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Renting rooms long-term in Puna
#1
Has anyone else looked into long-term renting of rooms? I can't find much on the topic. Specifically:

Can this be done from a single family home on agricultural land?

Are special permits/licenses required?

Is there a limit to the number of rooms or unrelated occupants beyond the standard square footage requirements?

The scenario I envision is a 4 bedroom home, with each bedroom rented to a separate individual or couple. Home would be permitted and with suitably sized septic.
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#2
You have to charge GE tax and if it's less than 6 months TAT taxes which are quite steep.
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#3
If I remember correctly, you may have up to 5 unrelated people in a residence (unless they changed it with the new vacation rental rules?)
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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#4
You can only have one kitchen
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#5
Can’t you just call them roommates? Maybe there will be common facilities like the kitchen and bathrooms, possibly lanai areas?
GET is charged for everything, so you have to collect that. Not sure if you have to have a business license to do that.
Better check with your homeowners insurance agent to check out your liabilities. The way people sue nowadays, I’d have a $1 million umbrella policy.
If you’re not experienced in writing rental contracts, get someone who is.

Puna: Our roosters crow first
Puna: Our roosters crow first
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#6
I can certainly see the income potential in your plan, but what you seem to envision is several individuals (strangers to you and to each other) living together in harmony sharing a kitchen and small living area with all of them being considerate of others and paying their rent on time. Only takes one bad apple to spoil this utopia.

And I hope you realize that if one or more of these people stop paying the rent, you will have virtually no recourse. Once you allow an individual to move into your dwelling, the county legal system is almost entirely on the side of the renter and you will face huge court costs and months if not years of litigation to have these people evicted.
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#7
I have heard the horror stories. Was thinking of doing this for senior citizens 62+, hoping there would be less drama and stable retirement income...
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#8
If you are renting out a home that you don’t live in, you can’t discriminate in who you rent to based on age. While age is not a specifically protected category, you couldn’t deny younger people with children, for example.
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#9
As mentioned above, make sure your insurance is OK with what ever you choose to do (many here are not, & ours almost canceled on us when we had a relative, as a guest, not a renter, stay over a winter, so it does not even matter if you collect money, your insurance must be informed & OK with it!)
Also, know & be OK with all of the Landlord Tenant Code (again, even if you do not collect rent, or any money, this will go into effect if ANY goods/services change hands!)
https://cca.hawaii.gov/hfic/files/2013/0...ndbook.pdf

& even if you do live in the residences, your ability to obtain "less drama and stable retirement income" will not be in YOUR hands, as the renters can really do a number on both, if that is their wish! (It is best to really look at the horror stories people have had & ask yourself if this is something you can handle, as any rental can turn sour if there are any changes in anything. Many landlords here will relate that missing rent payments is the least of the worries when you have a renter here.
Seniors can hook-up with younger "friends" - some with children, can go on benders, can mess-up your place, can burn it down, can "lend" your keys & codes to others, can rip you off - in fact, some seniors have had a life-time of practice & are very good at the con!
If you are not willing & able to "buy-out" any renter you have just to get them to leave, this may not be the experience you are thinking it could be.
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