On Politics: Wait and see whether city enforcement matches its tough talk against illegal vacation rentals

The expected pushback is mounting, but the interesting reaction is that the folks at City Hall are not doing the usual retreat in the face of opposition.

At issue is the Honolulu’s decision to finally get tough on the illegal vacation rental industry, estimated to include between 5,000 to 8,000 outlaw units that are without the required permits. Of course, the required permits haven’t been available for nearly three decades, but that only means you can’t get one, not that you don’t need one.

From the beginning of this month through Oct. 1, 2020, unpermitted vacation rentals will just have to pack up. Then in October, prospective rental operators will have a chance to apply for one of the fewer than 2,000 permits to be available.

Already one industry group has sued and most of the real estate industry is just fuming.

One prominent Realtor, who asked for anonymity, said the city ordinance just isn’t well written.

“This law wasn’t very well thought out and it will impact a lot of local people. Most vacation home owners are not foreign. Most (not all) are humble, local people who used the income to help offset the high cost of living.

“Meanwhile, hotel occupancy and room rates are among the highest in the nation,” the Realtor said. When asked why the owners of vacation rentals can’t just switch over to offering their property as a residential rental, the Realtor said they can, but will not make as much money.

“If someone was renting out a room in their house for $100 a day and had it rented out 20 days out of the year, it’s $2,000 in rent. However, a long-term tenant may only pay $1,000-1,200 a month for that single room,” the Realtor said.

Tyler Dos Santos-Tam, spokesman for Hi Good Neighbor, a grassroots group opposing monster homes and the misuse of short-term rentals in local neighborhoods, said the increase in illegal rentals shows more hotel space is needed.

“The people previously profiting from illegal vacation rentals in our neighborhoods should never have been doing this activity in the first place. For the rest of us, this is a chance to make our neighborhoods for neighbors again,” Dos Santos-Tam said in an interview.

Meanwhile the city said it is just on the verge of pulling the trigger and “investigating a couple hundred violations right now.”

The question is: Will the sudden burst of tough talking from Mayor Kirk Caldwell and city officials really continue into real fines?

Even last week, Airbnb was listing vacation rentals in areas clearly off limits. The most obvious is the North Shore, where, according to the city’s own North Shore Sustainable Communities Plan, vacation rentals are not allowed now, nor in the future.

But in a search for rentals in Haleiwa, Airbnb reported, “Only 22 places to stay left for these dates. We recommend booking a place soon.”

One three-bedroom house listed for $213 a night extolled its virtues because “This place is in a quiet neighborhood on the North Shore, and so close to so many North Shore attractions!”

So will Caldwell and company match the stern warnings with real fines and rigorous enforcement? It is still an open question.

Richard Borreca writes on politics on Sundays. Reach him at 808onpolitics@gmail.com.