If you're looking into investment condos in Kahului, there are three main things to consider in order. First is the history of special assessments, second is what is included in the management fees, and third is whether the building falls under short-term rental, Transient Vacation Rental zones. Let's go through them one by one.

First, the special assessments. If the management association cannot cover large repair costs within the budget, they will collect a lump sum from each unit, which is called a special assessment. Maui has recently seen a significant increase in insurance premiums, making this risk particularly high. Following concerns about wildfires, condo management insurance premiums across Hawaii have surged, and if these costs are not fully reflected in the management fees, they will lead to special assessments. Before signing a contract, you should check the management meeting minutes to see if there have been discussions about recent insurance renewals and planned assessments.

Next is the management fees. Condos in Kahului and Wailuku typically range from $500 to $800 per month, which is lower than resort areas or oceanfront properties. When looking at Maui as a whole, condo management fees range from $450 to $1,200, with places that have many amenities going up to $1,500. This is also why Kahului is considered a relatively affordable area within Maui.

The third point is whether the property is in a short-term rental zone. Bill 9, signed on December 15, 2025, contains provisions to phase out short-term rentals in buildings designated as apartment zones, known as the Minatoya List. The phase-out will occur by 2029 for South Maui and by 2031 for the rest of the areas, leading to projections that the value of condos primarily used for short-term rentals could drop by 20% to 40% over the next few years. However, buildings designated as hotel zones or resort zones, as well as those with separate rental permits, are not affected by this regulation. Kahului is primarily a commercial and residential area, so long-term rentals are generally more common than short-term rentals, but it is essential to verify which zone a property belongs to.

After confirming these three points, you should also look at the reserve fund. If the reserve fund is less than 10% of the budget, it may be classified as a non-warrantable condo, making loan conditions stricter and reducing the pool of potential buyers when reselling. Request the financial statements and reserve study results from the past 2-3 years to verify this yourself.

From a rental investment perspective, Kahului is close to where Maui residents actually live and commute. With the airport, commercial facilities, and schools nearby, there is a steady demand for long-term rentals, and rentals aimed at local workers and families appear to be more stable than short-term rentals for tourists. However, each management association may set a minimum rental period, so be sure to check the bylaws before signing to ensure your desired rental method is actually possible. The checklist of items to confirm is as follows:

• History of special assessments and planned discussions
• Items included in management fees and recent trends in increases
• Short-term rental zone status and applicability of Bill 9
• Reserve fund accumulation ratio and loan eligibility

The reason for following this order of checks is simple. If you miss any one of the special assessments, management fees, or short-term rental regulations, the rental yield you initially calculated could be completely disrupted. While the process of obtaining management meeting minutes, bylaws, and financial statements in order may seem cumbersome, in a market like Maui, where regulations and insurance premium variables are significant, skipping this process can ultimately save you time.

In summary, while Kahului is relatively accessible within Maui, failing to follow the checklist could lead to unexpected costs or rental restrictions. This article is not investment or legal advice, and it is recommended to consult with a real estate professional and an accountant before finalizing any contracts.