Maui Real Estate & Lifestyle News

Kapalua Residential Market Update: June 19, 2022

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Sun, 19 Jun 2022 17:01:00 -1000

Kapalua Resort, Maui: residential market update Sold: 320 Cook Pine Drive listed by Courtney M. Brown sold for $3,850,000. Kapalua Homes for Sale: Active and Pending Listings Kapalua is comprised of several distinct communities, yet all flow together due to strong architectural and design guidelines: Pineapple Hill & Pineapple Hill Estates, Mahana Estates, Honolua Ridge, Plantation Estates Phases I and II, and Kapalua Place. There are also three homes on oceanfront points within the Resort that aren't a part of a formal subdivision. At the time of this post, there are just three active listings and three pending sales: The active listings include a home on a double lot in Pineapple Hill that was originally built by musician Carlos Santana, a home in the Plantation Estates Phase I located overlooking the Plantation Course, and 9 Bay Drive, which is situated on an oceanfront peninsula overlooking Namalu Bay and neighbors the Montage Residences at Kapalua Bay. This is unusual for Kapalua and skews the averages considerably, so it's important to look at each area individually (see below), All three pending homes are in Pineapple Hill and Pineapple Hill Estates. Status Address List Price Bds Bths Sq. Ft. Land Acres Days On Market $/SQFT Built MLS Subdivision ACT 314 Cook Pine Dr $7,900,000 5 5.5 7,229 0.50 306 $1,093 2000 392686 Pineapple Hill ACT 301 Plantation Estates Dr $12,300,000 4 4.5 7,127 2.06 156 $1,726 2005 394362 Plantation Estates ACT 9 Bay Dr $59,500,000 6 7 6,645 9.96 186 $8,954 1996 394048 Kapalua PNDS 612 Silversword Dr $3,100,000 3 3.5 3,136 0.22 18 $989 2001 395987 Pineapple Hill PNDS 233 Crestview Rd $5,150,000 4 4 4,390 0.46 23 $1,173 2009 395932 Pineapple Hill Estates PNDS 1216 Summer Rd $8,450,000 6 6.5 7,784 0.62 107 $1,086 1990 394986 Pineapple Hill Kapalua Resort Home Sales YTD 2022 vs. Prior Years SOLD YTD 2021 2020 2019 2018 2017 2016 Number of Sales 7 29 17 19 8 8 14 Volume $33,950,000 $144,197,500 $90,787,000 $47,954,020 $30,943,300 $20,920,000 $50,940,000 Low Sales Price $2,750,000 $2,062,500 $1,600,000 $1,489,020 $1,970,000 $1,750,000 $2,050,000 High Sales Price $7,500,000 $15,000,000 $24,000,000 $6,000,000 $12,000,000 $3,550,000 $9,500,000 Average SP $4,850,000 $4,972,328 $5,340,412 $2,664,112 $3,867,913 $2,615,000 $3,638,571 Average SP/Sq. ft. $1,153 $982 $1,063 $715 $755 $663 $830 Average DOM 265 227 151 270 355 184 217 Average SP/LP 95 94 91 92 89 93 90 In 2022, we are seeing a trend toward longer days on market and a higher sales price/sq. ft. That said when looking at the sales statistics, it's important to note some differences: Status Address List Price Sold Price SP/LP Closing Date Bds Bths Sq. Ft. Land Acres DOM SP/Sq. Ft. Built MLS Subdivision SLD 212 Plantation Club Dr $5,750,000 $5,425,000 94 1/7/22 4 4.5 4,790 2.02 499 $940 1999 388335 Plantation Estates SLD 324 Cook Pine Dr $2,999,000 $2,750,000 92 1/31/22 3 3.5 3,670 0.25 143 $749 1990 392959 Pineapple Hill SLD 320 Cook Pine Dr $3,995,000 $3,850,000 96 3/3/22 3 3.5 4,135 0.22 38 $931 1999 394464 Pineapple Hill SLD 300 Mahana Ridge St $4,750,000 $4,750,000 100 3/3/22 4 4.5 2,968 1.29 206 $1,600 2021 392591 Mahana Estates SLD 218 Plantation Club Dr $8,250,000 $7,500,000 91 4/8/22 5 5.5 7,267 2.19 595 $1,032 1992 388247 Plantation Estates SLD 310 Mahana Ridge St $4,850,000 $4,850,000 100 4/14/22 4 4.5 2,968 1.51 241 $1,634 2021 392657 Mahana Estates SLD 236 Crestview Rd $5,395,000 $4,825,000 89 6/17/22 4 4.5 4,077 0.45 136 $1,183 2003 394626 Pineapple Hill Estates A newly constructed home at Mahana Estates sold at 100 of asking, whereas older homes in Pineapple Hill and Plantation Estates, where some updates may be needed or desired, sold at 89-92 of asking. Note these figures do not include homes or land that aren't part of the Kapalua Resort Association Kapalua's Residential Communities PINEAPPLE HILL & PINEAPPLE HILL ESTATES ACTIVE LISTINGS 1 Volume $7,900,000 Average LP/Sq. Ft. $1,093 Average DOM 306 PENDING SALES 3 Volume $16,700,000 Low LP $3,100,000 High LP $8,450,000 Average LP $5,566,666 Average LP/Sq. Ft. $1,082 Average DOM 49 Pineapple Hill & Pineapple Hill Estates Homes SOLD YTD 2022 2021 2020 2019 2018 2017 2016 Number of Sales 3 15 10 15 4 6 9 Volume $11,425,000 $46,012,500 $27,187,000 $35,834,020 $9,550,000 $15,145,000 $21,170,000 Low Sales Price $2,750,000 $2,062,500 $1,600,000 $1,489,020 $1,970,000 $1,750,000 $2,050,000 High Sales Price $4,825,000 $4,850,000 $3,750,000 $3,200,000 $2,680,000 $3,550,000 $2,700,000 Average SP $3,808,333 $3,067,500 $2,718,700 $2,388,935 $2,387,500 $2,524,167 $2,352,222 Average SP/Sq. ft. $955 $768 $696 $692 $588 $680 $651 Average DOM 90 160 137 262 325 219 219 Average SP/LP 93 95 95 94 92 93 91 Pineapple Hill & Pineapple Hill Estates Land At the time of this post, there are no active listings and just one pending lot. ACTIVE LISTINGS 0 PENDING SALES 1 Volume $1,295,000 List Price $1,295,000 Average LP/Sq. Ft. $106 Average DOM 62 SOLD YTD 2022 2021 2020 2019 2018 2017 2016 Number of Sales 4 2 1 0 0 0 0 Low Sales Price $879,000 $1,195,000 $950,000 NA NA NA NA High Sales Price $1,128,000 $1,305,000 $950,000 NA NA NA NA Average Sales Price $1,500,000 $1,250,000 $950,000 NA NA NA NA Average SP/Sq. ft. $101 $62 $87 NA NA NA NA Average DOM 305 143 314 NA NA NA NA Average SP/LP 100 100 90 NA NA NA NA PLANTATION ESTATES AT KAPALUA Plantation Estates Homes ACTIVE LISTINGS 1 Volume $12,300,000 List Price $12,300,000 Average LP/Sq. Ft. $1,726 Average DOM 156 PENDING SALES 0 SOLD YTD 2021 2020 2019 2018 2017 Number of Sales 2 6 3 1 1 1 Volume $12,925,000 $32,635,000 $13,850,000 $6,000,000 $3,000,050 $3,200,000 Low Sales Price $5,425,000 $4,025,000 $3,750,000 $6,000,000 $3,000,050 $3,200,000 High Sales Price $7,500,000 $10,100,000 $5,650,000 $6,000,000 $3,000,050 $3,200,000 Average SP $6,462,500 $5,439,167 $4,616,667 $6,000,000 $3,000,050 $3,200,000 Average SP/Sq. ft. $986 $933 $1,006 $972 $463 $914 Average DOM 547 258 70 215 372 108 Average SP/LP 93 93 92 81 83 100 Plantation Estates Land ACTIVE LISTINGS 2 Volume $4,245,000 Low LP $1,995,000 High LP $2,250,000 Average LP $2,122,500 Average LP/Sq. Ft. $21 Average DOM 130 PENDING SALES 0 SOLD YTD 2022 2021 2020 2019 2018 2017 Number of Sales 2 5 2 0 0 2 Volume $4,545,000 $7,965,000 $1,700,000 0 0 $2,174,000 Low Sales Price $845,000 $975,000 $800,000 NA NA $875,000 High Sales Price $3,700,000 $2,600,000 $900,000 NA NA $1,299,000 Average SP $2,272,500 $1,593,000 $850,000 NA NA $1,087,000 Average SP/Sq. ft. $22 $15 $9 NA NA $12 Average DOM $618 226 53 NA NA 211 Average SP/LP 96 97 81 NA NA 84 HONOLUA RIDGE Honolua Ridge Homes There are no active home listings or pending sales at Honolua Ridge at the time of this post. SOLD YTD 2021 2020 2019 2018 2017 Number of Sales 0 4 1 2 2 1 Volume 0 $25,500,000 $3,850,000 $6,120,000 $6,393,250 $2,575,000 Low Sales Price NA $5,000,000 $3,850,000 $2,850,000 $3,000,000 $2,575,000 High Sales Price NA $8,700,000 $3,850,000 $3,270,000 $3,393,250 $2,575,000 Average SP NA $6,375,000 $3,850,000 $3,060,000 $3,196,625 $2,575,000 Average SP/Sq. ft. NA $1,175 $1,036 $759 $811 $306 Average DOM NA 276 40 352 167 48 Average SP/LP NA 94 91 89 89 86 Honolua Ridge Land ACTIVE LISTINGS 1 Volume $1,587,000 Average LP/Sq. Ft. $9 Average DOM 22 PENDING SALES 0 SOLD YTD 2022 2021 2020 2019 2018 2017 Number of Sales 5 9 1 0 0 4 Volume $10,250,000 $13,365,000 $850,000 0 0 $3,605,000 Low Sales Price $1,163,000 $805,000 $850,000 NA NA $715,000 High Sales Price $2,795,000 $2,000,000 $850,000 NA NA $1,400,000 Average SP $2,050,100 $1,485,000 $850,000 NA NA $901,250 Average SP/Sq. ft. $6 $7 $5 NA NA $3 Average DOM 135 227 360 NA NA 601 Average SP/LP 96 92 95 NA NA 81 MAHANA ESTATES Mahana Estates Homes There are no active home or pending listings in Mahana Estates at the time of this post. Mahana Estates is a relatively new development, and construction is just beginning. SOLD YTD 2022 2021 2020 2019 2018 2017 Number of Sales 2 1 1 0 0 0 Volume $9,600,000 $5,250,000 $6,400,000 0 0 0 Low Sales Price $4,750,000 $5,250,000 $6,400,000 NA NA NA High Sales Price $4,850,000 $5,250,000 $6,400,000 NA NA NA Average SP $4,800,000 $5,250,000 $6,400,000 NA NA NA Average SP/Sq. ft. $1,617 $1,229 $1,634 NA NA NA Average DOM 224 52 122 NA NA NA Average SP/LP 100 99 77 NA NA NA Mahana Estates Land There are no active lot listings in Mahana Estates at the time of this post. SOLD YTD 2022 2021 2020 2019 2018 2017 Number of Sales 2 42 3 2 0 0 Volume $3,850,000 $41,435,000 $2,425,000 $3,150,000 0 0 Low Sales Price $1,200,000 $700,000 $800,000 $1,300,000 NA NA High Sales Price $1,400,000 $2,150,000 $825,000 $1,850,000 NA NA Average SP $1,283,333 $986,548 $808,333 $1,575,000 NA NA Average SP/Sq. ft. $20 $17 $12 $23 NA NA Average DOM 161 163 157 60 NA NA Average SP/LP 94 94 95 10000 NA NA KAPALUA PLACE & OCEANFRONT HOMES ACTIVE LISTINGS 1 Volume $59,500,000 Low LP $59,500,000 High LP $59,500,000 Average LP $59,500,000 Average LP/Sq. Ft. $8,954 Average DOM 108 PENDING SALES 0 SOLD YTD 2021 2020 2019 2018 2017 Number of Sales 0 3 0 1 0 Volume 0 $34,800,000 $39,500,000 0 $12,000,000 0 Low Sales Price NA $8,700,000 $15,500,000 NA $12,000,000 NA High Sales Price NA $15,000,000 $24,000,000 NA $12,000,000 NA Average SP NA $11,600,000 $19,750,000 NA $12,000,000 NA Average SP/Sq. ft. NA $1,809 $2,975 NA $1,605 NA Average DOM NA 489 425 NA 833 NA Average SP/LP NA 93 79 NA 80 NA There is just one remaining oceanfront lot in Kapalua, which sold in 2020 for $8,000,000 and $108/sq. ft. It will likely soon be developed. Prepared on 6.19.2022. Sales Data 1.1.2022 through 6.17.2022 If you are thinking of buying or selling in Kapalua, please contact Courtney M. Brown for more detailed information on the market at each of these Kapalua communities, Note: care is taken with compiling the data and information, but is subject to change and does not include private transactions not in MLS. Interested parties are advised to do their own due diligence and confirm all figures contained herein.

Maui Market Spotlight: Coconut Grove Kapalua Bay

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Sat, 18 Jun 2022 13:12:00 -1000

Live front and center on the Beach at Kapalua Bay: Spotlight on the Coconut Grove on Kapalua Bay The Coconut Grove on Kapalua Bay is one of Kapalua's hidden gems. Situated overlooking Kapalua Bay, this gated enclave of just 36 residences is located next door to the Montage Residences Kapalua Bay, and represents an exceptional value on a price-per-square-foot basis. At the time of this post, the two oceanfront Montage Condos 2203 and 1203 are for sale at $2927 and $3375/sq. ft. The Coconut Grove does not allow short-term rentals, and many residents love the peaceful, less transient feel of the community. The Plan 1 is a 3B/3B floor plan and the Plans 2, 3 and 4 are 3B/3.5B residences. The oceanfront Plan 4 floor plans all have an additional oceanfront den. The ground-floor residences have private courtyards, which are popular for those that like to have their own garden space. Click to View a Map of the Coconut Grove on Kapalua Bay Coconut Grove Kapalua Bay Condos for Sale: Current Listings Residence List Price Location Floor Plan Floor LP/SQFT MLS Coconut Grove 14 $5,800,000 Oceanfront Bldg D Plan 3 Second $2,210 395823 Coconut Grove 21 $5,995,000 Oceanfront Bldg F Plan 1 Ground $2,593 396163 Coconut Grove Kapalua Bay Recent Sales: 12 Year Condo Sales History Residence Sale Price Sold Date Location Floor Plan Floor SP/SQFT MLS Coconut Grove 34 $5,200,000 12/30/10 Oceanfront Bldg I Plan 3 Second $2,210 395823 Coconut Grove 18* $5,000,000 1/17/12 Oceanfront Bldg E Plan 4 Second $2,593 396163 Coconut Grove 29 $4,196,500 2/1/13 Oceanfront Bldg H Plan 1 Ground $1,971 346414 Coconut Grove 25 $4,250,000 7/22/13 Oceanfront Bldg G Plan 1 Ground $1,815 355067 Coconut Grove 23 $5,000,000 5/15/14 Oceanfront Bldg F Plan 2 Ground $1,838 351036 Coconut Grove 27* $5,250,000 7/16/16 Oceanfront Bldg G Plan 2 Ground $2,193 358553 Coconut Grove 15 $4,550,000 4/4/17 Oceanfront Bldg D Plan 2 Ground $1,996 371755 Coconut Grove 22 $5,000,000 6/1/17 Oceanfront Bldg F Plan 3 Second $1,905 374304 Coconut Grove 16 $4,500,000 7/3/17 Oceanfront Bldg D Plan 4 Second $1,706 374297 Coconut Grove 32 $4,900,000 10/20/17 Oceanfront Bldg H Plan 4 Second $1,857 374902 Coconut Grove 26 $4,550,000 4/1/21 Oceanfront Bldg G Plan 3 Second $1,733 387563 Coconut Grove 32 $4,900,000 4/28/21 Oceanfront Bldg H Plan 4 Second $1,857 390545 Coconut Grove 33 $4,600,000 6/10/21 Oceanfront Bldg I Plan 2 Ground $2,018 387675 Coconut Grove 30 $5,000,000 6/10/21 Oceanfront Bldg H Plan 3 Second $1,905 390851 Coconut Grove 22 $6,250,000 11/17/21 Oceanfront Bldg F Plan 3 Second $2,381 392523 Coconut Grove 2 $3,700,000 11/30/21 Oceanview Bldg A Plan 4 Second $1,403 393048 * Private sales not in MLS Coconut Grove Condos: Median Sales Prices Coconut Grove Condos: Median Sales Price ($)/Sq. Ft. For more information on the Coconut Grove and the Kapalua Resort, or to set up a private showing at Coconut Grove, please contact Courtney View Current Listings

Maui Vacation Rental (Transient Accommodations) FAQ: 2022 Update

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Mon, 13 Jun 2022 14:08:00 -1000

MAUI VACATION RENTAL (TRANSIENT ACCOMMODATIONS) & SHORT TERM RENTAL FAQs May 7, 2024 Since this post there have been significant changes and proposed changes in Maui County and the State of Hawaii with regard to short term rentals. Read the updated post: May, 2024 Original Post Follows This is an update to a post I wrote in 2017. Since writing that post, there have been updates to the county code and new legislative proposals affecting short-term rentals. Maui, like many places around the US that are popular vacation destinations, has grappled with affordable housing and workforce housing. In 2022, a moratorium was passed on the approval of new transient accommodations, as well as the implementation of a new long-term rental tax category to incentivize owners to tenants for 12 months or longer to create more housing. When purchasing a property on Maui, it's important to understand the possible uses of the property with regard to how it can be rented (long-term, short-term, limited short-term (by virtue of AOAO or HOA rules for example), or both). As a realtor here on Maui, working primarily in resort areas, the most frequently asked questions I encounter are "can I vacation rent this property when I'm not using it?" and, if so, "can I manage the property myself on a website like VRBO or AirBnB?". The answer is, it depends. It isn't always straightforward, as there are several factors to consider that may govern the use of the property as a short-term Transient Vacation Rental (TVR), including, but not limited to, state laws and statutes, Maui county zoning rules and regulations, and CC&R's (Declaration of Covenants, Conditions, and Restrictions). For the most part, it is easier to rent condominiums short-term than homes due to zoning, county ordinances, particularly the 5-year ownership requirement prior to application to permit a home for short-term rentals, along with the limited number of available permits, which are capped by area. The county has put some regulations in place, which do require an on-island manager, and my recommendation is to hire a licensed property manager specializing in either short or long-term rentals (whichever you need). While this does come at an expense to owners and guests alike, it is important to have an on-island manager for tenants in case there is a leak or issue with the property, as well as for owners, to prevent property damage. It also protects consumers from online scams for both short and long-term rentals. I often get calls from people planning their vacation here on Maui and considering a home instead of a condo or hotel. The calls sometimes come when it just seems too good to be true; at other times, it's after they've paid deposits and can't reach their contact; and some come after they google the address and see the home is listed for sale. Unfortunately, in almost all of these cases, the property is not a legitimate rental. Photos are simply taken from websites and used in online ads in a rental scam. Below are some of the questions I'm asked most often and links to helpful resources and source information. As always, interested parties are advised to do their own due diligence, as county zoning rules and ordinances may change over time. TRANSIENT/SHORT-TERM/VACATION RENTAL FAQS For the purpose of the information below, "Transient Vacation Rental" or "TVR" is used interchangeably with the terms short-term rentals and vacation rentals. 1. What is a Transient Vacation Rental (TVR)? Per Maui County's website, a TVR (short-term or vacation rental) is any rental of a housing unit for less than 180 days. The Maui County Code Chapter 19.37 prohibits transient vacation rentals outside of the hotel district. 2. What if the property I'm considering does not fall under Maui County's Code's Hotel District? Can I still rent it short-term as a TVR? Per the Maui County TVR FAQ webpage: "an estimated 16,000-plus TVRs may operate legally in the County, many in multi-unit buildings, along with several hundred single-family units. They operate legally because they are in an approved zoning district (hotel, business, historic, etc). Those that are not in approved districts and are operating legally, have applied for and received a “conditional permit” that is required to conduct a vacation rental business in a residential, rural or agricultural zoned district." Per the current county code (County Code Chapter 19.12.20 section G), TVRs of condominiums are permitted in apartment zoning (A-1 and A-2) if they meet the following criteria: 1. The building or structure received a building permit, special management area use permit, or planned development approval that was lawfully issued by and was valid, or is otherwise confirmed to have been lawfully existing, on April 20, 1989.2. Transient vacation rental use was conducted in any lawfully existing dwelling unit within the building or structure prior to September 24, 2020 as determined by real property tax class or payment of general excise tax and transient accommodations tax.3. The property owner or operator holds general excise tax and transient accommodations tax licenses and is current in payment of State and County taxes, fines, or penalties assessed in relation to the transient vacation rental.4. If a building or structure is reconstructed, renovated, or expanded, transient vacation rental use is limited to the building envelope and number of bedrooms that can be confirmed as approved or lawfully existing on April 20, 1989.5. Advertisements for transient vacation rental use must include the subject property's registration number, which is the subject property's tax map key number, without punctuation marks. View a List of Condominiums that fall under the Maui County Short Term Rental List as of 4.27.2022 This is a list of Apartment zoned properties that are generally recognized to have the vested right to conduct transient vacation rental use. Note: This list does not grant any entitlement that is not allowed by zoning or any other provisions of the Maui County Code. This list is subject to error; to determine if short-term occupancy is allowed on any property, confirmation should be obtained from the Department of Planning. For a single-family and/or ohana home in the Apartment, Residential and Agricultural Districts, if an exemption is not in place for the subdivision, an owner would have to apply for and gain approval for one of the following in order to use the property as a TVR: B&B Permit (County Code Chapter 19.64), per the zoning ordinances, the owner/proprietor of a B&B shall be a resident of the County and shall reside, on a full-time basis, on the same lot being used as the bed and breakfast home. Short Term Rental Home (STRH) Permit (County Code Chapter 19.65). It should be noted that short-term rental home permits are subject to a variety of conditions, the owner must have owned the home for five years prior to the application, they are currently non-transferable, and the county has placed caps on the number allowed in each area. Conditional Use Permit: Outside of the above zoning districts, there are short-term rentals that have received approval to operate with a Conditional Permit. 3. Short Term Rental Homes. Any Updates since originally the permit process was introduced? Yes. The following are some key updates to the code: Update as of 4/12/2018: Maui County has passed a law that changes one of the requirements for the ability to apply for a permit to rent for any period of less than 180 days if the property does not have hotel zoning. Previously, the application required that the home be at least five years old. With the new law, the applicant must have owned the home for five years prior to applying for the short-term rental home permit. This new law was passed on 3/27/2018 takes effect on 9/27/2018. Update as of 1/7/2022: Maui County Council passed a two-year moratorium on new short-term rentals (Ordinance 5316) Update 4/8/2022: The Maui County Council’s Planning and Sustainable Land Use Committee recently advanced legislation that would essentially codify the moratorium, and function to cap the number of visitor accommodations at existing levels (Resolution 22-70)Any interested parties should investigate current legislation and proposals at the time of your purchase, as well as the applicable county zoning ordinances that apply to the property that is of interest. 4. With the new 2-Year Moratorium on Transient Accommodations in Ordinance 5316 how does that affect buying a condominium at a property where rentals are permitted but the unit isn't currently rented? This is something the Realtor's Association of Maui's Government Affairs department has been asked, and they responded that "this legislation should not impact any units that are allowed to conduct transient accommodations, even if those units aren’t actually conducting transient accommodations now. This specific point was discussed at the PSLU Committee’s March 23, 2022 meeting, and the original bill was amended to ensure that this right would be preserved, even if vacation rentals aren’t being conducted." For details on these changes, and a clearer understanding of the legislative intent on this matter, they point us to the meeting minutes from March 23rd beginning around page 34. 5. The Resolution also changes Section 19.32.040 of the Maui County Code to say that “transient vacation rentals are not permitted in planned developments.” Does this mean that transient vacation rentals will become unlawful in planned developments? Again turning to our Government Affairs Department: "According to Section 20 of the proposed legislation, these changes will only apply “to new transient accommodation applications that have not received final discretionary approval prior to January 7, 2022.” Therefore, existing planned developments that currently allow transient accommodations will continue to be allowed to conduct transient accommodations. Notwithstanding, TVR use will likely be considered a “lawful non-conforming use,” which means it is allowed but it may potentially be susceptible to elimination through legislation down the line." 6. Can I manage a vacation rental or long-term rental property myself? Can a relative or an employee manage the property for me? An owner can manage their vacation rental or long-term themselves, but they must be on island to do so. If the owner are not on island, they do need to provide their renters with a Local Contact and/or managing agent, who resides on island. Per Hawaii Landlord Tenant Code, Chapter 521, "An absentee landlord shall designate an agent to act on the landlord's behalf. The agent must reside on the same island as the rental unit." Per the DCCA, the designated on-island agent must be licensed if engaging in any activity for which a real estate license is required or manages property for more than one owner. 7. Is a landlord obligated to collect General Excise Tax (GET) and Transient Accommodations Tax (TAT)?Yes. The landlord must collect and pay GET and TAT per the Revised Statute 237. 8. When advertising a vacation rental online, are there any requirements? Yes...enter Act 204 in 2016 and requirements relating to providing the registration, tax ID and provide the Local Contact information. In addition to helping to ensure owners of transient vacation rental properties collect and pay the appropriate taxes, it also helps consumers investigate whether an online rental advertisement is real or fraudulent and provides a contact in case of an emergency at the property. Per the website for the Governor of the State of Hawaii, Act 204: "authorizes DOTAX to enforce civil penalties for operators and plan managers who fail to display the certificate of registration and registration ID numbers for transient accommodations and resort time share vacation plans. Authorizes DOTAX to issue citations for failure to provide the registration identification number or link to the number and the contact information of the local contact in an advertisement for a transient accommodation or resort time share vacation plan." 9. Does operating a TVR affect my property tax rate? Does owning a condominium where TVR's occur impact my tax classification? (Updated 6.12.2021) Yes. Read more on Maui County Property Taxes: new bills, assessments, and rates for 2022-23 10. What about using my property as a Long Term Rental? In an effort to bolster housing for local residents, the county passed Bill 129 which creates an additional tax advantage to someone choosing to rent their property on a long-term basis. This bill essentially creates a "long-term rental" tax classification and exemption. On January 1, 2022, lodging or dwelling units occupied by long-term tenants for periods of 12 consecutive months or more to the same tenant may be granted a long-term rental exemption. Six-month and month-to-month leases do not qualify. Properties without a home exemption will be eligible for a $200,000 long-term rental exemption. Those that have a home exemption and qualify for a long-term rental exemption will be eligible for an additional $100,000 exemption and will be classified as Owner-Occupied. To Apply, an owner must complete the Long Term Rental Exemption Form and a copy of the valid signed lease agreement by visiting www.mauipropertytax.com. The deadline for filing is at the end of each calendar year. A long-term rental is subject to GET (General Excise Tax) but is not subject to TAT (Transient Accommodations Tax) Update July 26, 2022: The County Council met and passed the FIRST READING of Bill 93 (2022) to amend Sections 3.48.450 and 3.48.466, Maui County Code, to increase the homeowner exemptions for a principal home to $300,000, and for a long-term rental to $400,000, beginning January 1, 2023. 11. Any other comments? When purchasing real estate, it is always advised to consult with the appropriate legal and tax professionals. If considering a property that would be used as a TVR and not living on island, it is recommended to speak with and interview licensed professional management companies. There are sometimes on-site rental management offices, as well as independent real estate companies that specialize in the management of transient vacation rentals. If you are considering purchasing a property here on Maui to use as a Transient Vacation Rental (TVR), you should be sure to check on the current state and county zoning laws, rules and regulations, and tax laws, as well as the Residential Landlord-Tenant Code. Per the Maui County website, there are proposed legislative bills that may change the permitting process, requirements and areas. Find more information on these resource sites: HELPFUL RESOURCES:Information in this post is taken from the Maui County website and the Maui County Municipal Code website. Landlord Tenant Code and Short Term Rentals/Taxation are addressed in chapters 237, 467, and 521 of the Hawaii Revised Statutes Maui County Codes: Chapter 19 Zoning Ordinances and Permitted Uses Maui Real Property Tax Assessments: search properties Maui County: Real Property Division Act 204 Short Term Rental Permit Information Minatoya Opinion Brochure Renting Residential, April 2016 Brochure Transient Accommodations April, 2016 For Consumers booking a vacation rental: "Per Maui County Website, there are more than 16,000 units (i.e., apartments, condos, houses) that are legally eligible to operate as short-term (less than six months) rentals without requiring a Bed & Breakfast Permit or Conditional Permit. These units are generally located in districts zoned for hotel use, but some are also located in apartment districts, or are covered by other pre-existing situations. The operation of short-term rentals in these zoning districts is consistent with current County of Maui zoning ordinances, Community Plans, General Plan, and State law. All short-term rentals are also required to pay State of Hawaii General Excise Tax (GET) and Transient Accommodation Tax (TAT). It is recommended that you inquire with the owner as to whether they are operating in compliance with all current laws." Lists of Permitted B&B's, STRH's, TVR's can be found on the county website using the link above. Disclaimer: Information is taken from the above listed resources on the date of this post, May 15, 2017 and updated in 2018 and again in June 13, 2022. While every effort has been made to ensure the accuracy of this article, it is not intended to provide legal, zoning & property use, or tax advice as individual situations will differ and should be discussed with your property management company, tax professional and/or attorney. Zoning and land use questions should be directed to the Maui County Department of Planning. Updates and amendments may be made to the county and state laws and rules and regulations cited above, so all information contained herein should be not be relied upon without independent verification and should be researched at the time of purchase.

Maui Property Taxes: Fiscal Year 2023 Tax Rates

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Mon, 13 Jun 2022 13:50:00 -1000

Maui Property Taxes Fiscal Year 2023 (July 1 2022- June 30, 2023)Changes: Classifications & Rates Each year, Maui County does two things: assesses the value of the property AND sets new rates for the upcoming fiscal year, which runs from July 1st-June 30th. Below is a snapshot of the new Maui County Property Tax Rates for 2022-2023 as well as a summary of how they've changed over the years. How do you calculate your property taxes given the new tiered system? Fidelity National Title put together this helpful video when the new tiered system was introduced in 2020. Note the tier amounts have changed in 2022 from prior years. Maui County Property Tax Rates 2022-2023 vs Prior Years Rates are per $1000 of assessed value. In 2020, the County introduced a new Tiered assessment. Prior to that, there was a flat rate per the classification. Classification 2022 2021 2020 2019 2018 2017 2016 2015 Owner Occupied $2.00-2.71 $2.41-2.71 $2.51-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 <$1,000,000 $2.00 $2.41 $2.51 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $2.10 $2.51 $2.56 NA NA NA NA NA Tier 3 $3,000,001> $2.71 $2.71 $2.61 NA NA NA NA NA Residential $5.85-12.50 $5.45-8.00 $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 <$1,000,000 $5.85 $5.45 $5.45 NA NA NA NA NA Tier 2 $1,000,001-$4,500,000 $8.00 $6.05 $6.05 NA NA NA NA NA Tier 3 $4,500,001> $12.50 $8.00 $6.90 NA NA NA NA NA Commercialized Residential $4.40 $4.40 $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Long Term Rental $3.00-8.00 NA NA NA NA NA NA NA Tier 1 <$1,000,000 $3.00 NA NA NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $5.00 NA NA NA NA NA NA NA Tier 3 $3,000,001> $8.00 NA NA NA NA NA NA NA Apartment $3.50 $5.55 $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Short Term Rental $11.85 $11.11-11.20 $11.08 $10.75 $9.28 NA NA NA Tier 1 <$1,000,000 $11.85 $11.11 $11.08 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $11.85 $11.15 $11.08 NA NA NA NA NA Tier 3 $3,000,001> $11.85 $11.20 $11.08 NA NA NA NA NA Commercial (all three tiers) $6.05 $6.29 $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Agricultural $5.74 $5.94 $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Conservation $6.43 $6.43 $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Industrial $7.05 $7.20 $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Hotel & Resort $11.75 $11.75 $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Timeshare $14.60 $14.60 $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 Maui Property Taxes: how have they changed? 2023 vs. 2022 Owner Occupied/Homeowner. The rates went down for Tiers 1 & 2, and held steady at Tier 3. Tier 1 (-17), Tier 2 (-16.33), Tier 3 (0) Residential: The rate increased at all categories, particularly at the high end. Tiers 1 (+7.34), Tier 2 (+32.33), Tier 3 (+56.25) Short Term Rental: modest increases for all three tiers. Tier 1 (+6.66), Tier 2 (+6.28) and Tier 3 (+5.80) No Change (0): Hotel & Resort, Timeshare, Commercialized Residential, Conservation Major Decrease: Apartment: -36.94 Modest Decreases: Agriculture (-3.37) Commercial (-3.82), Industrial (-2.08) Looking back over the past 5 years, the county has decreased the property tax rates for homeowners and apartment owners and kept it fairly steady in others like Agricultural and Conservation zoning. The largest increases have been to Short Term Rentals, Hotels & Resorts, and second homeowners. The County of Maui has been under pressure to keep housing affordable for local homeowners and residents and to provide affordable housing. To incentivize owners to rent long-term (12-month leases or longer), they've introduced a lower property tax rate and an exemption (see Bill 129 below). Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions." What do Maui County Classifications mean? Per the Maui County website*, the County of Maui details the classifications of real property as follows: Time Share – real property that is subject to a time share plan as defined in section 514E-1, Hawaii Revised Statutes. Non-owner-occupied - real property improved with a dwelling, as defined in the comprehensive zoning ordinance, that would not be classified as “owner-occupied”, “hotel and resort”, “time share”, “short-term rental”, “commercial”, “industrial” or “commercialized residential”. Commercialized Residential – real property that serves as the owner’s principal residence and has been granted bed and breakfast home permit, a short-term rental home permit, or a conditional permit allowing a transient vacation rental use. Short Term Rental – lodging or dwelling units occupied by transient tenants for periods of less than six consecutive months, including real property that does not serve as the owner’s principal residence and has been granted a short-term rental home permit or a conditional permit allowing transient vacation rental use without regard to its highest and best use and cannot qualify for a home exemption. Apartment – multi-dwelling-unit improvements containing five or more dwellings that would not be classified “short-term rental”. Commercial Industrial Agricultural Conservation Hotel and Resort – properties occupied by transient tenants for period of less than six consecutive months, have eight or more lodging or dwelling units and employ more than twenty full time persons. Owner-occupied – properties owned and occupied as a principal home and for which a home exemption was filed and granted. NEW Long-term rental – lodging or dwelling units as defined in the comprehensive zoning ordinance occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation. *This information taken from https://www.mauicounty.gov/755/Classification-for-Tax-Rate-Purposes as of the date of this post. It is subject to change. Important Dates July 1—Tax year commences. Taxes are calculated based upon January 1 assessed values and fiscal year tax rates. July 20 — First half of fiscal year tax bills mailed. August 20 — First half of fiscal year tax payments due. September 1 — Deadline for filing dedication petitions. December 1 — Condominium AOAO use declaration. December 31 — Deadline for filing circuit breaker applications for the next fiscal year. December 31 — Deadline for filing exemption claims and ownership documents. January 1 — Assessed values established for use during the next tax year. January 20 — Second half of fiscal year tax bills mailed. February 20 — Second half of fiscal year tax bills due. March 15 — Assessment notices mailed. April 9 — Deadline for filing appeals. May 1 — Certified assessments forwarded to the County Council for budget purposes. June 20 — Tax rates established by the County Council For additional information, all dates to remember, and appeals information visit the Maui County website Maui Property Tax: What Changed in 2022? In December 2020, the County Council unanimously passed Bill 129. In an effort to bolster housing for local residents, the county passed Bill 129 which creates an additional tax advantage to someone choosing to rent their property on a long-term basis. This bill essentially creates a "long-term rental" tax classification and exemption. This took effect on January 1, 2022. The long-term-rental exemption form is available with other forms at: https://www.mauicounty.gov/1953/RPA-Forms-andInstructions. The deadline to file for the long-term rental exemption for the next fiscal year is December 31, 2022 What could change in 2023? Update August 16, 2022 In July, the County Council met and passed the FIRST READING of Bill 93 (2022) to amend Sections 3.48.450 and 3.48.466, Maui County Code, to increase the homeowner exemptions for a principal home to $300,000, and amends the long-term rental exemptions, beginning January 1, 2023. Note: Information pulled from multiple county sources (MauiPropertyTax.com, Mauicounty.gov and the Municipal Code as of the date of this post. However, it is subject to change as these websites are updated. Please check with the County of Maui's real property tax division with any questions or to verify what rate applies to your property. This post is informational in purpose and does not constitute legal or tax advice.

Journey Back in Time: Introducing 2725 Olinda Road

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Wed, 01 Jun 2022 14:09:00 -1000

Take a journey back in time to a simpler life…one of peace and serenity surrounded by the natural beauty of Upcountry Maui. This beautifully restored ranch estate was built in 1918 and is set on 60 timbered acres. The original owners positioned the home at the edge of the ranch lands, which still surround it. The location provides for a private, serene setting and a vantage point with sweeping views across central Maui to Mauna Kahālāwai and of the waves breaking along the North Shore. The current owners have spent several years lovingly restoring the home. Some of these touches may not be readily apparent but took years to accomplish: each pane of glass was preserved, cleaned and replaced within refurbished window frames and hardware to match the era. Decades of paint and wallpaper were stripped to take the home back to its original finishes. The kitchen has been updated with modern appliances that retain the vintage charm. Just to the south of the kitchen is a fenced-in garden and walkway covered by wisteria and climbing roses--perfect for growing your own produce, gathering vegetables for meals and flowers for the table. The setting offers peace and seclusion, while still enjoying the amenities of today. The large lanai features a hot tub perfectly perched to take in the views, or meander below to a private heated 30 x 80 lap pool surrounded by citrus trees. The expansive property offers secluded hiking, surrounded by the wildlife of Upcountry, including pheasants and deer. At an elevation of 3573 feet, this Olinda is the perfect escape from the tropical heat, your own mountain retreat. Makawao is a thriving Upcountry town known for it's shops, restaurants, and T. Komoda's Store and Bakery. Just a short drive is Seabury Hall, one of Maui's best preparatory schools. Take in the best of life upcountry: hiking in the nearby Makawao Forest Reserve, shop at the Kula Farmer’s Market, watch a Polo match down the road at Oskie Rice Arena, or enjoy the quiet beauty of this secluded country home. To read more about the history of the home and to see the changes the current owners have made, read more in Maui No Ka Oi Magazine. This property is exclusively represented by Courtney M. Brown, RS 56519, Mino McLean, RB-21623 and Sam Utley, RB-23179