Hanalei Vacation Rental Properties For Sale on Kauai’s North Shore

Hanalei Bay offers something for the whole family – world class surfing, stand-up paddle boarding, fishing, boating, and a long stretch of clean, sandy beach to explore. The walkable, historic little town is nestled under verdant green mountains, surrounded by picturesque fields of native kalo, or taro…it is magical, to say the least.

Hanalei Bay, where waterfalls and rainbows are a daily occurrence

Vacation Rentals (TVR’s) on Kauai’s North Shore

Although it is not zoned Visitor Destination Area (VDA), there are a handful of homes scattered throughout Hanalei whose vacation rental licenses are “grandfathered” in. Currently, there are six properties for sale (see list below) in Hanalei that carry a Transient Vacation Rental (TVR) license, which transfers to subsequent owners and allows for legal vacation rental activity.

Ever since the passing of Ordinance 864 in March 2008, new vacation rentals were banned outside of the VDA, and existing vacation rentals were required to apply for a Non-Conforming Use Certificate (NCUC).

If you drive around the North Shore and see homes with small signs with TVR or TVR-NCUC numbers, this indicates a property with a TVR license (vacation rental), and the phone number is the property manager. Princeville is the only area on the North Shore that is zoned VDA. (Download Kauai VDA maps.)

Since 2008, Kauai County Council has passed several amendments to the bill, regarding TVR’s on Ag land, special use permits, and more. There has been ongoing, heated debate and history regarding vacation rentals (TVR’s) on Kauai, particularly on the North Shore.

Prior to 2008, communities along the North Shore were being inundated by an increasing number of homes being used as vacation rentals and residents were complaining of negative impacts on local neighborhoods.

Long term rentals were becoming scarce, and there remains a major shortage of long term rentals available for residents today. A common misconception is that TVR’s are predominantly owned by investment buyers (nonresidents), yet I know of many homeowners who live here and depend on the rental income to offset the high costs of property ownership on the North Shore.

Pros & Cons of Kauai Transient Vacation Rentals

There are pros and cons to both sides. Vacation rentals do offer employment opportunities for residents, such as house cleaners, landscapers, window cleaners, childcare providers, personal chefs, and other guest services.

They provide alternative accommodation for travelers who want a “home” instead of a hotel, and they bring tax revenue to Hawaii. Yet too many rentals do impact the family-style communities that bind Kauai’s people together.

There is no simple solution to the problem. As a long time resident of Haena, I, too, felt a shift in demographics with the upsurge of rentals. In 2008, I was forced to move out of my long term Haena rental because the off-island owners were in the process of legalizing their vacation rental, and the County would not allow the guesthouse in the back (my rental) to be used as a long term rental on a TVR property.

Personally, I appreciate having fewer vacation rentals in non-VDA zones, but I believe there is room for some. Like everything in life, it’s all about a healthy balance!

6 Legal TVR Homes For Sale in Hanalei (w/Income Potential)

Needless to say, finding a property with a TVR license adds significant value for many buyers. Here is a list of Hanalei income-producing, legal TVR homes for sale. Currently, there is only one beachfront vacation rental for sale on Hanalei Bay – a rare offering indeed!

#1. Beachfront Vacation Rental Home

Listed at $4,975,000, this property’s location is unbeatable. Literally steps to what the locals refer to as “Grandpa’s” beach, there is a surf break directly in front, and several miles of sandy beach in both directions.

It doesn’t get any better than this! (MLS# 268101)

Just a short stroll to town, this home is perfectly accommodating for that idyllic beach lifestyle. Kauai’s surf legend Andy Irons owned the house directly across from this one…

The last sale of a beachfront Hanalei home with a legal TVR was almost 3 years ago. Like I mentioned, a rare offering!

#2. Home Right Across From Hanalei Pier

With beautiful mountain and ocean views, this 3 bed/2 bath customized home offers an open floor plan living area, covered, spacious lanais for outdoor living, and a private master suite.

Directly across from the Hanalei Pier, next to the Hanalei River and the Canoe Club

The downstairs offers an abundance of storage for your beach toys, and a great yard for the kids to run around. The rental income is substantial and steady. List price is $2,590,000 (MLS# 263173).

#3. Hanalei Ohana – A Stream Runs Through it

Located in a quiet cul-de-sac, this 5 bed/4.5 bath home offers luxurious beach living. Built in 2004 with top-of-the-line appliances, woodwork, crown moldings, fixtures, and other custom finishes, it’s easy to see why its such a popular vacation rental.

Brazilian cherry floors, gourmet kitchen, and quality craftsmanship throughout (MLS# 264036)

Walk to Hanalei town and the Bay, or just sit back and listen to the gurgling stream, surrounded by tropical foliage. Offered for $2,395,000.

#4. Hanalei Plantation Beach House

Just across from the Bay, tucked away down a driveway in a residential area, this comfortable house is set up for easy living.

Open floor plan, perfect for families (MLS# 251596)

Its location is ideal, between the Pavilion and the Pier, and it’s just a short 5 minute stroll into Hanalei town for restaurants and shopping. Listed at $1,895,000, this well-appointed home has lent itself to a successful vacation rental history.

#5. Mountain View Home in Quiet Neighborhood

Simplicity meets functionality…Listed at $1,855,000, this 3 bed/2 bath home has an open, spacious layout, with quality finishes throughout. Stainless steel appliances, hardwood floors, large rec room downstairs, and outdoor shower for post beach de-sanding. Home sweet home…

Mountain views in a quiet neighborhood, steps to everything Hanalei offers (MLS# 263978)

#6. Vacation Rental Home & Operating Preschool

Listed at $1,150,000, this property offers the successful Menehune Preschool and a TVR approved vacation rental. Perfect for someone looking to purchase a home and business all-in-one. The combined income is quite substantial…call me for more details (MLS# 262709).

The Menehune Preschool has been operating since 1974; the 2nd story is a legal vacation rental

Unique Hanalei Vacation Rental Home Opportunities

These six homes are all unique, yet they all offer an opportunity to generate income. Hanalei offers a beach lifestyle in a small town setting, where things move at a slower pace. It’s paradise!