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To Rent or Not to Rent in Hawai‘i: Understanding Your Options
By Dan Polimino, Keller Williams Big Island | The Hawai‘i Team

Today, we’re talking about a big question many buyers have: Should you rent out your property in Hawai‘i, or not? And what about a third option—a hybrid model like a 30-day-plus rental?

Nearly every buyer who contacts us at The Hawai‘i Team is interested in a short-term vacation rental. They want to use the property as a second home—typically for two to four weeks a year—and rent it out the rest of the time to generate income.

Because this is such a common goal, demand is through the roof, and unfortunately, the supply doesn’t come close to meeting it. I have a list of 17 active buyers on my whiteboard, all looking for short-term vacation rental properties. If we had the inventory, we’d sell them in a heartbeat—but right now, we simply don’t.

So what are your options?

Option 1: Skip the Rental

Ask yourself: Do you need to rent out the property?
If not, and you’re just looking for a second home, your options open up significantly. There’s a much broader selection of homes and condos that become available to you—ones we can’t offer to buyers limited to short-term rental zones.

Option 2: Consider 30-Day-Plus Rentals

Still want to make money on your Hawai‘i property? Think about doing a 30-day-plus rental.

Many neighborhoods, complexes, and HOAs allow rentals of 30 days or more. These are not considered short-term vacation rentals by definition, so:

By listing your property with a minimum 30-day stay, you may still generate rental income—especially with more people now staying in Hawai‘i for extended periods.

I know several owners who rent this way, even without a short-term rental permit, and it’s working out really well for them. It’s a smart intermediate step for buyers who want to generate income without the red tape of vacation rental zoning.

Let’s Talk

If you’re waiting on a short-term rental permit, or you want to start with a more flexible option, the 30-day-plus route might be the answer.

Need help deciding?
Contact us at The Hawai‘i Team:
📞 (808) 989-0891
🌐 TheHawaiiTeam.com

Aloha!

Short-Term Vacation Rentals in Hawai‘i: What You Need to Know

Today, I’m diving into one of the most frequently asked questions we get—by far the number one question we hear from clients:

“Tell me about short-term vacation rentals.”

Everyone wants to know the rules. Where can you do them? Where can’t you? How much money can you make? This post is meant to give you a foundational understanding of how short-term rentals work here in Hawai‘i—especially on the Big Island.

Two Sides of the Island: East vs. West
The first thing to understand is the difference between the east and west sides of the island.

East Side (Hilo): This side gets significantly more rain. Homes here are far more affordable—you might find something nice for $280,000 to $350,000. But it’s wetter and less tourist-oriented.

West Side (Kona): This is the dry side of the island, where most of the resorts are located. It’s where tourists want to vacation, but the property prices are much higher.

Not Every Property Qualifies for Short-Term Rentals
Many buyers see properties online and think, “This would be a great short-term rental.” But not every home is eligible.

It comes down to zoning and regulations. Let’s focus on the west side of the island for clarity. There’s an area known as the “vacation zone” (or “vacation node”), which runs up and down the Kona coast. In these designated areas, you can operate a short-term vacation rental. Outside of them? Not so much.

A Simple Rule of Thumb: If you’re looking at property on Ali‘i Drive in Kona:

The same logic applies in resort areas from Kohanaiki to Mauna Kea. Ocean side of Queen K Highway = likely allowed. Mountain side = likely not.

But Wait—It Gets More Complicated
Even if a property is in a county-approved vacation zone, local subdivision rules (CC&Rs) can override that. These covenants, conditions, and restrictions can prohibit short-term rentals, even in otherwise eligible areas.

So yes—it’s complex. And no, you’re not expected to figure it all out yourself. That’s exactly why we’re here. We know the zoning, the exceptions, and the nuances, and we’re ready to help you navigate them.

Expect to Pay a Premium
Properties eligible for short-term vacation rentals are more expensive—sometimes by $50,000 to several hundred thousand dollars—compared to properties that aren’t. The ability to generate rental income increases the value significantly.

It’s a trade-off:

Pay more for a property → higher nightly rates and higher occupancy

Pay less for a property → fewer rental opportunities and restrictions

The Hidden Gems: Grandfathered Permits
There are a handful of properties across the island that are not in the vacation zones, but do have a short-term rental permit. These are extremely rare and valuable because they were grandfathered in before current regulations took effect. Better yet, those permits are transferable to future owners. When these come on the market, they fetch a premium—and they’re what we call “gold.”

Which Islands Are Easiest for STRs?
If you’re looking for fewer restrictions, focus on:

These two islands currently have the most lenient rules for short-term vacation rentals.

In contrast, Maui and O‘ahu have some of the strictest regulations, making it much harder to successfully operate a short-term rental.

Final Thoughts
This post is a beginner’s guide to short-term vacation rentals in Hawai‘i, and there’s still so much more to know. If you’re serious about purchasing an STR property—or just exploring your options—we’re here to help.

Reach out anytime at TheHawaiiTeam.com or call us at 808-913-0899.

Aloha!

 

 

Video: https://youtu.be/4G-jc7RZ2fI

What’s the ROI on a Short-Term Vacation Rental in Hawaiʻi?

Hi, I’m Dan Polimino with Keller Williams Big Island and The Hawai‘i Team. Today, I’m sharing part three of our series on short-term vacation rentals.

If you missed parts one and two, you can find them on our YouTube channel. Part one covers what homes or condos qualify for short-term vacation rentals. Part two discusses how to manage one of these rentals from afar. Today in part three, we’re diving into the big question: What’s the ROI—return on investment—for a short-term vacation rental in Hawaiʻi?

Let me be honest right up front: most investment properties in Hawai‘i do not cash flow.

Here’s a quick example. Let’s say you buy a $600,000 condo in a resort zone. If you’re financing the purchase, your yearly costs—including mortgage, HOA dues, taxes, insurance, and property maintenance—could total around $60,000.

After operating it as a short-term vacation rental, you’re likely to net about half of that—maybe $30,000. That surprises a lot of people. With so many vacation rentals on the islands, it seems like everyone must be making money. But in reality, most people are simply trying to offset their costs. Many buyers are okay with that because they want a place to enjoy several times a year—and if they earn a little money in between, that’s a bonus.

So, why don’t these properties cash flow well?

  1. High Property Costs: Home prices are steep, and you can’t charge enough nightly to make up for it.

  2. High HOA Dues: In many resort areas, HOA fees range from $1,000 to $3,000 per month. That’s almost as much as your mortgage.

  3. Property Management Fees: If you’re hiring a company to handle booking, guest communication, and upkeep, expect to pay 15%–30% of your gross income.

  4. Taxes: Hawai‘i has several taxes tied to short-term rentals, including transient accommodation tax and conveyance tax, which eat into your profits.

  5. Occupancy Rates: You can’t rent it 100% of the time. Banks typically use a 70% occupancy rate to estimate income, knowing the property will sit vacant or be used by the owner for part of the year.

Put all of that together, and the math usually works out to you getting back about 50% of what it costs to own the property each year.

Of course, there are exceptions. You might have a highly exclusive property and be able to charge a premium rate. You might manage it yourself via Airbnb or VRBO, saving on fees. Or maybe you’re part of a high-end vacation club like Inspirato. In those cases, your profit could increase.

And in today’s post-pandemic market, demand is strong. Renters are willing to pay premium nightly rates, so maybe your ROI is closer to 60% or even 65%.

I hope this gives you a clearer picture of what to expect when investing in a short-term vacation rental here in Hawai‘i. If you’d like more information or want to discuss buying, selling, or investing, contact us at TheHawaiiTeam.com or call us at 808-913-0899.

Aloha!

Short-Term Vacation Rentals in Hawaii: What You Need to Know (Part 1)
By Dan Polimino, The Hawaii Team at Keller Williams Realty, Big Island

Today, we’re kicking off a three-part series on short-term vacation rentals. This is a huge topic. Nearly every buyer who calls us at The Hawaii Team asks about short-term vacation rentals—specifically, whether they can rent out a property they purchase. Because the topic is so extensive, we’re breaking it into three parts:

Let’s dive into Part One.

We often get emails from buyers that include links to properties they’ve found on Zillow, Redfin, or other sites. They’ll say, “Dan, we’re interested in these.” And honestly, nine out of ten of the properties they send won’t qualify for short-term vacation rental use.

Here’s why.

Five years ago, it was much easier. You could go on Airbnb or VRBO and rent out a house or condo pretty much anywhere. There weren’t many rules or restrictions. But that’s changed dramatically.

Around 2017–2018, HOA boards began cracking down. They didn’t want transient visitors disrupting communities where people lived full time. As a result, many HOAs started requiring minimum rental periods of 30 days. That’s the key number—anything less than 30 days is considered a short-term vacation rental.

So today, in many communities, rentals of fewer than 30 days are simply not allowed.

Then, in 2019, the State of Hawaii stepped in to regulate short-term vacation rentals more broadly. The main concern was unpermitted rentals—properties being rented without proper approvals or tax payments. The state responded by establishing designated vacation zones. These are specific areas where short-term vacation rentals are potentially allowed.

But here’s the catch: Just because a property is in a vacation zone doesn’t mean you’re automatically approved. You still have to check with the HOA to see if they permit short-term rentals. In reality, about 80% of the properties buyers think they can turn into vacation rentals either aren’t in a vacation zone or are restricted by their HOA.

So how do you know if a property qualifies? Well… you don’t. At least not easily.

That’s where we come in. The Hawaii Team have done the homework. We’ve talked to HOAs. We’ve talked to property owners. We know the ins and outs—where short-term vacation rentals are allowed and where they’re not. So save yourself the time, effort, and frustration of searching online and driving through neighborhoods.

Call us first. Tell us your goals, your wants and needs, and what you hope to achieve with your investment. We’ll guide you toward properties that actually fit the criteria.

At any given time, we’re helping 10 to 15 buyers each month look for short-term rental properties. They’re in high demand and go quickly. So you’ve got to be ready to act fast—and you’ve got to work with people who understand the process.

In Part Two of this series, we’ll talk about property management—who to hire, what to look for, and how to align management services with your goals. Not all property managers are created equal, and it’s important to find the right fit.

In the meantime, if you’re looking to buy, sell, or invest in real estate on the Big Island, contact us at The Hawaii Team. You can reach us at 808-913-0899 or visit thehawaiiteam.com.

Aloha!

Your Guide to Direct Flights to Kona (KOA): From the West Coast, Mountain West, and Texas

Planning your escape to Hawaiʻi Island? Getting to Kona International Airport (KOA) is now more convenient than ever, thanks to a growing list of nonstop flights from key cities across the West Coast, Mountain West, and Texas. Whether you’re looking for a weekend getaway or an extended island stay, we’ve gathered the most current direct routes to help you get here with ease.

West Coast Direct Flights to Kona (KOA)

Los Angeles, CA (LAX)
Airlines: Alaska, American, Delta, Hawaiian, Southwest, United
Flight Time: Approximately 5.5 to 6 hours
With daily flights across six major airlines, LAX is a central hub for travelers heading to the Big Island.

San Francisco, CA (SFO)
Airlines: Alaska, United
Flight Time: Approximately 5.5 hours
New Route: Alaska Airlines will launch new nonstop service on June 12, 2025, providing even more options from the Bay Area.

Seattle, WA (SEA)
Airlines: Alaska, Delta
Flight Time: Around 6 hours
Frequent daily departures make Seattle a top choice for travelers from the Pacific Northwest.

Portland, OR (PDX)
Airlines: Alaska
Flight Time: Around 6 hours
A direct route with reliable service, perfect for travelers from Oregon.

San Diego, CA (SAN)
Airlines: Alaska
Flight Time: Approximately 5.5 to 6 hours
A convenient nonstop option from Southern California.

San Jose, CA (SJC)
Airlines: Alaska
Flight Time: About 5.5 hours
Ideal for Silicon Valley residents looking for a quick island escape.

Sacramento, CA (SMF)
Airlines: Hawaiian, Southwest
Flight Time: About 5.5 hours
A newer route that connects Northern California’s capital to the Kona coast.

Oakland, CA (OAK)
Airlines: Southwest
Flight Time: Approximately 5.5 hours
A budget-friendly, nonstop option for East Bay travelers.

Mountain West Direct Flights to Kona (KOA)

Denver, CO (DEN)
Airlines: United
Flight Time: Around 7 hours
A longer flight, but a convenient direct route for those traveling from Colorado.

Salt Lake City, UT (SLC)
Airlines: Delta (Seasonal: December 19, 2025 – March 28, 2026)
Flight Time: Approximately 6.5 to 7 hours
This new seasonal route will operate with Delta’s wide-body Boeing 767-300ER, offering comfort and convenience for winter travelers.

Phoenix, AZ (PHX)
Airlines: American
Flight Time: About 6 hours
A nonstop link connecting Arizona’s desert to Hawaiʻi’s beaches.

Texas Direct Flights to Kona (KOA)

Dallas/Fort Worth, TX (DFW)
Airlines: American (Seasonal: November 20, 2025 – January 6, 2026; February 12 – 28, 2026)
Flight Time: Approximately 8.5 hours
This seasonal nonstop flight is perfect for Texans looking to spend the holidays or winter in paradise.

Seasonal and Upcoming Routes to Watch

Alaska Airlines Expansion
On June 12, 2025, Alaska Airlines will introduce new nonstop routes from both San Francisco and Los Angeles to KOA, expanding their Hawaii service just in time for summer.

Delta’s Winter Addition
Delta’s new seasonal route from Salt Lake City to Kona launches on December 19, 2025, and will run through March 28, 2026, offering travelers in Utah an easy winter getaway.

American Airlines from DFW
American will resume seasonal nonstop service from Dallas/Fort Worth beginning November 20, 2025, ideal for holiday and early spring travel.

Your Island Journey Starts Here
No matter where you’re coming from—California, Colorado, Utah, Arizona, or Texas—there’s a direct path to paradise waiting for you. Be sure to check with your airline for the latest schedules, availability, and seasonal updates. We look forward to welcoming you to the Big Island. Your adventure begins the moment you board.

If you’re considering buying a short-term vacation rental (STVR) on the Big Island of Hawaii, there’s one crucial piece of information you need to know before making any decisions: not every property is eligible for vacation rental use. In fact, the island has specific zones where STVRs are permitted—and outside of those zones, you may be out of luck.

Hi, I’m Dan Palamino with KW Big Island and the Hawaii Team. I help buyers, sellers, and investors navigate real estate on the island every day, and one of the most common questions I hear is: “Can I do a vacation rental in this area?” Today, I’m breaking it all down for you.

The Big Picture: East vs. West Side

On the east side of the island (Hamakua Coast, Hilo, Pahoa, Puna), STVR demand is different, and while some opportunities exist, I primarily work on the west side. The west side is home to the island’s resorts, and that’s where the majority of vacation rental activity is concentrated.

The Kona Coast & Ali‘i Drive

One of the clearest dividing lines for short-term vacation rentals is along Ali‘i Drive in Kona:

That means even if two properties sit directly across the street from one another, only the oceanfront side may qualify as a legal vacation rental. This pattern continues all along Ali‘i Drive as you move north up the coast.

Resorts Where STVRs Are Allowed

When I talk about helping people buy in the “six resorts” on the west side, here’s what I mean:

  1. Four Seasons Hualalai – Beautiful homes and condos where STVRs are allowed. Prices start around $4 million and can reach $30–40 million.
  2. Waikoloa Beach Resort – Home to the Marriott, Hilton Waikoloa Village, and a range of condominiums. Condos typically start at $800,000 and go up to $4 million. All eligible for STVRs.
  3. Mauna Lani Resort – Includes the Mauna Lani Beach Club and surrounding subdivisions like KaMilo and Kulala’i. All in the zone for STVRs.
  4. Mauna Kea Resort – Interestingly, even properties on the mauka (mountain) side of the highway here are eligible for STVRs.

Resorts Where STVRs Are Not Allowed

It’s important to note that some resorts do not allow vacation rentals—even though they fall within the county’s designated STVR zone. That’s because their HOAs and CC&Rs prohibit it. Two examples are:

Both are incredible private communities, but they don’t permit short-term rentals.

Making Smart STVR Investments

As you can see, not every property on the Big Island qualifies for vacation rental use, and the rules can be confusing if you’re new to the area. That’s why it’s so important to work with someone who knows the market and the zoning laws inside and out.

At KW Big Island and the Hawaii Team, we specialize in helping clients buy, sell, and invest in these zones—and we also provide property management services for vacation rentals.

Get in Touch

If you found this guide helpful, please share it with a friend who’s interested in investing on the island. Have questions about a specific property? Call me directly at 808-987-3306. I’d be happy to walk you through your options.

Aloha,
Dan Palamino

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