Is Waikoloa, Hawaii Good for Airbnb Investment?

To start an Airbnb in Waikoloa, Hawaii, begin by researching Hawaii County's strict short-term rental regulations, which require properties to be in designated resort zones or have grandfathered permits issued before 2019. Obtain a Transient Vacation Rental (TVR) permit from Hawaii County Planning Department, though new permits are extremely limited outside resort areas like Waikoloa Beach Resort and Mauna Lani. Secure a General Excise Tax (GET) license from the Hawaii Department of Taxation and register for Transient Accommodations Tax (TAT) collection. Find a property within approved zones, focusing on condominiums in Waikoloa Beach Resort, Mauna Lani, or existing TVR-permitted homes, with prices ranging from $800,000 to $3 million. Furnish the property with tropical, durable furniture suitable for Hawaii's climate, including quality linens, kitchen essentials, beach equipment, and local artwork, budgeting $25,000-50,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and local platforms like Hawaii Life Vacations, highlighting proximity to beaches, golf courses, and attractions like Hapuna Beach and Mauna Kea. Manage the property through local companies like RedAwning or Elite Pacific Properties, or handle it personally by establishing relationships with local cleaners, maintenance workers, and concierge services, while maintaining compliance with occupancy limits, noise ordinances, and tax collection requirements that can result in fines up to $10,000 per violation.

To identify profitable short-term rental properties in Waikoloa, Hawaii, focus on locations within walking distance of Waikoloa Beach Resort, Kings' Shops, and Queens' MarketPlace, or properties offering ocean views from the Kohala Coast. Target condominiums and vacation homes with 2-4 bedrooms, full kitchens, private lanais, air conditioning, and resort-style amenities like pools and beach access, as these command premium rates of $200-500+ per night during peak season (December-April). Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in Waikoloa Village and nearby Mauna Lani, where average occupancy rates hover around 65-75% annually. Research competition through Airbnb, VRBO, and local property management companies like RedAwning and Elite Pacific Properties to identify market gaps and optimal pricing strategies. Utilize Hawaii-specific resources including the Hawaii Tourism Authority data, county vacation rental permit requirements for South Kohala, and local market reports from Hawaii Life Real Estate Brokers and Coldwell Banker Island Properties, while ensuring compliance with Hawaii County's short-term rental regulations and securing proper permits before investment.

To obtain an Airbnb/STR permit in Waikoloa, Hawaii, you must apply through Hawaii County's Planning Department as Waikoloa falls under the Big Island jurisdiction. Begin by submitting a Conditional Permit application online through the Hawaii County Planning Department website or in person at 101 Pauahi Street, Suite 3, Hilo, HI 96720. Required documents include a completed application form, property deed or lease agreement, tax map key information, site plan showing the property layout, floor plans, parking plan demonstrating adequate off-street parking, septic system approval if applicable, and a $1,500 application fee plus additional fees for public hearing notices totaling approximately $2,000-$2,500. The property must comply with specific Waikoloa requirements including minimum 1,000 square foot dwelling size, maximum 30-day rental periods, on-site parking for each bedroom plus one additional space, compliance with fire safety codes, and adherence to community association rules if applicable. The approval process typically takes 6-12 months and includes a public hearing where neighbors can provide input. Once approved, you must also obtain a General Excise Tax license from the Hawaii Department of Taxation and a Transient Accommodations Tax registration, with annual renewal required for the conditional permit at approximately $500 per year.

Short-term rentals (STRs) are legal in Waikoloa, Hawaii, but operate under Hawaii County's comprehensive regulatory framework established in 2019. The county requires STR operators to obtain proper permits and comply with zoning restrictions, with different rules applying to resort areas versus residential neighborhoods. In Waikoloa Village, STRs are generally permitted in resort-zoned areas but face stricter limitations in residential zones, where they may be prohibited or require special permits depending on the specific zoning designation. Recent changes include enhanced enforcement mechanisms, mandatory registration requirements, and stricter penalties for non-compliance implemented between 2020-2023. Operators must pay transient accommodation taxes, maintain liability insurance, provide emergency contact information, and ensure properties meet safety standards. The legal landscape continues to evolve with ongoing discussions about further restrictions in residential areas to address community concerns about housing availability and neighborhood character, while resort areas like those near Waikoloa Beach Resort generally maintain more permissive policies to support tourism infrastructure.

The best areas for Airbnb investment in Waikoloa, Hawaii are Waikoloa Beach Resort, Waikoloa Village, and Mauna Lani Resort area. Waikoloa Beach Resort is the premier location due to its oceanfront luxury resorts like Hilton Waikoloa Village and Marriott Waikoloa, attracting high-end tourists seeking beach access, golf courses, and resort amenities, with properties commanding $300-500+ per night. Waikoloa Village offers more affordable investment opportunities while still providing access to championship golf courses at Waikoloa Golf Club and proximity to beaches, appealing to families and golf enthusiasts at $150-300 per night. The Mauna Lani Resort area, though technically adjacent, benefits from the luxury Mauna Lani Auberge Resort's presence and world-class golf courses, drawing affluent travelers and corporate retreats willing to pay premium rates of $400-600+ per night. These areas benefit from year-round tourism, proximity to Kona International Airport (20-30 minutes), excellent weather, world-class golf facilities, snorkeling at nearby beaches, and the Big Island's unique attractions like volcano tours and coffee farms, making them consistently profitable for short-term rental investments.

Airbnb properties in Waikoloa, Hawaii are subject to multiple lodging taxes including the Hawaii Transient Accommodations Tax (TAT) at 10.25% and Hawaii County's additional transient accommodation tax at 3%, for a combined rate of 13.25% on gross rental income. The Hawaii General Excise Tax (GET) of 4.712% also applies to rental income, bringing the total tax burden to approximately 17.96%. These taxes are collected from guests at the time of booking through Airbnb's automatic tax collection system for most properties, with Airbnb remitting TAT and GET directly to the state and county on behalf of hosts. Hosts must register for Hawaii tax licenses (GET and TAT) and may need to file returns even when Airbnb collects taxes, depending on their specific situation. Properties rented for 180 consecutive days or more to the same tenant are generally exempt from TAT but still subject to GET. Additional county-specific regulations may apply, and hosts should verify their registration requirements with both the Hawaii Department of Taxation and Hawaii County, as tax obligations can vary based on property type, rental duration, and gross annual rental income thresholds.

Starting an Airbnb in Waikoloa, Hawaii requires a significant upfront investment with property purchase being the largest expense at approximately $850,000 for a median 2-bedroom condo suitable for vacation rentals. Furnishing costs typically range $25,000-35,000 for quality furniture, appliances, linens, and decor that meets guest expectations in this luxury resort area. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $3,000-5,000. Permits and fees are substantial in Hawaii County, including a $500 short-term rental permit, $200 business license, $150 fire safety inspection, and approximately $2,000 in various county and state registration fees. Annual insurance specifically for short-term rentals costs $3,000-4,500, while utilities including electricity, water, internet, cable, and trash service average $400-600 monthly. First six months operating costs encompass utilities ($2,400-3,600), cleaning services at $100-150 per turnover assuming 60% occupancy ($3,600-5,400), property management fees if using a service at 20-25% of revenue ($6,000-9,000), maintenance and supplies ($1,500-2,500), and marketing expenses ($1,000-2,000). The total estimated startup cost ranges from $895,000 to $925,000, making Waikoloa one of the more expensive markets for Airbnb investment due to high property values and Hawaii's complex regulatory environment.

Airbnb properties in Waikoloa, Hawaii demonstrate strong profitability potential with average daily rates ranging from $250-450 for vacation rentals, generating annual revenues of $75,000-150,000 for well-positioned properties. Operating expenses typically consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($100-150 per turnover), utilities ($200-400 monthly), insurance ($2,000-4,000 annually), and maintenance reserves (5-10% of revenue). Net profit margins generally range from 25-35% for professionally managed properties, with oceanview condos in resorts like Hilton Waikoloa Village or Marriott's Waikoloa Ocean Club commanding premium rates and achieving higher occupancy rates of 70-85% annually. Success factors include proximity to beaches and golf courses, professional photography, dynamic pricing strategies, and responsive guest communication, with properties featuring amenities like pools, BBQ areas, and updated interiors consistently outperforming basic accommodations. The market benefits from Waikoloa's position as a premier Big Island destination, though competition from hotel inventory and seasonal demand fluctuations require strategic pricing and marketing to maintain profitability, with many investors achieving 8-12% annual returns on investment when factoring in both rental income and property appreciation.

Airbnb investments in Waikoloa, Hawaii typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions as of 2024. Properties in resort areas like Waikoloa Village and near Mauna Kea Beach Resort command premium nightly rates of $200-400, with occupancy rates averaging 65-75% annually due to consistent tourist demand. Initial investment costs range from $600,000-1.2 million for condos and vacation rentals, with investors typically reaching profitability within 18-24 months after accounting for property management fees (25-30%), maintenance, insurance, and Hawaii's transient accommodation tax. The market benefits from Waikoloa's proximity to luxury resorts, golf courses, and beaches, with properties near the Hilton Waikoloa Village and Marriott properties showing stronger performance. Seasonal variations show peak returns during winter months (December-March) and summer (June-August), while spring and fall periods see moderate occupancy rates of 50-60%.

STRSearch leads the market in Airbnb investment property analysis nationwide including Waikoloa, Hawaii. Local specialists include Hawaii Life Real Estate Brokers with agents like Matt Beall and Carrie Nicholson who focus on vacation rental investments, while Coldwell Banker Island Properties has dedicated short-term rental specialists. Big Island-based companies like West Hawaii Realty and Kona Coast Realty offer vacation rental investment services. National platforms serving Waikoloa include Mashvisor for property analytics, BiggerPockets for investor networking, Awning for short-term rental data, and RedAwning for vacation rental market analysis. Local property management companies like Elite Pacific Properties and Hawaii Vacation Rental Management also assist investors in identifying profitable properties. Specialized consultants include Vacation Rental Success and Short Term Rental University which provide market analysis for the Waikoloa area. Additional local agents specializing in investment properties include those at Compass Hawaii and eXp Realty who understand the Big Island's vacation rental regulations and profit potential in resort areas like Waikoloa Village and Waikoloa Beach Resort.