Exploring the Hybrid Rental Model in Hawai‘i
By Dan Polimino, Keller Williams Big Island | The Hawai‘i Team
Here are the three common ownership models people explore here in Hawaii:
1. Traditional Second Home
You buy a home simply to use as a second residence. When you’re not on the island, the property stays vacant. Simple, straightforward—but not income-producing.
2. Short-Term Vacation Rental (STVR)
This is the most popular model buyers ask about. You purchase a property with the goal of generating rental income by renting it to vacationers for short stays.
However, short-term rentals come with major limitations—
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You can only operate them within designated vacation rental zones
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These zones are mostly located along the coast
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If the property falls outside those areas, you can’t legally rent it short-term
That brings us to…
3. The Hybrid Model: One to Three Month Rentals
The hybrid approach is growing in popularity—and for good reason.
You purchase a second home but rent it out for one to three months at a time. Why does this matter?
Because the legal definition of a short-term vacation rental in Hawai‘i is 30 days or less. Once you hit day 31, it’s no longer considered a short-term rental. That means:
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You don’t need to be in a vacation rental zone
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You don’t need a permit
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You still generate income
This opens up the entire island to potential buyers—not just the limited vacation rental zones. You can now consider homes in places like:
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Up the mountain
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Waimea
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Waikoloa Village
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Holualoa
These are beautiful areas with wonderful communities, but they were previously off-limits for STVRs.
The Market Is Catching On
I have spoken with several property managers here on the Big Island. They’re actively building portfolios around this hybrid model—taking on homes specifically for 1- to 3-month rentals.
Before the pandemic, there wasn’t much demand for longer stays. Now, it’s a different story. People are coming to Hawai‘i for extended getaways, working remotely, or enjoying longer seasonal visits.
Why the Hybrid Model Works
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More flexibility in location
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No red tape with permits or zoning
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A growing market of renters looking for longer stays
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Less wear and tear on your property than with constant turnovers
Ready to Explore the Hybrid Option?
If this approach sounds like a better fit for your goals, let’s talk.
📞 Call us: 808-913-0899
🌐 Visit: TheHawaiiTeam.com
Aloha!
