For nonresident vacation rental owners

[EightFingers]

I've had good experiences with VRBOs on the Big Island for the most part. The only bad one (slow response to a problem) was with a resident manager.
If you think it's just happening in Hawaii, try Europe - it even happens with large hotels. Cash is king for sure.

[missydog1]

I follow the Tripadvisor forums for all the Hawaiian islands, where people come and post when they do have problems. The foreclosure issue has been very real.

A property management company that handles multiple units is able to place a visitor in a comparable unit if something goes wrong, so that is something even though not wonderful when it happens.

A brokerage also has far more at stake in being a good steward of a rental deposit.

This is a statewide bill, and the less expensive rentals on the east side are not typical of the rental business. People come for affairs like weddings, for example, and rent estate type homes, at up to $2000 a night, full payment always required 60-30 days out. You can be talking $15,000 they trustingly send off to some owner, and then they get burned and find no recourse.

It's not primarily about little mom and pop rental businesses. There is a huge luxury home and luxury condo rental business, and it should be handled professionally, as jackson pointed out.

[csgray]

David,
I am not sure why you are interjecting partisan politics into this discussion, it seems a little gratuitous. I also never said there were $500 condos on the east side. In fact I said resort condos, and I am pretty sure we all know there are no resorts on this side. So are your arguments for your position so weak that you have to interject partisan politics and set up straw man arguments, or do you have legitimate points to make?

I understand that people such as yourself with vacation rentals may have legitimate issues with this bill, my experiences were all from the side of the renter and it was not good. Please, make your points, but don't stoop to straw man arguments and petty partisan political attacks, it undermines your points.

Carol

[Kapohocat]

I do not work for a real estate broker who owns a vacation rental company. I handle one property as per the law. The owner lives on the mainland. I make about $400/mo on average.

Beware of slight Sarcasm ahead:

Oh yah, more guburment is always good.

How will enforcement of this bill be financed? How does it benefit the small entrepreneur? Does it create an unfair advantage for the large rental agencies, and hotels? Do the larger rental agencies respond to situations travelers encounter like small entrepreneurs do? What if you do not meet the requirements of the rental agencies. (My mom's house in Cali would not because she did not have a BBQ. To have a BBQ per their specs would have also necessitated about $2000 of changes to Mom's deck to have a Home Depot $100 BBQ.)

Are we throwing out the baby with the bathwater?

My hubby probably would be happy to have John Dirgo's company take over the VR and I can be unemployed and collect welfare and do nothing at all from dinner time up till 11 PM when the vacation renters usually call because:

they are lost being tourists somewhere and cant find their way back to the rental. I give them directions and stay on phone with them as they find their markers.

or they lost their passport and cant find it (cleaning lady found it and we sent it counter to counter to them in Honolulu).

or their child had an ear infection all day so at 10 PM they thought they should take him to ER and where is it. Gave them directions to Hilo Hosp.

or they are on their way back from a day trip to Kona and at 9:30 PM want to know where to go eat dinner. (That was easy - I told them I think only Ken's is open. Not pleased with that. Why arent there good resturants open at 9:30 PM?? Gee, because its HILO... [] )

or they lost their ID at HNL, got on plane but cant rent car now, can you pick me up in an hr at 8:30 PM? Just so happened my hanai son was still in town and picked them up, stopped at grocery store with them, and we got them settled in at 10:30 PM.

or they returned at 11 Pm and decided to watch TV and for some reason can not figure out the very simple TV remote.

or on and on.

I do not mind as if they are happy, I am happy, and they return year after year.

End Sarcasm.

During the tsunami threat, we actually gave the person a free night for their next stay because it felt like the right thing to do. Not required by our rental agreement or the SOH. (BTW, they have already used their free night on their return visit.) A hotel on the West side wouldnt even comp us anything for a room next to the elevator that was really noisy when we stayed last year.

The property I manage is as it appears on the VRBO pics, owner pays all her TAT taxes as I get a copy. We keep it in good condition, and handyman lives across the st if anything goes wrong.

Of the VRBO's down here, I do not think there is one that falls into the misrepresentation category. We live in a fishbowl here. You can go to Trip Advisor and see all the postings about accommodations.

Maybe this bill should have a cap of some sort - kind of like what already exists - 1 property without a real estate license - although David DeWeese said he thought the bill was going to have the 1 VR - 1 off island owner.

This thread did lead me to call David DeWeese from Aloha Coast and ask about what is takes to become a real estate agent property manager and maybe working for someone. He was very informative! (as always!)

So maybe it's time to diversify. Food for thought.

[missydog1]

Your involvement is hardly typical, Cat.

Many mainland condo owners try to skate by with giving out the name of their cleaning lady as the on island management.

Owners take deposits and don't send reservation confirmations.

Owners take deposits a year in advance, and 30 days out the renter gets an email saying oops, we double-booked the rental, and you need to look elsewhere, at which point all the best ones are gone.

People send deposits to owners who go into foreclosure and keep the deposits.

I hear these stories all the time. It is a problem, and I have never heard so much concern on the part of prospective renters as I have recently (in five years of reading the Hawaii boards). Renters are worried and losing confidence.

Then there is the unpaid taxes issue, which is no doubt a big issue.
I guess they need to balance the interests of the unlicensed people who do their job right vs. the amount of complaints they are receiving from visitors who have been burned.

RIP Marc Hansen, another fine musician gone (Hansen & Raitt)
http://www.youtube.com/watch?v=G_2nxZ3Wrqw
http://www.youtube.com/watch?v=xTReV9kDS3I
http://www.youtube.com/watch?v=zRTULLjILAg&feature=related
http://web.me.com/cayurt/Yurt_People/history.html

[jackson]

Kapohocat, because you di it right, doesn't mean everyone does. To manage one property you don't need a broker's license which takes a lot of time and energy. All you need is a salesperson's license. You can study online and for a total cost of about $500.00 and about four months time, you can get RE sales license as long as you pass the test. You are then under the auspices of the state and your license would be in danger if you don't follow a code of ethics. This will protect no only the tourists but the homeowner as well. As I said, you probably do it right, but what about those that don't? This IS the role of government. Those who want to take away all government regulation risk anarchy.

[David M]

quote:

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Originally posted by jackson

David, I appreciate your point, but I think you are missing something. Protections also need to extend to homeowners. There alreay is a law regardng vacation rental companies needing a brokers license but it is not enforced. In my case, I am still owed a great deal of money from a company still in business. I was never paid on time and finally realized that they were using my money to finance their other operations. My money was supposed to be placed in a trust account but because they know they can flaunt the law, they do. To me, I am being failed by state and county government. It's not only about the tourists, but also about homeowners who are in legal jeopardy without realizing it.
There is absolutely no relation to this bill and FSBO. There is no relation whatsoever. It's about protecting the state's image to the worldwide tourist business. This is not government being intrusive, but geovernment doing its job. Now they need to enforce HR467

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Ok, you got me confused. You got screwed by a company, want extend protections to homeowners? Can you please cite the portions of this proposed law that addresses those issues? My last read of the bill strictly abridged the rights of the homeowner to the benefit of some licensed individuals.

No relation in THIS bill to FSBO except extending the reach of the licensed real estate community at the expense of the rights of the property owner. Extension to FSBO and owner rentals is just a future step. Don't think so? Provide me a couple of links with licensed RE extolling the virtues of owner performed activity that also comes under their purview. My guess is you won't because you can't.

David


Ninole Resident
Please visit vacation.ninolehawaii.com

[jackson]

David, Can you show me a link where this law will relate to FSBO? I don't thin so because you can't. As a homeowner of a former rental I can tell you that if the person managing my house had been licensed, I would have had recourse other than the courts which is an avenue I prefer not to go down. It should be obvous rather than confusing.

[David M]

quote:

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Originally posted by csgray

David,
I am not sure why you are interjecting partisan politics into this discussion, it seems a little gratuitous. I also never said there were $500 condos on the east side. In fact I said resort condos, and I am pretty sure we all know there are no resorts on this side. So are your arguments for your position so weak that you have to interject partisan politics and set up straw man arguments, or do you have legitimate points to make?

I understand that people such as yourself with vacation rentals may have legitimate issues with this bill, my experiences were all from the side of the renter and it was not good. Please, make your points, but don't stoop to straw man arguments and petty partisan political attacks, it undermines your points.

Carol

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Sorry Carol, but not anymore partisan or straw man than what's being posted in support of this bill, using the example of a few to label the many. No moreso than your own example of the 500/nt resort condos because they are by far the minority and even lesser so as owner managed. The vast majority of those types properties are already managed by agencies.

My interest in this bill is the future. I would in no way be affected in its present form. Unfortunately government likes to control by bits and pieces. In this case go after the nonresidents with no vote, play on the emotional issues that garner the support of the actual voters and once the dust settles take the next step, the next, the next. I'll guess most of the people on PW can come up with an example or two, especially if they take the emotion out of it. Notice how my example made it emotional for you? Otherwise you likely wouldn't care.

David

Ninole Resident
Please visit vacation.ninolehawaii.com

[Obie]

From the Hawaii Legislature website here is the stated intent :

"The purpose of this measure is to control the proliferation of temporary vacation rentals and to ensure that nonresident owners of a rental property that is rented for 30 days or less pay their fair share of general excise taxes and transient accommodations taxes on the rental income by requiring nonresident owners of residential single family dwellings, apartments, or townhouses who rent their property as a transient accommodation for 30 days or less to rent the property through a licensed real estate broker or salesperson who must collect all applicable taxes."

Looks to me they are going to use realtors to insure that the taxes are collected.