Illegal rentals drive up housing costs
There is a sharp increase in illegal vacation rentals in quiet residential neighborhoods. And lawmakers are eagerly creating bills to collect tax revenue from unpermitted, illegal vacation rentals.
I’m relieved to hear that the increase in homeless people is due to better records. But I am heartbroken for all the affordable rentals converting to more-profitable, unpermitted, illegal vacation rentals in our neighborhoods.
Makes me wonder if the Airbnb legislation, if passed, still means they are unpermitted and illegal vacation rentals.
M. Martin, Lihue
Support Senate Bill 1374 – ‘Hawaii Saves’
About 216,000 Hawaii workers can’t save for retirement out of their regular paychecks, even though having access to payroll deduction makes people 15 times more likely to save. Senate Bill 1374, the “Hawaii Saves” bill, can fix that.
Hawaii Saves provides an easy way for workers to save out of their regular paycheck and helps them grow the savings they need to take control of their future. The program would be available to workers who don’t currently have a plan through their job — and runs like a 529 college savings plan.
If a Hawaii Saves program is established it’s estimated Hawaii taxpayers could save $32.7 million in the program’s first 15 years because of reduced social services spending.
In Oregon, where a similar program is underway, more than 74,000 workers — many of them first-time savers — are participating. Assets are above $16 million and growing.
We need to help Hawaii workers grow their retirement savings so they can live independently as they age. It’s time for Hawaii lawmakers to pass Senate Bill 1374, the Hawaii Saves bill, and give employees of all ages the opportunity to grow their savings and take control of their future.
John A. Sperandeo, Wailua
“About 216,000 Hawaii workers can’t save for retirement out of their regular paychecks”
Yea, I would disagree…..workers don’t “want”, vice “can’t”, to save…..they would rather “live in the now”, get the tattoos, the $1000 cell phones, the latest electronics, lease that new car, enjoy every cable channel available, go out to eat all the time, the latest wardrobe, and take those great vacations. “I’ll worry about retirement when it happens”.
How about this….if SS is too low for your retirement, then create the option to increase the 6.2% you are already contributing….to say 12%??
The start up costs for State Bill 1374, will be in the millions…….and yes, all charged to the taxpayer!! Can we teach “How to Save for Retirement” in Junior High School? SMH.
The problem with the pyramid scheme, aka Social Security, is that you only get about 1% return on your investment. The other thing that needs to change is, if you die, one day prior to collecting, then all those hundreds of thousands of $$$ go back to the US Government. Increase the contributions, then make a law ensuring your heirs can benefit if you die. Stop the madness.
You realize you’ve argued against yourself in the same posting? “save more for the future and live less in the now” then “it’s madness that you die before you spend it all!”
Um, no. My point, ….if SS is your only retirement plan, and it seems most retirees are living this way, then simply increase that monthly payroll deduction. A process already exists, why spend taxpayer money to create a new process? Nobody seems to care about my other 2 points about SS (you don’t make much and you can’t pass it on).
Lost Tax Revenues? The Local Citizens who rent out rooms in their Private Homes? Do they all have GETax License?
Robbing Peter to Pay Paul? The state need help paying their own Unfunded Pension Liabilities! This is how it will benefit THEM,Not You! Don’t be Fooled!
Sounds good John, but I get real nervous any time “Government” steps in and tells people they can better spend money than those who earned it. Didn’t we try that with Social Security and it became just another stash of money our benevolent Government could raid for their pet projects? Now projected, like most other Government run entities, to go bankrupt in a few years? I think I’ll retain my own decision making process in the question of what to do with my own money, thank you! Just sayin.
M. Martin:
‘Permitted’ vacation rentals in residential areas have a number which is suppose to be placed visibly on the front of the property. These permits have to be renewed annually.
In the link below you’ll find a List of Approved Homestays & Non-Conforming TVR’s by TMK.
There are 3 main VDA’s (Visitor Destination Areas), Princeville, Poipu and Kapa’a. Princeville is the only community that is wholly a VDA while only parts of Poipu & Koloa are eligible. The East side of the island has smaller VDA’s in Waipouli/Wailua and Nawiliwili/Niumalu.
Anyone not grandfathered in with the permit process nearly a decade ago & aren’t in a VDA zone aren’t able to apply for a permit now. No permit, not in a VDA zone? Call the County and report them. It’s that simple.
https://www.kauai.gov/Government/Departments-Agencies/Planning-Department/Transient-Vacation-Rentals
The entire anti-TVR mentality is based on the erroneous, irrational assumption that they are a major cause of unaffordable housing–namely rentals. Anyone with lick of common sense and a little critical thinking can see that high prices, for housing in this case, is a function of a dearth of supply in the face of increasing demand.
Are we to believe that the TVR houses would be rented at significantly reduced rates if they were placed on the rental market? So what we’re being told is that TVRs which are usually in neighborhoods with newer/better homes or on ocean properties are what the average person could afford in the absence of them being TVRs. This is just plain nonsense.
Get the government out of the zoning and over regulation of land use and market forces will solve the problem. Incentives drive markets…give investors, builder and developers the right incentive and they’ll get to work.
So sick of the irrational thinking that passes for valid.
RG DeSoto
I don’t follow your logic. If someone has a space to rent, we all agree they can make more money renting it illegally as a TVR through Airbnb for example. So if the neighbors are annoyed with all the traffic, partying and noise and file a complaint with the County, and the County shuts down the illegal rental, what is the homeowner going to do? Most likely, find a long-term tenant rather than leave the space empty and receive no income. Wouldn’t this be true most of the time no matter the location of the rental space? We need rules and regulations to prevent others from breaking the law. We had an illegal TVR in our neighborhood and it negatively effected everyone just so one owner could make more money. After the County shut them down and fined them, they now have long term tenants who are fine. I don’t agree with your logic.
Does M. Martin have any facts to support the idea that illegal short-term rentals are increasing? The county is patrolling it now and a few years ago they were not patrolling it. This would mean that illegal short-term rentals would be less then they used to be. Where is Martin getting data? Imagination?
Illegal short term rentals are horrible. They ruin quiet neighborhoods and add to people partying at all hours of the night during a work/school night. We have had to deal with them in our area and we do not live near the beach. Homeowners who want to make a quick buck and not pay taxes for the roads their clients drive to their house on, or the beautiful parks they go visit. Bunch of cheap people trying to cheat the government and ruin peaceful neighborhoods in the process.
Makani B. Howard > then do something about it. Grumbling in the newspaper accomplishes nothing.
No permit and not in a VDA zone? Call the County and report them. The link to list of legal, permitted rentals is provided above. It’s that simple.
“Property tax” is really a transfer of the entire property to the county who then leases it back to the “home owner” who is really a renter under the current system. This is a clear violation of our 4th amendment rights and btw, adds “MILLIONS” of dollars every year to the cost of housing which btw is passed on the renters. Personally, this is adding about 10% (not counting GE tax) to the cost of my rental. You want to lower rent? then lets get rid of property tax. Regardless, rent will always be high in Kauai… limited supply, high demand. Economics 101.