Investing in a vacation rental on the Big Island can be a very smart move. In fact, they may be a better investment than ever! Now that the county has restricted the areas in which homes may be offered as vacation rentals, homes in the remaining areas may increase in value as a result of their revenue-generating potential. Click here for more information on the new law

So far, there is no evidence of a price jump, and there is widespread confusion about the new vacation rental law. Eventually the dust will settle, and people will begin to understand where vacation rentals are still permitted.

Homes located in resort-zoned areas may be used as a vacation rentals. They must be registered with the County and comply with County and State laws, including the payment of appropriate taxes, but they do not need to apply for a special use permit.

If you’re considering purchasing a second home in Hawaii, purchasing one in the Mauna Kea, Mauna Lani, or Waikoloa Beach resorts that can be used as a vacation rental makes a great deal of sense. Here is a link to current listings in Mauna Lani; and Mauna Kea: These are only some of the current listings, but will give you a taste of what is available.

The Mauna Lani and Mauna Kea resort areas have the advantage of better water rates than the Waikoloa Resort, and many people have a definite preference for one resort of another. Also some homes are likely to yield a better return on investment than others. This is in part due to the wide variation in dues and fees. There is no substitute for careful research.

Investing in a vacation rental on the Big Island can be a very smart move because the number of available units has dropped as a result of the recent law. You know what they say about supply and demand!