On August 1, 2019, The Bill 89 (2018), CD2, which was signed by Honolulu Mayor Kirk Caldwell into law on June 25, 2019, had has started taking effect. The new regulation on short-term rentals imposes austere penalties to those who are illegally operating and advertising vacation rentals. Initial violation will face up to a $1,000.00 fine with an additional $5,000.00 for noncompliance each day. Repeat violators will be charged with hefty fines of up to $10,000 for each day and confiscation of rental revenue.
With the rampant increase of the said illegal vacation rentals, the City and County of Honolulu believe that taking this big step will help better regulate short-term rentals and balance competing views.
On the other hand, Matt Middlebrook, Airbnb’s head of policy for Hawaii, said that these will cause a significant blow on the local economy and small businesses - removing thousands of transient units from Oahu’s inventory. In addition, Hawaii tourism, thousands of local jobs, millions of household income and state taxes will now be at stake.
What are your thoughts on Honolulu’s vacation rental Bill 89? Did it take Vacation/Short-Term Rentals to a new plight? What do you think will be the effects of the ordinance on our local community?