Owning a vacation rental in Maui can be a profitable investment thanks to the island’s thriving tourism industry. However, Maui County enforces strict rules and regulations regarding short-term rentals to preserve the community’s character and prevent overcrowding. Understanding these laws is essential before purchasing property for rental purposes.

In this guide, we’ll break down everything you need to know about Maui’s vacation rental laws, licensing requirements, and compliance tips.

 What Is Considered a Short-Term Rental in Maui?

A short-term rental is defined as any property rented for less than 180 consecutive days. These properties cater primarily to tourists, making them popular investment opportunities.

 Zoning Laws and Restrictions

Maui has specific zoning rules that determine where short-term rentals are allowed:

  • Hotel Zoning: Areas zoned as “hotel” allow vacation rentals without additional permits. Popular areas include Kaanapali and Wailea.
  • Residential Zoning: In most residential areas, short-term rentals are not allowed unless the property has a Short-Term Rental Home Permit (STRH) or a Bed and Breakfast Permit (B&B).

 How to Obtain a Vacation Rental Permit in Maui

  1. Short-Term Rental Permit (STRH)

    • Allows single-family homes to operate as vacation rentals.
    • Must comply with parking, noise restrictions, and safety regulations.

  2. Bed and Breakfast Permit (B&B)

    • Requires the owner to reside on-site while renting rooms.
    • Popular in areas like Upcountry and Hana.

Tip: Permits are non-transferable, so you’ll need to reapply if you purchase an existing rental property.

 Tax Obligations for Vacation Rentals

All short-term rental owners must pay:

  • General Excise Tax (GET) – 4.5% in Maui County.
  • Transient Accommodations Tax (TAT) – 10.25% charged to guests.

Tip: Work with a local CPA to avoid penalties and ensure compliance.

Conclusion

Owning a vacation rental in Maui can provide excellent income, but strict regulations require careful planning. Work with a local real estate agent to identify legal properties and obtain the necessary permits before investing.