Maui's Hotel Zoned Condominiums

Important Update: Potential Changes to Short-Term Rentals in Maui

On May 3, 2024, the Mayor of Maui County announced a proposal to phase out short-term rentals in Apartment Zones. This significant development could impact many properties and prospective buyers.

According to the County of Maui's website: "The bill would phase out and repeal decades-old transient vacation rentals (TVRs) operating in the Apartment District, also known as the Minatoya list TVRs. With the bill's approval, these TVRs – numbering 7,000 units (2,200 of which are in West Maui) – would phase out West Maui units by July 1, 2025, and all other units countywide by Jan. 1, 2026."

In light of this announcement, many buyers are now focusing on Hotel Zoned Properties, as transient rentals are allowed in these areas per county code.

Which Maui Condominium Properties are Hotel Zoned?

Here Are The West Maui Hotel Zoned Short Term Vacation Rental (STVR) Condominiums

Kapalua:

• Montage Residences, Kapalua Bay (H-M)
• Ritz-Carlton Kapalua (H-M)

Napili:

• Napili Ridge (H-1 & A-2) *
• Napili Shores (H-M)
• Napili Sunset (Hotel)
• Napili Surf (Hotel & H-M)
• Napili Puamala (Hotel & H-M)

*Note: Napili Ridge is listed as NBCID on MauiCountyPropertyTax.com

The following properties are located in the Napili Bay Civic Improvement District (NBCID) and are not zoned as hotels:

• Hale Napili (NBCID)
• Honokeana Cove (NBCID)
• Napili Bay (NBCID)
• Napili Gardens (NBCID)
• Napili Kai (Puna Point 1, Puna Point 2, Napili Lani) | (NBCID | Puna II Hotel)
• Napili Point 1 & 2 (NBCID)

Kaanapali:

• Honua Kai (H-2)
• Honua Kai Luana Gardens (H-2 & R-3)
• Kaanapali Alii (Hotel | H-2)
• Kaanapali Shores (A-2 & H-2)
• Mahana (H-2)
• Maui Kai (Hotel-Apartment)
• The Whaler (H-2)

Kahana:

• Hololani (H-2)
• Kahana Villa (H-M)
• Pohailani Maui (Hotel Zoning on Oceanside only & Duplex-1 on Mauka/Moutain Side of Lower H Road)
• Royal Kahana (H-2)
• Valley Isle Resort (H-2)

Honokowai:

• Papakea (H-2 & A-2)

Lahaina:

• Aina Nalu (H-1)*
• Lahaina Shores (H-2)*

*Note: Aina Nalu is no longer standing, and Lahaina Shores cannot currently be occupied.

South Maui

Makena:

• Polo Beach Club (H-M)
• Makena Surf (Hotel)
• Makena Beach Club & Residences (H-M)

Wailea:

• Andaz Residences (H-2)
• Ho'olei (H-1)
• Wailea Beach Villas (H, H-1, H-2, BR)
• Wailea Elua (H-1 & Open)
• Wailea Point (H-1 & H-2)*

*Note: Wailea Point's CC&Rs prohibit short-term rentals.

Kihei:

• Hale Hui Kai (Hotel)
• Kihei Akahi (H-1 & H-2)
• Kihei Holiday
• Kihei Kai Nani (Hotel)
• Kihei Surfside (H-M)
• Mana Kai (Hotel)
• Maui Parkshore (Hotel & Apartment)
• Menehune Shores (Hotel)
• Royal Mauian (Hotel)

Hana:

• Hana Maui Resport (Hotel)

Zoning Information:

• H: Hotel Zoned (including H-1, H-2, H-M)
• NBCID: Napili Bay Civic Improvement District

About Maui Vacation Rentals and Condominiums

For those considering a short-term rental property in Maui, here are some essential tips:

• Maui County defines short-term rentals as anything less than 180 days.
• Short-term rentals are allowed if the condominium property is hotel-zoned. If it is in the Apartment Zone, they may be allowed if it falls under the Minatoya Opinion.
• An on-island property manager is required. The property manager must hold an active real estate license if managing multiple properties.
• Vacation rentals are more challenging for homes, as short-term rentals in Residential Zoning require a Short-Term Rental Home Permit, B&B Permit, or Variance.

This list is not exhaustive. It was gathered using the Short Term Occupancy List on the County of Maui website. Maui County has strict rules about vacation rental condominiums and short-term rentals. Condominiums built in the Hotel Zone can be rented, but different rules apply to those built in the Apartment Zone and Residential Zone.

Per the current county code (County Code Chapter 19.12.20 section G), TVRs of condominiums are permitted in apartment zoning if they meet the following criteria:

The building or structure received a building permit, special management area use permit, or planned development approval that was lawfully issued and valid, or is otherwise confirmed to have been lawfully existing, on April 20, 1989.

The transient vacation rental was used in any lawfully existing dwelling unit within the building or structure before September 24, 2020, as determined by real property tax class or payment of general excise and transient accommodations taxes.

The property owner or operator holds general excise tax (GET) and transient accommodations tax (TAT & MCTAT) licenses and currently pays state and county taxes, fines, or penalties assessed with the transient vacation rental.

If a building or structure is reconstructed, renovated, or expanded, transient vacation rental use is limited to the building envelope and number of bedrooms confirmed as approved or lawfully existing on April 20, 1989.

Advertisements for transient vacation rental use must include the subject property's registration number and tax map key number without punctuation marks.

Other condominiums may be rented due to zoning ordinances (such as Alaeloa) or location (like those within the Napili Bay Civic Improvement District). Some properties might allow rentals technically but have CC&Rs that impose further restrictions (e.g., Wailea Point).

*Note: The county's Short Term Occupancy List notes: "This list does not grant any entitlement that is not allowed by zoning or other provisions of the Maui County Code. This list is subject to error; confirmation should be obtained from the Planning Department to determine if short-term occupancy is allowed on any property." The list is subject to change.

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