Buying a Second Home in Kona: Rental Rules, Taxes, and Upkeep

Sep 30

3 min read

Updated: 3 days ago

Buying a second home in Kona comes down to three questions: can it be rented, what will it cost to own, and who will care for it while you are away. Confirm rental rules before counting on rental income, and expect property tax that is often different from what a full time resident pays.

Key takeaways

Confirm rental rules before counting on rental income.
A second home is taxed differently from a primary residence in Hawaiʻi County.
Plan for upkeep and management while you are away.
Turnkey condos and resort homes are popular second home choices.

The basics

A second home in Kona raises questions a primary residence does not. Rental rules are the first. Whether a property can be rented, and on what terms, depends on its zoning, its location, and any association rules that apply, and county regulations in this area have changed over time. A buyer who assumes short term rental income is available may be relying on something the property cannot legally provide.

Cost of ownership is the second. Hawaii County property tax classifications differ depending on whether a home is owner occupied, so a second home is often taxed at a different rate than the same house would be for a full time resident. Insurance, association dues, and utilities continue whether or not anyone is there.

Maintenance is the third. Salt air, humidity, and sun are hard on a house, and an empty property degrades faster than an occupied one. Most absentee owners in Kona arrange property management or a regular caretaker, and that cost belongs in the budget from the start. Solar with battery storage and a well maintained water system also reduce what an empty house costs to run and what can fail while no one is there.

Work through all three before an offer rather than after closing. This applies to condominiums, turnkey single family homes, resort community properties at places such as Keauhou, Hualālai, and Kohanaiki, and land throughout Kona.

Popular second home choices in Kona

Many second home buyers choose a furnished condo in Kailua-Kona or Keauhou, because it is easy to lock and leave. Others choose a resort residence in North Kona, where the club or resort helps with upkeep. Buyers who want more space look at ocean view homes in the hills. Match the type of home to how often you plan to visit.

How do you manage a Kona second home from far away?

An empty home still needs attention. Air conditioning, plumbing, and pest control should be checked regularly, and yards grow fast in Kona. Most part time owners hire a property manager or caretaker. Line up local managers, cleaners, and service companies before closing, so care starts on day one.

Common questions

Can I rent out my Kona second home when I am not using it?

Only if the county zoning and any association rules allow it. Some properties allow short term rentals, some allow only longer stays, and some allow none.

Is a condo or a house better for a second home in Kona?

A condo is simpler to maintain and often comes furnished. A house offers more space and privacy but needs more care while the owner is away.

Sources: County of Hawaiʻi Real Property Tax Office; County of Hawaiʻi Planning Department, short term vacation rentals.

About the author: Maile Woodhall (pronounced Miley) is a licensed Hawaiʻi REALTOR (RS-88019) with The Agency Team Hawaii, eXp Realty (RB-21841), born and raised in Kona. Questions? Call or text (808) 482-5800.