TRANSIENT VACATION RENTAL ORDINANCE
The big buzz on Kauai for vacation rental owners is the new Transient Vacation Rental Ordinance that became effective March 7, 2008. As a result, every vacation rental on Kauai must register with the County of Kauai in order to legally do vacation rentals.
(PDF) Kaua'i County Press Release
(PDF) Kaua'i County Ordinance 864
(PDF) Kaua'i County Transient Vacation Rental Form
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Regarding this Ordinance, “Transient Vacation Rental” is commonly called TVR.
“Visitor Destination Area” is referred to as VDA.
All TVR’s in a VDA must register prior to September 3, 2008. If your TVR is located in Princeville Phase I, it is in a VDA.
If your TVR is outside a VDA, you have until October 15, 2008 to register but you must obtain a Non-Conforming Use Permit (NCU). You must also provide proof that prior to the effective date of this new Ordinance (March 7, 2008), you had been operating the property as a vacation rental on an on-going basis and that you were in compliance with all State and County use and planning laws. Examples of such proof are showing that you had prior paying vacation rental guests, that you paid General Excise Tax (GET) and Transient Accommodation Tax (TAT) on the rental income, and that you had deposits on future reservations. Lock-off rentals are not permitted.
If your TVR is on State-zoned Agricultural land, you may be able to continue your vacation rental only if the residence was built prior to June 4, 1976 or you have a special permit under Hawaii Revised Statutes, Sec. 205-6 specifically allowing a vacation rental.
If your property is on Conservation land, vacation rentals are specifically prohibited.
If your TVR is a single family residence in or outside a VDA, you must submit a plot map, floor plan and elevations of the residence with a current Hawaii’s architect/ engineer’s professional stamp along with your Transient Vacation Rental Application.
If your TVR is a part of a multi-family dwelling (condominium), you need to provide a plot map along with your Application. Lock-off rentals in condominiums are still being discussed with more information to follow on this subject.
A main purpose of the plot map is to show where a sign will be visibly posted on the property to inform guests and the public of your TVR Registration Number along with the name and phone number of your 24/7 Kauai emergency contact person.
There is still some question about registering condominium. Should the Condominium Association file the Application and get one TVR Registration Number? This certainly would streamline and simplify the process for everyone, including the County. However, virtually every condominium project has multiple managing agents within it and no one is particularly anxious to have his/her name and phone number posted. This is still being discussed and decided.