Reading the cover story of WHT on Thursday with Sen. Brian Schatz calling for the FTC to investigate two legitimate businesses VRBO and Airbnb is grasping for straws in the housing crisis. Tourism is an important industry to Hawaii. The advertising platforms of Airbnb and VRBO are not doing anything illegal.
Short term rentals occur because there is a demand by tourists visiting our islands wanting a different experience other than a hotel room. It is an owner’s right to rent their property as a long-term rental or short-term vacation rental.
The problem is no new low-income housing is being developed. It is about economics. If an owner has an ohana or unit that might be popular with tourists, they should decide who can rent it. Because of Airbnb and VRBO they are reaching a world population who wants to experience Hawaii. Since they have more knowledge of what a tourist is willing to pay, they see the opportunity to get more income from the “ohana” or unit.
It is up to county zoning to determine if the “rental” is up to code and enforce that.
I would like to see Sen. Schatz expend his energy in working with the Department of Housing and Urban Development or the state of Hawaii to create more ways to offer investors tax credits to give developers an incentive to build low-income housing. It happened in the 1970s in California and provided much-needed worker housing.
The other piece I disagree with is preventing Airbnb to collect on the taxes through their listing system. They encouraged the passage of the legislation because they have the clout to be sure anyone advertising the short-term rental is in compliance. By vetoing the bill, Gov. Ige is only denying the economics of an owner to choose what to do with their property. If the governor would work to create investor incentives as I suggested, the developers would find the opportunities because building the housing units provides them long term financial gain. If we have more housing for workers that is affordable; we have tourists who enjoy different housing and a larger tax base of people paying what they owe on GE and TAT taxes; everyone wins.
Heidi Bogert is property manager of short-term vacation rentals and a resident of Waikoloa.