You want to run a B&B in Hawaii. Well, so do lots of other people, and it may soon get easier to buy real estate in Kailua that allows for a B&B. The controversy over bed-and-breakfast operations on Oahu has resulted in measures that could increase the number of such accommodations but impose new requirements.
The City Planning Commission wants to 1) lift the ban on new bed-and-breakfast homes and 2) limit them to residential neighborhoods and 3) required more information about them in advertisements.
Some Kailua residents don't like B&B's because of problems with parking, too many guests, loud parties, late-night arrivals. But one amendment calls for the repeal of the present B&B law, allowing them in residential neighborhoods under a conditional use permit, and provides an avenue for neighbors to block the operation.
These issues are exactly why a legal bed and breakfast in Hawaii is so valuable. It adds so much dollar value to the property because they hardly ever get listed for sale. I can't even quantify exactly how much value it adds, but a B&B is basically just an income property with massive income. On a really good B&B, you can get triple the monthly income that you would on a long term rental. Awesome.
This new law would allow for a lot more homes to get the conditional use permit, which means that those homes would increase in value as well. While neighbors may not like the new laws, it will certainly help the property value of those B&B's, while potentially it could hurt the neighbors'. Would you want to buy a home next to a tiny hotel with people coming in and out all day and night?
Both Kailua and the North shore have lots of little non legal bed and breakfast homes, which means these new laws could be pretty impactful. A lot of the B&B's are right on the ocean, with prime locations for getting high rents. If you're thinking of buying one, you better buy a legal one, because an illegal ( or should I say, non-legal) B&B could get shut down by the City at anytime.