Honolulu’s Rental Rule Shake-Up: How a Leading Property Management Company 

HONOLULU, HI — August 2025 — Honolulu’s stepped-up enforcement against unpermitted short-term rentals is reshaping the city’s housing market, forcing property owners and tenants to adapt quickly. Neal Fineman Property Management, a trusted property management company in Honolulu with more than a decade of local expertise, is helping clients protect income, stay compliant, and make smart decisions in an evolving market.

Background & Market Context: The Enforcement Wave and What It Means

In April 2025, Honolulu began aggressively enforcing Ordinance 22-7, targeting illegal short-term rentals in residential neighborhoods. The city issued $28.9 million in violation notices but collected just $1.1 million, revealing both the scale of non-compliance and the difficulty of enforcement. At the same time, resort-zone vacation rental registrations have more than doubled in the past year after the city simplified its application process.

Statewide, short-term rentals make up roughly 6% of Hawaiʻi’s housing stock, influencing housing availability and affordability. Owners who once relied on vacation rental income are now facing a choice: continue in a tightening short-term market or pivot to long-term leasing for greater stability.

Data shows Oʻahu vacation rentals averaged 55.4% occupancy with a $287 average daily rate (ADR) in April 2025, compared to hotels at nearly 78% occupancy and a $282 ADR. Long-term rentals may offer steady occupancy, but they require stronger tenant screening, consistent maintenance, and an understanding of Hawaiʻi’s tenant protection laws.

Neighborhood Impact Spotlight: How a Property Management Company in Honolulu Can Help Navigate Local Shifts

Regulatory impacts vary widely across the city:

●     Waikīkī – This resort district has seen a sharp rise in legal vacation rental registrations. Owners are balancing steady tourism demand with the predictability of long-term leases.

●     Kakaʻako – Known for its luxury towers and professional tenant base, Kakaʻako remains a tight long-term rental market. Even with new units, demand keeps rents above Oʻahu’s $2,522 monthly average.

●     Ala Moana – Centrally located with easy access to transit and retail, Ala Moana attracts long-term tenants quickly. Converted units here often lease within weeks, but compliance with tenant laws is essential.

For tenants, these shifts could mean more housing choices in some areas, though competition will remain strong in high-demand neighborhoods.

Expert Insights & Strategic Guidance for Owners

“Property management in Honolulu today is about more than collecting rent—it’s about compliance, market positioning, and long-term resilience,” said a spokesperson for Neal Fineman Property Management.

The city’s FY 2024–25 budget raised property tax rates for short-term rentals to $9 per $1,000 of assessed value up to $800,000 and $11.50 above that, significantly increasing ownership costs. Starting January 2026, state lodging taxes will also rise, adding another layer of expense for short-term rental owners.

To navigate these changes, owners should:

●     Verify zoning and permits to avoid costly violations.

●     Reassess pricing and lease terms using up-to-date market data.

●     Plan for upcoming tax changes to protect net returns.

With rising demand for real estate management services and property management services in Honolulu, working with an experienced firm is becoming essential. Neal Fineman Property Management’s portfolio includes residential units and property management for commercial properties, giving them the expertise to deliver tailored, compliant strategies. For those seeking real estate management services Honolulu HI, local insight can make the difference between profit and loss.

Looking Ahead

Honolulu’s rental market is in transition. Owners who adapt early—by following regulations, monitoring neighborhood trends, and partnering with experienced management—will be best positioned to thrive.

As housing rules continue to evolve, Neal Fineman Property Management remains committed to protecting investments, supporting tenant satisfaction, and helping shape a rental market that works for both property owners and the broader Honolulu community.

About Neal Fineman Property Management

Based in Honolulu, Neal Fineman Property Management provides expert oversight for residential and commercial properties across Oʻahu. With over a decade of hands-on experience, the firm specializes in transparent operations, regulatory compliance, and strategies that keep properties profitable and communities strong.

Neal Fineman Property Management

<iframe src="https://www.google.com/maps/embed?pb=!1m18!1m12!1m3!1d3717.414577800275!2d-157.82998940000002!3d21.294628799999998!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x7c006d93a9e9ef65%3A0x57ba0b27e421dbbe!2sNeal%20Fineman%20Property%20Management!5e0!3m2!1sen!2sph!4v1737472678803!5m2!1sen!2sph" width="600" height="450" style="border:0;" allowfullscreen="" loading="lazy" referrerpolicy="no-referrer-when-downgrade"></iframe>

Contact Information

Company Name:
Neal Fineman Property Management

Phone:
(808) 353-4732

Address:
949 McCully St., Ste 11

City:
Honolulu

State:
HI

Postal Code:
96826

Country:
United States

Website:
www.nfpmteam.com

Email:
neal@nfpmteam.com