Eyeing Maui for vacation-rental income? The opportunity is real, but the rules are detailed and layered. If you want reliable returns and peace of mind, you need clarity on zoning, condo rules, permits, and taxes before you buy. In this guide, you’ll learn how Maui regulates short-term rentals, how Wailuku fits into your due diligence, and the essential steps to verify a property’s status. Let’s dive in.
How Maui regulates STRs
Maui County controls zoning, land-use permissions, local STR registrations, and code enforcement. County offices are based in Wailuku, which is your primary hub to pull parcel histories, permit records, and enforcement files.
At the state level, the Hawaii Department of Taxation handles Transient Accommodations Tax (TAT), General Excise Tax (GET), and state tax registration. Condominium associations (AOAOs) set private rules that can allow or prohibit short-term rentals in a given building. Other agencies may apply to specific properties, including the State Land Use Commission for agricultural or conservation lands and coastal and floodplain authorities for shoreline properties.
The key takeaway: you must confirm county zoning permission and state tax registration, and also verify AOAO rules. A property can be properly tax-registered but still violate zoning or condo rules, and vice versa.
Zoning basics to check
Hotel or tourism zones typically offer the clearest legal path for transient lodging, with visitor accommodations permitted as a primary use. Apartment-zoned parcels are usually intended for long-term occupancy, so short-term use can be limited, prohibited, or allowed only with special approvals. Single-family and residential zones often require a specific permit or restrict whole-home STRs. Agricultural or conservation designations add another layer of approvals and may prohibit STRs.
Look for these distinctions:
- Is transient occupancy a permitted use for the parcel’s zoning, or does it require a special or conditional permit?
- Does the unit meet the building and fire-safety standards required for transient use?
- Are there minimum stay requirements, owner-occupancy rules, or neighborhood caps?
- Is the STR status based on a nonconforming use that could be lost on sale or major changes?
Coastal properties can also fall under Special Management Area requirements that add conditions before transient use is allowed.
Condo and AOAO rules
AOAOs can independently restrict or ban short-term rentals, regardless of county zoning. Many associations set minimum rental terms, require owner registration, levy fines for violations, and set occupancy, parking, and quiet-hours rules. Hawaii condominium governance gives boards strong enforcement tools, so you should review the recorded condominium declaration, bylaws, and house rules in detail.
Practical steps:
- Obtain the recorded declaration and current house rules, plus any board resolutions on STRs.
- Ask the AOAO or management for written confirmation on STR policy, registration requirements, and any fine schedules.
- Verify whether any prior exemptions exist and if they transfer with ownership.
Permits, taxes, and records
County land-use and building records: Confirm zoning and permitted uses, and search for conditional use permits, nonconforming use determinations, or enforcement actions tied to transient occupancy. Verify the certificate of occupancy and that the unit’s legal use aligns with transient accommodation.
Local STR registration: Determine if a county STR license or registration is required for that property type and whether it transfers at sale. If one exists, inspect renewal status and any conditions.
State tax registration: Ensure the operation is registered for TAT and GET with the Hawaii Department of Taxation, and check that tax remittances align with reported revenue.
Safety and operations: Review fire and life-safety requirements, building permit histories, and any renovations or conversions. Confirm lender and insurance approvals for STR use. For valuation, gather occupancy data, revenue histories, booking logs, and management contracts.
Due diligence checklist
Use this list before you write an offer:
- Zoning designation and whether transient occupancy is a permitted use.
- Current county permits, certificate of occupancy, and any open violations.
- STR registration or license status, renewal dates, and transferability.
- AOAO documents and written confirmation of rental rules.
- TAT and GET registration and tax remittance history.
- Fire and building safety compliance, including final inspections.
- Insurance terms for STR operation and lender consent if financing applies.
- Historical occupancy, revenue, and vendor agreements for operations.
- Any neighborhood moratoria or pending ordinance changes.
Enforcement risks to avoid
County enforcement can include civil fines, injunctions, and revocation of permits. AOAOs can fine, restrict amenities, or place liens. The state can assess back taxes and penalties for unpaid TAT or GET. Insurance claims can be denied if you operate outside policy or code.
Risks often arise from running an STR in a prohibited zone or building, losing a nonconforming status on sale, operating after unpermitted conversions, or community complaints. Consider protections like making STR permissibility and license transferability conditions of your purchase, using escrow holdbacks for unresolved issues, and seeking contractual warranties tied to compliance.
1031 exchange considerations
If you plan a 1031 exchange, continuity of use and intent matters. Properties must be held for investment or productive use. Converting to short-term use immediately after an exchange can draw scrutiny, so document your investment intent and rental activity carefully.
Active STRs can be viewed as a business, which affects tax treatment and depreciation. Keep contemporaneous records of rental operations, management agreements, and marketing. Also consider marketability and lending, since unclear or nontransferable STR approvals can make financing and resale harder.
Verify in Wailuku
Because Wailuku hosts Maui’s Planning Department and permitting counters, it is the central place to verify parcel-specific facts. Start with county zoning maps, permit histories, and any nonconforming use records. Ask Code Enforcement for open complaints or violations. Check the County Clerk or Council agendas to spot pending rule changes that could affect your timeline.
Coordinate state-level items with the Hawaii Department of Taxation for TAT and GET registration and compliance. For condo properties, request records directly from the AOAO or its management, including any recent board actions on rentals. When needed, add a local land-use attorney, CPA with STR and 1031 experience, a title company, and property managers to your team.
Investor strategy on Maui
Target hotel-zoned or otherwise clearly permitted properties for the most predictable path to STR income. In apartment or residential zones, expect deeper reviews and potential limitations. If you are evaluating coastal assets, plan for SMA and shoreline considerations.
Build time into your offer for document collection and agency confirmations. Condition your purchase on verifiable STR rights and consider escrow holdbacks when records are incomplete. Keep your insurance, lender, and tax advisors looped in from day one.
Ready to explore your options?
If you want a concierge-style plan to verify STR eligibility, model revenue, and align your 1031 timeline, you will benefit from a local guide who knows both resort markets and the permitting playbook in Wailuku. Reach out to Matt Talbot to start a focused, compliant search for Maui short-term rental opportunities.
FAQs
Maui STR zoning basics: Can I operate a nightly rental anywhere?
- No. It depends on county zoning and permits, AOAO rules, and any conditional or nonconforming approvals. Verify each layer before purchase.
Wailuku verification: Where do I confirm permits and zoning?
- Start with Maui County’s Planning and permitting counters in Wailuku for zoning, permit histories, and any enforcement records connected to the parcel.
Condo rules on Maui: Do AOAO policies override zoning?
- AOAO rules operate alongside county law and can prohibit or restrict STRs even if zoning allows them, so you must comply with both.
STR license transfer: Does a county registration transfer when I buy?
- Not always. Some registrations are owner-specific or subject to conditions, so confirm transferability and renewal requirements in writing.
Maui STR taxes: What do I need to collect and remit?
- Register with the Hawaii Department of Taxation for Transient Accommodations Tax and General Excise Tax, and remit based on rental revenue.
1031 exchanges and STRs: Can I switch to short-term right after closing?
- Immediate conversion can raise questions about investment intent, so coordinate with your intermediary and tax advisor and document use carefully.
