Potential Vacation Rental Estate in Napili Offers a Tropical Hideaway on Maui
Not a week goes by without someone asking me about a home they can use a few times a year and rent out the rest of the time. This would be considered a “short term” rental or “vacation rental.” The county of Maui does not generally allow this in any area. However, the current administration has come to a middle ground solution.
A beautiful home in Napili, perfect to rent out as a vacation rental
Short Term Rentals on Maui
They are allowing a certain number of residential properties in each geographic area of Maui to apply for a permit to make it legal. This does not mean it will be automatically granted. There are many things to consider before even trying this process. The most important would have to be:
- Does the neighborhood in which the home resides have HOA’s that forbid any type of short term rentals?
- Are there any permits left for this area?
Here is a link to show you how many permits are being allowed for each area and how many have been granted. Keep in mind that if a home is currently permitted for short term rentals and it is sold, the permit does not transfer. The new buyer would have to start over.
It is my understanding, however, that if the permit process is started but not complete, you may transfer the names on it and continue with the process without starting over. It is also my understanding that once you start the process, you can start renting your home until it is completed.
This all sounds very complicated with all you have to do to obtain one of these permits. It is. So the solution to all of this is to hire an expert who has completed a number of them to do all the work for you. I have such a contact and she charges around $3,500 to do it all for you.
An Ideal Vacation Rental Property
5029 Lower Honoapiilani Rd. is the perfect property for such a place. This beautiful home is located in Napili just a block from Napili Plaza and 4 properties from Kahana Sunset beach. There are no HOA’s in this neighborhood to hinder the permit process. It is located directly in front of Alaeloa complex, which is all short term rentals.
5029 Lower Honoapiilani Rd., Napili (MLS# 359663)
The main house has a full kitchen upstairs and downstairs. There is an elevator between the floors. There are great ocean views from the upstairs lanai. You can lock off the downstairs, and have a 3 bedroom place upstairs and a 3 bedroom place downstairs with a full kitchen. It has a wall all around the exterior, parking for up to 8 cars, and some amazing lush landscaping.
It feels like a tropical hideaway when you enter through the electric gate. A beautiful pool and hot tub make it even more appealing. To top all of this off, there is even a separate, huge 1 bedroom cottage above the garage. There are several zoned AC units, so you can save energy when you’re not using an area.
Pool area video
Upstairs master video
Upstairs lanai and ocean view video
Downstairs area video
Great Income Potential
This property (MLS# 359663) is priced at $2,395,000 and includes over 4,000 sq. feet of living space. Over 1/3 of an acre. I had 2 different property managers, of which, one was our own company, do research on similar rentals on the West side. I was told of nightly rental figure estimates of anywhere from $1,500 to $2,000 per night and about 70% occupancy per year.
With the crackdown on unpermitted home rentals in Kaanapali and elsewhere, the home rental market is in great demand and will only increase once all the permits are filled. Now is the time to act if you have thought about owning a home you can rent.
Interested in Short Term Vacation Rentals on Maui?
I can help you with all the contacts and provide you the emails with the figures from the property managers for this place. I also know of one Kaanapali home that is currently being rented and is in the middle of the permit process. I would be happy to share that info with you, if you ask.