Booked solid this season and thinking about selling? When your Poipu vacation rental has upcoming guests, timing your sale can either maximize value or create avoidable stress. You want to protect income, follow Kauaʻi rules, and keep guests happy while you transition ownership. This guide shows you how to plan your calendar, contracts, taxes, and team so your sale closes cleanly. Let’s dive in.
Confirm TVR status first
Before you list, verify that your property is permitted for short stays under Kauaʻi rules. Short‑term rentals are allowed in Visitor Destination Areas or with a valid nonconforming use certificate. Poipu is in a VDA, but your specific TMK matters.
Collect your Kauaʻi Planning Department TVR file, including original approvals and recent renewals, and have it ready for buyers. The county advises sellers to provide this file and notes that new owners must update renewal information within 30 days of recordation. Review the county’s Transient Vacation Rental guidance and approved lists to confirm status and renewal steps at the Kauaʻi Planning Department’s TVR page.
Choose a bookings strategy
Your approach to existing reservations drives value, guest experience, and contract terms. Decide early and market the plan clearly.
Honor bookings before closing
You keep reservations through closing and complete upcoming stays yourself. This is simple if your closing date falls after most guests depart. If any stay overlaps with closing, specify how that night’s revenue and responsibilities are split.
Buyer assumes bookings
You and the buyer agree the buyer will honor specific future stays. Spell out how deposits and payments move, who manages rebookings, and who covers refunds if plans change. Because platforms limit direct transfers, you often need a managed process with your manager and guests to avoid confusion.
Cancel and refund bookings
You cancel future reservations and sell without booked revenue. Platforms allow cancellations related to a sale with guest refunds, but rebooking is not guaranteed. If booked income is part of the price, consider the other options first.
Coordinate platforms and managers
Airbnb’s Rebooking & Refund policy allows guests to receive refunds if a host cancels because of a sale, and direct reservation transfers between accounts are generally not permitted. Contact support and provide sale documentation if cancellations are necessary so you avoid penalties.
Many managers can help “honor” bookings across an ownership change by adding the buyer as a co‑host or arranging rebookings. Each service has limits. Review transfer options and document how dates, deposits, and payouts will be handled so there are no surprises.
- See Airbnb’s policy on rebooking and refunds.
- Review manager transfer options for ownership changes.
Protect yourself in the contract
Clear paperwork keeps everyone aligned and reduces risk.
- Create a written reservation schedule for the next 6 to 12 months. Include guest name, contact, check‑in/out, nightly rate, platform ID, and deposits received.
- Allocate deposits and prepaid rents on the closing statement. If closing falls during a stay, agree on prorations and who handles cleaning and guest issues that day.
- Add assignment or assumption language if the buyer will take certain bookings. Include the practical plan for platform rules, co‑hosting, and guest notices.
- Consider an escrow holdback for claims, refunds, or unpaid taxes tied to pre‑closing stays. Define the cap, trigger, and holdback period to protect both sides.
- Include representations about legal TVR status, HOA compliance, and your tax registrations. Provide the Kauaʻi Planning TVR file and renewal letters up front.
- Plan showings respectfully. Hawaii law requires at least two days’ notice and reasonable hours to show an occupied unit. Coordinate with guests and your manager to preserve privacy and reviews.
Square up taxes and filings
Short‑term rentals on Kauaʻi are subject to state and county taxes. Confirm your registrations and filings, and agree on how taxes are handled for stays that span closing.
- County TAT: Kauaʻi applies a 3 percent county TAT. Review county procedures and make sure remittances are current.
- State TAT: Under a 2025 law, the state TAT rises from 10.25 percent to 11 percent on January 1, 2026. Model cash flow under the new rate and decide who remits for straddling stays.
- GET and surcharge: Hawaii’s GET applies to rental receipts, with a Kauaʻi surcharge. Verify that GET accounts are open and filings are up to date.
Agree in writing which party will remit taxes for nights before and after closing, and reconcile any prepaid amounts on the settlement statement.
Time your closing window
Your calendar matters. Poipu demand peaks in the winter holiday and early spring months, with shoulder periods showing lower occupancy. If you rely on peak season revenue, you might list before peak, then close after key weeks, or set a closing date that preserves high‑value stays for you or the buyer.
Whenever possible, close on a vacancy with a two to three day buffer. That gives time for walkthroughs, cleaning, vendor handoffs, and lock changes without disrupting a guest. If you must close during a stay, put in writing how revenue, liability, and guest communications will be handled.
Pre‑list checklist for Poipu sellers
Move these items to the top of your prep list so buyers can underwrite quickly.
- Kauaʻi Planning Department TVR file and renewal letters.
- State and county TAT registrations and recent filings; GET license and evidence of current filings.
- Full reservation schedule, past 12 to 24 months of P&Ls, and platform transaction history.
- Property management agreement, vendor contracts, cleaning schedules, and access procedures.
- HOA or condo rules, including any rental restrictions, fees, and notices.
For investor‑minded buyers
If your likely buyer is an investor, help them evaluate the income story. Provide 12 to 24 months of revenue, occupancy, and ADR, plus a clean pipeline of future reservations. Share how seasonality impacts cash flow and highlight any manager arrangements that can transfer smoothly.
Make your timing work for you
With a clear plan for bookings, airtight documents, and the right closing date, you can sell confidently without disrupting guests or leaving money on the table. If you want local guidance and a discreet, high‑touch process tailored to your property, connect with Donna Rice for a conversation.
FAQs
How do Poipu vacation rental rules affect selling?
- Short stays are allowed only in VDAs or with a valid nonconforming use certificate; confirm your TMK and assemble your TVR file using the Kauaʻi Planning Department’s TVR guidance.
Can Airbnb reservations transfer to a buyer’s account?
- Usually no; Airbnb’s policy favors refunds and rebooking rather than direct transfers, so plan a managed transition with your manager and clear guest notices.
What notice is required to show during guest stays in Hawaii?
- Hawaii law requires at least two days’ notice and entry during reasonable hours to show an occupied unit to buyers.
Who pays TAT and GET for a stay that spans closing?
- Decide in the contract which party remits taxes for nights before and after closing; reconcile prepaid rents and taxes on the closing statement and follow county TAT procedures.
When is the best season to close in Poipu with bookings?
- Visitor demand is strongest in winter and around holidays; many sellers aim to close on a vacancy just before or after peak weeks to protect revenue and guest experience.
