Why you should buy in Princeville now…

How much do you really know about vacation rentals on Kauai? Did you know there are certain areas of Kauai designated for visitors?

These Vacation Designated Areas (VDA’s) are unique in they allow home owners to short-term rent there homes without a license. Sure you have to have a General Excise Tax (GET) license and Transient Accommodations Tax (TAT) to pay the tax, but there are no other requirements or restrictions.

Some of the most popular destinations on the North Shore are Hanalei and Haena. You will pay a little extra to be walking distance to a beautiful beach but visitors are happy to pay up t0 $2500/nt. for the pleasure of a beachfront vacation.

 

The thing is, Hanalei, Haena & Kilauea are outside the VDA and require a special Transient Vacation Rental Non-Conforming use (TVR-NC) permit. This license is issued by the County of Kauai Planning Dept. and must be renewed annually. Only homes with active TVRNC licenses can legally rent short term (less than 180 days). You cannot apply for a new TVR license, it must have been grandfathered-in when they created the rule between 2008-2010. You can see why having a license is a precious and valuable asset if your property is outside the VDA!

Now, what if the County Council decided they wanted to phase out vacation rentals outside of the VDA? Check out State Bill 163 below, it’s no joke.  Where are all those North Shore visitors going to rent a beautiful home? It doesn’t take a genius to figure it out, PRINCEVILLE. 

Princeville prices have been on a slow and steady rise for the past 5 years. Median list price is currently $900,000.00. My advice today is to buy and hold. Vacation rent your investment and within 10 years you may be sitting on a gold mine. 

*There are a few subdivisions in Princeville that do not allow short term rentals, Ka’iulani, for example.  

**SB163 (a bill to phase out TVRNC Licenses)

My next blog will be all about what vacation renters want in a rental home and how to maximize your nightly rate. ALOHA! Krisha