Wednesday, December 24, 2014

Musings: Why Pay When You Can Pimp?

News flash — Hawaii has tens of thousands more transient vacation rentals (TVR) than anyone knew.

Well, except those of us who have been following this highly lucrative, frequently illicit and generally unenforced industry, which grew some 400 percent between 2006 and 2011.

Still, it took an internet survey by the Hawaii Tourism Authority to reveal that 22,238 vacation rental units were advertised online this year and in late 2013. That's four times more than the agency was aware of, and according to the report, “We strongly suspect that the current count is lower than the actual numbers of IVUs in Hawai’i.” The 2014 count is expected to be “notably higher.”

The survey identified 4,478 units on Oahu, 11,166 in Maui County, 3,948 on Kauai and 2,646 on Big Island.

On Kauai, the greatest concentration of these individually advertised units was found in Princeville, Kapaa and Koloa, followed by Hanalei. But the difference is this: Princeville, Kapaa and Koloa are designated visitor destination areas (VDAs), while Hanalei is not.

And when you look at the TVRs as a percentage of total housing units, Koloa registered 39.6 percent, Princeville 38.4 percent and Hanalei 37 percent. In other words, Hanalei is experiencing the same intensity of use as the designated VDAs, without any of the accompany infrastructure or other support.

The report notes, emphasis added:

The number of [visitor] properties (1,932) in the State in 2013 has increased by 7.8 percent since 2012. The largest number of properties was found on the Kaua’i (637), followed by Hawai’i Island (544), Maui (442), and O‘ahu (276). The changes by island were largely the result of changes in the number of confirmed IVU’s for 2013. IVUs made up the bulk (73%) of the properties in 2013 and their numbers grew by 17 percent since 2012.

Now how, you might ask, has there been such a dramatic increase in visitor properties on this island when no new TVR permits are being granted? Gee, do you suppose that a great many of them are illegal?

These statistics help to explain why there is no housing for locals on the North Shore, and why longterm rentals in general are less available and more expensive as the market is converted to higher value TVRs.

As the number of TVRs increases, their promotion also escalates, turning neighborhoods and landscapes into marketing tools for TVRs. Some TVR owners are not content to merely rent their properties. They're also treating them like de-facto resorts, offering illegal multi-family dwellings — "2 Identical Houses To Choose From + A Studio Cottage - Rent One, Both or All 3" — with concierge services that range from private chefs and spa packages to escorted activities.

Among the newest wave of promoters are Kimmy and Glenn Rudolfsky, who came to Kauai via Las Vegas, where several lawsuits against him are still pending. They established their House of Dreams TVR business, which includes properties they own and others they manage. Now Kimmy bills herself as a “vacation rental specialist.”

This is how the industry grows, with folks saying, gee, why should I pay when I can pimp?

The Rudolkskys went so far as to publish online an “exclusive guidebook to the North Shore of Kauai”that could well result in injuries and death. After Kimmy and Glenn proclaim that Hanalei means “lei-making,” they suggest such activities as jumping off the Hanalei pier, visiting Queen's Bath, letting your children play in Lumahai Stream, driving on the sand at Kalihiwai, snorkeling at “Kahili Quarry Beach” [sic] and “Secret Beach,” hiking to Hanakapiai Falls and swimming from Kalalau to Honopu.

To give you a sense of the enormity of this industry, consider their FAQ link:

First & foremost, find the right “Kauai Vacation Rental” for your visit. DO NOT purchase airfare before finding your vacation home. Due to the overwhelming popularity of movies such as “The Descendants” and the TV shows, “Buying Hawaii” & “Hawaii Life”, Kauai has become the “IN” place to be. You may be surprised how far in advance people reserve vacation rental homes, sometimes up to a year or more.At House Of Dreams Kauai we work with over 200 Kauai Vacation Rentals in addition to the homes we own. We will help you find your dream home.

Of course, they're not really pimping the place because, as they proclaim on their website,  "We LOVE Kauai’s North Shore."

Especially when all the TVRs are occupied with paying guests.

47 comments:

Anonymous said...

what a fucking mess, the county absolutely should reign this industry in unless hotels can fill the niche market of long term housing. you got a mess when certain people are entitled and others consider themselves entitled and there is no enforcement.

Anonymous said...

High end agricultural estates make up a good bit of that vacation rental inventory such as the 3 secret beach estates . Never knew we had so many swimming pools along the bluffs.
I hope Mel continues to undue Bynam's damage and goes after the fake farm agriculture vacation rentals.

Anonymous said...

There is huge market for single family vacation rentals as opposed to hotels. This is market being filled. The internet made it easy for customers to meet providers. Spend resources and money for enforcement! Sounds like the marijuana "problem" to me.

Me personally. Get rid of TVR's

The market. Legalize and tax human behavior then spend money in treating the downside.

Anonymous said...

We all fought all of this ages ago. We made rules and regulations we thought would stop this from happening.

The most onerous thing about all of this to me is that no one ever listened, saw the writing on the wall put two are two together and saw that in the future we would need housing.

These units take up so much of what could be available rental units. Before the last hurricane, *Iniki*, almost all of the condos here were being rented out to locals, and so were the houses. Now I know there were just the time share blitz in the 80's, and things were starting to heat up but no one could stop the flow of vacay rentals, no matter how hard we fought.

We are being inundated from all sides. people are all starting to go to the dark side, working for them in some capacity.

Let's face it, they have us. We lost. On all sides, in all counts, in all ways.

Our island life as we knew it, or hoped to preserve it is now over.

Best we can do is hope they allow our kids to pitch tents in their yards or something.

The new development in kapaa is a sincere joke, and anyone who thinks affordable is affordable is insane.

Even if they put in low income, which they never will, because the rich guys drive up the median income here, this making the affordable range almost in the quarter million level, the traffic would be insane!

I have no answers. But I have an idea, we need an adopt a local program here. make em take care of one displaced ohana, for as long as they live here.

That's the only win-win i can think of!!

Aloha

Anonymous said...

If you own your house, it is yours. What right does any one have to tell you how to use it? If the public thinks that by banishing TVRs that rents will magically go down, you are living in a dream world. Property taxes and Insurance alone (especially after the NEW taxes via Bynum, JoAnn, and da Hoos) are a minmum of 6 to 10K per year...add a mortgage of minimum 3K per month and you gots pertneer 5K a month to break f*ckin' even....prolly usually higher.
High rents are at the doorstep of the Council and the OUT OF CONTROL dictator at the Planning Department. The hate against the so-called rich folks diatribed, by da HOOS, JoAnn, Bynum and others has created a conundrum.....a lot of folks own a couple properties, regular folks....just like da Hoos and his partner (or maybe they broke their CPR partnership up) in the middle of Kapaa Town, da HOOS was a rentin' a sh^t hole to a regular Kauai folk....on a sudden flash...tenant out on his okole and a NEW cute l'il shop opens....more money for da Hoos (plus his illegal substandard housing was removed from his ample neck) and another TOURIST shop opens.....and to top it off the l'il cute shop, that somehow gets approved (with no parking etc., even tho' the grandfather time periods expired) a longtime Kauai guy and gal are on the street AND the shop is co-owned by a popular paddling Bloggers mumsley.....so in the fabric of Kauai as we fight for rentals....it is at the doorstep of the Council (especially JoAnn and da Hoos)....hypocrisy, greed and BS reign in every f*ckin' corner of the island...from the Oh so Organic, live off the land types to the steely eyed timeshare developers.....it is all BS....and the baby Jesus came into the world to save us from our sins (on Kauai Joseph and Mary's manger would have been an illegal rental)..Gag me with the Pope's Nose as I count my own sins and live with der Zeitgeist and see the Schadenfreude pushed by da Hoos, JoANN and now their puppet, MAson. ....and welp, that's all folks.
Merry Christmas.....and Peace was in the World. Where's my lawyer?

Anonymous said...

Your Lawyer, His emamnce sits on a high chair, in the Planning Dept.

Anonymous said...

Sickening to see the sheer volumes of vacation rentals in non VDA zones. The county should seriously consider the safety hazards of having visitors stay in areas not prepared to host visitors. We have zoning laws for a reason and it's about time they are properly enforced.

Anonymous said...

Lots of people must be getting PAID off like drug dealer protection for illegal TVR's to exist.

A TVR in every neighborhood is no difference than a drug dealer in ever neighborhood. It's all Rackets!

They operate wide open illegally violating the laws for all to see without any consequence.

Hooh Hooh Hooh Mene Kokohes

Anonymous said...

If you have lived or grown up in HI and didn't see this coming then shame on you! You and yours have had decades to plan for this lack of housing and meaningful jobs. Even now dropping out of school is seen as a viable option.
So sorry if the local culture has failed but we had fun for a while and now time to reap what we have sown.

Anonymous said...

In my middle class neighborhood there are multi bedroom houses that are kept out of the rental market and have sat empty for years. The owners are local who choose not to subject their houses to abuse by renters.
And there are just as many houses that are occupied by a single surviving owner.
The lack of housing issue is much more complicated then local verses TVR

Anonymous said...

Perhaps home stays are the solution??? People can rent out part of their house while living in the other part.

Anonymous said...

I simply cannot get excited about this. It is their home. They pay lots of taxes for nothing. Now illegal construction, toilets, and septic systems, that is another matter.

Anonymous said...

what friggin nitwit decided zoning doesn't matter?landis based on the allowable zoning, not dowhateverthefuckyouwantcuzyougot$

Anonymous said...

A question to Miss Kanoho, is this really the way Kauai wants to be known? Will these folks be responsible for people diving off cliffs and getting hurt?
from this website,
4) What Is The Cancellation Refund Policy?

Occasionally someone will need to cancel a reservation. In the event this needs to be done, guests will be entitled to a full refund less a cancellation fee and the non refundable reservation fee. Refunds are given only when a guest notifies us in writing at least or more than 90 days prior to the check in date. Acceptable forms of notification are email, fax or a letter sent by USPS. Cancellation fees can range from $100 to $500 depending on the house or condo reserved. For cancellations that occur less than 90 days prior to the check in date, your full rent and taxes may be forfeited. Cleaning fees & security deposits will be returned. If the home is re-rented for all or part of the dates, you will receive the amount that is paid for those dates, less the cancellation and reservation fee. We strongly advise guests to purchase travel insurance to cover any possible incident.
Sounds like ripoff artists to me. Whores, pimps yep...






Anonymous said...

Perhaps enforcement is the solution. Get the visitor industry out of neighberhoods or soon the island will be one big resort.
Ever hear of the VDA? Zoning rules are there for a reason .

Anonymous said...

How can you trust a business that does not even give you their last names> Just send money, we are Los Vegasans who need it,... no refunds unless one cancels more than 90 days in advance just about assures you lose your money if something comes up.
Why is there no enforcement for renting unpermitted vacation rentals?
Thanks for bringing attention to these slimedogs.

Anonymous said...

Newcomers quickly learn that their mainland style marketing does not work here.
I agree with the poster who notes that the TVRs will sit empty before the super rich will rent them to locals and subject them to that kind of damage.
Ending TVRs will nave a negligible effect on rents.
TVR's should be prosecuted because they are illegal and have transformed the NS - not based on some random speculation on rental values. The TVR haters are like the anti GMO crowd in that regard - making up facts about higher rents. On the other hand B&B's are quieter and help local families make ends meet with an extra room or a guest house and don't touch local rents.
It is strange to see the recent TVR law go though and maybe 3 arrests in the face of hundreds of violations. The cops and prosecutor should go after TVRs like they go after pakalolo.

Anonymous said...

Maybe if renting a bedroom out (and doing what's legal) wouldn't almost double your property taxes ($3.05 per K vs $5.05 per K), more people would rent out those empty rooms. Not to mention the f'--ng BS GET that you're supposed to pay....legally.

Anonymous said...

I can think of one reason why there's no enforcement. The enforcer may someday have to fine or shut down a TVR run by his/her uncle or cousin or brother or good friend.

Anonymous said...

Wait, hah? If you are 'anti-tvr", now, you must be "anti-gmo?".

And, if you don't like tvrs, you must, of course be pro 2491, and therefore scorned, and besmirched and ridiculed?

I do not believe that your reasoning is based on a solid, and firm foundation of scientific theory.

Everything does not relate to, firstly hate, which is highly overrated, and secondly "Anti" GMO. Me, personally I say make GMO's for non edible purposes, I'm all good with that. just don't put it in my food.

I do not like illegal TVRs and B and B's for the obvious reason, that I am local. Therefore, most locals, including those that supported the GMO industry here on Kauai are also against them.

Here is a win win Kumbaya moment, and you go n muck it up.

Merry 2015. Same as the old year.

Anonymous said...

Facts are big pills to swallow.
Fact 1- TVRS and vacation rentals do NOT cause as much noise as your neighbor with the barking little mutt, screaming kids and regular life noises a regular household brings. TVRs also do NOT get many calls from the Police for behavior problems....and the TVRs offer our visitors a choice of where to stay.
The sistee uglers who think that TVRS have destroyed Hanalei, should take a look at the little hustling businesses with a zillion SIGNS that have made Hanalei look like Tijuana......geez, the Tahiti Nui is an example...

Anonymous said...

You people are like a broken record. Those two people are indeed the scum they seem they are but they are doing their thing legally. House of Dreams is a dump in Princeville on a busy street. It sits empty a lot. Most people with a bit of common sense can read between the lines.
You "against" type folks have indeed lost. Beacuse your angle is just complaining. The nail in your coffins is Airbnb.com. You want illegal rentals. Go pick on them for a while. Vacation rentals are not going away because they are popular. They are becoming mainstream. They have been here for decades. The rich folks homes along Hanalei Bay have been rented as vacation rentals for a while. The Kobyashs have had them for years. Thislittle group of miscontentsis so obviously racist. Joan you promote it by putting up this kind of crap as bait. Instead of promoting this discontent try coming up with positive solutions. Positive for everyone not just you arrogant fools who sit in judgement while others struggle to make ends meet. Going tot he "dark side" by working for the TVR owners? Give me a break. All those idiots on the west side shilling for their jobs are also working for the "dark side" if you are on the opposite side of the debate. Debate. Debate....This in here is nothing more than a place to bitch and Joan you instigate it. Change happens you idiots. Learn to go with the flow. Don't be like the people that refuse to change. You know the ones...They were here first. So what. Take your sour grapes and .....

Anonymous said...

1. Barking dog, children playing and regular life
noises? Sounds like a neighborhood to me.
2. Calls from police? How about calls TO police?
3. Give our visitors a choice of where to stay?
They have a choice - Within the Visitor Destination
Area.
4. Tahiti Nui? Have you reported them?
I can't believe Ma'akala, the sign nazi, missed it!

If we enforced no TVRs outside the VDA and enforced the sign ordinances,
What's the problem?

6:47 PM; You're the problem.

Anonymous said...

1. Barking dog, children playing and regular life
noises? Sounds like a neighborhood to me.
2. Calls from police? How about calls TO police?
3. Give our visitors a choice of where to stay?
They have a choice - Within the Visitor Destination
Area.
4. Tahiti Nui? Have you reported them?
I can't believe Ma'akala, the sign nazi, missed it!

If we enforced no TVRs outside the VDA and enforced the sign ordinances,
What's the problem?

6:47 PM; You're the problem.

Anonymous said...

Some call it bitching, some call it bringing facts to light. You could say, we have a poor education system, so stfu and just be stupid, you could say we have alot of ice, stfu and do your drugs, we have no zoning compliance, stfu and move while the rich folk who can't be bothered with zoning compliance take over the neighborhood. Oh, the dog barked, for that you pay.

Anonymous said...

ice is mainstream too, but it doesn't make it legal or right or beneficial for the hood.

Anonymous said...

I say if Tim Bynum, a Councilman can have an illegal rental on Ag land with no Ag activity...and then get hundreds of thousands in his pocket because of zealous enforcement....then we should all be allowed a TVR....call it the Bynum Rule.
TVRs aren't a big problem. They do not break the fabric of communities....high property prices do. The only "neighborhoods" left are Hanamaulu, Puhi, Kekaha and Kapahi.
The cost of housing is because of the Council and Planning....even a sh@t hole rental is over 1600 per month....thanks, JoAnn Yukimura.
For all you guys missing the old days, try working for 1.50 an hour in the fields with no other job opportunities.....A day in the fields will shut up many of the back to earthers.....if the only money you got is from the filed and not Grandpa's Trust Fund.

Anonymous said...

Neighborhood noises suck. My neighbor and his endless power washing of his junk truck. And now he's shooting the poor chickens. And playing loud bad music all the F-ING time.
I beg to the now a year older Jesus that my neighbor will kick out her rotten kids and make her house a TVR.

Anonymous said...

The Normal Rockwell neighborhood you all lament does not exist.
Niele neighbors. Meth. Kids living with Mom till 30 smoking oxy and burglaries their neighbors.
Give me a TVR next door anytime.

Anonymous said...

Kauai cops enforce? Lol

KPD is more like "that's the humane society's job" or "that's the sherrif's job" or "that's the prosecutor's job" or "that's the Planning Department's job."

Dawson said...

TVRs will continue to spread on Kauai like cankers. Just another symptom of the Devil's Bargain of tourism.

Anonymous said...

Any TVR that is rented by a Real Estate Company or person should be legal. If it isn't a simple complaint to the STATE DCCA will jeopardize an RE license.....easy to check, look at rental on real estate websites etc...this is the most effective way to enforce....all money deposited for a rental must be in an Real Estate companies trust acct.....if anyone rents units for more than one owner an RE license is needed....simplest fix...all of the NS companies are either renting or SELLING unlicensed (illegal, but refereed to as "non-conforming in ads)....the DCCA is bad-ass, I know, I almost lost my hairdresser license for cutting hair in my home, (I am really good at the frizz) which was not a commercially zoned property.
The DCCA loves complaints and will doggedly pursue them.

Anonymous said...

Ok so I went to the site. All the homes have a TVR or TVNC # or are in the VDA. They seem to have put much time and effort into their business. Joan…not quite sure what they are doing wrong other than trying to make a living & feed families like everyone else. These TVR laws change every year so every company like Bali Hai, Hawaii Life, Pure Kauai, House Of Dreams, Kauai Vacation Rentals, Parrish Etc…have to change their policies regularly. Did you try communicating with them or do you just ruin peoples live unconsciously. We got much bigger problems on Kauai with GMO, Ice, Cocaine, Poor Education, etc, etc, etc. You know these vacation rentals create thousands of jobs for hard working folks. It ain't all bad…just needs a little tweaking and maybe we can focus on getting our government to take the extra tax revenue they create and allocate some to our schools. That might be more better cause for you….ya think? Sounds to me like your on a Witch Hunt. Two sides to every story. Everyone in America should be provided equal economic and social opportunities. Not so sure you hit the nail on this one….

Anonymous said...

Ok so I went to the site. All the homes have a TVR or TVNC # or are in the VDA
sorry call bullshit on that one

Anonymous said...

Time and effort directing people to all the wrong places.

Dawson said...

5:51 AM said:
You know these vacation rentals create thousands of jobs for hard working folks.

Thousands of jobs? Really?

What kind?

And at what cost to Kauai?

Anonymous said...

whatever happened to the VDA, whatever happened to Hanalei?
It's a mess on the north shore.

Anonymous said...

First world problems. Get some perspective. The rest of the world sees Hanalei as paradise.

Hippies and haters too often projecting self hate at their own laziness toward the ambitious and productive.

You all have it too easy.

Anonymous said...

The kind of jobs that keep people eating and roofs over their heads fool. At what cost? Yes that is the question. Well no cost as far as I van tell. No cost .Hear that? It's a plus unless you're closed minded like most of you grumblers. It's all reltive. Everyone is in the same boat here on the planet. Everyone has their own problems and blessings. I think of you people and Maakala in the same catagory. She's [refectly willing to sabotage someone by "turning them in" so they loose their income. Iff she can do it. Shut em down you say? Well tell you what. Say who you are and I'll make sure the loacl people who make most of their monthly income from working in my vacation rental. They are grateful. The husband just got laid off up at the golf course. You know gratitude. Me too. I'm grateful as well. You people are just a bunch of hot air spewing complaints. Then anyone who comes in with a positive attitude is pissed on or tried to prove wrong or just plain delusionally dismissed as "the dark side" Fool. I'm the dark side. You all are as well. We all should be all on the same side working together. You people are so far gone from that sentiment. Joan you hate monger. Shame on you. Sure you know :dirt: but again where's your positive spin? You have not much. You're arrogantly talking down to people and making fun of people. I have no respect for you at all other than you're a decent researcher. The rest is Day time soap opera nonsense. No go start picking on AirBnb rentals. And you want my tax bill? Thought not. Tha back off on our situations and concentrate on your own back yards. Give me time I can find dirt on anyone. Like Maakala. She's a real piece of work too. Now go back to trashing people and feel free to jump on me. I love a good reaming...


Anonymous Dawson said...
5:51 AM said:
You know these vacation rentals create thousands of jobs for hard working folks.

Thousands of jobs? Really?

What kind?

And at what cost to Kauai?

Dawson said...


At what cost? Yes that is the question. Well no cost as far as I van tell. No cost .Hear that?

All I hear is the gear-grinding rasp of your sorry attempt to spin reality.


I love a good reaming...

Too late -- you're already reamed out. Which explains the echoing emptiness of your words.

Anonymous said...

too funny 4:03 ambitious and productive is fine, residential areas are the wrong place for your commercial endeavors.
Buy in the VDA if you wanna be an inn keeper.

Anonymous said...

Jobs?…Plenty

House Keeping
Restauranteurs
Helicopter Pilot
Tour Guides
Surf Instructors
Landscapers
Tree Pruners
Electricians
Plumbers
Carpenters
Private Chefs
Massage Therapists
Rental Agents
Realtors
Property Managers
Web Designers
Concierge Services
Waiters
Bartenders
Busboys & Girls
Lei Makers
Hula Dancers
Luaus
Boat Captains
Bike Rentals
Baby Gear Rentals
All North Shore Retail
Accountants
Lawyers - this one benefits the most with all the content rule changes to navigate.
Pool & Spa Maintenance
Yoga Teachers
Blogger

Feel free to add if I left anything out. Point being, it's not all negative. Many folks gain from VR's.

Don't get me wrong. Should not be VR's in every neighborhood…for sure.

Anonymous said...

darlin your jobs list shows how much commercial business is fucking up the residential area which is supposed to provide homes for residents, not business.

Anonymous said...

Don't get me wrong. Should not be VR's in every neighborhood
agreed, especially when that area is a tsunami inundation zone and there are no evacuation plans.

Anonymous said...

This TVR mess is seriously in need of cleaning up! Thanks for highlighting this issue Joan, it's been ignored way too long and it's past time for the county to enforce upon all of the illegal rentals. The illegal vacation rentals operating outside the VDA are out of control. Residential housing on Kauai already faces severe shortages, we can't afford to allow neighborhoods zones residential to turn to resort. Time for the County to ENFORCE the zoning laws!

Dawson said...


6:00 AM wrote:
darlin your jobs list shows how much commercial business is fucking up the residential area which is supposed to provide homes for residents, not business.

Exactly. And it shows how heavily Kauai has sold its soul to the Devil's Bargain of tourism.

Anonymous said...

There is no teeth in any tvr issues as long as we have a judge that fines a multi millionaire $3000 in an open and shut case.