For nonresident vacation rental owners

[missydog1]

yes, the insurance offered is relatively new, in the last year, maybe two.

So far I have not heard from anyone who has filed a claim. Have conversed with numerous people who used credit card dispute. The problem there is you can't dispute payments older than 60 days, and many people reserve and send in deposits a year in advance. A year in advance is very typical for the repeat winter visitors.

The insurance sort of covers the problem of financial loss, but doesn't address the possibility of a compromised vacation due to a default or screw-up. People who arrive on island to find a mess are in a horrible position, and that loss they incur in trying to scramble is not covered by insurance.

I think the idea is to put the industry into better shape to where rentals overall are better handled, rather than turning to insurance to try to redress damages.

I do know what it's like to arrive after a long flight and have 1) a double-booking disaster and 2) being given a room that was not as described (reeked of mold, couldn't stand to be in it) and no rooms available that were any good. It sucked. Neither occasion was in Hawai'i. Both times were a damper on enjoyment of our long-planned vacation.

$39 is not a lot if you are staying a week, but it is quite a lot if you are staying one night.

[jackson]

Kapohocat, I never said you were in the minority. I'm sure most rentals are legit. It's the ones that aren't that people will talk about if they have a bad experience.
DavidM, I merely used that as an example. As you had asked me to prove a non-provable, I merely asked you for the same. Sorry for the confusion.
Some people might like to remember that no matter how it feels, we are the government. Remoinds me of Pogo: We have met the enemy and he is us. I'm a believer in personal freedom, but only when tempered with personal responsibility. I have now lived long enough to feel that some "responsibilities" are unfortunately in the minority. I think most would agree that dismantling the federal government would be a bad idea as witnessed by Ron Paul's poll numbers.

[David M]

Here's one to make you feel warm and fuzzy... http://the.honoluluadvertiser.com/articl...20012.html

David

Ninole Resident
Please visit vacation.ninolehawaii.com

[Kapohocat]

Yup, DavidM, small or large, if someone is going to screw you, it doesnt matter how small or big or licensed.

[jackson]

Wow. That sucks. I can relate. I'm still owed nearly 1000.00 from a property management company acting outside the law who aqre still doing business. Please note that in this article it states that the company in question had given up their real estate license so they were acting unlicensed. The paragraph regarding a trust account was also interesting. As in my case, it was up to the owners (I admit my responsibility in my case) to make sure they were dealing with a licensed company following the laws and rules of ethics whcih apparently this company was not. State law requires payment to homeowners by the first of the following month and for all money to be placed in a trust account.

[Kapohocat]

WOW!

@Jackson, did you look at their DCCA complaints? All the way back to 2009!! 140 properties x $$$$'s ea = a lot of money!

So based on this larger company who when unlicensed should have been doing only 1 property, how would this bill have affected the current situation had the bill been in place? My guess is the outcome would still have been the same as they had already had RICO complaints, and still were in business. Lots of complaints.

[jackson]

I very much agree with you, Kapohocat. The problem is that HR467 is not enforced by the state or county. But as the laws are on the books, I could go the court route but it's my preference to let it go as the stress is not worth the money. I do believe from what I hear that the state is getting ready to enforce the law. If they do, there will be chaos for a while and in my opinion in its wake will be a much more professional tourist industry.
Do you know about the BnB issue on Oahu. For years owners got away with illegal BnBs but those days are over as I suspect will happen here.

[David M]

If I read it correctly they gave up their RE status as part of closing down - likely to avoid repercussions, but were still licensed as they operated.

A big part of the problem, especially Oahu is the operation of these mini hotels being marketed as vacation rentals or BnBs that sleep 15-25 people. I can surely appreciate the neighbors being upset. Last time I read the BnB rules for BI it was 5 bedrooms max, 10 guests - quite a difference. These mini hotels are often party houses and it doesn't have Toby loud and raucous to be annoying to the neighborhood. That said, these proposed laws will do nothing to change the situation even though the very vocal groups opposed to the mini hotels also write testimony in support.

Something I observed today..... Currently have mainland guests, their 5th vacation to Hawaii. Will be here 49 days, staying in various VRBO rentals around the islands. Going to Puna when they check out here. Kinds sounds like the system works pretty well for them.

David

Ninole Resident
Please visit vacation.ninolehawaii.com

[csgray]

David,
Now who is "...using the example of a few to label the many."

I and others posting here had some bad experiences with off island landlords and you dismiss them as isolated personal experiences, but you have one set of guests visiting and want to use them as evidence to prove your point. You can't have it both ways.

I am open to hearing all kinds of well considered opinions backed by solid information, or even personal experience, on this matter, but when the con arguments use intellectually dishonest tactics like twisting people's words to change their meaning, gratuitous partisan sniping, or the exact kinds of arguments based on personal experience that are being dismissed as valueless, it is hard to take them seriously.

Other than the "slippery slope into fascist government control" argument what are the practical problems with this bill? I am open to hearing them, if presented in an intellectually honest way.

Carol

[missydog1]

I have heard both sides of the Oahu argument over and over as I know people there very involved with the politics.

The situation on Oahu is very different. What happened there is that very little outside of Waikiki and Honolulu was ever zoned for transient accommodations. In spite of that, not surprisingly. a cottage industry sprang up of B&B's.

Back in the 80's, there was a crackdown on the zoning violations. The outcome was that existing operations that were willing to become legalized were grandfathered and were issued TVU licenses (transient vacation unit, called TVR on Kaua'i and Maui).

Since 1989 (I think that is the date, but it might be a little off), NO new licenses have been issued. All the other B&B's and rentals in residential zoning are operating illegally as far as the County is concerned.

But again, it was not much enforced, so many people were doing both mom and pop ohana type rentals and all the way to grand estate oceanfront properties, and all in-between. Kailua and Lanikai were especially impacted, and those neighborhoods organized and began turning in operators who received complaints for excessive noise, inconsiderate parking, etc..

Basically they want to take back the neighborhood and have people on the street whom they know. (It is not like Puna, not all spread out. In recent years, many off-island owners bought large houses with mortgages that could only be paid by getting hundreds or thousands per night, and they are at risk of losing the properties if shut down, so it's quite the battle.

There was an attempt to unfreeze the prohibition on issuing new licenses a couple years back, which was eventually rejected, not supported by a majority of Council members.

The County began issuing violation citations which are quite hefty, and per night, which can quickly add up to thousands of dollars in fines.

In the last few years, Kaua'i and Maui have taken steps to cut down on vacation rentals outside of VDA's ... (Visitor Destination Areas). Here is an article that explains the controversy on Kaua'i.
http://thegardenisland.com/news/opinion/...03286.html

And on Maui:
2008 law
http://archives.starbulletin.com/content...ts_demands
2011 revision
http://www.mauinews.com/page/content.det...51282.html

So what does this all have to do with HB 1707? Primarily, to put in context that it is Counties that determine zoning issues and license rental units, and the Big Island has been rather free of all the brouhaha that has been going on with the other three major islands. Hawaii Island chose to impose regulations on B&B's but not on vacation rentals. Every rental on ag land is illegal, but it's not enforced. Currently.

So keep in mind that this bill is a state law, and the state rarely works seamlessly hand in hand with the counties on this issue. For example, the state has routinely issued GE and TAT licenses for rental business that were illegal under County law, and has left them alone as long as taxes were paid.

If fact, the State is not even allowed to share with the Counties the tax info on who is paying TAT, as that info is between the taxpayer and the state -- which has left the Counties to pay people to comb over Craigslist and VRBO if they wished to identify illegal rentals.

Just be clear on what this bill is and what it is not. This bill affects all the islands, regardless of their individual handling (or non-handling) of the rental business.