restrict or phase out STRs in residential and agricultural areas
- Regulatory environment continues to evolve with housing affordability concerns
Contact Information
Hawaii County Planning Department - West Hawaii (Kona Office)
Primary Contact for Volcano Area Investors
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
Hawaii County Planning Department - East Hawaii (Hilo Office)
Alternative Contact Location
Address: Aupuni Center Suite 3 101 Pauahi Street Hilo, HI 96720
Phone: (808) 961-8288 Fax: (808) 961-8742
Universal Contact Information
Email: planning@hawaiicounty.gov Hours: 7:45 AM - 4:30 PM, Monday-Friday
Additional Resources
- Real Property Tax Website: For TMK number lookup
- Planning Department Website: www.planning.hawaiicounty.gov
- Planning Department Calendar: For meeting schedules and updates
Source Pages and Official Documentation
Primary Regulatory Documents:
Application Forms and Documentation:
- STVR Registration Application Packet
- STVR Statement of Compliance
- Nonconforming Use Certificate Renewal Application
- NUC Annual Renewal Statement of Compliance
- STVR Change of Information Application
State Tax Resources:
Planning Department Rules and Procedures:
Zoning and Property Information:
This comprehensive guide provides all essential information for investors considering short-term rental opportunities in Volcano, Hawaii. The regulatory framework allows for legal STR operations with proper registration and compliance, making it a viable market for vacation rental investment despite evolving regulations at both county and state levels.
Volcano
Market Saturation Score
Photos of Volcano
Overview of Volcano
Volcano, Hawaii, is a small village located on the Big Island of Hawaii, characterized by its close proximity to the Hawaii Volcanoes National Park. The village has a population of approximately 2,400 residents. It is situated roughly 30 miles southwest of Hilo, the nearest major city, making it a relatively short drive for those seeking urban amenities while staying in a more tranquil environment.
Volcano offers a unique appeal for short-term rentals due to its natural attractions and the distinctive experiences it provides. The most prominent landmark is the Hawaii Volcanoes National Park (www.nps.gov/havo/index.htm), home to Kīlauea and Mauna Loa, two of the world’s most active volcanoes. Visitors can explore lava tubes, rainforests, and volcanic craters, making it a prime spot for adventure and nature enthusiasts.
Apart from the national park, the village itself boasts a variety of natural and cultural attractions. The Volcano Art Center (volcanoartcenter.org/) is a hub for local art and culture, offering galleries and workshops amidst a lush rainforest setting. Additionally, the Akatsuka Orchid Gardens (akatsukaorchid.com/) provide an opportunity to discover over 500 varieties of orchids in their greenhouse.
Overall, Volcano, HI, serves as an ideal destination for short-term rental seekers looking to immerse themselves in a unique volcanic landscape, experience the vibrancy of local culture, and enjoy the convenience of nearby urban centers.
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