There are only three hotels on the island of Oahu, outside of those in downtown and Waikiki, that is. Kailua, Lanikai, Kaneohe, Waimanalo, and most of the North Shore have no hotels at all. This could mean 2 things: (1) search for Oahu vacation rentals or (2) prepare to drive a lot if you want to have that magical Oahu experience.

Truly, by being in a vacation rental, you will have one of your best vacation experiences ever. Oahu rentals provide a wide variety of accommodations: from studio cottages to 12-bedroom beachside villas. They're seen throughout the island: Kailua, Lanikai, Waimanalo, Kaneohe, Laie, Waimea, Haliewa, Kaa'awa, Wailua, Makaha, Pupukea, Ewa, Kapolei and Kahala.

Many vacation rentals are situated either right on the beach (beachfront properties) or within a short distance from the beach (beach side properties.) Also, many of them offer the spectacular view of the ocean. About fifty percent of them feature a swimming pool and a gourmet kitchen. Of course, a full kitchen is present in all vacation rental properties. Some have a sauna or hot tub, personal gym, home theater or other amenities.

Price-wise, vacation rentals on Oahu can prove to be economical if the party you are traveling with is large enough. The breakeven point-where the vacation rental rate matches the hotel room rates–is usually around a party of 4 adults. In vacation rentals, however, you're normally charged with a cleaning fee on top of your room rate and a refundable security deposit.

The other significant difference between vacation rentals and hotels on Oahu, is that vacation rentals are hardly available for a stay of less than a week. This is because Hawaii has an anti-vacation rental law on the books. This law is enforced differently on the different islands. In Oahu, for instance, a home can't be a legal vacation rental except when it was grandfathered in at the time of the creation of the law. On the other hand, any home on Oahu can be rented as a vacation rental if the stay is for thirty days or longer.

The owner who has his house rented illegally is subject to a fine of $1,000 per day. While the tenants won't be charged for anything, they could arrive in a closed rental home, or worse, harassed by neighbors and authorities. At the outset, it seems that you have to limit yourself to the approximately 100 legal vacation rentals. But this shouldn't constrain you. Be aware that some of the finest places to be with aren't legal Oahu vacation rentals. So if you choose to stay at an "illegal" vacation rental, you must tell all who ask that you're there for one month. Essentially, it's always legal to stay anywhere - provided that it is for a month or more. Otherwise, just follow the law and stay there for 30 days.