A recent Ninth Circuit Court of Appeals decision has restored Wailea Point’s previous 30-day minimum lease policy, reversing a 2022 amendment that increased the community’s minimum lease term to one year. For owners and buyers connected to this community, the ruling raises a straightforward question: What does this actually change?
Summary
In 2022, Wailea Point adopted an amendment raising the community’s minimum lease term from 30 days to 365 days. That amendment was approved by roughly 70 percent of owners.
On July 15, 2026, the Ninth Circuit Court of Appeals reversed a lower court’s decision on that amendment, finding it had not been validly adopted under the requirements of the Wailea Point Declaration. Because the amendment changed a restriction on the use of apartments, the governing documents required unanimous owner approval, not the approximately 70 percent support it received.
The practical effect is that Wailea Point’s previous 30-day minimum lease policy is restored, at least for now. The Wailea Point AOAO can still pursue further legal action, so this is best understood as the current state of things rather than necessarily the final word.
What It Means for Current Wailea Point Owners
For existing owners, the ruling restores an ownership option that had been unavailable since 2022.
Historically, relatively few Wailea Point owners chose to lease their residences. Based upon our experience within the community, we estimate that fewer than 10% of owners rented their properties.
For some owners, the practical benefit is not an expectation of rental income, but the peace of mind that comes with knowing the option exists should life circumstances change.
What It Means for Wailea Point Buyers
Over the past several years, the one-year minimum lease requirement occasionally surfaced during conversations with prospective buyers considering Wailea Point.
In some cases, the restriction was enough for buyers to eliminate the community from consideration, not because they intended to lease immediately, but because they preferred preserving that flexibility option if needed or desired.
Does This Change Wailea Point Values?
While we view the decision as potentially positive for many potential Buyers and Wailea Point Sellers, we do not believe it will dramatically change property values by itself as there are many factors to determining a properties market value.
Wailea Point has long been recognized as one of Maui’s premier luxury communities because of its exceptional oceanfront setting, quality construction, mature landscaping, amenities, and enduring reputation.
Rather than fundamentally changing the market, this ruling restores an ownership benefit that many buyers already considered valuable. It adds another layer of flexibility without altering the characteristics that have made Wailea Point so highly regarded for decades.
Important Context
The Wailea Point Association continues to have the option, for a short period of time, to decide whether to pursue to try and get this reversed ruling appealed. Until this option is resolved, owners may want to avoid making significant leasing decisions based solely on this ruling. Wailea Point owners and buyers should treat this as the new current status and should confirm if / when it is finalized with the Wailea Point Association before making any new leasing decisions.
If you are weighing what this means for a Wailea Point property you own, or trying to understand how this factors into a purchase decision at Wailea Point, that is exactly the kind of conversation we look forward to having with clients. Feel free to contact us if we can be of assistance.
With Aloha,
All information taken from news sources, information shown herein, while not guaranteed, is derived from sources deemed reliable. This analysis represents our opinion of Maui Real Estate based on available data and should not be considered financial or legal advice.
