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

Short-term rentals are explicitly allowed in Waikoloa, HI, though with important restrictions and requirements. The Waikoloa market presents a nuanced landscape where short-term vacation rentals (STVRs) are permitted in specific zoning districts and resort areas, while being prohibited in other locations. The county has implemented a tiered regulatory framework that distinguishes between resort zones, traditional neighborhoods, and multi-family residential areas, resulting in a complex but navigable market for investors.

In Waikoloa specifically, short-term rentals are permitted in:

1. Resort areas including Waikoloa Beach Resort, Mauna Lani Resort, and Mauna Kea Resort
2. Multiple-Family Residential (RM) zones within condominium property regimes governed by Hawaii Revised Statutes Chapters 514A or 514B
3. Resort and Resort Node areas as designated in the General Plan
4. Commercial zones (General Commercial CG and Village Commercial CV)

This allowance is balanced against significant restrictions in other Waikoloa areas, particularly within traditional single-family residential neighborhoods and certain condominium associations whose CC&Rs prohibit vacation rentals. Additionally, the county is implementing a comprehensive registration system for all transient vacation rentals (TVRs) beginning December 20, 2025, which will apply to both hosted and un-hosted rentals throughout Waikoloa, regardless of specific zoning.

How to Start a Short-Term Rental Business in Waikoloa

Starting a short-term rental business in Waikoloa requires a methodical approach that combines zoning compliance, permitting, tax registration, and association review. The following process outlines the critical steps for establishing a compliant operation:

Step 1: Confirm Zoning Eligibility Before purchasing or operating a property as a short-term rental in Waikoloa, investors must verify zoning eligibility with the Hawaii County Planning Department. This involves checking the property's zoning designation against permitted districts for STVRs. The Planning Department offers zoning verification services through their "Find Out My Zoning" service and by reviewing the Hawaii County Zoning Code and maps.

Step 2: Review Association Restrictions For condominium properties, investors must obtain and thoroughly review the CC&Rs, bylaws, and rules and regulations. Even if a property is in a permitted zoning district, the homeowners' association may explicitly prohibit short-term rentals. Waikoloa Village contains several condominium complexes where this restriction applies, such as Elima Lani, the Point, Makana Kai at Wehilani, and 17th Fairways Villas.

Step 3: Acquire Necessary Permits For properties without an existing STVR permit in permitted districts, investors must apply for a Short-Term Vacation Rental permit through the Hawaii County Planning Department. The application requires detailed documentation including site maps, floor plans, finalized building permits, and evidence of health and safety compliance.

Step 4: Register State Tax Accounts All short-term rental operators must obtain both a General Excise Tax (GET) license and a Transient Accommodations Tax (TAT) registration. The GET license requires a $20 fee and can be obtained through the Hawaii Department of Taxation. The TAT registration is also required and must be maintained in good standing to preserve STVR eligibility.

Step 5: Designate On-Island Contact County regulations require all STVRs to have an on-island contact person who can respond to emergencies within three hours. This contact cannot serve more than one property unless they are a licensed property manager. This requirement is particularly important for properties where the owner is not Hawaii-based.

Step 6: Prepare for New Registration Requirements Beginning December 20, 2025, all TVRs in Hawaii County must register with the County, with fees of $250 for hosted rentals and $500 for un-hosted rentals. Annual renewals will be $100 for hosted and $250 for un-hosted properties. These registration requirements will apply to all short-term rentals, including those already operating with traditional STVR permits.

Required Documents, Permits, Licenses, and Guidelines

Operating a compliant short-term rental in Waikoloa requires multiple layers of documentation and approvals:

County-Level Requirements:

1. Short-Term Vacation Rental (STVR) Permit

   • Application form and Statement of Compliance
   • Site map showing all structures on the property
   • Floor plan of the rental unit
   • Finalized building permits (building, electrical, plumbing)
   • Health and safety compliance documentation
   • Tax clearance verification
   • Property owner identification
   • Application fee ($500 + $1 processing fee)

2. Nonconforming Use Certificate (NUC) Renewal

   • Required annually for properties operating outside permitted zoning districts under pre-existing rights
   • NUC Renewal Application and Statement of Compliance
   • Evidence of continuous operation since before the 2018 ordinance

3. Change of Information Application

   • Required for changes in ownership, reachable persons, or property modifications
   • Change of Information Application and Statement of Compliance
   • Updated documentation reflecting changes

4. TVR Registration (Effective December 20, 2025)

   • Property address and TMK number
   • Owner and host contact information
   • Number of bedrooms and rental configuration
   • Site drawing of all structures
   • Health and safety compliance declaration
   • Tax clearance confirmation
   • GET license and TAT registration numbers
   • Signed acknowledgment of potential property tax implications
   • Registration fee ($250 hosted, $500 un-hosted)

State-Level Requirements:

1. General Excise Tax (GET) License

   • Application to Hawaii Department of Taxation
   • $20 registration fee
   • Required for all businesses operating in Hawaii

2. Transient Accommodations Tax (TAT) Registration

   • Separate registration for accommodation providers
   • No separate registration fee, but ongoing tax obligations
   • Must be maintained in good standing

Additional Guidelines:

• Operation limited to 5 bedrooms maximum per rental property
• Strict prohibition of rentals in single-family residential zones outside resort nodes
• Requirement for on-island contact capable of responding within 3 hours
• Compliance with Hawaii County Planning Department Rule 23
• Adherence to Hawaii County Ordinance 2018-114 (Bill 108)

Specific Regulations for Short-Term Rentals in Waikoloa

The regulatory framework for short-term rentals in Waikoloa operates at the county level, with additional considerations from resort-specific rules. The following regulations specifically impact short-term rentals in Waikoloa:

Zoning and Location Restrictions:

1. Permitted Districts

   • Resort (V) zones including Waikoloa Beach Resort, Mauna Lani Resort, and Mauna Kea Resort
   • Multiple-Family Residential (RM) zones within condominium property regimes
   • General Commercial (CG) and Village Commercial (CV) zones
   • Residential and Commercial zones within General Plan Resort and Resort Node areas

2. Prohibited Areas

   • Single-family residential neighborhoods outside resort nodes
   • Agricultural zones (except for certain farm dwellings)
   • Conservation lands
   • Properties where HOAs explicitly prohibit vacation rentals

Operational Limitations:

1. Bedroom Cap

   • Maximum of 5 bedrooms per vacation rental property
   • Additional rooms may be designated as offices, yoga rooms, etc., to remain compliant

2. On-Island Contact Requirement

   • Contact must be reachable within 1 hour by phone
   • Must be able to respond on-site within 3 hours if needed
   • One person cannot serve as on-island contact for multiple properties unless licensed as a property manager

3. Parking and Access

   • Must comply with published parking requirements
   • Visitor parking may be limited in some developments
   • Access routes must accommodate emergency vehicles

Tax and Financial Requirements:

1. Property Tax Implications

   • Short-term rental properties are assessed at hotel/apartment rates rather than residential rates
   • Significantly higher tax burden than comparable residential properties
   • Potential for reassessment when changing from residential to STVR use

2. Compliance Obligations

   • Timely payment of GET and TAT taxes
   • No delinquent property taxes or TAT obligations
   • Adherence to all county regulations to maintain permit validity

Upcoming Changes:

Beginning December 20, 2025, all TVRs will be subject to a new registration system with the following provisions:

1. Registration Requirements

   • Mandatory for both hosted and un-hosted rentals
   • $250 fee for hosted, $500 for un-hosted
   • Annual renewals required ($100 hosted, $250 un-hosted)
   • 90-day grace period for late renewals with $90 late fee

2. Enforcement Measures

   • Fines ranging from $1,000 to $10,000 for non-compliance
   • Additional penalty of up to twice the highest nightly rate for each day of violation
   • Hosting platforms required to remove unregistered listings

Contact Information for Local STR Authorities

The following contacts provide authoritative information and services for short-term rental operations in Waikoloa:

Hawaii County Planning Department

West Hawaii Office (Primary for Waikoloa area):

• 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: 7:45 AM - 4:30 PM, Monday-Friday

East Hawaii Office (Secondary):

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

General Contact:

• Email: planning@hawaiicounty.gov
• Website: www.planning.hawaiicounty.gov/resources/short-term-vacation-rentals
• Online Services: www.planning.hawaiicounty.gov/i-want-to/apply-for/a-short-term-vacation-rental-permit

Hawaii County Department of Finance (Taxation)

• Address: 25 Aupuni Street, Room 105, Hilo, HI 96720
• Phone: (808) 961-8211
• GET/TAT Information: tax.hawaii.gov/geninfo/get/
• Hours: 7:45 AM - 4:30 PM, Monday-Friday

Hawaii State Department of Taxation

• Phone: (808) 587-4242
• Website: tax.hawaii.gov/
• General Excise Tax Information: tax.hawaii.gov/geninfo/get/
• Transient Accommodations Tax Information: Available on the state tax website

Waikoloa Community Association (for CC&R questions)

Note: Specific contact information not provided in the source materials. Property owners should contact their specific homeowners' association directly for CC&R clarification.

Source Links

The following links provide direct access to official documents and information sources referenced in this guide:

Official Government Resources:

1. Hawaii County Planning Department - Short-Term Vacation Rentals www.planning.hawaiicounty.gov/resources/short-term-vacation-rentals

2. Hawaii County Planning Department Rule 23 (Procedures for STVRs) www.planning.hawaiicounty.gov/home/showpublisheddocument/301491/637203350591400000

3. Hawaii County Ordinance 2018-114 (Bill 108) www.planning.hawaiicounty.gov/home/showpublisheddocument/301489/637203350585600000

4. Hawaii County Planning Department Complete Rules of Practice and Procedure records.hawaiicounty.gov/weblink/Browse.aspx?dbid=1&startid=56244

5. Hawaii County Real Property Tax Website (for TMK verification) www.planning.hawaiicounty.gov/?splash=https%3a%2f%2fqpublic.schneidercorp.com%2fApplication.aspx%3fAppID%3d1048%26LayerID%3d23618%26PageTypeID%3d2%26PageID%3d9876

6. Hawaii Department of Taxation - General Excise Tax Information tax.hawaii.gov/geninfo/get/

Application Forms and Documents:

7. Short-Term Vacation Rental Application Packet records.hawaiicounty.gov/Weblink/1/edoc/115580/STVR%20Registration%20Form%2003.31.2022.pdf

8. STVR Statement of Compliance records.hawaiicounty.gov/Weblink/1/edoc/115581/STVR%20Registration%20Stmt%20of%20Compliance%2003.31.2022.pdf

9. Nonconforming Use Certificate Renewal Application Form records.hawaiicounty.gov/Weblink/1/edoc/115578/STVR%20NUC%20Renewal%20Application%2003.31.2022.pdf

10. NUC Annual Renewal Statement of Compliance records.hawaiicounty.gov/Weblink/1/edoc/115579/STVR%20NUC%20Renewal%20Stmt%20of%20Compliance%2003.31.2022.pdf

11. STVR Change of Information Application Form records.hawaiicounty.gov/Weblink/1/edoc/115576/STVR%20Change%20of%20Information%20Application%2003.31.2022ii.pdf

12. STVR Change of Information Statement of Compliance records.hawaiicounty.gov/Weblink/1/edoc/115577/STVR%20Change%20of%20Information%20Stmt%20of%20Compliance%2003.31.2022.pdf

Industry and Analysis Sources:

13. Hawaii Life - Big Island Short-Term Rental Update: Bill 47 www.hawaiilife.com/blog/vacation-rentals-what-big-island-homeowners-need-to-know-about-short-term-rentals/

14. Hawaii Life - The Path to a Short-Term Rental on Big Island Hawaii - Part 1 about.hawaiilife.com/blog/the-path-to-a-short-term-rental-on-big-island-hawaii-part-1/

15. Waikoloa Vacation Rentals - Hawaii Vacation Rental Laws www.waikoloavacationrentals.com/blog/hawaii-vacation-rental-laws/