Thinking about renting your Keauhou Estates home when you are not on island? You are not alone. Many owners in Kahaluu‑Keauhou want lifestyle flexibility plus offsetting income, but the Big Island has clear rules and layers of approval that you must follow. In this guide, you will learn what is allowed, how taxes work, where the numbers tend to land, and the due diligence steps that protect your investment. Let’s dive in.

Can you rent nightly in Keauhou Estates?

Short answer: sometimes, and only when the property is clearly allowed under County rules and your HOA. Hawaiʻi County regulates short‑term vacation rentals under Bill 108 and Rule 23. STVRs are permitted in specific zones and mapped Resort or Resort‑Node areas. Outside those, some homes may operate only if they hold a valid Nonconforming Use Certificate.

In Keauhou Estates, many single‑family parcels are zoned RS‑15. That zoning does not automatically allow new, unhosted nightly rentals. Some individual homes do have grandfathered Nonconforming Use Certificates, but others do not. Always confirm the parcel’s status before you underwrite or advertise. Start with the County’s guidance on short‑term vacation rentals.

Zoning and NUC essentials

• Check the property’s TMK and zoning, and whether it sits inside a mapped Resort or Resort‑Node area. You can look up parcels using the County’s Real Property TMK maps.
• If the home operates as a nightly rental, ask for the current STVR registration and Nonconforming Use Certificate. Confirm validity and renewal status with County Planning using the STVR program page.
• Remember that HOA rules can be stricter than County law. Many associations set minimum stays or prohibit nightly rentals altogether.

Taxes and the 180‑day rule

Hawaiʻi treats stays under 180 consecutive days as transient accommodations. That means you must register for and collect the State Transient Accommodations Tax and the General Excise Tax, then file periodic returns. The County also administers a surcharge portion of transient accommodation taxes. Review the Department of Taxation’s guidance for owners renting residential property and the County’s page for transient accommodations tax administration.

Recent legislative updates change TAT details beginning January 1, 2026. Platforms sometimes help with tax collection, but you are responsible for correct registration and filing. Confirm the current rates and filing schedules with the State before you set pricing.

HOA rules in Keauhou Estates

Keauhou Estates is a gated, professionally managed community. Your HOA’s governing documents may ban nightly rentals or set minimum stays such as 30, 60, or 90 days. They can also require proof of insurance, a local contact, and fines for violations. Obtain and read the CC&Rs, bylaws, house rules, and any rental policy amendments. You can find recorded documents through the Bureau of Conveyances search portal at US Property Search, and you should also request the latest versions directly from the seller and the HOA.

Market snapshot for Kahaluu‑Keauhou

Public short‑term rental indicators for the Kahaluu‑Keauhou and Kailua‑Kona area show strong average daily rates paired with moderate occupancy. Aggregators commonly report ADR in the 350 to 450 dollar range and occupancy near the mid‑40 to mid‑50 percent range. Use these only as a starting frame, then refine with a paid neighborhood report or the property’s actual rent roll. See a statewide snapshot from AirROI and STR aggregators.

Seasonality matters. Winter months and major events can lift rates, while shoulder seasons can soften occupancy. Ocean‑view homes near Keauhou Bay often benefit from vacation demand, while mid‑term stays of 30 to 90 days have also grown for remote work and extended travel.

Example pro forma, back of the envelope

Using a provisional ADR of 402 dollars and occupancy of 44.85 percent, your monthly gross might look like this:

• 402 dollars × 30 nights × 0.4485 ≈ 5,400 dollars per month (about 64 to 66 thousand dollars per year) before management, cleaning, utilities, HOA dues, insurance, maintenance, and taxes.

This is only an illustration. Always validate with a paid market report and 12 to 36 months of actuals for homes similar to yours.

Rental strategies that work

Nightly or weekly stays

• Pros: Highest potential revenue per occupied night for resort‑style homes.
• Cons: Most operational intensity, higher management fees, and full compliance burden. State TAT and the County surcharge apply to stays under 180 days.
• Best fit: Properties in permitted STVR zones or with a valid, transferable Nonconforming Use Certificate and HOA approval.

Mid‑term stays, 30 to 180 days

• Pros: Fewer turnovers, simpler operations, and growing demand from remote workers and extended travelers.
• Cons: Still subject to TAT if the stay is under 180 days. Fewer big OTA channels focus on this length.
• Best fit: Homes where the HOA allows only longer minimum stays or owners who prefer lighter turnover.

Long‑term leases, 180+ days

• Pros: Exempt from TAT for each lease of 180 days or more, lower operational overhead, and steadier cash flow.
• Cons: Usually lower gross than a well‑run nightly STR in peak months.

Costs and operations to budget

• Management fees: Expect roughly 20 to 35 percent of gross for full‑service vacation rental management in Kona.
• Cleaning and linens: Turnover costs scale with guest count and home size.
• Insurance: Standard homeowner policies often exclude short‑term rental activity. Plan for a vacation‑rental endorsement or commercial policy and consider umbrella liability. Many HOAs require proof of coverage.
• Utilities and supplies: Electricity, water, internet, landscaping, and consumables.
• HOA dues and compliance: Budget for dues and any registration or rule‑compliance costs.
• Taxes and licenses: GET, TAT, and the County surcharge, plus registration and filing.
• Local contact and guest standards: The County requires a reachable local contact and clear display of your registration or NUC number in advertising. Review the County’s STVR rules and forms.

Due diligence checklist for buyers and owners

• Verify parcel and zoning: Pull the TMK, confirm zoning such as RS‑15, and check if the parcel lies in a mapped Resort or Resort‑Node area using the County TMK maps.
• Confirm STVR and NUC status: Ask the seller for the STVR registration and any Nonconforming Use Certificate. Verify validity and renewal with County Planning via the STVR program page.
• Review HOA rules: Obtain CC&Rs, bylaws, house rules, and recent board minutes. Check for minimum stays, caps, fines, and insurance requirements. Use the Bureau of Conveyances search via US Property Search.
• Set up taxes: Register for GET and TAT and understand your filing schedule. Start with State guidance on renting residential property and the County’s transient accommodations tax administration.
• Validate revenue: Request 12 to 36 months of revenue, ADR, and occupancy history. Compare with third‑party market data like AirROI for your property type and location.
• Plan operations: Price out management, cleaning, maintenance reserves, and a 24/7 local contact. Confirm insurance and lender acceptance for your intended use.

A concierge partner for Keauhou Estates

If you want a calm, expert path from acquisition to rental and care, you deserve a boutique partner that handles both strategy and day‑to‑day details. Our team pairs deep Kona neighborhood knowledge with vertically integrated management. We help you evaluate zoning and NUC status, model returns, set up GET and TAT registration, and launch a compliant rental plan that fits your goals. With direct booking capability and modern owner reporting, you get clarity and hospitality‑level presentation.

Ready to explore opportunities in Keauhou Estates or optimize a current home? Connect with the local team at Luxury Properties Hawaii LLC to schedule a private consultation.

FAQs

Are short‑term rentals allowed in Keauhou Estates?

• Many single‑family parcels are RS‑15 and do not automatically qualify for a new unhosted STVR. Nightly rentals are allowed only if the parcel is in a permitted resort area or the home holds a valid Nonconforming Use Certificate. Always confirm with County Planning.

What taxes apply if I rent my Keauhou Estates home?

• Stays under 180 consecutive days trigger State Transient Accommodations Tax and General Excise Tax, plus a County surcharge portion. Register and file as outlined by the Department of Taxation’s guidance on renting residential property.

How do HOA rules impact renting in Keauhou Estates?

• HOA CC&Rs may prohibit nightly rentals or set minimum stays. Obtain and review recorded CC&Rs, house rules, and minutes, then confirm current policy with the association before you market the home.

What revenue can I expect from a Keauhou‑area rental?

• Public STR indicators show ADR often in the 350 to 450 dollar range and occupancy in the mid‑40 to mid‑50 percent range. A sample pro forma at 402 dollars ADR and 44.85 percent occupancy suggests about 5,400 dollars per month before expenses. Validate with paid reports like AirROI and actuals.

What is a Nonconforming Use Certificate, and why does it matter?

• A Nonconforming Use Certificate is County authorization allowing a previously operating rental outside of permitted STVR zones to continue, subject to valid registration and renewal. Learn more on the County’s short‑term vacation rentals page.