Honolulu Short Term Rental Rules for Condo Owners: What You Need to Know

Thinking about listing your Honolulu condo as a vacation rental? The rules are specific, the stakes are high, and misunderstandings can be costly. You want clear guidance that helps you stay compliant while protecting your investment. In this guide, you will learn where short‑term rentals are allowed, how the 30 vs. 90 day rule works after recent litigation, what taxes apply, how AOAO rules factor in, and a step‑by‑step checklist to move forward with confidence. Let’s dive in.

What counts as a short‑term rental

Honolulu’s land‑use rules treat short‑term rentals differently based on location and authorization. The city’s framework distinguishes resort areas, apartment precincts with limited carve‑outs, and residential zones where most transient vacation use is not allowed without a specific approval. A 2019 ordinance package tightened definitions and enforcement, including advertising rules, for both hosted B&Bs and unhosted TVUs. You can review a plain‑English overview of these changes in this summary of Bill 89 and related rules from a local resource (Bill 89 overview and STR framework).

Two common categories matter for condo owners:

• Bed & Breakfast home, which is owner occupied and hosted with limits on rooms and occupancy.
• Transient Vacation Unit, which is an unhosted whole‑unit rental. TVUs are broadly prohibited outside resort areas unless a qualifying exception applies. A helpful explainer of eligibility and maps is available here (STR regulations and NUC basics).

Where STRs are allowed

Most condo units on Oʻahu are not legal for nightly stays unless they are in a Resort or Resort Mixed Use district or hold a valid legacy authorization. In practice, three paths can make a condo eligible:

• Location within a Resort or Resort Mixed Use zone, subject to your AOAO’s rules and any city registration requirements.
• A valid Non‑Conforming Use Certificate, which is a legacy approval issued to certain units that operated legally before the city’s cutoff in the 1990s. New NUCs are generally not issued. You can verify eligibility by TMK using the city’s NUC lists and maps referenced here (NUC verification resources).
• Limited grandfathered cases sometimes described as nonconforming hotel status, typically tied to specific buildings and historical use, also subject to AOAO rules. A good background on the city’s zoning framework is here (Honolulu STR zoning overview).

30 days vs. 90 days after the court ruling

In 2022, Honolulu adopted Ordinance 22‑7, which attempted to raise the minimum rental term in many non‑Resort districts from less than 30 days to less than 90 days. That change met a federal court challenge. On December 21, 2023, the court issued a permanent injunction that prevents the city from enforcing the 90 day prohibition against owners who were lawfully doing 30 to 89 day rentals on the ordinance’s effective date, including related advertising. You can read the court’s order and reasoning here (Dec. 21, 2023 injunction order).

What this means for you:

• If your condo was lawfully operating 30 to 89 day rentals at the ordinance’s effective date, that use and its advertising are protected by the injunction.
• If not, you should not assume 30 to 89 day rentals are allowed. You still need proper zoning, registration, and AOAO permission. The city may enforce other parts of the STR ordinances, including advertising and registration rules. For additional context, review the city’s ordinance summary and enforcement discussion here (Bill 41 overview).

Verify your condo’s eligibility first

Before you consider listing your condo, confirm these essentials:

• Check zoning and NUC status. Use the city’s eligibility tools and NUC lists to verify by TMK whether your unit is in a resort zone or has a valid NUC, as outlined here (How to verify STR eligibility).
• Review AOAO rules. Read your declaration, bylaws, and house rules for rental‑term restrictions. Hawaii’s condominium law empowers associations to restrict use and impose fines within due‑process rules (HRS 514B overview).
• Follow DPP registration rules. Where registration applies, you must complete the city process and include required numbers in advertisements. Advertising an unpermitted STR is a violation under the strengthened rules (Bill 89 overview).

Taxes you must collect and file

State TAT and GET

Hawaii’s Transient Accommodations Tax applies to rentals of less than 180 consecutive days. You must register for a TAT certificate, file periodic TA‑1 and annual TA‑2 returns, and apply TAT to rental charges and most fees. The state provides program details and e‑filing guidance here (State TAT requirements). Operating a rental is also subject to Hawaii’s General Excise Tax, including the Honolulu surcharge. Review licensing and filing requirements before you start booking (GET licensing and info).

Oʻahu’s county TAT (OTAT)

Honolulu administers a separate Oʻahu Transient Accommodations Tax in addition to the state TAT. Check the city’s page for current procedures and notices (City OTAT information).

Scheduled TAT increase

In 2025, the Legislature approved a statewide lodging tax increase, sometimes described as a green fee, scheduled to take effect January 1, 2026. Plan for the change and verify status before quoting rates (statewide lodging tax update).

Property tax classification matters

Honolulu’s Real Property Assessment system assigns classes such as Residential, Residential A, Hotel & Resort, Bed & Breakfast, and Transient Vacation. Units permitted for STR use often fall into higher‑rate classes like Transient Vacation or Hotel & Resort. Review the city’s adopted tax‑rate resolution for current classifications and rates (City tax‑rate resolution). Reclassification can significantly change your annual tax bill. Many condo buyers and owners evaluate classification alongside operating plans, as discussed in this overview of condotel considerations (condotel tax context).

AOAO rules can stop STRs

Even if your condo qualifies under city rules or holds a NUC, your association’s declaration and house rules may prohibit short‑term rentals. Hawaii’s condominium statute gives AOAOs the power to adopt and enforce use restrictions, including rental terms, subject to procedural protections (HRS 514B authority). Where public approvals and private restrictions intersect, disputes can arise. Many owners resolve questions by consulting AOAO management or legal counsel early.

Penalties and enforcement

Honolulu’s Department of Planning and Permitting enforces STR rules, including registration, advertising requirements, and NUC renewals. The city can issue notices of violation and assess escalating fines. Advertising a nightly rate for a non‑permitted unit is itself a violation under recent ordinances. For a practical summary of the city’s enforcement posture and penalty structure, see this ordinance overview (enforcement overview). AOAOs can also enforce their own rules and levy fines under HRS 514B.

Owner checklist

Use this quick path to stay on track:

1. Verify legal eligibility. Confirm zoning, resort status, or a valid NUC by TMK using the city tools referenced here (eligibility and NUC guide).
2. Review AOAO documents. Read the declaration, bylaws, house rules, recent amendments, and any board policies on rentals (condo law reference).
3. Register for taxes. Obtain your State TAT certificate and GET license, then file TA‑1 and TA‑2 on schedule (TAT program details, GET licensing). Account for the City’s OTAT as applicable (City OTAT).
4. Confirm property tax class. Check your current class and estimate impacts if your unit qualifies as Transient Vacation or Hotel & Resort (tax‑rate resolution).
5. Complete any DPP registration. Where required, follow forms, fees, renewals, and include your registration or NUC number in listings (Bill 89 overview).
6. Set compliance systems. Establish quiet hours, occupancy limits, and a local contact, and keep thorough records of bookings and taxes.
7. Get expert advice. Coordinate with land‑use counsel, a tax professional, and your AOAO manager before you publish a listing.

If you are weighing a purchase or a sale that involves STR potential, a clear strategy can protect value. For discreet guidance and a tailored plan, connect with Team Luxum Group Brokered by eXp Realty.

FAQs

What makes a Honolulu condo eligible for short‑term rentals?

• Eligibility typically requires Resort zoning or a valid NUC, plus AOAO permission and any required city registration, as outlined in the city framework and NUC resources (framework and NUC basics, Bill 89 overview).

Is the 90 day minimum stay rule currently enforceable?

• The city’s 90 day rule was limited by a federal injunction that protects owners who were lawfully doing 30 to 89 day rentals at the ordinance’s effective date; see the court’s order for scope (Dec. 21, 2023 order).

Do I owe both GET and TAT on my rental income?

• Yes. Short‑term rentals owe state TAT and Hawaii GET, and Oʻahu also imposes a county TAT; review the state and city guidance for registration and filings (TAT program, GET licensing, City OTAT).

Can my AOAO block short‑term rentals even if the city allows them?

• Yes. Associations can restrict use under HRS 514B, and they can enforce their rules through fines and other remedies. Private restrictions operate in addition to city zoning and registration (HRS 514B).

Will my property taxes change if I start STR operations?

• Possibly. Units classified as Transient Vacation or Hotel & Resort usually face higher rates than standard Residential; consult the city’s tax‑rate resolution and confirm your classification (tax‑rate resolution).