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Is Owning a Maui Bed and Breakfast Your Dream? Start With a Property Like 160 Nahele And Make Life Easier

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

Cottage/Ohana

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

timastice@gmail.com

808.268.8511

Building Your North Shore Oasis - Why 425 Manawai is a Great Option

The North Shore of Maui is one of the rawest and exposed stretches of land in the world. The trades cross 2,500 miles of open ocean and carry along with it all different types of weather.

Building Your North Shore Oasis - Why 425 Manawai is a Great Option

How to Get Started on Maui's North Shore

The North Shore of Maui is one of the rawest and exposed stretches of land in the world. The trades cross 2,500 miles of open ocean and carry along with it all different types of weather. This is what makes it so beautiful and unique, watching the weather and water is an endless affair. With this environment, it's important to know what the best practices are for starting your oasis. In this article, I want to use one of our listings as a platform, the owners of 425 Manawai truly understand what works when designing a coastal estate.

Location

Being close to the ocean is a dream of just about everyone, but too close and you better be ready for maintenance. Salt spray and wind can really take it to the materials on your house. This is the reason for one of my favorite aspects of 425, it has ocean front views, but it's one lot back and has excellent wind blocks. You literally look right down the valley to the ocean.

Protected from extreme trades by Uaoa Bay and the downhill lots in front

View from the back lanai

Anything on the mountain side of Hana Highway (mauka) receives a bit more rain than lots ocean side of the Hana Highway (makai). Obviously, you don't have rain clouds stop once they hit the highway, but I live up the hill about a mile from 425 Manawai and we get 85 inches annually compared to 425's 61 inches (lcheck out University of Hawaii Rain Atlas). Access to the highway is also a large concern of North Shore residents, Manawai is fully paved from top to bottom and 425 is at the very end on a cul de sac. Manawai is one of the most pristine and maintained streets you can find in Haiku, and it's only 25 minutes from the airport!

The Lot

425 Manawai is 4.95 acres situated at the top of a valley, the lot gently slopes from south to north making sure there is no standing water for mosquito breeding. As I mentioned, the lot is at the end of the road, on a cul de sac, on the uphill side, this is a huge advantage when it comes to exposure and views. On the windward side of the lot, the owners have plated ironwood and coconut trees as a wind block.

Aerial view of the lot, the driveway runs north to south

A must-have for many owners is the protection of views. Per Maui County code, you cannot build taller than 30ft in agricultural districts, this is where the uphill benefit comes into play, 425 looks over the lots in front of it and down the valley to the side.

View from the yard - the structure pictured is the cottage on the lot

Buildings

I always tell clients who are building to start with the cottage; this way you can build at a lower cost and feel out the area and the land. 425 Manawai placed the cottage on the northeast portion of the lot, leaving an excellent view corridor for the future building site of the main home. For agricultural lots on Maui, you can build a 1,000 sq. ft. cottage on lots that are larger than 2 acres.

1,000 sq.ft. cottage on the NE portion of the lot

Additionally, they placed the pool cabana and 3 car garage behind the building site for the main dwelling and the cottage.

View of the garage and pool cabana

Pool cabana interior with kitchenette/wet bar

Another huge benefit of 425 Manawai is the well. Being close to the ocean means lower elevation, which translates to a less expensive drill depth. Most water meters (usual source of water for developed lots) are 5/8 in and have a maximum fixture count of 31 fixtures, this includes hose spigots. As you can imagine 31 fixtures goes quickly when you have a garage, pool cabana, cottage and main home. Having a well means you do not have the restrictions of fixture counts from the county and your possibilities are much broader. Wastewater is also different on the North Shore. Cesspools are no longer allowed to be installed, leaving septics as the main option. You can either install two separate septic systems, one for the cottage and one for the main dwelling or you can install one larger (5 bedrooms) for both. 425 has a 5 bedroom septic making it perfect for the build out on a main dwelling.

Materials and Features of 425 Manawai

  • Hardie Plank concrete siding, great for standing up to salt, water, and wind
  • Concrete tile roof, again great durability
  • Aluminum powder coated railing
  • Composite decking
  • Extended eaves
  • Tongue and groove ceiling, great support for the tile roof
  • Gated entrance
  • Cork flooring
  • Granite counters

You can start from square one, or you can start with a beautiful estate that is ready for your touch. Give us a call and we can discuss how 425 Manawai is the right choice for your North Shore oasis.

The sellers are also willing to entertain partial seller financing, call for details.

Tim Stice 808.268.8511 timastice@gmail.com

What is a Residential Condo in Hawaii? Part 2

What is a residential condo on Maui and how does it work? This blog is specific to Maui, but the general rules apply to all islands, but each island has zoning and rules that are different.

What is a Residential Condo in Hawaii? Part 2

What is a residential condo on Maui and how does it work? This blog is specific to Maui, but the general rules apply to all islands, but each island has zoning and rules that are different. This blog is a continuation of a blog I published in 2011, "What is a Residential Condo in Hawaii?" and adds some more details.

Working as a real estate professional, you need to be able to understand and explain what a residential condo is and how it differs from a similar property that is not a residential condo.

Simply put, a residential condo is a splitting of property ownership, using Hawaii Revised Statutes section 514 B, to allow separate ownership and mortgaging of property of a parcel (single tax key ), under Maui county zoning. It is possible to create separate “ apartments “ from legally permitted structures, or vacant land parcel "apartments" under HRS 514B.

A residential condo is not a subdivision. Maui county still regards the original lot to have the controlling, underlying zoning. No extra lot density or other improvements are allowed on the original lot. New tax keys are assigned once the process is complete, but they only add "apartment" keys to the original tax key. All residential condos have six numbers in their tax keys, while non-condo parcels have five. This is the fastest way to find out if a parcel is a condo or not.

Hoomalolo condo

Maui county requires that any parcel, to be considered eligible to considered, has to have all structures totally permitted. Everything has to match county permit records.

A checklist would look something like this for starters to evaluate a property:

  1. What is the underlying zoning (i.e. R-2, R-3. rural, ag.). Get a county zoning verification signed by Maui planning department.
  2. Does the zoning allow multiple living structures?
  3. Do the covenants on the title report restrict residential condos? (many do)
  4. What is the water meter size?
  5. What is the current water meter sizing fixture count for the current homes? (You need to do the county water department worksheet.)
  6. Do the setbacks for all of the structures conform to zoning? (Hard to tell without a survey locating all structures.)
  7. Can all permits be verified for every improvement on the property? This includes "add-ons" such as covering a permitted lanai, enclosing carports, and other items that owners do without permits.
  8. Were notices of completion filed for owner builder construction and has it been more than one year since the filing of these notices?
  9. If improvements were built by a contractor, have all lien notices been filed and final inspection signed off by county on all permits?

This is just a starting point in the process. If you are able to verify all of the information above, you have just saved about $5,000 in the process, as researching all of these issues, especially permits , is very difficult because Maui County has very poor records for anything built prior to 1990 and the county does not retain building plans for more than a year.

Now, you need to put together a team.

You are going to need the following:

  1. A local Maui attorney who does this process often, or even full-time, who will produce the declaration, public report and other necessary documents under HRS 514B
  2. A local Maui survey/engineering firm to produce the survey and condo map, as well as to certify all of the building improvements.
  3. A Hawaii licensed real estate broker to sign on the condo documents
  4. somebody who knows their way around the county to research permits, title reports, covenants ( maybe a Realtor or professional planner)
  5. A Hawaii title and escrow company to do the title search and produce all of the covenants and restrictions on title for the property.
  6. A home inspector to provide an inspection report

Most of these processes can be done by the engineer/survey team for a fee. Most attorneys will not process the CPR without a team to take care of all verification and inspections that are required.

If you have completed the first part of the process and can hand it over to your attorney and engineer, you can hope to have the process completed within a year or a little more. Little things can cause big delays. Missing one permit can send the whole process back through the loop again and that will take a lot of time.

Over the past 6 years, I have had many inquires on my 2011 blog, and I wrote this to clarify some issues and provide some links to help. Please contact me for additional resources and recommendations for professionals who can help you along with this process.

Tracy S. Stice  Realtor-Broker   Tracy@hawaiilife.com   808-281-5411