Everything You Need to Know About Owning a Short Term Rental in Paia, Hawaii

Title: 2024 Short-Term Rental Regulations in Maui County, Hawaii (Including Paia)

Overview of Regulations

Following the passage of Hawaii's Senate Bill 2919, Maui County has introduced significant changes to its short-term rental regulations. Here are the key points:

State-Level Authority

• Hawaii state law now allows counties to regulate, including phasing out, short-term rentals through zoning regulations in residential and agricultural zones.

Phase-Out of Short-Term Rentals in Apartment Districts

• Properties in apartment districts, particularly those on the "Minatoya List," will be phased out as short-term rentals. For West Maui, this phase-out will be effective by July 1, 2025, and for the rest of Maui County by January 1, 2026.

Zoning and Permits

• Short-term rentals in districts zoned for hotel use are not affected by the new regulations. However, properties in apartment districts must comply with the phase-out plan.
• Properties requiring a Short-Term Rental Home Permit, Bed & Breakfast Permit, or Conditional Permit must adhere to specific operating requirements, including having a designated manager available and ensuring all parking is onsite.

Tax Compliance

• All short-term rental operators must pay the State of Hawaii General Excise Tax (GET) and Transient Accommodation Tax (TAT). Hosts are responsible for registering with the state’s Department of Taxation and filing tax returns.

Community Plan Restrictions

• The Maui County Council will review community plan restrictions when the number of approved short-term rental homes exceeds 90% of the restriction number. Transient vacation rentals operating with a conditional permit are included in this count.

Public Hearings and Approvals

• The proposed bill has been reviewed by the Maui and Molokaʻi planning commissions, which recommended its approval. The bill will now be presented to the Maui County Council for final review and decision.

Impact on Housing

• The phase-out is aimed at addressing the housing crisis, particularly exacerbated by the 2023 wildfires. The goal is to return apartment-zoned properties to their original long-term residential use.

Potential Legal Challenges

• There is anticipation of legal battles, with opponents arguing that the phase-out could lead to economic damage and job losses. Former Hawaiʻi Attorney General David Louie has indicated potential legal challenges on behalf of Airbnb.

Regulatory information last reviewed for accuracy in 2026. Local STR ordinances change frequently — verify current rules with the city or county before listing.

Top Airbnb Revenue-Generating Neighborhoods in Paia, Hawaii

Why Paia is Appealing for Guests

Paia, located on the North Shore of Maui, is a popular destination for tourists due to its stunning beaches, vibrant town, and easy access to renowned attractions like the Road to Hana and Haleakalā National Park.

Top Neighborhoods for Airbnb Revenue

1. Paia Town

• Appeal: Paia Town is highly rated for its location, cleanliness, and proximity to charming cafes, surf spots, and the famous Ho'okipa Beach Park. Guests appreciate the walkability to local amenities and the town's laid-back, bohemian atmosphere.
• Revenue Potential: Properties in Paia Town, such as the Paia Surf Suite and Paia Town Plantation Home, generate high revenue due to their central location and high occupancy rates.

2. Kuau Area

• Appeal: The Kuau area is known for its uncrowded beaches and proximity to unique attractions like Mama's Fish House and the Road to Hana. Guests love the eco-friendly and locally-owned condos that offer a genuine Maui experience.
• Revenue Potential: Condos like the Locally-Owned Eco-Friendly Condo on Road to Hāna and Kuau Plaza Paradise are highly rated and generate significant revenue due to their environmental appeal and prime location.

3. North Shore Beachfront

• Appeal: Beachfront properties and homes in the North Shore area are highly sought after for their ocean views, private hot tubs, and easy access to beaches. Guests enjoy the luxury and unique experiences these properties offer, such as the Rainbow Lookout and Maui by the Sea ocean view cottage.
• Revenue Potential: These luxury rentals often command high daily rates and maintain high occupancy rates, making them lucrative investments for Airbnb hosts.

4. Haiku-Paia Border

• Appeal: Properties on the border of Haiku and Paia offer a balance between the tranquility of Haiku and the amenities of Paia. Guests appreciate the central location and the variety of activities available in both areas.
• Revenue Potential: Rentals like the Palm Surf Bungalow and Kuau Cottage benefit from their strategic location, attracting a steady stream of guests and generating substantial revenue.

These neighborhoods in Paia are attractive to guests due to their unique blend of natural beauty, local culture, and convenient access to popular attractions, making them ideal for generating significant Airbnb revenue.

Creating an Inviting and Authentic Airbnb in Paia, Hawaii: Design and Furnishing Tips

Showcase Unique Features

• Highlight the distinctive aspects of your property, such as stunning ocean views, private pools, or lush gardens, in your listing photos and descriptions.
• Emphasize what sets your rental apart from others to attract travelers seeking an extraordinary experience.

Personalize the Space with Local Culture

• Incorporate Hawaiian-themed decor, artwork, and local products to give guests a genuine taste of the island’s charm.
• Add personalized touches such as fresh tropical fruit baskets or Hawaiian coffee to enhance the guest experience.

Use Thoughtful Decoration

• Avoid overloading the space with too many decor items and furniture; opt for a minimalist approach to keep the space feeling spacious.
• Use light, trendy paint colors to reflect more light and make the home look more spacious.

Create an Unforgettable Ambiance

• Provide comfortable and high-quality furnishings, plush bedding, and luxurious amenities to create a relaxing and indulgent atmosphere.
• Add thoughtful details such as scented candles, soothing music, or a collection of books and games to enhance the ambiance.

Incorporate Themed Rooms and Local Art

• Design rooms with unique themes (e.g., beach, jungle, vintage) to create a memorable and immersive experience for guests.
• Decorate with local artwork or handicrafts that reflect the destination’s culture and heritage.

Provide Guest-Friendly Amenities

• Offer amenities such as high-speed internet, cable or streaming services, beach gear, and bikes for exploring the island.
• Provide welcome baskets with snacks, toiletries, or a guidebook filled with insider tips and recommendations.

Focus on Lighting and Comfort

• Ensure good lighting control with lamps and dimmer switches to create a cozy and inviting atmosphere.
• Provide nice, soft blankets and pillows with different fill options to enhance comfort.

Enhance the Living Room Experience

• Design the living room to evoke conversation and consider the guests' experience in the space.
• Include occasional tables, poufs, and swivel chairs to create a functional and comfortable space.

Luxury Touches in the Bedroom

• Offer high-quality bedding and provide extra bedding layers in the closet for guest convenience.
• Include bedside tables and lamps for each guest, and consider blackout shades for better sleep.

Add Luxury to the Bathroom

• Provide fluffy bathrobes and nice-smelling hand soap to add a touch of luxury.
• Ensure there are extra towels and a place to put shower items while in the shower.

Welcome Guests with a Thoughtful Entry

• Create a welcoming entryway with thoughtful touches such as a welcome basket or local goodies to make guests feel special and appreciated.

Discovering Paia, Maui: Local Attractions and Insider Tips

Local Attractions

Beaches

• Baldwin Beach Park: A popular beach on the North Shore known for its long, white sandy stretch, perfect for lounging, sunbathing, and various water activities.
• Ho'okipa Beach Park: Famous for its big waves and a hotspot for surfers and windsurfers. It also hosts surfing competitions and is a great spot to see sea turtles.
• Paia Bay: A scenic bay with a beach that offers a more relaxed atmosphere.
• Paia Secret Beach: A clothing-optional beach between Paia Bay and Baldwin Beach, known for its privacy and natural setting.
• Kaulahao Beach: While not ideal for swimming due to rocks, it's a great spot to see sea turtles.

Cultural and Artistic Sites

• Hui No’eau Visual Arts Center: Located near Paia, this center offers art classes, tours, and events. It is a must-visit for art lovers.
• The Great Paia Lha Bab Peace Stupa: A spiritual site dedicated to the late Venerable Lama Tenzin, consecrated by the 14th Dalai Lama in 2007.
• Sacred Garden of Maliko: An off-the-beaten-path garden with a rich history, including ties to Jimi Hendrix and Janis Joplin.

Markets and Shopping

• Paia Farmers Market: Held every Tuesday, Thursday, and Saturday morning, offering fresh produce, handmade crafts, and local food vendors.
• Paia Town Shopping: Explore unique boutiques like Alice in Hulaland, Heart in Paia, and Pakaloha for eclectic and local products.

Dining

• Mama’s Fish House: Renowned for its seafood-driven Hawaiian menu and Polynesian decor, offering epic ocean views.
• Paia Fish Market: Known for fresh fish and seafood dishes, including their famous Obama burger.
• Tobi's Poke and Shave Ice: Offers casual meals with an outdoor patio, known for its poke, shave ice, and all-day breakfast menu.
• Paia Bay Coffee and Bar: Specializes in local beverages and has a full menu with all-day breakfast, lunch, and dinner options.
• Choice Health Bar: A vegan and plant-based restaurant with healthy options like acai bowls and salads.

Insider Tips

Getting Around

• Parking and Access: Many attractions in Paia are within walking distance or have ample parking. For Paia Farmers Market, parking is available, and it's an easy walk from many hotels and resorts.

Activities

• Water Sports: Learn to kiteboard or wingfoil at Kanaha Beach Park, or enjoy surfing and windsurfing at Ho'okipa Beach Park.
• Hiking and Waterfalls: Visit Twin Falls, a short drive from Paia, for a hike to a beautiful freshwater pool and waterfall.

Local Culture

• Pronunciation: Make sure to pronounce Paia as “pah-ee-ah” to blend in with the locals.
• Community Events: Check out local events and classes at the Hui No’eau Visual Arts Center to immerse yourself in the community.

Day Trips

• Road to Hana: Paia is a great starting point for the Road to Hana. Consider stopping at Twin Falls as a more accessible alternative to the full Hana drive.

By sharing these attractions and tips, your guests will be well-equipped to enjoy the unique charm and beauty of Paia, Maui.

Practical Tips to Run a Successful Short Term Rental Business in Paia, Hawaii

To ensure a smooth and enjoyable experience for both you and your guests, here are some practical tips for managing a short-term rental business in Paia, Hawaii:

Noise Regulations and Quiet Hours

Inform your guests about noise regulations and quiet hours to maintain a peaceful environment for both your guests and the local community. Include this information in your listing and house manual to set clear expectations.

Digital and Physical House Manual

Create a comprehensive digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important details about the property. This manual should cover everything from appliance usage to emergency contact numbers, ensuring guests have all the information they need at their fingertips.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, and include photos to help them navigate any specific steps or features.

Parking Instructions with Photos

To avoid confusion and ensure a hassle-free experience, provide detailed parking instructions accompanied by photos. This will help guests understand where to park and any specific rules or restrictions that apply.

By implementing these strategies, you can enhance guest satisfaction, reduce potential issues, and maintain a positive reputation for your short-term rental business in Paia, Hawaii.

Short-Term Rental Management Fees in Paia, Hawaii (2026)

Short-term rental management fees in Paia, Hawaii in 2026 typically range from 15% to 30% of gross rental revenue, depending on the scope of services provided. Full-service management — covering guest communication, channel distribution across Airbnb, Vrbo, and Booking.com, dynamic pricing, cleaning coordination, and 24/7 guest support — generally falls in the 22% to 30% range. Co-hosting or partial-service arrangements that leave more responsibility with the owner usually run 15% to 20%.

Industry-wide management fees have crept upward by roughly 1–2 percentage points since 2024 as operating costs, insurance premiums, and labor expenses have risen across the vacation rental sector. Paia-area managers may also charge separately for cleaning turnovers, maintenance dispatch, linen programs, and listing optimization. Some full-service operators in Hawaii now offer guaranteed-rent or revenue-share hybrid models, which can be worth comparing against a flat percentage structure for higher-revenue properties.

Market estimates as of 2026. Conditions vary; consult local operators for current data.

Short-Term Rental Market in Paia, Hawaii (2026)

Granular market data for Paia, Hawaii remains limited as of 2026, as smaller and emerging short-term rental markets are not consistently captured by major data providers like AirDNA. However, broader Hawaii trends suggest continued demand for vacation rentals, particularly in markets offering unique experiences, scenic appeal, or proximity to established tourist destinations.

Through 2025–2026, the Hawaii short-term rental market has seen modest ADR growth of 3–5% industry-wide, partially offset by occupancy compression as supply has continued to expand. Operators in markets like Paia should evaluate hyperlocal factors — seasonality, regulatory environment, and competing accommodation supply — before making investment decisions.

Market estimates as of 2026. Conditions vary; consult local operators for current data.