Thinking about a Kihei condo or home you can rent by the night when you are not on island? The rules can feel complex, and one wrong assumption can derail your plan. You want a clear picture of what is allowed before you make an offer. This guide breaks down how Kihei short-term rental zoning works, what “resort” versus “apartment” or “residential” really means, and the steps to verify a unit’s legal status. Let’s dive in.
How Kihei STR rules work
Short-term rentals in Kihei are mainly governed by Maui County. Zoning, land use approvals, and many enforcement actions sit with the county. Start with the Maui County Planning Department for zoning maps, the Kihei-Makena Community Plan, and current ordinances.
You also have state-level obligations. If you operate a legal STR, you must register and remit Hawaii’s Transient Accommodations Tax and General Excise Tax through the Hawaii Department of Taxation. Coastal properties may face shoreline setback and Special Management Area rules, which you can explore with the Hawaii DLNR and county planning staff.
Finally, your condo association can set stricter limits than the county. AOAO or HOA bylaws can allow, restrict, or prohibit STR use even when zoning permits it. Always verify zoning and AOAO rules together.
Resort vs apartment vs residential
Understanding these categories helps you focus your search:
Resort and hotel zones
- Intended for visitor lodging and tourism uses.
- Hotels, time-shares, and professionally managed STRs are commonly expected uses.
- Infrastructure and parking are typically designed for higher guest turnover.
Apartment zones
- Built for multi-family residential living first.
- STRs may be allowed, restricted, or prohibited depending on county rules and any site-specific permits.
- Condo associations often set their own rental policies that may include minimum stays or bans.
Single-family residential zones
- Primarily for long-term living.
- Counties often restrict commercial transient uses in these areas, or allow them only with limited, specific permits.
Rules and interpretations evolve. Treat these as general guideposts and confirm the current zoning code and parcel-level approvals with the county.
Where STRs fit in Kihei
Kihei includes a mix of resort-oriented areas, apartment-zoned condo clusters, and single-family neighborhoods. In general, resort and hotel zones are the most straightforward for nightly rentals. Apartment-zoned properties vary and may require permits, minimum stays, or AOAO approval. Single-family neighborhoods tend to be the most limited for transient use.
Because the map is nuanced, your best move is to verify the parcel’s zoning and permitted uses directly with the county. Ask planning staff to review the zoning map and the Kihei-Makena Community Plan for the Tax Map Key (TMK) you are considering. Start with the Maui County Planning Department for maps and guidance.
Verify before you buy
Use this practical checklist to confirm facts early in your escrow timeline.
Identify the parcel
- Get the TMK and current county zoning designation.
- Review the Kihei-Makena Community Plan designation.
- Where to check: Maui County Real Property and Planning.
Confirm zoning and permitted use
- Confirm the official zoning category on the county map.
- Ask if short-term rentals are permitted, allowed with conditions, or prohibited for this zone.
- Verify any conditional permits, variances, or legal nonconforming status on record.
- Who to ask: Maui County Planning Department.
Check permits and registrations
- If the unit is already renting, request proof of required county approvals or registrations, if applicable.
- Confirm state tax registrations for TAT and GET with the Hawaii Department of Taxation.
- Ask whether a county short-term rental certificate or permit is required, and if one exists for the unit.
Review AOAO or HOA rules
- Read bylaws, house rules, and recent meeting minutes to confirm if STRs are allowed.
- Check for any minimum stay periods, owner-occupancy rules, or fines.
- Request written confirmation from the association.
Assess infrastructure and constraints
- Sewer or septic capacity, plus any limitations tied to frequent turnover.
- Parking counts versus county transient parking requirements.
- Flood zone, shoreline setbacks, and Special Management Area status.
- Building and fire life safety for transient occupancy.
- Where to learn more: Maui County Planning and Hawaii DLNR.
Model taxes and operating costs
- Property tax classification and potential changes if you convert to STR.
- TAT and GET obligations and filing cadence via tax.hawaii.gov.
- HOA fees, utilities, insurance, and any local amenity fees that affect NOI.
- For demand context, review Hawaii Tourism Authority visitor trends.
Check legal and enforcement history
- Ask the county about any code enforcement actions, complaints, or open violations tied to the TMK.
- Confirm there are no unresolved issues that will affect closing or insurance.
- Contact point: Maui County Planning Department.
Line up professional help
- A local real estate attorney for land-use and STR matters.
- A Maui real estate broker experienced in Kihei STR transactions.
- A CPA who understands Hawaii TAT, GET, and Maui property taxes.
- A title company and property manager with STR expertise.
Enforcement, risks, penalties
County enforcement is often triggered by neighbor complaints about noise, trash, or parking. Operating without required permits or in a zone that does not allow STRs can lead to fines and forced shutdowns. Not registering or remitting TAT and GET can result in penalties and back taxes.
Consequences can extend to resale value if violations remain unresolved. Insurance carriers may deny claims if they learn the unit was used for an unpermitted commercial purpose. Protect your position with solid documentation and clear approvals.
Your path to legal operation
Follow these steps to set up a compliant STR in Kihei:
- Confirm zoning and allowed use with county planning for your TMK.
- Verify AOAO rules in writing and any minimum-stay or owner-occupancy requirements.
- Obtain or confirm county permits or registrations if required for your zone and property.
- Register for TAT and GET with the Hawaii Department of Taxation, then set up filing systems.
- Align operations with building, fire, parking, and coastal regulations, including any Special Management Area conditions.
Pro tips for investors
- Ask the seller for proof of compliance before you go under contract, including permits and tax registrations.
- If the unit relies on a “nonconforming use,” request written confirmation from the county about its status.
- Use escrow conditions to confirm transferability of any STR registrations or business licenses.
- Underwrite with real numbers. Request historical occupancy and tax filings to validate income assumptions.
How we can help
If you want lifestyle and performance in one plan, you need clear guidance from search to operations. Maui Life Realty pairs local brokerage expertise with in-house vacation rental management so you can buy confidently and start strong. We help you identify compliant properties, confirm approvals, and transition into a professional, guest-ready operation.
You deserve a single, accountable partner who speaks zoning, taxes, and guest experience. When you are ready to evaluate Kihei opportunities or compare them with West Maui options, we are here to help. Connect with Scott Jordan to map your strategy and see how integrated management can simplify ownership.
FAQs
Are vacation rentals allowed in Kihei resorts?
- Many resort and hotel zones are designed for visitor lodging, but you should confirm the parcel’s zoning and any required county approvals with the Maui County Planning Department and your AOAO.
What is apartment zoning in Kihei for STRs?
- Apartment zones focus on residential use; short-term rentals may be allowed, restricted, or prohibited depending on county rules and association bylaws, so verify both before you buy.
How do I confirm a Kihei condo allows STRs?
- Read the AOAO bylaws and house rules, request written confirmation, and cross-check county zoning and any permits with the Maui County Planning Department.
Do I need Hawaii TAT and GET for a Kihei STR?
- Yes, legal STRs must register and remit Transient Accommodations Tax and General Excise Tax through the Hawaii Department of Taxation, following state guidance.
How do shoreline and SMA rules affect Kihei rentals?
- Beachfront or coastal parcels may fall inside Special Management Areas or shoreline setbacks; confirm requirements with county planning and the Hawaii DLNR before operating.
What happens if a unit operates without approvals?
- You risk fines, forced shutdowns, back taxes, and insurance issues; ask the seller for proof of compliance and check for enforcement history with the Maui County Planning Department.
