Updated on May 6, 2023
Short-term rentals (STRs) have been an economic engine for Oahu for as long as the Hawaiian island has been a travel destination. In today’s tourism-dependent economy, an STR ban could cut a lifeline to needed income and the ability to stay in one’s home.
However, the Blangiardi administration’s proposed Bill 41 seeks to effectively ban STRs by changing the definition from a minimum of 30-day stays to 90 or 180 days, amongst myriad other draconian measures.
The short-term rental ban claims to seek to increase the island’s inventory of attainable or affordable long-term housing and crack down on “illegal operators.” However, the city has yet to enforce its previous “crackdown,” 2019’s Bill 89, and as Oahu Short-Term Rental Alliance (OSTRA) board leader Peggy Aurand shared in a recent episode of Hawaii Together on Think Tech Hawaii, Covid provided an opportunity to test the housing stock theory. As STRs were shut down for a significant period in 2020, supply and demand economics would posit that an increase in former STRs going onto the market would have decreased average housing prices, but that did not happen. As with most other real estate markets, prices have set new high records. Today, the median single-family home price on Oahu has topped $1 million. The average cost of housing in Hawaii is approximately 2.7 times higher than the overall average in the United States, according to Best Places.
That expensive lifestyle wouldn’t change just because of a short-term rental ban. Instead, locals would lose their jobs or see dramatic decreases in income if the bill passes. STRs often provide a more affordable alternative to hotels, especially for groups and those who need kitchens to cook their own meals, thereby increasing the draw of tourists to the tropical islands. And because STRs are spread across the island outside of resort zones, their associated guest spending is distributed to local businesses outside of Waikiki where those tourism dollars stay on the island, as opposed to being siphoned to corporate hotel headquarters on the mainland. Furthermore, STRs support a host of ancillary business services such as housekeeping, maintenance, and landscaping.
Voices in the Chorus
OSTRA and other STR advocates have engaged in letter writing, op-eds, face-to-face meetings, and public testimony at City Council outlining the reasons why the bill would be detrimental to the entire Honolulu County community, but in many cases, these voices have gone unheard.
Read more: Top 10 short-term rental advocacy resources and how to use them.
So, the alliance also produced a video series that highlights some of the personal stories of non-host locals who would be most affected by the short-term rental ban.
Telling the stories of how the proposed ordinance would impact individuals is just one part of the campaign, but it can really have an impact on city councilors who are undecided or on the fence, said Matt Trevino, a member of the OSTRA board and owner of Chires rental services.
“These heart and mind stories can resonate with people,” he said. “The more influence you have to get a no vote, the more the tide changes.”
Honolulu housekeeper on STR ban
Patrick Bollig is a good example. His Honolulu-based cleaning business has served mostly STRs for the past six years. Without the ability to earn income from cleaning STRs, he would have few other job alternatives and probably would have to leave Hawaii because he would be unable to support his family.
“For us, short-term rentals are where our bread and butter is, for sure,” Patrick said.
“The majority of our work is with short-term rentals. It pays really well … for someone like myself who doesn’t have a very high education level. For me to be able to provide for my family in Hawaii – given that the cost of living here is so high – short-term rentals and this business that I’m in allows me to live in Hawaii and be able to make a living.
“A ban on STRs would impact my business. I would have no job. I would have no cash flow coming in. I’d have to start all over again. Bill 41 is a step in the wrong direction, and it could eliminate jobs across the island.”
Employees at a real estate firm on STR ban
Margo Brower, principal broker of Captain Cook Real Estate, said the passage of Bill 41 would force her local business to lay off the 14 employees in their short-term rental division.
“If there was a ban on STRs, we would have to let go of all of our employees and would not be able to give business to our vendors and suppliers.” Many of those vendors or suppliers might also have to lay off their employees.
She said there’s another group of people that are often overlooked in the debate – the owners of STRs in Honolulu who invested in properties and the economy in good faith.
“It seems unfair to suddenly pull the rug out from underneath these owners,” she said.
Waikiki restaurateur on short-term rental ban
Sam Monaghan owns two restaurants in Waikiki, a Honolulu district frequented by tourists. His two establishments, Sam’s Kitchen and Waikiki Terrace, employ a total of about 20 people and rely heavily on business from guests staying at STRs.
Not only do STRs help his business and support his family, but he also rents rooms at STRs for visiting chefs.
“A ban on short-term rentals would impact my business mainly through the loss of the traveler who hopes to stay for longer than a few days,” he said. “I understand the need for regulations for short-term rental business, but I really wish the people making the rules think through who it benefits, and it’s not just massive corporations; it helps the little companies that actually hire local people like my business here.”
Professional musician on STR ban
Salesi Fifita-Atkins said his job as a short-term rental property manager has given him the free time and income to pursue his passion, playing music while still supporting his family.
He is a guitarist and backup vocalist in the band, City Boys, which performs music with influences from the oldies, hip-hop, R&B, and reggae.
“Without short-term rentals, I couldn’t pursue my passion in music,” Salesi said.
“I would hope the City Council listens to residents like me because we depend on the income of short-term rentals.”
One commenter who watched the video about Salesi noted: “Folks like these are able to be the people they actually want to be in the world and share their love of their community with visitors because short-term rentals exist.”
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