HONOLULU (KHON2) — Looking to rent a studio or small condo long term? More of them are available in places like Honolulu and the Windward side likely due to the ban on short term vacation rentals.
Short term vacation rentals were banned three months ago. Kasandra Shriver, an agent with HomeQuest Realtors said she has recently noticed a change in the market.
“Our office has been contacted by a couple of short term vacation renters to see what the market would hold if we converted their short term rental to a long term rental. I think the initial thought was, let’s just continue making money off this space that we used to rent short term,” Shriver explained.
That is what created an influx of rentals.
“Smaller rentals, the studios, the one bedrooms–we are seeing much more competition in that rental market,” Shriver said.
KHON: “Would you say the markets being flooded with rentals now?”
“I would say that it’s having a marked effect on rentability.”
Meaning, smaller units–even units that weren’t vacation rentals– are taking longer to rent and prices are dropping slightly.
Landlords are very particular about who they rent to and prefer short term leases, which actually makes it harder to rent units given the current state of the market.
“We’ve had several requests where they ask us to locate a tenant for them or they want a particular kind of tenant–a quiet tenant, a tenant with no children, a tenant who maybe is not going be there very often. I think that they want their cake and they want to eat it too. They want what comes with a short term rental something that you don’t have to deal with for very long in a long term renter and that’s pretty hard to come by,” Shriver said.
Perhaps some landlords are waiting it out to see if they can reestablish their short term vacation rental when the City starts accepting applications for permits in October 2020.