Finding oceanfront property anywhere is difficult, finding it on Maui it's like winning the lottery. Located along Maui's North Shore, 517 Kailana sits at the end of a dead end street right on the beach. The popular surf break, "Big Lefts," sits right out front of the house. With views of the Pacific Ocean, Haleakala and the West Maui Mountains, it's hard not to fall in love with the oceanfront lifestyle.
Is Running a Bed And Breakfast on Maui Your Dream?
One of the most common questions we field as a Maui Realtor is, "how can I buy a bed and breakfast?", the only correct answer is, "you can't." You can, however, look for a property that is the most prepared to pass county regulations on a Bed and Breakfast. Being that 160 Nahele was a licensed B&B for 9 years (link to the rental site with 59 reviews), it's as good of a start as you can get, I'll explain why.
What is a B&B?
According to Maui County: "The new legislation adopted by the County Council on December 19, 2008 and signed into law by Mayor Tavares defines a “bed and breakfast home” as a use in which overnight accommodations are provided to guests for compensation for periods of less than 180 days, in no more than two detached single-family dwelling units, one of which is occupied by the owner-proprietor."
Typically, B&B's on Maui's North Shore would be a house and cottage. The best case scenario would be a lot of more than 2 acres, but less than 5. With 2 acres your cottage can be as large as 1,000 sqft, and under 5 acres you can avoid having to show revenue from ag. The larger cottage is key being that the owner of the residence will need to reside on the property and be a full-time Maui resident (recently changed from 180 days to 270 days). 160 Nahele has a beautiful house and cottage that are extremely private from one another, they feel like two separate lots.
Pool Area At The Main House
A Few Key Steps/Facts To Obtaining Your B&B License
1. Find the right house
2. If the subject property is zoned agricultural you will need to have an implemented farm plan (link to Farm Plan Application). If the subject parcel is more than 5 acres then you will need to show an annual gross farm income of $35,000 for the previous two years. 160 Nahele is a great example of being under the 5-acre mark at 4.22 acres and having a fully implemented farm plan.
3. There is a cap on how many B&B's can be in each district. Here is the break down:
Hana: 48 Kihei-Makena: 100 Makawao-Pukulani-Kula: 40 Paia-Haiku: 88 Wailuku-Kahului: 36 West Maui: 88
Currently, the Maui Planning Commission is in the process of changing the code so that the Paia-Haiku Community Plan and the Short Term Rental Home Ordinance in Chapter 19 are not in conflict any longer. If you would like to discuss this further shoot me an email (contact info at the bottom of the article).
4. You'll need to post a 16 sqft notice to neighbor sign within 5 feet of your property entrance. The sign must be placed 5 days prior to applying and must remain there through the entire application process.
5. Only six bedrooms or less can be designated for rent in the B&B. 160 Nahele has four bedrooms, 3 baths in the main home or you could designate the two bedrooms, two bathrooms in the cottage.
Main Home and Pool
6. At least one onsite visit from the county will be necessary, this is probably the biggest hurdle. The county will be looking for discrepancies between what is permitted and what is actually on the property, very rarely are homes in complete compliance. This is another huge benefit of 160 Nahele having gone through the process of being in full compliance.
7. You will need to notify all neighbors of record within 500 feet that you are applying for a B&B. They will have the opportunity to have written protest, and if 30% or more of them do protest, then additional steps with the planning commission will have to take place.
There are many more steps to obtaining your license. To see the full process take a look at the application here.
Want more on 160 Nahele?
If you cannot tell already, I am a big fan of this listing. You can read more about it here or reach out directly to me.
Finding the right home takes local market knowledge and experience, let The Stice Team's 45 years of Maui real estate expertise go to work for you. Give me a call or shoot me an email, we can talk about your Maui dream home.
Tim Stice Realtor/Broker
Why We Love This Home
Our team has been selling homes on Maui for 40 years and this listing could be one of our favorites...
160 Nahele is located in Haiku on Maui's North Shore. It's 25 minutes from the airport and 10 minutes from one of the best surfing/windsurfing locations in the world, Hookipa. When big winter swells arrive you can even hear the boulders being rolled by Peahi/Jaws just a half mile away. Haiku has tons of great restaurants (my favorite is Nuka Sushi), shopping and even a gym. If you're looking for a country lifestyle that is not too far removed, Haiku might be your cup of tea.
A photo of Jaws/Peahi I took a few years back
We are actually selling two lots as a package that are owned by the same entity. The first lot is a 4.22 acre lot with a 4 bedroom/3 bath main home and 2 bedroom/3 bath cottage/ohana, the smaller lot is an adjoining .68 parcel. We are in process of a lot line adjustment, our intent is to have both homes remain on the same lot and adjust the smaller lot to be a 2 acre parcel. Doing this would leave us with the house and cottage on 2+ acres and another 2+ acre lot that would allow another house and cottage. The vacant lot would need to be on water catchment being that the water meter would stay with the original lot. With the vacant lot being two agriculturally zoned acres you could build a full size 1,000 sq. ft. cottage along with a main home. There are over 300 palms growing as nursery stock on along with a multitude of other plants trees such as coconuts and mango. According to the University of Hawaii Rainfall Atlas, 160 Nahele receives 54.81 inches of rain annually, that's pretty ideal for farming and greenery.
Aerial View of Lot And Palm Nursery
The main home was built in 1985 and remodeled in 2011. It's a 4 bedroom/3 bathroom pole house with an amazing view from both levels and the in ground pool. The roof was replaced in 2015 giving it fresh and functional facelift. Tracy (my business partner) even milled some of the Koa kitchen cabinets back in the '80s from his mill on the big island, it's hard to find wood working of this level any longer. A huge benefit to being a "pole home" is the open space, the 2,500 sq. ft. of interior living feels more like 3,000. This home was previously a licensed bed and breakfast, check out this article from 2012 when we sold it last.
Center pole in the living room with Koa cabinets in the background
I live about 1 mile from this location and if I had a home to design specifically for Haiku I would incorporate the high ceilings and open floor plan from this home for air flow and light.
View from the living room and second story lanai
Pool at the main house
What's not to love about it? Even though this cottage was built in 2004 it feels like you're walking into a painting of a 1920s plantation home. The covered lanai in the back is the perfect dining area and even better for hosting cozy get-togethers. The 2 bedroom/2 bath layout leaves multiple possibilities, you can lock off the center of the house and enter from either side (it's perfect for friends, family, and visitors who want their own space), it essentially creates two divided spaces.
Ohana Kitchen and Dining
Want To Know More About Haiku?
I hope you feel the same way we do about 160 Nahele. I love living in Haiku, give me a call and we can talk about why.
Why The Stice Team?
The Stice Team has over 45 years of Maui real estate experience. Both Tracy and myself are involved with the Board of Realtors at the state and local level, volunteering on Government Affairs, Technology and multiple other committees. We stay in front of real estate issues and love using our local knowledge to assist our clients. Give us a call, we would love to help with your real estate needs.
Tim Stice-Realtor Broker