Solie Real Estate

This is a continuation of a thought experiment. One of my biggest challenges is creating content for my web page and page. I have become very interested in a program called ChatGPT. It is an artificial intelligence program that can created written content. It is kind of like a chat program, only you are chatting with a computer program, not another person.

I posted this message on ChatGPT:

"In a 200 word essay, discuss the proposed changes in regulations related to vacation rentals on the Big Island of Hawaii"

This was the response:

"In recent years, the Big Island of Hawaii has proposed significant changes to regulations concerning vacation rentals, incited by rising concerns about the negative impacts of these businesses on local housing, community welfare, and tourism sustainability.

Primarily, these changes aim to mitigate housing shortage issues. Local residents have been increasingly displaced due to high demand and profitability of vacation rentals. Proposed restrictions would limit the total number of permits issued for short-term rentals, preserving more homes for long-term residents.

Additionally, tighter regulations focus on controlling the environmental impact of vacation rentals. This includes more stringent waste management rules, and encouraging the use of renewable energy sources. These changes not only protect the local environment but also maintain the allure of the Big Island as an ecological haven for tourists.

Finally, the changes introduce higher compliance requirements, such as mandatory registrations, insurance, and safety regulations. These are designed to improve the standard of accommodation for tourists, ensure the welfare of local communities, and hold rental operators accountable.

Overall, while the proposed changes might seem restrictive for vacation rental owners, they are necessary steps towards a more sustainable and equitable future for both the local community and the Big Island's visitors."

While I don't agree with the viewpoint of the ChatGPT essay, I was very impressed with its response. This is exactly what the proponents of these new regulations are saying. And there is some truth to it. Corporations from the mainland and throughout the world see an opportunity to buy real estate that is still relatively cheap, and convert it to vacation rentals that produce very high rental incomes. But there are also people like myself, retirees looking to augment their social security by renting out rooms in their home for vacation rentals. Right now, I can do that. If I live on the property that I am using for vacation rental, there are no regulatory requirements, other than the requirement to pay taxes on the income I receive. There is no registration, no inspections, no paperwork to be filed. The legislation being proposed imposes huge regulatory requirements on the homeowners providing vacation rentals.

This is from an article in Honolulu Civil Beat:

"Some of the rules relate to on-site parking, the submission of site and floor plans, contact information for all registered property owners and managers, notification to surrounding properties and more.

Failure to do so could result in $10,000 in fines."

They also intend to limit how many hosted vacation rentals are allowed. Once that limit is reached, no one else gets to provide hosted vacation rentals. That seems unfair. Also, many will probably drop out just because they are unable or unwilling to deal with the increased regulatory burden

I do agree with their concern about the price and availability of rental housing. That is a real problem. However, limiting hosted vacation rentals is not going to alleviate that problem. If I cannot rent out my spare bedroom to earn some extra income, that does not add to the supply of available rentals. That unused room just sits empty, or, more likely, full of stuff that I don't need, but don't want to throw away

We need to let our legislators know that we oppose this bill. It has good intentions, but it ends up being another intrusion of government regulations in our private affairs. It limits my ability to use the property I live on to make some additional income, it will hurt people that are right on the edge of making it or not.

AFFORDABLE HOMES – BOXABL

Affordable housing is an issue that has been around for a while, here and on the mainland. However, it’s getting worse. With the huge increase in prices here on the Big Island, many buyers are being priced out of the market. They can’t afford to buy that starter home. With the increase in cost of materials, they can’t afford to build it, either.

That is why, when I heard that Elon Musk was investing in a company called Boxabl that manufactures tiny homes, it caught my attention.

Boxable was started by Paolo Tiramani. He was born in Italy, educated in London, where he earned degrees in mechanical engineering, and industrial design. By 1986, he held 144 patents. In 1986 he formed the company, 500 Group, with the idea of turning some of these patents into cash. One of those patents was the rolling tool storage box, which he licensed to Stanley Black & Decker.

In 2017, he formed the company, Boxabl, with the purpose of building tiny homes on an industrial scale. Instead of building homes individually, on site, they are built in a factory. That is not a new idea. Modular homes, trailer houses, have been built in factories for quite a while. The difference with Boxabl is the scale of manufacturing, the emphasis on quality of construction, and on making it energy efficient.

Right now, their only model is the Casita, a studio unit.

This is just the beginning, though. They are already designing other units, a master bedroom box, a two bedroom box, stackable boxes. Units can be joined together, or stacked to create an infinite variety of building. It is a new way of thinking about building structures. Here is a link to some of those ideas, https://www.boxabl.com/more

These future plans are interesting, but they are not available yet. What is available is the Casita.

The Casita is a 375 sq ft studio unit, quality materials and construction, energy efficient.

It is priced at $50,000. For the single person, or couple, this would be a great starter home. You won’t be able to find this quality anywhere else at this price. That’s the point. They have made getting that first home more affordable. This may also be benefit for government agencies, and non-profits thinking about providing housing for the homeless. That is another pressing issue, here and elsewhere.