A BRIEF EXPLANATION OF VACATION RENTALS ON KAUAI
Many people wonder why some homes or condos can be vacation rentals and others not. Kauai is somewhat unusual as far as vacation rentals go. Princeville, Poipu,and Kapa’a are VDAs (Vacation Designated Areas). Most properties in these VDAs can be short-term vacation rentals.
Previously, owners in other parts of the island had been able to apply for a TVR (Transient Vacation Rental) License so they could rent their properties to vacationers. That’s why you find some beach properties with TVR licenses. They stopped giving out those licenses in 2008. If you don’t have one, or if you had one and failed to pay the annual fee to keep it, there is now no way to get one. If you buy a property with a TVR license, you assume the license with the property. You just pay the annual fee to keep it active.
So, if you want a home on acreage that you can use for vacation rentals, chances are slim that it’s out there. You can rent your second home here as a long-term rental (six months or more), but not on a weekly basis. That’s what makes homes in Princeville and Poipu so attractive as investment properties.
Hope this is helpful! Call me if you need any clarification or help in any way.