Property Management Articles

Why Can’t I Find a Property Manager for my Rental Home?

Fri, 20 May 2022 20:48:56 GMT

Have you been searching for a property manager to oversee your Oahu rental home, but everyone keeps turning you down?

According to Locations Property Management, these are the most common reasons a company won’t agree to manage your property (and what you can do about it!).

Not properly permitted

If your rental property is not properly permitted—for example, it is an older home that has an Illegal addition—a property manager may choose to not manage your home.

Solution: Ask your Locations Property Manager how you can obtain a proper permit for your rental property through the Honolulu Department of Planning & Permitting .

Zoning issues

If your rental property does not conform to zoning requirements, a property management company may not manage your home. For example, on Oahu, residential lots must be of a certain size to contain more than one home in some zones. There are different zoning classifications for residential neighborhoods, apartments, resort areas, business areas, agricultural land and more.

Solution: Check the zoning requirements for your rental property: Honolulu Zoning Map. You can also ask your Locations Property Manager to confirm the zoning requirements for your property. If your property does not meet zoning requirements, you can seek proper permitting or variances from the Honolulu Department of Planning and Permitting. Licensed professionals will only manage properties that are properly zoned.

Mixed-use properties

If your rental property is mixed-use—for example, a building that contains both apartments and businesses—a property manager who is not familiar with commercial or co-op management may decline to manage your property.

Solution: Although we specialize in residential property management, we’re familiar with commercial and mixed-use properties, too. If we feel that your property is not within our scope of expertise, we’re happy to point you in the right direction.

Legal issues

A property manager may refuse to manage your rental home if there is a lien on the property, you owe back taxes, there is a dispute over ownership or the property is in foreclosure.

Solution: If there is a lien on the property or you owe back taxes, pay those off as you’re able. If there is a dispute over who owns the property, you may need to seek professional legal counsel to resolve the issue. If the property is in foreclosure, consult your lender about a repayment plan or loan modification.

No parking

If your rental property does not have parking, it could be difficult to find tenants. For that reason, some Hawaii property managers may be reluctant to manage the property.

Solution: If at all possible, attempt to add a parking space to your property—not only will you be more likely to find a willing property manager, but you’ll also be able to charge more in monthly rent.

Safety issues

Landlords have a legal responsibility to ensure that their rental property is reasonably safe for their tenants. Major safety issues with your rental home are a no-go for most property managers. A property with structural issues, faulty fencing or unstable railings could be a major liability for both the property management company and the property owner. The same goes for electrical issues, which could be a fire hazard. Even smaller issues, like uneven driveways, faulty door locks or plumbing issues could endanger tenants.

Solution: Prior to listing your home for rent, an experienced Locations property manager will conduct a thorough inspection of your home and recommend necessary repairs. Our property managers can also recommend trustworthy contractors, electricians and plumbers to get your property in tip-top shape.

Poorly maintained or outdated property

If your property has not been well maintained, or is outdated, a property manager may decline to oversee your rental home—a rental that does not show well likely won’t attract many tenants or command a market-rate rent.

Solution: A knowledgeable property manager from Locations can suggest updates to your rental home that will make it more attractive to tenants (and more likely to fetch a higher rent). For example, a fresh coat of paint, new window treatments, new flooring and newer appliances, can make your rental home more appealing to tenants and worthy of a higher rent.

Withholding information

It should go without saying that if a landlord does not share important information about the property or wants a property manager to commit fraud or otherwise engage in illegal or unethical practices, a property manager will refuse to manage the rental home.

Solution: When searching for a property manager, be upfront about your rental property. If the property manager has concerns about the home or your plans for renting it out, defer to the experts. Locations property managers are trained to follow Hawaii landlord-tenant law—this protects both the property management company and the property owner, as well as tenants.

Bottom line

The bottom line: If you’re having trouble finding someone to manage your Hawaii rental property, contact the property management experts at Locations. We can help to resolve many of the common issues above, so you can get your Hawaii rental property on the market as soon as possible.

Pets and Rentals: What You Need to Know

Tue, 05 Apr 2022 20:07:27 GMT

Which Types of Animals are Renters Allowed to Have?

If you’re the owner of a rental property in Hawaii, you might be wondering what types of animals you’re legally bound to allow—and where you can draw the line. According to the professionals at Locations Property Management, animals in rental properties fall into three categories: pets, service animals and emotional support animals (ESAs).

What are the rules for pets and rental properties?

The owner of a rental property may decide whether to allow pets in the property. A landlord can also set rules about the number of pets, the type of pets and the size of pets that will be allowed in the rental. If the rental property is in a condominium, tenants will need to follow the building rules.

Typically, tenants are charged a pet deposit equal to one month’s rent, in addition to a security deposit. A pet deposit is used to cover any damage to the property caused by the pet. If tenants lose or give away their pet, the pet security deposit should be returned. A landlord can choose to charge additional pet rent if the unit is listed as “pet negotiable.”

Do I need a pet rental application?

The property management experts at Locations recommend that tenants complete a pet application, so the property owner will know what type of pet will be residing in the unit. Additionally, landlords should include a pet addendum with the rental agreement. The pet addendum should clearly state what's expected of pet-owning tenants; for example: pet insurance is required, and the property must be professionally cleaned and treated for fleas. Remember, the tenant is ultimately responsible for the behavior or their pets—including noise complaints—as well an any damages caused by their pets.

What qualifies as a service animal?

A service animal is not a pet. Only a dog that has been trained to perform specific tasks for an individual with a disability is considered a service animal. Other species of animals, whether trained or not, are not considered service animals. By law, a landlord cannot charge a pet deposit for a service animal, and service animals must be allowed to reside in rental properties—whether the property is pet friendly or not. Furthermore, a landlord may not request documentation for a service animal, unless the owner of the service animal is asking for a housing-related accommodation. There are only two questions that a landlord may ask tenants about their service animal: 1) Is this a service animal? and 2) What task does this service animal provide?

What’s the difference between service animals and emotional support animals?

An emotional support animal (ESA) is any animal that a medical professional has determined to provide therapeutic benefit to an individual with a disability. Unlike service animals, emotional support animals are not limited to dogs. Emotional support animals are not considered service animals under the Americans with Disabilities Act , but they are recognized under the Fair Housing Act . Unlike a pet, however, a landlord cannot charge pet rent or collect a pet deposit for an emotional support animal. A landlord may reject an emotional support animal using the health and safety exemption, but the threat to other tenants must be real and not based on stereotypes. For example, if an emotional support animal is a breed that’s known to be aggressive, tenants may be required to show that the animal is properly trained. However, an emotional support animal cannot be refused due to a poor reputation of the animal’s breed.

Check with an expert

Still confused about which types of animals you’re required to allow in your Hawaii rental property, and which ones you can keep out? Contact an experienced property manager at Locations Property Management today—we're happy to answer all of your questions about animals in rental housing.

Do I Need a Property Condition Report When Renting out My Property?

Fri, 11 Feb 2022 20:03:36 GMT

Yes, You Need a Property Condition Report

If you’re new to renting out your property, you may be wondering if you really need a property condition report. According to the property management experts at Locations, the answer is: Yes! You really do need to document the condition of your property before your tenants move in if you want to spare yourself time and expense down the road.

A property condition report can help to identify items that require repairs or improvements prior to tenant occupancy. Showing your property in its best light can help you to charge higher rental rates and secure longer-term tenants. Thorough documentation of your property’s condition will also help to minimize disputes over security deposits or damages with tenants.

What is a property condition report?

A property condition report is simply an inventory of your rental property’s condition before your tenants move in. Locations Property Management makes the process easy by providing a standardized property condition report .

How to write a property condition report

An in-depth property inspection should take place when the property is vacant. Using the standard property condition report , you’ll state the condition of the property’s features, including flooring, windows, window coverings and more. You’ll want to identify items that require repairs or improvements prior to placing a tenant. When writing your property condition report, be as detailed as possible in your descriptions, and don’t leave any fields blank.

In addition to a written description of the home’s features, you’ll also want to take photographs of every item included in your report. Photos will help to further describe the condition of your home’s features.

Pro-Tip:

Use the same property condition report at your annual property inspection to compare the property’s condition at the beginning and end of the lease period. Ideally, the property’s condition should be the same, with the exception of normal wear and tear or improvements made during tenancy. Repeat this same process with every set of new tenants.

Don’t forget appliances and furnishings!

In addition to taking inventory of your property’s features, you’ll also want to document the condition of its appliances. Be sure to take photos of all appliances and record the make and model of each item. Display appliance tags, which show their make and model, near the appliance (such as under the kitchen sink for the dishwasher). Having the appliance tag handy will make it easier to repair or replace the item if needed. When your tenants move out, you can also use the appliance tags to verify that the appliances you purchased are the ones in the unit—unfortunately, some unscrupulous tenants have tried to replace original appliances with cheaper appliances in hopes that the owner or property manager won’t notice.

If you’ll be including furnishings with your rental property, be sure to document and photograph the condition of all items you’ll be including, such as beds, tables, chairs and couches.

The final walk-through

Once you’ve completed a property condition report for your vacant unit, you’ll want to conduct a walk-through with your tenant on their move-in date. If it’s not possible to schedule a walk-through, the tenants should be allowed seven days to report any discrepancies in the property condition report. Finally, make sure that your tenant signs the property condition report to acknowledge that they agree with the descriptions included in the report.

Leave it to the pros

If taking a detailed inventory of your property’s condition sounds like a lot of work—or you’re not based in Hawaii—contact the property management experts at Locations! Our experienced property managers can inspect your property, thoroughly document its condition, suggest and coordinate repairs and improvements, and conduct a final walk-through with your tenants. Our property managers can handle all of the related paperwork, too.

Remember, it’s well worth your time to record the condition of your rental property before your tenants move in; you’ll save yourself more time (and money) in the long run.

Furnished or Unfurnished: What’s Better for my Hawaii Rental Property?

Thu, 16 Dec 2021 20:30:50 GMT

Should I furnish my investment rental property?

If you’re wondering whether to include furnishings with your rental property, you should know that there are some pros and cons to maintaining a furnished home or condo. While most homes are rented unfurnished, with only appliances and built-in fixtures included, some investment property owners choose to include anything from basic furniture items to a well-stocked kitchen and even wall décor.

The property’s location, availability, and your own needs and goals, are all factors to consider when deciding to list your property as furnished or unfurnished. Our experienced Hawaii property managers can advise landlords on how a furnished property would meet the needs—or not—of renters in their area.

What’s typically included in a furnished rental property?

Living room: Couch, coffee table, end tables, window coverings, lamp and television
Kitchen/dining room: Table and chairs, coffee maker, toaster, dishes, utensils and glassware, pots and pans, garbage can
Bedroom: Bed, mattress, window coverings, nightstand, dresser, hangers, lamps, bedding, alarm clock, wastebasket
Bathroom: Shower curtain, bathmat and towels, wastebasket

Some rental property owners also choose to include: cleaning supplies, general household items like laundry detergent, paper towels, toilet paper and garbage bags, dish soap and hand soap, as well as décor items, like wall art, wall clocks or throw pillows.

Pros of a furnished Oahu rental property

Higher rental income potential

The biggest pro to furnishing your Hawaii rental property is that you could earn more rental income. Because furnished units attract short-term tenants who are either in Hawaii for a limited time or are new to the state, rental rates are often higher to offset vacancy costs to the property owner. A furnished rental home or condo could rent for 20 percent or more than an unfurnished unit, according to Trulia.com; however, this is not always the case.

Higher security deposit

If your rental unit includes furnishings, you can require tenants to pay a higher security deposit to cover any damages, as well as normal wear and tear, to your furniture, small appliances, kitchen items or linens.

More tax deductions

You may be able to deduct some of the costs of furnishing your rental unit from your taxes, including the costs of repairing or replacing items. Be sure to consult your Locations property manager or accountant for advice.

Cons of a furnished rental property

Higher repair and replacement costs potential

If you choose to furnish your rental property, you will need to be prepared to maintain, repair or replace those furnishings. Not only will you need to cover the cost of damaged or broken furniture or small appliances, but you will also need to replace worn-out pieces and update décor items periodically.

May not attract long-term tenants

Because long-term tenants are more likely to have their own furnishings, they may not be interested in a rental property that is already furnished. If you’re looking for long-term, steady tenants, it may make sense to offer your rental home or condo as unfurnished.

Differing tastes

What appeals to some may not appeal to all. Home furnishings and decorating styles are subjective, and the items that you choose for your Hawaii rental property could turn off some potential tenants. Locations property managers recommend choosing neutral home furnishings that will stand up to heavy use; think gray or beige. Island-inspired design—like pops of turquoise and natural materials—is also popular in Hawaii rental homes and condos. If you’re not sure where to start, our experienced property managers can advise you on how to best outfit your rental property.

Ask an expert

If you’re still not sure whether you should furnish your Hawaii rental property, ask an experienced Locations property manager. If you decide to include furnishings in your rental property, be sure to take a thorough inventory of all furniture, small appliances and other items before your tenants take occupancy. You should also note the condition of all furnishings, taking photos, if necessary, prior to listing your rental. This way, if there is a dispute over damages with your tenants or insurance company, you will have proper documentation. A property manager can also assist you with this process.

The decision to rent out your Hawaii home or condo as furnished or unfurnished depends on several factors; a knowledgeable property manager can advise you on the best option based on your unique needs and goals.

How to Prepare Your Hawaii Home to Rent

Tue, 23 Nov 2021 22:32:42 GMT

How to Prepare Your Hawaii Home for Renters

So, you’ve decided to rent out your Hawaii home—before you place that ad or hang that “For Rent” sign, you’ll want to make sure that your property is ready to welcome your new tenants. Ensuring that the home is clean and move-in-ready will go a long way toward getting off on the right foot with your new tenants and avoiding potential future conflicts. Remember, first impressions really do matter!

The property managers at Locations recommend that landlords take the following steps before placing their home on Hawaii’s rental market.

Assess the property

Before you rent out your home, you’ll want to assess the property to see if any repairs are needed. This is also a great time to consider upgrades to the home, such as new flooring, paint, appliances, window treatments or light fixtures. Taking some time to make your Hawaii rental home more appealing before you list it can help you to attract more potential tenants and net a higher monthly rental income. If you’re not sure which upgrades will get you the most bang for your buck, as your Locations property manager.

Remove all personal items

Unless you plan to include furnishings with your rental property, you should remove all personal items from the home before your tenants move in. All that should remain in the rental home are large appliances, working smoke detectors, mounted light fixtures, plumbing fixtures and window coverings (if you chose to provide them).

Turn on utilities

If the utilities have been turned off, you’ll want to arrange for them to be turned on. You’ll need working electricity and water to do a deep cleaning and make any necessary repairs. You’ll also want to have working lights and running water for showings.

Make it sparkle

No one wants to move into a dirty home. Before you list your property, you’ll want to do a thorough cleaning. This includes cleaning appliances (inside and out), steam cleaning carpets and mopping hard floors, dusting vents, molding and baseboards, and scrubbing showers, tubs, sinks and toilets.

Cleaning your home for new tenants can be a big undertaking—if you’re not able to do the cleaning yourself, or if you just don’t care to, your Locations property manager can arrange for a professional cleaner to prepare the home.

Download our cleaning checklist

Check appliances

Be sure all appliances are clean and in good working order. If your rental home has a dryer, be sure to check the vent and lint trap—a clogged dryer can be a fire hazard. Run a load of towels through the washing machine to make sure there are no leaks and that the water drains properly.

In the kitchen, you’ll want to make sure that the refrigerator and freezer run at the appropriate temperatures, and that the refrigerator coils are clean. To check the stove and oven, test all burners and check the oven temperature with an oven thermometer.

Check that hot water comes out of every faucet and that all outlets work (outlet testers are inexpensive and handy). If your property has air conditioning, make sure filters are clean and that cool air comes from all vents or units. Be sure to test all smoke detectors, too!

If you’re not sure how to test your appliances, ask a professional property manager at Locations.

Pro tip: Keep all appliance manuals together where tenants can easily access.

Change the locks

Before a new tenant moves in, you’ll want to call a locksmith to change out all the locks. Make sure that all keys, as well as building fobs or garage door openers, if applicable, are operational.

Verify parking, storage

If the rental property is a condo or townhouse, you’ll want to verify which parking spaces and storage areas your tenants may use.

Provide documents

Make sure your tenants have a copy of building or homeowners’ association (HOA) documents, if applicable. If your tenants violate a building or HOA rule, you could be held responsible.

Leave it to the pros

Because there are several steps to preparing your Hawaii home for renters, do yourself a favor and hire an experienced property manager at Locations. Our expert property managers can help to ensure that your rental property is clean, safe and ready for renters. Hiring a qualified Hawaii property manager can help to put more cash in your pockets each month and keep your tenants happy. It’s a win-win!

How to Find Great Tenants for Your Hawaii Rental Property

Wed, 13 Oct 2021 19:38:59 GMT

How do I Find Tenants for my Hawaii Rental Property?

If you own a rental property in Hawaii, you might be wondering how to find qualified tenants so you can avoid some of the potential pitfalls that come with irresponsible renters.

Some of the qualities you should look for in potential renters include respect for your property and your rules, good communication skills and the ability to pay rent on time.

Where do I find tenants for my Hawaii rental property?

The first step to finding tenants for your Hawaii rental home is to advertise. An experienced property manager, like the professionals at Locations Property Management, can ensure that your listing is seen by as many potential renters as possible. If you choose to list your property with Locations, we’ll ensure that it’s advertised on our website and Oahu’s Multiple Listing Service (MLS), as well as various property rental websites, like Rentals.com and apartments.com. We’ll also share your listing in rental publications and with our own network of real estate agents. The more potential renters who see your home, the greater your chances of finding a qualified tenant.

Why should I screen potential tenants before renting to them?

Once your rental listing has attracted potential tenants, it’s important to carefully screen applicants so you can avoid possible issues down the road. A knowledgeable property manager can sort through rental applications to find qualified tenants. By running credit checks, national background checks and verifying income, your property manager can help you to avoid renting to tenants who have failed to pay rent in the past or left previous rental properties in poor condition.

What laws do I need to follow when screening tenants?

When screening potential tenants for your Hawaii rental home, there are some rules that you must follow, including federal Fair Housing Act, which protects renters from discrimination. The Fair Housing Act protects renters from being discriminated against based on their race, color, national origin, religion, sex, familial status or disability. Locations’ property managers are well-versed in fair housing laws and can ensure that qualified tenants are identified fairly, so you can avoid potential discrimination claims from rejected tenants.

Documenting all rental applications and background checks will also protect you from possible lawsuits. Your Locations property manager can help you to keep all your paperwork in order.

How does the rental property application process work in Hawaii?

Potential tenants for your Hawaii rental property should complete and sign a rental application that includes personal information, proof of income and proof of identity. A property manager will run credit, criminal and eviction reports on applicants, as well as check their references from previous and current landlords.

How do I choose a tenant for my rental property?

Once you or your property manager have screened potential tenants for your Hawaii investment property, you’ll want to identify the applicants with the strongest qualifications—such as the highest monthly income or the best references. You’ll also want to make sure that those applicants meet your minimum policy requirements.

The bottom line

While it might be tempting to rent to the applicant who offers to pay the most rent or one who wants to start their lease right away, don’t sign any rental agreements until you or your property manager can ensure that the applicant is well qualified and comes highly recommended from previous landlords.

Choosing the wrong tenant can be a costly mistake in terms of missed rental payments and/or property damage. Not choosing qualified tenants can also be a costly mistake, especially if you are served with a housing discrimination lawsuit.

Finding qualified tenants for your Hawaii rental property—especially if you live elsewhere—is best left to an experienced professional, like the licensed property managers at Locations.

To learn how Locations Property Management can help you to find qualified tenants, please contact us at (808) 738-3100.

How to Maintain Your Investment Rental Property

Fri, 24 Sep 2021 21:27:21 GMT

Your investment property is just that: an investment. And as with any investment, you’ll want to do all that you can to ensure that it not only retains its value, but appreciates in value, too.

So, how can you, as a property owner, help to make sure your Hawaii investment property stays in tip-top shape? From setting clear expectations for general property upkeep with your tenants to scheduling routine home maintenance services, there are many ways you can prevent minor home repairs from becoming major headaches.

Below, Locations property managers share their best tips for staying on top of maintenance for your investment property.

Spell it out for your tenants

The best way to avoid costly repairs is to try to prevent damage and neglect from occurring in the first place. To make sure that you and your tenants are on the same page, be sure to clearly spell out your expectations in your rental agreement.

You’ll want to provide tenants with detailed instructions on how to operate and maintain appliances, how and when to replace air conditioning filters or water filters, if needed, and general plumbing care. You’ll also want to provide your tenants with appliance manuals and let them know where to locate the property’s water shut-off valves and circuit breaker panels. Be sure your tenants understand the importance of keeping the property clean and tidy to prevent pests from taking up residence, a common issue in Hawaii.

Schedule routine maintenance

Just like regular visits to the dentist can ward off costly dental work down the road, investing in scheduled, routine maintenance for your investment property now will pay off in the future.

Some items that Locations property managers recommend scheduling routine maintenance for include: Air conditioning, pest control, photovoltaic (PV) cleaning, pool service, landscape service, gutter cleaning and garage-door maintenance.

In addition to routine maintenance, it’s also important to schedule an annual inspection of your investment property. Some things you might look for are evidence of water damage or leaks, electrical issues, such as flickering lights or outlets that don’t work, or signs of pests. Be sure to check the smoke detector batteries, too!

Your Locations property manager will conduct annual property inspections on your behalf. If maintenance is required, we’ll arrange for a professional to service your property.

Don’t delay maintenance

Delaying necessary maintenance and repairs on your investment property could end up costing you more in the long run— in costly repairs, or even lost rental income. Locations property managers recommend fixing any issues with your investment property before they become larger, more expensive issues. Your property manager can recommend a reputable handyman to make any needed repairs in a timely and cost-effective manner.

Keep good records

As an investment property owner, it’s important to keep good records of any property inspections and repairs, as well as any appliance replacements. Keeping good records will help you to stay on top of routine property maintenance and ensure that you can continue to collect the highest rent the market will bear while keep your expenses to a minimum.

Leave it to the pros

Finally, when it comes to maintenance and repairs on your investment property, unless you are an experienced handyperson, it’s best to call upon licensed professionals. Repairs that aren’t done correctly could lead to more expensive repairs in the future, or worse, endanger your tenants. If you don’t have a trusted handyperson on Oahu, your Locations property manager can recommend licensed professionals in a variety of specialties—from landscapers and plumbers to electricians and more.

Contact Locations Property Management

Remember, the best thing that you can do to make sure your investment property continues to generate income for years to come is to keep it well maintained. If you’re unsure about what types of routine maintenance are recommended for your Hawaii investment property, talk to a Locations property manager. Our team of experienced property managers can help you to keep your property looking its best--while earning you the most rental income possible!

How the COVID-19 Pandemic has Affected the Oahu Rental Housing Market

Thu, 09 Sep 2021 19:13:19 GMT

Like so many sectors of the economy, Oahu’s rental housing market has been affected by the COVID-19 pandemic.

Financial burdens for property owners

In the early months of the pandemic—back in spring of 2020—many tenants across Oahu were facing financial hardships, including job loss. With some tenants unable to make their rent payments, the financial burden of mortgage payments (for financed properties), necessary repairs and general upkeep fell squarely on the shoulders of property owners. Additionally, Hawaii Governor David Ige instituted a moratorium on evictions, which prevented property owners from evicting tenants for non-payment of rent during the pandemic.

Needless to say, it’s been an especially trying time for Oahu landlords, as most State and Federal protections have not been extended to them. This has made it difficult for landlords to enforce rules and collect rent that is owed to them.

Value of a property manager in tough times

In this challenging rental market, having a knowledgeable property manager on your side is key. One of the many benefits of using a property manager is that property managers are trained to have difficult conversations with tenants while ensuring that landlord-tenant laws are adhered to. Our managers can act as mediators to make sure that property owners’ best interests are protected while tenants’ rights are upheld.

Early in the pandemic, our experienced property managers reached out to property owners who were able to offer rental forbearance and rent reductions. Together with property owners, our managers were able to place tenants on individual rental payment plans tailored to their financial situations. Fortunately, government and nonprofit organizations stepped in to offer rental assistance to those in need. These programs not only helped many tenants to get back on track, but helped to keep them current on their rent. Some tenants were able to prepay their rent until the end of the year.

Locations’ property managers have been highly successful in collecting overdue rent payments for our Oahu clients. Only half a percent (0.5%) of our tenants were four or more months behind in rent payments as of August 2021.

Rising home values could displace renters

As we’ve emerged from the worst of the pandemic-induced health and economic crisis, an interesting shift has occurred in the housing and rental markets. The Oahu housing market has rebounded (and then some!) from the effects of the pandemic, reaching record-high median prices for single-family homes and condos in May 2021 . Rising home values, cash offers and homes sold for above the asking price, have led some property owners to consider selling, which could displace many long-term tenants. If fewer rental properties are available, rents will likely tick up further.

Strong demand, limited rental inventory

There’s always been strong demand for housing, and rental housing, in Hawaii. As remote work has gained in popularity during the pandemic, many workers—particularly high earners—have found Hawaii to be an ideal work-from-home location. Hawaii’s relatively low COVID-19 rates, desirable weather and abundance of outdoor recreational activities has attracted an influx of remote workers. As demand for rental housing on Oahu continues to climb, rents are likely to increase, too.

What’s next for Oahu’s rental housing market

Oahu’s rental housing market is likely to get more competitive as housing prices climb and for-sale inventory remains low. It’s not unusual for us to receive multiple applications per rental property—one indicator of strong demand.

Like home prices, rental rates vary greatly by neighborhood, but overall Oahu rental rates have increased by one to three percent.

Oahu property owners who are still managing their own properties owe it to themselves to consult with a licensed, reputable property manager, like the professionals at Locations, to ensure their investment is performing to the best of its ability.

If you’re thinking of listing your property for rent, contact Locations Property Management to see how we can help you to maximize your rental income.

What Does the End of Hawaii’s Eviction Moratorium Mean for Landlords?

Wed, 11 Aug 2021 21:28:08 GMT

Now that Hawaii’s economy and its workers have recovered from the worst of the pandemic, landlords again have the option to require tenants who are behind on rent and unable to pay past-due rent and fees to vacate their rental property.

Hawaii Governor David Ige announced the end of Hawaii’s Eviction Moratorium on August 6, 2021. The eviction moratorium has been replaced by Act 57 in HB 1376, which allows Hawaii’s courts to hear additional evictions.

The eviction moratorium, or pause in evictions, was enacted by Gov. Ige in April 2020 in response to the COVID-19 pandemic and its resulting effect on the economy.

What does HB 1376 do?

HB 1376 does the following:

Extends the required period for a notice of termination of the rental agreement from five days to 15 days.
Requires landlords to provide notice with specified terms and enter into mediation.
Delays when a landlord may seek possession of a rental unit if the tenant schedules or attempts to schedule mediation.
Requires landlords to provide the notice of termination of the rental agreement to a mediation center that offers free residential landlord-tenant mediation.

The bill also restricts when a landlord can take the above actions depending on the amount of rent due. To find out how HB 1376 affects you and your rental property, contact your Locations property manager.

How will Hawaii’s courts handle eviction cases?

Hawaii’s courts will take a tiered approach to hearing eviction cases, so they do not become overwhelmed. Landlords who have tenants who are four or more months behind in rent payments may file for eviction first.

After those cases have been heard, the courts are expected to then move on to cases in which the tenants are three months behind in rent, followed by two months behind, and finally, one month behind.

Where can Hawaii landlords find mediation services?

HB 1376 also requires mandatory mediation between landlords and tenants before appearing in court.

Hawaii tenants will have 15 days to respond to the court’s mediation requirement and 30 days to complete mediation.

Landlords who wish to initiate the mediation process can contact the Mediation Center of the Pacific on Oahu at mediatehawaii.org or Maui Mediation Services at mauimediation.org for Maui County.

How can your property manager assist you now that Hawaii’s eviction moratorium has ended?

Since everyone’s situation is different, it’s best to consult your Hawaii property manager to discuss your options.

At Locations Property Management, we understand the need to approach landlord-tenant issues, particularly eviction, with compassion. Your Locations property manager can advise you on how to best meet your goals for your investment property and navigate these challenging times.

Do I Need a Property Manager for my Hawaii Rental Property?

Wed, 02 Jun 2021 21:35:43 GMT

The short answer is yes.

There are several benefits to hiring a professional property manager to oversee your rental property. A property manager acts as a buffer between the property owner and tenants—taking the headache out of owning and operating a rental property.

Furthermore, if you do not live in Hawaii, you will need to retain a property manager, since Hawaii law requires landlords who do not reside in Hawaii (or who reside on a different island than their rental property) to hire a property manager on the same island as the property.

What does a Property Manager do?

A property manager can help to find qualified tenants, collect rent payments, ensure that the property is well-maintained, and handle maintenance requests and other tenant issues. Property managers can also help to oversee evictions and other legal processes.

Assess the property

A property manager will visit the property to determine if any repairs or upgrades are needed before you can list the property for rent. Your property manager will also help you to determine market rent for your property, so that you can maximize your profit.

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Market the property

A property manager will also take photos of your property and advertise it where the most potential renters will see it. When you list your rental property with Locations, we’ll ensure that it’s advertised on our website and Oahu’s Multiple Listing Service (MLS), as well as various property rental websites, like Rentals.com and apartments.com, rental publications and our own network of real estate agents. The result: Minimal vacancy time and the maximum rental income that the market will allow.

Screen prospective tenants

A property manager will process rental applications to identify qualified tenants for your property. This includes running credit checks, national background checks and verifying prospective tenants’ income. By properly screening prospective tenants, a property manager can help you to avoid many potential issues down the road, like tenants who have a history of failing to pay rent or have left previous rental properties in poor condition.

Manage paperwork and collect rent

A property manager will ensure that the rental agreement is signed by both parties, and that the tenants understand and agree to adhere to all the terms of the contract.

A property manager will also ensure that your tenants pay their rent in a timely manner, so that it can be distributed to you on a reliable schedule each month. If a tenant fails to pay their rent on time, a property manager is able to enforce rent collection, including collecting late fees and, if necessary, initiate the eviction process.

Handle maintenance requests

When tenants encounter a maintenance issue, such as a broken refrigerator or a leaky faucet, a property manager will coordinate repairs, including letting maintenance personnel into the property and determining which party is responsible for repair or replacement costs.

A property manager will also conduct routine periodic property inspections to ensure that your property is maintained properly.

Deal with legal issues

Property managers are well-versed in landlord-tenant laws, so if issues arise with your tenants, they are able to resolve them in a manner that can help you, the landlord, to avoid a costly lawsuit. Some of the legal issues that property managers handle include lease negotiations and terminations, rent collection and evictions.

Property managers will also ensure that your rental complies with property codes and safety laws, such as disclosing lead-based paint and making sure there is a working smoke detector in the home.

How much does it cost to hire a property manager?

Property management fees vary, but the industry standard is 10 percent of the property’s gross annual rent. This fee structure incentivizes property managers to find (and keep!) qualified tenants.

To learn how Locations Property Management can help you to manage your rental property, please contact us at (808) 738-3100.