Transient Vacation Rentals (TVRs) on Kauai

Have you come across the term TVR while exploring Kauai real estate or planning a vacation on the island? Perhaps you’ve researched short-term rental investments or browsed platforms like Airbnb for the perfect getaway accommodations. TVRs are a unique aspect of Kauai’s rental market, yet they’re often misunderstood or overlooked, leading to confusion about what they truly entail.  Kauai has specific regulations governing short-term rentals that prospective owners must understand before diving in.

The History of TVR Regulations on Kauai

Before 2008, Kauai lacked clear rules for vacation rentals, leading to widespread uncertainty. Many single-family homes were rented as vacation properties in areas not zoned for such activity, often without permits.

The 2000 Kauai General Plan addressed this issue, introducing the concept of “Alternative Visitor Accommodations,” which included Bed-and-Breakfasts (B&Bs) and single-family vacation rentals. This acknowledgment set the stage for Ordinance #864, adopted in 2008, which established specific guidelines for Transient Vacation Rentals.

What Is a Transient Vacation Rental (TVR)?

The Kauai County Code defines a Transient Vacation Rental as: “A dwelling unit provided to transient occupants for compensation or fees, including club fees, or as part of interval ownership involving persons unrelated by blood, with a duration of occupancy of 180 days or less.”

In simple terms, any property rented to paying guests for less than six months is considered a TVR and must comply with the county’s short-term rental laws.

Key points from Ordinance #864:

• TVRs are allowed only in designated **Visitor Destination Areas (VDAs)**.
• Properties outside of VDAs can only operate as TVRs if they have a grandfathered **Non-Conforming Use (NCU)** permit issued before March 30, 2009.

VRs and Visitor Destination Areas (VDAs)

VDAs are specific zones on Kauai where resort activities and short-term vacation rentals are legally permitted.

Inside a VDA:

• Not all properties in a VDA are automatically eligible to operate as TVRs. Meaning some H.O.A’s or condo complexes may have further restrictions to be eligible to rent on a nightly basis.
• Where are the VDA zones in Kauai? Princeville, some sections of Kapaa, Parts of Poipu, and a small section in Waimea. Other than that, you would need a TVR permit!
• Before purchasing a property, confirm its TVR status with the County of Kauai Planning Department.

Outside a VDA:

• Properties located outside a VDA can only function as TVRs if they hold an NCU permit.
• The NCU permit must have been obtained before March 30, 2009, as new permits are no longer issued for non-VDA properties.

Things to Keep in Mind

Owning a TVR on Kauai can be financially rewarding, helping to offset ownership costs and offering a base for vacations plans. However, it’s critical to ensure that the property complies with all legal requirements to avoid potential issues.

Before purchasing a property for use as a short-term rental:

• Verify its zoning and legal status with the **County of Kauai Planning Department**.
• Make sure the TVR is in good standing
• Ensure that it is either in a VDA or has a valid NCU permit.

Are TVRs transferrable?

• Upon sale of a property and transfer of ownership, TVRs can be transferred to the next owner. *It is important to register with the county your new info immediately.
• MOST IMPORTANTLY- Keep in mind TVR permits need to be renewed on an annual basis. The fee is typically around $750 ( plus tax) per TVR license. The county does NOT send reminders, it is on the owner to renew. IF missed by one business day, the property forever forfeits its licensing as this is a strict policy county wide, with no grace period.