New Hawaiian Law Forces Oahu Rental Vacationers Into Panic

     On August 1st, the island of Oahu – the capital island of Hawaii, began to enforce a decades-old law regarding illegal home rentals. For many years – several decades, in fact – it was illegal for Oahu property owners to rent units for fewer than 30 days outside of resort zones. However, this law was never previously enforced. This change of heart is expected to close about 5,000 “illegal” rentals on the island. It states that any advertisement for the property, physical and virtual, may be used as evidence of the illegal activity. To ensure that the resident takes this threat seriously, continuous violators are liable for fines up to $10,000 a day. Ouch. As an expected surprise, the city of Honolulu stated that the number of listings it saw dropped 37% (compared to weeks prior). Unfortunately, as this crackdown is now a serious “crime”, tourists that had long booked their vacations before this August 1st switch-up are dealing with its immediate fallout. Vacations, anniversaries, and wedding plans have all been deeply affected by this new rental landscape.

Disaster

     Marlena Rundquist is one such bride-to-be that has felt the intense pressure caused by this immediate rental alteration. Regarding her September 4th wedding – “I had full-blown anxiety and panic attack. It was literally a month away. I couldn’t find anywhere to go. The people still willing to take a fine had hiked the prices: $200 a night went to almost $500 a night. Hotels were upping the price.” Not only was her own accommodations totaled by this change, the rooms needed and booked by guests were also heavily affected. “I’m still nervous because you don’t know between now and then if anything will happen,” she said.

In a similar situation, Tommy Szymanski was planning to visit the island to celebrate a number of special events including his own anniversary. However, he was given much of the same news. “The Waikiki reservation canceled Saturday and was like: ‘Yup, that’s it. We’re closing up shop on four different places and are trying to figure out what to do… I’m sitting here going ‘Really?’ My initial reaction – and this is from an outsider not knowing the stuff behind Hawaii’s politics – the resorts are getting exactly what they wanted with this bill.”

“The cost for two nights for a place on Travelocity was the cost of six nights through my Airbnb,” he added, alluding to the fact that remaining choices on Airbnb were less than desirable. “There were either ones with horrible reviews or they were substantially more expensive.” 

Choices?

     Clearly, this new bill has impacted vacationers and renters, alike. Refunds from apps like Airbnb and HomeAway have been administered but the new costs to be incurred by committed guests will surely be hard to swallow. Costs have doubled (or worse), the selection of respectable accommodations have narrowed, and the fill-rate of the newly available rooms is sure to explode. Is this the right way to deal with interested parties?