Unhosted transient vacation units (TVUs), which make up the bulk of Oʻahu’s rentals inventory, generate the most complaints about neighborhood noise, illegal parking and traffic. There also are valid gripes tied to escalating property values due to residences being purchased to serve as income-producing investments rather than home sweet home.

Statewide, more than half of vacation rental units are owned by non-residents, according to a recent report issued by the Hawaiʻi Appleseed Center for Law & Economic Justice. The lure to invest in the underground business is easy to understand.

Given the growing ranks of visitors now opting for residential rather than traditional hotel lodging, thousands of homeowners can book short-term guests for much of the year and rake in two or three times more revenue than a long-term rental would yield.

It’s encouraging then that the Honolulu City Council Planning Committee last week sent a bill to the full Honolulu City Council that aims to rein in the vacation rental industry’s presence here. The current version of Bill 89 would allow the city to issue up to 4,000 new permits for hosted bed-and-breakfasts; there would be no new TVUs. That move appears to be a sensible step forward.