Column: On vacation rentals, let condominium associations decide

The City Council is attempting to resolve the contentious issue of vacation rentals by enacting a one-size-fits-all solution. Act 41 (now Ordinance 22-7) raises the current 30-day minimum for vacation rentals to 90 days. When this law takes effect on Oct. 23, it will essentially eliminate the right of all homeowners, islandwide, to rent their properties to visitors. The only exceptions will be some buildings in tourist zones and a few grandfathered properties.

Even if this measure survives legal challenges — one has already been filed — it will embroil the city in costly litigation and expensive enforcement activities. There is a simpler and fairer way to handle this problem, at least for a large subset of properties affected. If each condo building was able to set its own policies regarding vacation rentals, each could determine what rules and regulations the owners in that building want and what’s right for that building’s unique circumstances.

By law, all owners of condo units belong to the Association of Apartment Owners for that building. The association holds annual meetings, at which time directors are elected. The board of directors meets regularly to enact policies; it has broad powers, as granted by state law, to manage all activities of residents in the building. When residents act irresponsibly, the board may impose fines or other sanctions, and everyone’s rights are protected.

The point is that in all condo buildings, there already is an effective regulatory structure and process in place, and there is no need for further oversight and restrictions by city government departments. For example, the most common complaints regarding vacation rentals have to do with noise and parking. Condo associations already have in place effective measures to deal with excessive noise by occupants, whether permanent or transitory.

The possible decision by a condo association to allow shorter-term vacation rentals in their building would not affect anyone else outside that building. And that decision would only be made if the majority of the building’s owners wanted it to be made. Why should the city get involved in matters that are only of concern to the residents of a building when there is already effective governance in place?

If condo associations were granted the right to make their own determinations, some might decide to ban vacation rentals completely while others might set minimal term limits, such as a week or two. Other creative solutions may be possible also, such as allowing vacation rentals only in some percentage of the total units. In each building, the people living in that condo community would determine what they want.

In enacting Ordinance 22-7, the city is, in effect, overruling the wishes of the people most involved, i.e., the residents in each condo community. The city is attempting to enforce a top-down mandate when a grassroots alternative is available and more appropriate.

Admittedly, this proposal to let condo associations set their own restrictions does not address vacation rentals in single-family dwellings not governed by any homeowners’ association. Still, if implemented, the proposal would solve the city’s enforcement problems for a large percentage of Oahu properties.

The city has been attempting to manage vacation rentals via its Department of Planning and Permitting’s (DPP) zoning authority. Whether because of lack of funding or lack of interest, the DPP has been singularly ineffective in controlling vacation rentals. Removing DPP’s obligation to enforce restrictions on condo building residents would save taxpayer money, avoid further litigation expenses and free DPP to focus on its core functions of issuing building permits and approvals for new developments.

Ordinance 22-7 should be amended to allow each condo association to set its own policies regarding vacation rentals. Recognizing the right of the people involved to determine what is best for them and their situation is not only a fair and reasonable policy, but would be a win-win solution for both the city and for condo unit owners.

Robert Speers is vice president of a large condominium association in Honolulu.