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Maui Vacation Rentals - Buyer and Renter Beware!

Posted by Start An Offer on Thursday, September 20th, 2018 at 8:30am.

Maui Vacation Rentals - Buyer and Renter Beware!

Local Resident Eric Reviews the Best Maui Hotel & Condo Resorts. The Best Places to Stay on Maui. Who will win the Award? Will it be the Grand Wailea, The Four Seasons, Farimont Kealani, The Ritz Carlton or The Montage. I also review the best beach front condos on Maui. To see a list of the approved short-term vacation home and cottage rentals click here http://www.hawaiirealestate.org/blog/maui-vacation-rentals-buyer-and-renter-beware.html

People are talking about Maui! Explore guest hotel reviews featuring "Maui" Grand Wailea Resort Hotel & Spa, A Waldorf Astoria Resort. “The great service from the staff. Aston Maui Kaanapali Villas. Residence Inn by Marriott Maui Wailea. The Mauian Hotel. Napili Sunset Beach Front Resort. From luxurious hotels and resorts to private vacation rentals, find the perfect place to stay on Maui for your vacation to the Hawaiian Islands.U.S. News & World Report ranks the 16 best hotels in Maui based on an analysis of industry awards, hotel star ratings and user ratings.▶ Check out my gear on Kit: https://kit.com/hawaiisbest1

https://www.montagehotels.com/kapaluabay/
https://www.grandwailea.com/
https://www.honuakai.com/
https://www.kaanapalialii.com/maui-rental-specials/
http://www.thewhaler.com/
https://waileaekahivillage.com/
http://www.makenasurfresort.com/
Permitted Bed and Breakfast Maui https://www.mauicounty.gov/DocumentCenter/View/11127/Permitted-Bed--Breakfast-List-3312018?bidId=
Permitted Short Term Rentals
https://www.mauicounty.gov/DocumentCenter/View/14762/Approved-Short-Term-Rental-Homes-List-6302018?bidId=

 

Here is the full current law regarding short term vacation rental on Maui, Hawaii as of Sept 20, 2018

Key Points to Remember:

Don't rent a short term vacation home from someone on Maui unless you see the actual property address  one of these two links:

Permitted Bed and Breakfast Maui  (This permit is issued to owners who live full time in their Maui home or another home on the same property)

Permitted Short Term Rentals (This permit is issued to owners who do not live full-time in the permitted home or property)

Maui county is aggressively actively shutting down illegal short term vacation rentals, which could result in YOU losing your DEPOSIT money and having to find a new place last minute (which is almost impossible on Maui, especially in the Winter!)

If you are someone thinking about purchasing a home on Maui and then renting it out short term (think again)...the laws have recently changed and you should be very "buyer beware" that this is no longer possible unless you own the home for a minimum of 5 years (or you live full-time on the property and apply for the bed and breakfast permit) You are still subject to availability and the area the home is located still has permits available 

1) The license is NOT transferable. So if you purchase a home that current has a short term or bed and breakfast license, you will need to re-apply (after owning the home for 5 years unless you are living on the property full time as a Bed and Breakfast.) During that application process, you will not be able to legally rent out the premises for less than 6 months.

2) In order to apply for a Short Term License you must own the property for a minimum of 5 years.

3) Each area on Maui has a limit to the number of permits that will be issued as follows" 

Hana: 30.

Kihei-Makena: 100; with no more than five permitted short-term rental homes in the subdivision commonly known as Maui Meadows.

Makawao-Pukalani-Kula: 40.

Paia-Haiku: 88.

Wailuku-Kahului: 36.

4) Here are links to see exactly which homes have been issued permits and how many are still available for each area as of 9/20/18 

Permitted Bed and Breakfast Maui 

Permitted Short Term Rentals

5) The process of getting a license can take 3-6 months. Your odds of success are much greater if you hire one of the reputable consultants on Maui who can help. Feel free to call me at 808-298-2030 for a referral to one of the better ones. 

6) All improvements on the property must be permitted in order to get the license. 

Here is a full copy of the most recent Maui County Code

  • Chapter 19.65 - MAUI SHORT-TERM RENTAL HOMES
    modified
  • 19.65.010 - Purpose and intent.
     

    The purpose of this chapter is to establish a permitting process for short-term rental homes, subject to appropriate restrictions and standards. It is the intent of the council to implement land use policies consistent with the County's general plan and the State's land use laws; to retain the character of residential neighborhoods; to provide varied accommodations and experiences for visitors; and to allow small businesses to benefit from tourism.

    ( Ord. No. 4315, § 6, 2016 ; Ord. No. 3941, § 14, 2012)

  • 19.65.020 - Districts in which permitted.
     

    Short-term rental homes are permitted pursuant to the provisions established in each zoning district and as provided in this chapter.

    ( Ord. No. 4315, § 6, 2016 ; Ord. No. 3941, § 14, 2012)

  • 19.65.030 - Restrictions and standards.
    modified

    Short-term rental homes are subject to the following restrictions and standards:

    A.The short-term rental home use is permitted in no more than two single-family dwelling units, or one single-family dwelling unit and one accessory dwelling unit, per lot. No more than one short-term rental home permit shall be approved for any lot, except when lots are subject to a condominium property regime pursuant to chapter 514A or 514B, Hawaii Revised Statutes, the following shall apply:

    1.If the applicant owns all condominium units on the lot, only one permit may be granted for that lot.

    2. If the applicant does not own all condominium units on the lot, each condominium unit will be considered a lot for purposes of this chapter and each unit owner will be eligible to apply for a short-term rental home permit, except that no owner may hold more than one short-term rental home permit.

    3. Irrespective of ownership, each condominium unit shall be considered a separate lot for purposes of notification and planning commission review thresholds pursuant to subsection 19.65.060(A)(2).

    4. For the purposes of this chapter, any reference to a short-term rental home property shall mean a property, lot, or condominium unit.

    B. Each permitted dwelling unit on a short-term rental home property shall be rented to one group with a single rental agreement, except:

    1.

    On the island of Lanai; or.

    2.

    Any short-term rental home where the owner resides on an adjacent lot.

    C.

    The permit holder shall have a current transient accommodations tax license and general excise tax license for the short-term rental home.

    D.

    The permit holder shall:

    1.

    Hold a minimum of a fifty percent interest in the legal title to the lot on which the short-term rental home is located, except as provided in subsection G of this section.

    2.

    Serve as manager of the short-term rental home; provided that, the permit holder may designate:

    a.

    An immediate adult family member of the permit holder to serve as manager. Immediate family includes a person's parents, spouse or partner through a civil union, children and their spouses, siblings, stepparents, stepchildren, adopted children and their spouses, and hanai children.

    b.

    An individual with an active State of Hawaii real estate license to serve as manager, except for properties located in the Hana or Lanai community plan areas, where an individual may act as a manager as allowed by State law; or.

    c.

    An adult to serve as a temporary manager for up to forty-five days in a twelve-month period.

    3.

    The permit holder shall notify the department and the immediate adjacent neighbors of:

    a.

    Any designation of an individual as manager pursuant to this section, including a statement of the designated manager's tenure, residential and business addresses, and telephone numbers.

    b.

    Any change in the manager's addresses or telephone numbers.

    E.

    The manager of the short-term rental home shall:

    1.

    Be accessible to guests, neighbors, and County agencies. For purposes of this section, "accessible" means being able to answer the telephone at all times, being able to be physically present at the short-term rental home within one hour following a request by a guest, a neighbor, or a County agency, and having an office or residence within thirty driving miles.

    2.

    Ensure compliance with State department of health regulations, this chapter, permit conditions, and other applicable laws and regulations.

    3.

    Enforce the house policies.

    4.

    Collect all rental fees.

    F.

    The short-term rental home shall only be rented when the manager is accessible.

    G.

    The short-term rental home permit is issued in the name of the applicant, who shall be a natural person or persons holding a minimum of a fifty percent interest in the legal title in the lot; except that, a permit may be issued for a lot owned by a family trust, a corporation, a limited liability partnership, or a limited liability company if the following criteria are met:

    1.

    The applicant is a natural person or persons who is a trustee or who are trustees of the family trust, or who represents fifty percent or more of the partner(s)partners of a limited liability partnership, fifty percent or more of the corporate shareholder(s)shareholders of a corporation, or fifty percent or more of the member(s)members of a limited liability company.

    2.

    The limited liability partnership, corporation, or limited liability company is not publicly traded.

    3.

    All of the trustees, partners, corporation's shareholders, or limited liability company's members are natural persons, and if there is more than one trustee, partner, shareholder, or member, they shall be related by blood, adoption, marriage, or civil union.

    H.

    An applicant may hold no more than one short-term rental home permit, except when:

    1.

    Additional permits are for short-term rental homes that each have a County assessed market value of $3,200,000 or higher at the time of each application.

    2.

    The permit holder filed complete applications for the short-term rental home permits within one year of this chapter's original effective date of May 23, 2012.

    I.

    A permit is not transferable; provided that,except a permit may be transferred upon the death of a permit holder to an immediate family member as defined in subsection19.65.030(D)(2)(a).

    J.

    The applicant shall provide with the application, copies of any applicable homeowner or condominium association bylaws or rules and any other applicable private conditions, covenants, or restrictions. The documents, if any, shall assist the department in determining the character of the neighborhood.

    K.

    The number of bedrooms used for short-term rental home use on a short-term rental home lot shall be no greater than six on Lanai and Maui, and no greater than three on Molokai. The total number of guests staying in the short-term rental home at any one time shall be no greater than two times the number of bedrooms.

    L.

    Single-station smoke detectors shall be installed in all guest bedrooms.

    M.

    Single-family dwellings used as short-term rental homes shall not qualify for real property tax exemptions permitted pursuant to chapter 3.48 of this code.

    N.

    Short-term rental homes shall conform to the character of the existing neighborhood in which they are situated. Prior to issuing a permit, the department or applicable planning commission shall consider the following:

    1.

    If a proposed short-term rental home property is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions, covenants, or restrictions is required. The correspondence shall include specific conditions that determine whether or not the proposed short-term rental home use is allowed. The correspondence shall be used to assist the department in determining the character of the neighborhood. If no such association or entity exists, this requirement shall not apply. The director and the planning commissions shall not be bound by any private conditions, covenants, or restrictions upon the subject parcel. Any such limitations may be enforced against the property owner through appropriate civil action.

    2.

    Existing land-use entitlements and uses.

    3.

    The applicable community plan.

    4.

    Community input.

    5.

    Potential adverse impacts, including excessive noise, traffic, and garbage.

    6.

    The number of permitted short-term rental homes surrounding the proposed short-term rental home property and their distance to the property.

    7.

    The number and substance of protests to the short-term rental home application and protests related to the cumulative short-term rental homes in the neighborhood or area.

    8.

    Existing or past complaints about rental operations on the property.

    9.

    Existing or past noncompliance with government requirements and the degree of cooperation by the applicant to become compliant.

    O.

    Short-term rental homes shall be limited to single-family dwelling units and accessory dwelling units existing and constructed at least five years prior to the date of application for the short-term rental home permit, and the dwelling unit shall be owned by the applicant for at least five years prior to the date of application.

    P.

    A two-square-foot sign shall be displayed along the main access road of the short-term rental home identifying the valid short-term rental home permit, a twenty-four hour telephone number for the owner or the manager, and a telephone number for the department. The signs shall not be subject to the provisions of chapter 16.13 of this code.

    Q.

    The permit holder or manager shall prominently display "house policies" within the dwelling. The house policies shall be included in the rental agreement, which shall be signed by each registered adult guest. At a minimum, the house policies shall include:

    1.

    Quiet hours from 9:00 p.m. to 8:00 a.m., during which time the noise from the short-term rental home shall not unreasonably disturb adjacent neighbors. Sound that is audible beyond the property boundaries during non-quiet hours shall not be more excessive than would be otherwise associated with a residential area.

    2.

    Amplified sound that is audible beyond the property boundaries of the short-term rental home is prohibited.

    3.

    Vehicles shall be parked in the designated onsite parking area and shall not be parked on the street.

    4.

    No parties or group gatherings other than registered guests shall occur.

    R.

    The County shall be restricted in approving the number of permits for short-term rental homes as distributed per the following community plan areas and as further restricted by the applicable community plan:

    1.

    Hana: 30.

    2.

    Kihei-Makena: 100; provided that, there arewith no more than five permitted short-term rental homes in the subdivision commonly known as Maui Meadows.

    3.

    Makawao-Pukalani-Kula: 40.

    4.

    Paia-Haiku: 88.

    5.

    Wailuku-Kahului: 36.

    6.

    West Maui: 88.

     

    The council shall review the community plan short-term rental home restrictions when the number of approved short-term rental homes exceeds ninety percent of the restriction number. Short-term rental homes operating with a conditional permit pursuant to chapter 19.40 of this title that meet the criteria of this section shall be included in the number of short-term rental homes permitted pursuant to this subsection.

    S.

    Prior to issuing a permit, the director or planning commission may impose conditions for a short-term rental home if the conditions are reasonably designed to mitigate adverse impacts to the neighborhood.

    T.

    Any dwelling unit developed pursuant to chapter 201H, Hawaii Revised Statutes, or chapter 2.96 of this code shall not be used as a short-term rental home.

     

    ( Ord. No. 4830  § 1, 3-23-2018, eff. 9-27-2018;  Ord. No. 4315  , § 6, 2016; Ord. No. 3941, § 14, 2012)

  • 19.65.040 - Advertising.
     

    A.

    All advertising for a short-term rental home shall include the valid permit number issued to the permit holder.

    B.

    Reservation websites shall include the short-term rental home house policies or a working link to the short-term rental home house policies.

    ( Ord. No. 4315, § 6, 2016 ; Ord. No. 3941, § 14, 2012)

  • 19.65.050 - Procedures for application and public notice.
     

    A.

    Applicants shall submit an application for a short-term rental home permit to the department in accordance with the provisions of this chapter. Permit application fees and permit renewal fees shall be set forth in the annual budget. Permit applications shall include all of the following information:

    1.

    The name, address, and telephone number of the applicant.

    2.

    Verification of property ownership, and signatures of all owners of the property unless waived by the director in cases where the requirement is unduly burdensome.

    3.

    The tax map key number of the lot on which the proposed short-term rental home is situated.

    4.

    Proof of compliance with section 19.65.030.

    5.

    A site and floor plan identifying the location of parking and bedrooms for short-term rental home use.

    6.

    A list of the names and addresses of the owners and lessees of record, within a five-hundred-foot radius of the lot of the proposed short-term rental home.

    7.

    A planning department short-term rental home inspection report that states the structures proposed for short-term rental home use meet the minimum health and safety standards established by the department, or a miscellaneous inspection report issued by the department of public works. The planning department report is to be completed and signed by a home inspector certified by the American Society of Home Inspectors.

    8.

    A certification form signed by the owner of the property attesting to the following:

    a.

    No part of the property has been used for any rentals of less than one hundred eighty days at a time, with or without the owner's permission, since January 1, 2013; or, if any part of the property has been used for any rentals of less than one hundred eighty days since January 1, 2013, the owner shall:

    (1)

    Identify the periods the property was rented for less than one hundred eighty days.

    (2)

    Provide proof that the owner paid applicable general excise taxes and transient accommodations taxes for the periods the property was rented for less than one hundred eighty days.

    (3)

    Provide a State tax clearance showing all applicable State taxes have been paid.

    (4)

    Pay an after-the-fact permit fee to the County in an amount as set forth in the annual budget ordinance.

    b.

    The owner has not previously advertised, or has ceased advertising, for the short-term rental home that is the subject of the application, and will not begin, or resume, any advertising until a permit is approved.

    c.

    The owner either has no financial interest in any property within the county associated with a short-term rental home permit; or, if the owner has a financial interest in a property that is subject to a short-term rental home permit, the nature of the financial interest and the property address.

    d.

    The owner has paid, or will pay, all fines that have been assessed as a result of a notice of violation previously issued to the owner for unpermitted short-term rental use or activity, prior to the processing of the short-term rental home permit application.

    e.

    All statements made by the owner on the certification form and provided during the short-term rental home permit application process are correct to the best of the owner's knowledge.

    f.

    The owner acknowledges that any false information or misrepresentations made in the application or during the application process shall result in an enforcement action pursuant to section 19.530.030 of this title, the denial or revocation of the permit, and a prohibition against the current property owner applying for a short-term rental home permit for the property for a period of two years after the date of denial or revocation of the permit.

    9.

    Additional information as may be requested by the director.

    B.

    All applicants shall send, by certified mail, written notice of the application for a short-term rental home permit to the owners and lessees of record located within a five-hundred-foot radius of the lot of the proposed short-term rental home. The written notice shall include all of the following:

    1.

    A description of the proposed short-term rental home operation.

    2.

    The location of proposed on-site parking.

    3.

    The total number of bedrooms proposed for short-term rental home use.

    4.

    A map identifying the short-term rental home lot in relation to all other lots within a five-hundred-foot radius.

    5.

    A provision that the owners and lessees of record within a five-hundred-foot radius of the proposed short-term rental home may file a written protest with the director via fax, email, or letter; provided that, all protests must be postmarked within forty-five days of the mailing of the notice of application.

    C.

    No more than ten days prior to mailing the notice of application, a four-square-foot project notice sign shall be posted at the front of the property along the main access road. The sign shall be clearly visible from the roadway and shall contain information and wording as prescribed by the department. The sign shall be removed after forty-five days from the mailing of the notice of application. The sign is not subject to the provisions of chapter 16.13 of this code.

    D.

    If planning commission review is required pursuant to subsection 19.65.060(A)(2), the processing requirements shall be as follows:

    1.

    The director shall set the application for public hearing on the agenda of the planning commission.

    2.

    The director shall notify the applicant and the appropriate State and County agencies of the date of the public hearing not less than forty-five calendar days prior to the public hearing.

    3.

    The director shall publish the notice of the date, time, place, and subject matter of the public hearing once in a newspaper printed and issued at least twice weekly and generally circulated throughout the County, at least thirty calendar days prior to the public hearing.

    4.

    The applicant shall provide notice of the public hearing date on the application to the owners and lessees of record located within a five-hundred-foot radius from the parcel identified in the application by complying with the following procedures:

    a.

    Mailing, by certified mail, a notice of the date of the public hearing of the application in a form prescribed by the director to each of the owners and lessees not less than thirty calendar days prior to the public hearing.

    b.

    Submitting each of the receipts for the certified mail to the director not less than ten business days prior to the public hearing.

    E.

    For purposes of this chapter, notice shall be considered valid if the director finds that the applicant has made a good faith effort to comply with the requirements of this section.

    F.

    If an application does not meet the requirements of this chapter, it shall be denied.

    ( Ord. No. 4315, § 6, 2016 ; Ord. No. 3941, § 14, 2012)

  • 19.65.060 - Permit processing.
     

    A.

    The short-term rental home permit process shall be as follows:

    1.

    The applicant for a short-term rental home permit shall submit an application to the department as provided in section 19.65.050.

    2.

    The director shall approve or deny the application pursuant to the requirements of this chapter; provided that, the applicable planning commission shall approve or deny the permit pursuant to the requirements of this chapter when any of the following occur:

    a.

    The director receives two or more written protests from the owners or lessees of record of two or more lots adjacent to or directly across the street from the driveway access area for the proposed short-term rental home. Roadway lots and road widening lots abutting the access street shall not be considered lots for purposes of this section.

    b.

    Thirty percent or more of the owners and lessees of record within a five-hundred-foot radius of the proposed short-term rental home lot submit written protests to the director when there are less than forty lots within a five-hundred-foot radius of the proposed short-term rental home lot.

    c.

    Fifteen percent or more of the owners and lessees of record within a five-hundred-foot radius of the proposed short-term rental home lot submit written protests to the director when there are forty or more lots within a five-hundred-foot radius of the proposed short-term rental home lot.

    d.

    A variance is obtained to meet the requirements for a short-term rental home.

    e.

    Two or more existing short-term rental homes are operating within a five-hundred-foot radius of the proposed short-term rental home lot.

    f.

    An owner of the lot for which a short-term rental home permit application has been submitted or a trustee, partner, corporate shareholder, or limited liability company member of the entity which holds title to the lot is also an owner, trustee, partner, corporate shareholder, or limited liability company member of an entity which holds title to or an ownership interest in a lot with a short-term rental home permit.

    B.

    The director may transmit applications for public hearing by the appropriate planning commission in accordance with complaints received or some other substantive reason.

    C.

    For short-term rental homes operating under existing conditional permits that meet the criteria set forth in section 19.65.030, those operations shall be given the option of changing existing permits to short-term rental home permits, subject to section 19.65.070(B), and upon expiration, such permits may be extended for periods of up to five years on Lanai and Maui and up to one year on Molokai, or may continue to operate under existing conditional permit requirements and time extension procedures.

    D.

    In addition to any enforcement action pursuant to section 19.530.030 of this title, the rules of the appropriate planning commission, and the rules of the department, the permit for the short-term rental home shall be denied and the owner-applicant may not re-apply for another permit for two years after the date of denial if it is shown that the owner-applicant provided false or misleading information during the application process.

    E.

    In the department's annual report, the director shall specify the number of short-term rental home permit applications received and approved.

    F.

    Substantive amendments to a permit, including but not limited to an increase in the number of bedrooms or dwellings used for short-term rental home purposes or the addition of a new dwelling to the permit, shall be processed in the same manner as the initial application.

    ( Ord. No. 4315, § 6, 2016 ; Ord. No. 3941, § 14, 2012)

  • 19.65.070 - Duration, renewal, and nonrenewal of permits and compliance with permit conditions.
     

    A.

    Initial short-term rental home permits are valid for a maximum period of three years, except that shorter periods may be approved to mitigate impacts.

    B.

    Permit renewal applications shall be submitted to the department within ninety days prior to the permit expiration date. Permit renewals may be granted by the director for terms of up to five years on Lanai and Maui and up to one year on Molokai. In reviewing a renewal application, the director shall require evidence of compliance with conditions of the short-term rental home permit and this chapter.

    No permit shall be renewed without written verification of appropriate State and County tax filings.

    C.

    Compliance inspections may be conducted prior to granting a permit renewal or during the permit period. Permit holders shall allow compliance inspections to be conducted within one hour of notice. Refusal to allow access within one hour may result in permit revocation.

    D.

    Upon approval of the permit, the permit holder shall send the permit number, a copy of the short-term rental home's house rules, twenty-four hour contact information for the manager, and the department's contact information to the owners and lessees of abutting properties and properties directly across the street from the short-term rental home. Proof of mailing shall be submitted to the department within thirty days of the permit approval.

    E.

    The permit holder shall send by certified mail notification of any change to contact information for the manager to the department, the owners or lessees of abutting properties and those directly across the street from the short-term rental home. Such notification shall be sent prior to, or immediately after, the change in contact information occurs. Proof of mailing shall be submitted to the department within thirty days of the mailing.

    F.

    Nonrenewal procedures.

    1.

    The director may decline to renew the permit if the director finds any of the following:

    a.

    The permit holder provided false or misleading information during the application process.

    b.

    The permit holder is delinquent in payment of State or County taxes, fines, or penalties assessed in relation to the short-term rental home.

    c.

    Evidence of non-responsive management.

    d.

    Police reports of noise or other disturbances on the property.

    e.

    Warnings or violations resulting from requests for service.

    f.

    Neighbor complaints of noise and other disturbances relating to the short-term rental home operations; provided that the department has received at least three complaints about the short-term rental home within a twelve-month period. Complaints must be from property owners or lessees of record located on two or more different lots within a five-hundred-foot radius of the short-term rental home.

    g.

    Noncompliance with permit conditions.

    h.

    Noncompliance with this chapter.

    i.

    Noncompliance with other governmental requirements.

    2.

    If the permit is not renewed by the director, the department shall not accept a new application for a short-term rental home permit from the permit holder for two years after the date of the previous permit's expiration.

    G.

    No later than January 15 of each calendar year, the department shall transmit to the real property tax division of the department of finance, and the state department of taxation, an annual list of all short-term rental homes as of January 1 of that calendar year. The real property tax division shall regularly review its records and determine that no short-term rental home has an exemption pursuant to chapter 3.48 of this code.

    ( Ord. No. 4315, § 6, 2016 ; Ord. No. 3941, § 14, 2012)

  • 19.65.080 - Revocation and Enforcement.
     

    A.

    Revocation procedures.

    1.

    The permit may be revoked if the director finds any of the following:

    a.

    The permit holder provided false or misleading information during the application process.

    b.

    The permit holder is delinquent in payment of State or County taxes, fines, or penalties assessed in relation to the short-term rental home.

    c.

    Evidence of non-responsive management.

    d.

    Police reports of noise or other disturbances on the property.

    e.

    Warnings or violations resulting from requests for service.

    f.

    Neighbor complaints of noise and other disturbances relating to the short-term rental home operations; provided that the department has received at least three complaints about the short-term rental home within a twelve-month period. Complaints must be from property owners or lessees of record located on two or more different lots within a five-hundred-foot radius of the short-term rental home.

    g.

    Noncompliance with permit conditions.

    h.

    Noncompliance with this chapter.

    i.

    Noncompliance with other governmental requirements.

    2.

    If the permit is revoked, the department shall not accept a new application for a short-term rental home permit from the permit holder for two years after the date of revocation.

    B.

    Advertising that offers a property as a short-term rental home shall constitute prima facie evidence of the operation of a short-term rental home on the property and the burden of proof shall be on the owner, operator, or lessee of record to establish that the subject property is being used as a legal short-term rental home or is not in operation as a short-term rental home.

    C.

    Any communication by a property owner, operator, or lessee to any person where the owner, operator, or lessee offers their home for rent as a short-term rental home on the property shall constitute prima facie evidence of the operation of a short-term rental home on the property and the burden of proof shall be on the owner, operator, or lessee to establish that the subject property is being used as a legal short-term rental home or is not in operation as a short-term rental home.

    D.

    Advertising for a short-term rental home without a valid permit number is prohibited and constitutes a violation of this title and may result in enforcement action pursuant to section 19.530.030 of this title; provided that:

    1.

    The alleged violator and the property owner shall be notified that all advertising without a valid permit number shall be terminated within seven days of the notice.

    2.

    Enforcement action, including fines, may commence pursuant to section 19.530.030 of this title if advertising without a valid permit number continues after such warning.

    E.

    Operating a short-term rental home without a valid permit is prohibited. Evidence of operation may include: advertising, guest testimony, online reviews, rental agreements, receipts, or any other information deemed relevant by the department. Operating without a permit shall result in a property owner being ineligible to apply for a permit for five years, except that:

    1.

    An ineligible applicant may apply for a short-term rental home permit and the permit application may be processed provided that at the time of the application, the ineligible applicant has:

    a.

    Provided proof that prior to enactment of the ordinance that created this exception and during the entire period that the applicant has been operating without a permit, the applicant has had valid general excise tax and transient accommodations tax licenses, and has paid all applicable general excise taxes and transient accommodations taxes due and owing.

    b.

    Agreed to pay and has paid in full real property taxes at the rate applicable to short-term rental home properties and has claimed no homeowner's exemption for the tax years in which the applicant has been operating without a permit.

    c.

    Ceased, and does not resume prior to issuance of a permit, any and all advertising and operations of the short-term rental home that is the subject of the application as of the date of the application.

    d.

    Paid, in addition to any other applicable permit fees, an after-the-fact short-term rental home application fee as set forth in the annual budget ordinance.

    e.

    Paid any outstanding fees or fines for violations on the property including, but not limited to, initial and unwaived daily fines for unpermitted short-term rental home operation; after-the-fact zoning, special management area, or building permit fees; department of public works or department of planning application fees; or other fees, dues, or fines imposed by the State or County.

    2.

    This exception to the five-year ineligible status for owners operating without a permit shall apply from July 1, 2016 to December 31, 2016.

    F.

    The department shall notify the department of finance, real property tax division, of violations of this chapter.

    G.

    The department shall file a report with the State department of taxation for properties with violations of this chapter.

    H.

    Sixty days from the effective date of this ordinance, and each year thereafter, the department shall provide to the state department of taxation and the department of finance, real property tax division, a current list of:

    1.

    Unpermitted operations with internet advertisements for short-term rental homes; and

    2.

    Unpermitted short-term rental home operations identified by a department request for service form.

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