In late 2022, the Board of Directors at the Royal Mauian condominium in South Maui proposed and approved a new policy to impose a $35 per-registration fee on owners for each short-term guest who registers at the front desk, starting April 1, 2023. The Board justified the fee by asserting that front desk staff spend most of their time servicing short-term renters (approximately 60–70%), and argued it was fair for short-term rental owners to bear those specific costs rather than having them treated as common expenses shared by all owners.
The Royal Mauian Owners Group (RMOG), representing concerned owners, strongly disagreed with the Board’s authority to impose such a fee unilaterally. They argued that the Bylaws explicitly define front desk and related administrative services as common elements and expenses, which must be allocated based on ownership interest—not usage. RMOG contended that allowing the Board to assign costs based on perceived benefit would set a dangerous precedent, potentially enabling future boards to impose fees for other shared amenities like elevators or gardens.
Furthermore, RMOG rejected the Board’s interpretation of Hawaii state law, noting that while the law may grant general authority to charge for services, it is still subordinate to the condominium’s own Bylaws. Since the Bylaws require all shared costs to be allocated proportionally based on ownership interest, RMOG argued that the new registration fee violates those governing documents and lacks a proper legal foundation.
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