The vacation rental struggle continues.  The city & county of Honolulu cuts fines in an effort to stop illegal rentals. In an effort to stop the rentals, the city raised daily fines from $50 to $1,000 in 2005. The city has found that collecting the money has not been so easy.

Approximately 40 fines of an estimated value of $200,000 issued since January 2006, the city has only been able to collected somewhere around $30,000, according to Michael Friedel, the city's code compliance chief.

This new strategy seems to be working.  There has been several owners that have agreed to stop renting out there illegal rentals and receive much reduced fines, as much as 75% off.

Tourism officials suspect the illegal rentals are popular with repeat visitors who are looking to stay somewhere other than in Waikiki and get away from the rising hotel prices.

There are approximately 1000 homeowners that have a certificate to operate legal vacation rentals to rent rooms less than 30 days.à The city has not issued any new permits since 1989.  There are legal vacation rentals on Oahu, Maui, Kauai and big island that can be rented.  Allot of times these vacation rentals are much more cost effective for families and groups that a typical hotel.

Vacation homes are a great option when visiting the Hawaiian Islands or house hunting here.  If you stay in one you can see how it really feels to live in a neighborhood you may be considering.