How to Run a Legal Vacation Rental Condo on Maui: Taxes, Licenses, Management and a Checklist

A legal vacation rental condo on Maui is a real business with real paperwork. Before your first guest arrives you need a Hawaii general excise tax license, a transient accommodations tax license, a named local contact on the island, and listings that display your registration number. After that you file taxes to two governments on a set schedule, and you decide whether to hire a management company or run it yourself. None of it is hard once it is set up. Most of the owners I see get into trouble skipped a step at the start.

I have been on every side of this. I have owned vacation rentals myself, and I was a co-owner of a vacation rental management company and real estate brokerage here on Maui. This guide is what I wish every new owner knew before their first booking.

This guide covers condos that can already rent short term legally. Getting a single-family home approved as a short-term rental is a separate process with its own permit, and in most cases a new buyer cannot get one: see the short-term rental home permit, explained.

Step one: is the unit actually allowed to rent short term?

Everything else depends on this. On Maui, a stay of less than 180 days counts as transient, and transient rentals are only allowed where the zoning or a specific county approval permits them. For condos that comes down to two things.

The zoning. Condos in a hotel district can rent to visitors. Older apartment-zoned condos on the county's Minatoya list have been allowed to rent short term as well, but Bill 9 (Ordinance 5909) phases that out: January 1, 2029 in West Maui, and January 1, 2031 everywhere else. Some of those buildings are being considered for rezoning into the new H-3 and H-4 hotel districts. I keep the current status, building by building, on my Maui short-term rental law page, and I keep a list of hotel-zoned condos that are not on that countdown.

The building's own documents. Even when the zoning allows it, the association's declaration, bylaws and house rules can set minimum stays, require guest registration, charge rental fees, limit parking, or ban short-term rental outright. Read them before you buy, not after.

If a building fails either test, no amount of good management fixes it. The county fines illegal vacation rentals by the day, and it has stepped up enforcement.

What licenses and registrations do I need?

Here is the full setup, in the order I would do it:

1. Hawaii GET and TAT licenses. File Form BB-1 with the Hawaii Department of Taxation, online through Hawaii Tax Online. One application covers both. You need these even if a manager handles your filings.
2. Maui County TAT account. There is no separate county license. The county account is tied to your state TAT number, and you file and pay through the county's online portal on the same schedule as your state TAT returns.
3. A local contact on Maui. State law requires every transient rental to name an individual or business located on the same island who can respond to guests. Who you choose matters more than most owners realize, because of the licensing rule in the next section.
4. Listings that show the required information. Every advertisement, including every online listing, has to display your registration number (or a link to it) and the local contact's name, phone number and email.
5. Registration posted in the unit. Display your TAT registration certificate in the unit, or post a notice telling guests where they can see it, with your local contact's details in the same place.
6. Association paperwork. Most rental-friendly buildings have their own forms: owner and manager contacts, guest registration, parking, and sometimes a rental program agreement.

Who can be your local contact, and when do they need a license?

This is the rule that trips up more off-island owners than any other, and the state's Regulated Industries Complaints Office spells it out in its guidance for rental owners.

Being a local contact does not by itself require a real estate license. A person or company whose only role is to be reachable on Maui and help with guest issues can be anyone on the island.

Renting or managing the unit does. In Hawaii, renting, offering to rent, and managing someone else's property is real estate activity. The moment your local contact starts taking bookings, handling reservations, or managing the unit for you, they need a Hawaii real estate license, with one exception.

The exception is a custodian or caretaker. A caretaker does not need a license, but must be employed by you and can work as a caretaker for only one owner. That owner can have many units. What the caretaker cannot do is take on a second owner, even for a single unit, without getting licensed. A condo association also does not count as the single owner.

In practice, that means the cleaning company that looks after twenty units for one owner can be that owner's caretaker. If it starts managing a unit for a second owner, it needs a license, or the owner needs a different arrangement. Before you hand anyone keys and a booking calendar, ask which of these they are. You can check a license on the state's business check site.

The fines for getting items 3 through 5 wrong are steep: $500 a day for a first violation, $1,000 a day for a second, and $5,000 a day after that. This is the cheapest part of the business to get right, so get it right.

How much tax does a Maui vacation rental pay?

Three taxes apply to the rent itself, and together they come to about 18.5 percent. Most owners pass them on to the guest as a line item.

The state raised the TAT on January 1, 2026, from 10.25 to 11 percent. Older guides and old spreadsheets still show the lower rate, so check yours.

How do I get a GET and TAT license?

1. Go to Hawaii Tax Online (hitax.hawaii.gov) and file Form BB-1, the State of Hawaii Basic Business Application. Check the boxes for both general excise and transient accommodations tax.
2. Pay the one-time $20 registration fee.
3. You receive a GET license and a TAT certificate of registration, each with its own number. The TAT registration identifies the rental property, so tell the department about every unit you rent.
4. The department assigns your filing frequency based on how much tax you expect to owe. For GET, more than $4,000 a year means monthly returns, $4,000 or less allows quarterly, and $2,000 or less allows semiannual.
5. Your Maui County TAT account uses the same TAT number. There is no second application. You file it through the county's page on the state's TAT payment portal.

Put both numbers on every listing before you take a booking.

How do I pass the taxes on to guests?

You are allowed to pass all three taxes on to the guest, and nearly every Maui rental does. The rule that matters is that the taxes have to be visibly passed on: quoted up front and shown as separate lines on the bill. The Department of Taxation is clear on the consequence. If you charge a flat, all-in price without stating the taxes separately, you owe GET and TAT on the entire amount, taxes included.

Two details from the department's own guidance:

• TAT that is visibly passed on is not subject to GET, and it is not counted as rent for TAT.
• GET that is passed on is itself taxable income for GET. That is why the maximum GET you can pass on in Maui County is 4.712 percent, not 4.5.

Here is roughly what a guest bill looks like for $1,000 of rent (nightly rate plus cleaning fee):

Your tax preparer or your manager's software will confirm the exact GET base for your setup, but the principle holds: show every tax on its own line.

Does the cleaning fee count as rent?

Yes, when the guest has to pay it. This is one of the most common mistakes. The Department of Taxation's own Tax Facts 96-2 says rent for TAT includes cleaning or housekeeping fees, maintenance fees and management fees that are mandatory for the guest to pay in order to stay, plus any mandatory resort fees. Listing the cleaning fee on its own line does not take it out of the tax. It simply gets taxed along with the nightly rate.

A few other charges, and how they generally work:

• Optional extras a guest can choose to add, like mid-stay cleaning, beach gear rental or early check-in, are generally not rent for TAT, but they are still income subject to GET.
• A refundable damage deposit is not income while you hold it. If you keep some of it for damage, that part becomes income.
• Pet fees and other fees every guest in that situation must pay should be treated as rent unless your tax preparer tells you otherwise.

How and when do I file and pay?

What happens if I file or pay late?

The penalties add up quickly, and they apply to you as the owner even when a manager was supposed to file. Here is how the Department of Taxation assesses them for the TAT, and the same general rules apply to GET:

Two details make this worse than it looks. Payments are applied to fees first, then interest, then penalty, and only then to the tax, so a partial catch-up payment can leave the original tax still unpaid and still accruing. And if you owe more than $4,000 a year in TAT, you are required to file monthly and electronically. Maui County charges its own penalties and interest on late county TAT under the county code.

If you have fallen behind, or bought a unit from someone who has, talk to a Hawaii tax professional and get current before the numbers grow.

State returns are filed and paid on Hawaii Tax Online. The county TAT is filed on the county's TAT portal. File every period even when you had no bookings, because a missing return is treated as a missing return, not as zero.

Other points that catch owners out:

• Property tax is the big fixed cost. A unit used as a short-term rental is taxed at the county's short-term rental rate, several times the owner-occupant rate. My guide to Maui property taxes walks through the classes.
• Nonresident owners file a Hawaii return. Rental income from Hawaii property is taxed in Hawaii no matter where you live.
• Hiring a manager does not transfer the responsibility. The department holds the owner responsible for every tax, whoever collects the money.

I am a REALTOR, not a CPA. Rates and filing rules change, so confirm them with the Department of Taxation and a tax professional who works with Hawaii rentals.

Airbnb, Vrbo, Booking.com or your own website?

Most well-run Maui condos list on more than one platform. Each one brings a different guest, and the tools to keep calendars and prices in sync (a channel manager or property management software) are standard now.

Fee structures change often, so check each platform's current host terms before you choose. The larger point is about taxes. The booking sites do not pay your Hawaii taxes for you. You set each listing up to charge GET, state TAT and county TAT to the guest as separate lines, the tax money arrives with your payout, and filing and paying it is on you or your manager. Set that money aside the day it lands. Platforms also report host income to the state, so your returns need to match what they report.

Direct bookings are worth building over time. A guest who loved your unit and books directly next year costs you no commission, but only once you are set up to take payments, collect every tax, and handle the rental agreement yourself.

Should I use a management company or self-manage?

This is the biggest decision you will make after choosing the building, and there is no single right answer. It comes down to how much of your own time you want to put in, and how far away you live.

On Maui, about 25 percent of rental revenue is the typical fee for full-service management. Some high-end resort programs charge considerably more. Either way, compare what each option actually covers. Two managers quoting the same percentage can leave you with very different results once cleaning, linen, supplies, credit card fees and maintenance markups are added in.

If you hire a manager, ask these before you sign:

• What is your Hawaii real estate license or condo hotel operator registration number? Anyone renting your unit for a fee generally needs one.
• What exactly does the percentage cover, and what is billed separately?
• Who files the GET and TAT returns, and do I get copies?
• How do you set nightly rates, and how often do you change them?
• How many units do you manage in this building, and what were their occupancy and average nightly rates last year?
• Who responds to a guest at 2 a.m., and how quickly?
• How do you handle maintenance, and do you mark up repairs?
• How much notice do I need to give to end the agreement, and who owns the listing and its reviews if I leave?
• What is your lowest nightly rate for my unit, and will you agree to a floor?
• How do you screen guests, and what is your policy on local bookings, large groups and parties?
• Who inspects the unit after each stay, and how will I hear about damage?
• What does your preventive maintenance schedule look like, and how often do you deep clean?

Need help finding the right manager? This is where my background comes in. I have owned vacation rentals myself, and as a former co-owner of a Maui vacation rental management company and real estate brokerage, I have sat on the manager's side of the table too. I know how the fees are built, where the corners get cut, and which companies look after their owners' units. If you want help finding a great property management company or a reliable on-island contact, reach out and I will point you in the right direction.

If you self-manage, build the team first. You need a cleaner you trust (with a backup), a handyman, and a local contact. Keep the licensing rule above in mind: a cleaner who also handles your bookings or manages the unit needs a license unless they are your own employee and work as a caretaker for no other owner. For repairs, the state requires a licensed contractor for any job over $1,500 in labor and materials or any job that needs a building permit, and electrical and plumbing work always needs a licensed electrician or plumber. Plan your guest communication, keyless entry, and a way to check the unit between stays before you open the calendar.

How do I make sure my manager takes care of the unit, not just fills it?

Almost every new owner hires a manager based on one number: projected revenue. Give it a year or two and most of them care just as much about a different question. Is this company taking care of my property?

Those two goals can pull against each other. A manager is paid a percentage of bookings, so the fastest way for them to look good is heads on beds: drop the rate until the calendar fills. Underpricing brings in more guests who treat the unit hard, more turnovers, more wear on the floors, furniture and appliances, and more small damage that never quite gets reported. Occupancy looks great on the statement while the condo quietly ages faster than it should. Over time a well-kept unit also earns higher rates and better reviews, so protecting it protects the income too.

What to look for in a manager who protects the asset:

• A rate strategy, not just a full calendar. They should be able to explain their pricing and agree to a minimum nightly rate you set together.
• Guest screening. Clear rules on occupancy limits, parties, and who they will and will not book.
• An inspection after every stay, with photos, and a written process for charging guests for damage.
• Preventive maintenance on a schedule: air conditioning service, water heater, plumbing, sliding door tracks, and a periodic deep clean, not just repairs after something breaks.
• Reports you can read: owner statements that show occupancy, average nightly rate, maintenance spending and any damage, month by month.
• Photos and a visit when you ask. A good manager is glad to show you the unit.

What to watch for once you have signed:

• Nightly rates well below similar units in the same building
• High occupancy alongside a rising pile of repair bills
• Reviews that mention noise, large groups or wear and tear
• Maintenance that only happens after a guest complains
• Slow or vague answers when you ask how the unit looks

Visit your unit at least once a year if you can, and look at it the way a buyer would. The condition of the unit is the value of your investment, and it is the part of the business that does not show up in a revenue projection.

What do successful Maui rental owners do differently?

The owners whose units perform well year after year tend to share a few habits:

• They price for the season. Winter and the holidays are peak, and early fall is usually the softest stretch of the year. Rates that stay flat all year leave money on the table in one season and sit empty in the other.
• They budget for the salt air. Appliances, fixtures and furniture wear out faster by the ocean. Set money aside for replacement every year instead of waiting for it all to fail at once.
• They keep a reserve for the building. Older Maui complexes are dealing with roof, plumbing and concrete work, and a special assessment can arrive in the middle of a good year. Read the association's reserve study before you buy.
• They carry the right insurance. The building's master policy covers the structure, not your interior, your furnishings or your liability to guests. Get an owner's policy written for short-term rental use, and do not treat a platform's host guarantee as insurance.
• They look after the neighbors. Your full-time neighbors vote on house rules. Guest rules on noise, parking and pool hours, printed in the unit, go a long way.
• They help guests care for the island. Maui County only allows mineral sunscreens to be sold, so stock the unit with reef-safe sunscreen and a short note on ocean safety and respecting the reef.
• They keep clean books. A separate bank account and monthly records make the tax returns, the annual reconciliations and any future sale much simpler.

The Maui vacation rental checklist

Before you buy

• Confirm the zoning and which county list the building is on, if any
• Read the declaration, bylaws and house rules for rental limits and fees
• Review the association budget, reserve study and any planned assessments
• Get past rental performance for the unit or similar units in the building
• Price insurance for short-term rental use
• Run the numbers with the short-term rental property tax rate and 18.5 percent in rental taxes

Before your first guest

• File Form BB-1 for your GET and TAT licenses
• Set up your Maui County TAT account under your state TAT number
• Name your local contact on Maui, and confirm they are licensed if they will book guests or manage the unit (unless they are your own employee working only for you)
• Hire your manager, or line up your cleaner, backup cleaner and handyman
• Put your registration number and local contact details on every listing
• Set up every platform to show GET, state TAT and Maui County TAT as separate lines, with cleaning fees included in the taxable rent
• Post your registration certificate (or a notice) and local contact in the unit
• Complete the association's rental and guest registration paperwork
• Set up a separate bank account for the rental

Every filing period

• File and pay GET (G-45) and state TAT (TA-1)
• File and pay Maui County TAT on the same schedule
• Match your returns to the income each platform reports
• File even when there were no bookings
• Pay in full by the due date (late filing costs 5% a month up to 25%, plus interest)

Every year

• File the annual GET (G-49) and TAT (TA-2) reconciliations
• File your Hawaii income tax return
• Review insurance, pricing and your replacement budget
• Check for changes to county rental rules and your building's status

The short version

Start with the building, because the zoning and the association's rules decide everything else. Set up the licenses, the local contact and the listing details before the first booking, because the fines are daily. Then pick the management approach that matches how much of your own time you want to give it. If you want help finding a building where the rental numbers and the rules both work, or a property manager or on-island contact you can trust, get in touch. Between owning rentals and co-owning a management company and brokerage here, I have seen this business from every angle. For the other costs off-island owners tend to miss, see the hidden costs of owning on Maui.

Official sources: Hawaii Department of Taxation, renting residential property · Tax Facts 96-2, Transient Accommodations Tax · An Introduction to the Transient Accommodations Tax · Tax Announcement 2025-03 on the 11 percent TAT · Maui County TAT portal · County of Maui Short-Term Occupancy List · Hawaii Real Estate Branch, condominium hotel operators · RICO, Information for Owners of Rental Property · HRS 467-1, definition of custodian or caretaker