The Maui short-term rental (STR) landscape is in a state of transition. Whether you’re an investor, second-home buyer, or current owner of a vacation condo, it’s more important than ever to understand how the latest rules and proposals may impact your investment.

As someone who was born and raised on Maui and has spent decades helping buyers and sellers in nearly every short-term rental complex on the island, I’ve created this updated guide to help you make sense of it all. We’ll cover:

• Why Maui remains a desirable destination for Short Term Vacation Rentals
• What defines a short-term rental under Maui County law
• The current proposal that could impact thousands of apartment-zoned units
• What’s still allowed, what’s uncertain, and how to approach the market now
• Ownership tips, tax insights, and management advice from a local’s perspective

Why Maui Is Still a Smart Choice for STR Investment

Even with increased regulation, Maui continues to be one of the most attractive vacation destinations in the world. Epic year-round weather, awesome island lifestyle, and a long history of vacation condo development keep the short term rental market active…especially in premier resort areas like Wailea, Kaanapali, and Kapalua.

These regions offer a concentration of legally operating short-term rental condos that were designed with visitors in mind. Think resort style amenities, ocean views, and proximity to world-class beaches and local eateries.

Understanding Maui’s STR Rules and the Minatoya List

What is considered a short-term rental on Maui?

Maui County defines a short-term rental as any lease or occupancy under 180 days. Long-term rentals must have a minimum 180-day lease agreement.

What is the Minatoya List?

This is the list of apartment-zoned condominium complexes that were legally grandfathered in as STRs under what’s known as the Minatoya Opinion. These Minatoya condos have operated as STRs for decades, but in May 2024, the Mayor introduced a proposal to revoke STR rights for roughly 7,000 units across about 85 apartment-zoned properties.

The proposal will be decided by the Maui County Council, which is expected to vote by June 19, 2025, following public testimony at the end of May which has been scheduled for Monday, June 9th (view public meeting notice). If passed in its current form, the economic impact to Maui could be significant.

That said, there’s growing opposition. The Maui Planning Commission has recommended exempting resort areas like Wailea, Kaanapali, and Kapalua from the ban, and the Mayor himself has walked back the number of units he hopes to convert.

Apartment Zoned vs. Hotel Zoned Condos

Not all STR condos are created equal. Understanding the difference between zoning types is key:

Hotel-zoned condos (like Wailea Beach Villas, Honua Kai, etc.) are not affected by the Mayor’s proposal. These remain fully legal STRs and have maintained stable pricing and demand. The golden zoning so to speak.

Apartment-zoned condos (such as Wailea Ekolu, Grand Champions, and Wailea Ekahi) are part of the Minatoya List and face potential restrictions.

Many of these apartment-zoned complexes were clearly designed for transient use, despite what the zoning designation implies. Smaller kitchens, very limited storage, minimal parking, and luxury resort amenities all point to their intended use for short-term visitors.

What’s Happening to Property Values?

Since the initial announcement in 2024, values in apartment-zoned complexes have taken a BIG hit. Comparing the number of Minatoya condos on the market in May 2025 to the same month last year, inventory is up 55% while the number of sales down 23%, which is a strong signal that demand is down significantly.

Most of the units that are actually selling are trading at steep discounts compared to highs from recent years, with the 12-month average sold price per square foot dropping to $1,112 which is down 15% compared to the previous year’s 12-month average of $1,322.

Below is an example of changes in value for one Kihei condo community…

At the community of Kihei Garden Estates, unit G202 sold in April 2024 for $900,000 after just 63 days on market. In 2025 there was a sale of a similar second floor 2 bedroom unit in the same general location at a much lower price point: Unit G206 sold for $697,100 after 317 days on market. G206 was arguably a better unit in terms of features, with split air conditioning and a more updated kitchen, yet sold for 22% less than the same sized unit.

For investors with a long-term horizon and risk tolerance, this uncertainty may represent a once-in-a-decade buying opportunity. Even if the Mayor’s proposed ban fails to pass, we don’t expect an immediate recovery due to broader market conditions.

In contrast, hotel-zoned condo values have remained relatively stable to slightly up because they aren’t under the same threat as the apartment-zoned Minatoya condos.

Recently listed Minatoya condos

Here’s a recap of the 10 recent listings for apartment zoned vacation condos.

What You Need to Know About Operating an STR on Maui

Here are some important ownership basics for legal short-term rentals:

• You do not need a special STR permit if the unit is already legally allowed to rent short-term.
  
• You do need a General Excise Tax (GET) license and a Transient Accommodation Tax (TAT) license.
  
• STR units are taxed at higher property tax rates—usually Class B (short-term rental).
  
• GE and TAT taxes are pass-through to the guest but must be reported and paid by the owner.

If you’re curious about the property taxes for a particular listing, simply sign up for a Property Organizer account so you can save the property as a favorite and we will reach out with a direct link to the County tax records for that unit.

Property Management: Do it yourself or hire out?

You’ve got two paths when it comes to managing your rental:

Option 1 – Do It Yourself

If you have the time, the energy, and tech savviness, managing your own unit can save you thousands of dollars in fees. You’ll handle guest communication, bookings, pricing, marketing, maintenance, and coordination… It’s a lot of work and it all depends on your threshold for pain!

Option 2 – Hire a Property Manager

If you’d rather be hands-off, professional management companies typically charge a percentage of gross revenue. There’s no standard but typical companies will charge between 20% to 25%. They’ll handle everything: listings, pricing strategy, guest communication, cleaning, and maintenance. I always recommend interviewing at least three companies and comparing offerings. I’d be happy to share my vetted list…just email me or call me directly.

As a local agent with Coldwell Banker Island Properties, I’ve had the privilege of working alongside some of the best property managers in the industry, and that includes our amazing sister brokerage, Coldwell Banker Island Vacations.

Their team plays a vital role in our island community by managing a portfolio of exceptional vacation rental properties across Maui. From luxurious oceanfront condos in Wailea to charming escapes in Kapalua, they handle each property with the utmost professionalism, care, and the aloha spirit.
What truly sets Coldwell Banker Island Vacations apart is their attention to detail, personalized service, and deep understanding of what it means to deliver the full island experience. This goes for both homeowners (asset management and preservation) and guests (world class vacation experience). Their dedication helps maximize returns for property owners while ensuring every guest feels right at home in paradise.

If you’re a homeowner looking for expert vacation rental management, or simply planning your next visit to Maui, then look no further! You’ll be in excellent hands with the team at CB Island Vacations.

Bonus Tip: HOA Rules Matter

Each condo complex comes with its own set of association documents, which outline things like:

• Guest registration protocols
• Owner vs. guest amenity usage
• Occupancy limits
• Quiet hours, parking policies, and more

As your buyer’s agent, I’ll ensure you get the right documents during escrow and any other information you may need early in the process.

Let’s Talk

Whether you’re actively shopping or just want clarity on what’s happening with Maui short-term rentals, I’m here to help. I’ve spent years representing clients in these complexes—before, during, and now amidst this regulatory shift. My goal is always to provide clear, honest advice rooted in real local experience.

Aloha,

Anthony Sayles R(S)

808-280-6532

Anthony@DanoSayles.com