Rental count comes in low

A survey of vacation rentals commissioned by the Realtors Association of Maui raises as many questions as it answers, but it does underline the need for better county controls.

The survey reported only 816 properties with a total of 1,095 rooms – about a third of the highest earlier estimates. Judging from the listing supplied by the Kauaian Institute, which was commissioned by the Maui Realtors Association to conduct the count, major portions of Central Maui and Upcountry were ignored.

Of course, illegal vacation rentals operating on word-of-mouth advertising went uncounted. The actual inventory of vacation rentals – individual homes, “ohana” units and bed and breakfast operations – will be impossible to determine until county government knows exactly who is operating what and where.

The Maui VacationRental Association has been pushing the county to streamline the permit process, which now often takes years and a discouraging amount of expense to navigate. The association argues an easier process would result in fewer illegal operations. County action is long overdue, although nothing it does will completely eliminate illegal operations since they are likely to be taxed at the highest rate now reserved for hotels and resorts.

President David Dantes of the MVRA says the survey should allay fears vacation rentals are sapping the inventory of needed, residential long-term rentals. He pointed out that if all the vacation rentals were turned into long-term rental properties if would add “about 1 percent to the availability of affordable housing.”

Vacation rentals are increasingly popular with repeat visitors looking for a more “local” experience. Well-managed operations generally do not create neighborhood problems, but their very existence is one more factor in running up the cost of real estate on Maui even when they may allow residents to accommodate sky-high mortgage payments.