Honolulu Mayor Kirk Caldwell is going to introduce three new bills to city council dealing with short term rentals. They call for harsh penalties for violators.

During a news conference Thursday Mayor Caldwell said he's creating the bills because of the rapid growth of illegal vacation rentals on Oahu. He says of the 10,000 units currently in operation on Oahu roughly 800 of them are operating legally. 

"We expect as many, a total of 4,000 permits for transient vacation units," said Kathy Sokugawa of the Department of Planning and Permitting.

The bills define and differentiates two different types of vacation rentals: transient vacation units or a place where the owner is not there while its being rented, and bed and breakfasts where the home owner is there during the renters stay.

There are different policies and regulations for each type of rental.

Under the first bill called "omnibus bill" all vacation rentals would be regulated. The other two bills outline what would happen if owners falsify statements to inspectors as well as a sellers disclosure requirement meaning if a property is sold, its clear it can be used as a vacation rental. 

"It is something that does need to be addressed," said Mayor Caldwell. "It is having a major impact on our neighborhoods and also on our visitor industry. We're trying to be as fair and balanced as possible."

All short term rentals would be required to apply for a permit number with the city. If the city finds a rental unit is operating illegally they may be handed a heavy fine: $25,000 per day for the first offense. 

If the city council passes the bills the rules could take hold by next year.