Latest on Vacation Rentals

[terracore]

"I hear that on some parts of the island there is just flat out no housing for local folks anymore. Is this a concern?"

The idea that elected officials who own vacation rentals can decide whether or not I can own a vacation rental concerns me.

ETA: changed rent to own

[MarkD]

"Are you suggesting net income of the average homeless person or family would qualify them for a home loan if VRBO was limited?"

Not at all, but the VRBO business removes housing from the long-term rental market, thereby pushing up Hawaii's already high cost of rental housing.

We have some of the nation's highest rents, though I concede the situation is considerably different in East Hawaii Island versus the rest of the state.

[PaulW]

Have you been to Volcano? It's as if every second house is a vacation rental. They weren't built for any other purpose.
The houses along the oceanfront will also never be long-term rentals. If you cut off the money stream that is the VR business then there will just be less houses available, not more.

[glinda]

It's as if..

Shooting from the hip, eh?

[PaulW]

I did a search on just VRBO.com and came up with 193 VRs in Volcano alone. Welcome to your new long-term housing, oh homeless of Hawaii.
You should come visit Puna sometime.

[PaulW]

The County should also put a restriction on the number of rental cars. That way, cars will be cheaper for residents, won't they?
The tax shortfall can be fixed by raising property taxes.

[benny]

quote:

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Originally posted by glinda

Am I wong in thinking we have a shortage of long term rentals on island?

I know of people that say that is the case, and point to vacation rentals as making the situation much worse. Does anyone know the details, numbers? I hear that on some parts of the island there is just flat out no housing for local folks anymore. Is this a concern? Or is county/state not worrying about it?

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If there is a shortage of rentals, it is because the laws of the Banana Republic of Hawaii (er... State) pretty much give the property for all practical purposes to tenants if they have a 60 day or longer lease - your rights as a landlord are severely curtailed and you will never, ever get the Hawaii County PD to evict anyone, no matter how long they effectively squat in your property.

Much like the TMT, vacation rental owners are those who can be opposed and vilified for a range of offenses committed by the State and County governments who can't really be touched or influenced, along with the big, rich landowners who support a status quo managed primarily for their benefit.

Why is there not housing at an affordable rate?

1) Land availability in Hawaii (state and county - though it is worse in other counties). Major landowners are not selling, at least since the sugar and other ag concerns bailed in select districts. A small number of major landowners own most of the land in the state and they are not selling. Witness leasehold and other obnoxious practices which do not occur elsewhere.

2) Corrupt state government, particularly the Department of Hawaiian Homelands. Life-long waiting lists and acres of empty property never granted to those who it is supposed to benefit and no support for the same people to be able to build.

3) Landlord abusive rental laws that provide no incentive to landowners to do long-term rentals. Make it possible for tenants to exploit landlords and soon there will be no rentals.

If you want affordable housing, start with land reform - Puna is one of the few places on the island with a reasonable inventory of reasonably affordable (depending on condition) housing. Much cheaper compared to many places on the mainland. It started when the plantations sold out.

Blame vacation rentals because you can - when you shut them down, the economy (what exists of it) will take a huge hit, and jobs will decreases, and local businesses will close, and the people still will not be able to afford housing. And the root causes of the problem will still exist. People with big money and big land will chuckle because they will maintain their elite and untouchable control.

Congratulations. Ignorance works every time its tried.



Benny