Skip to content Sitemap

Blog

The True Cost of Renting Out Your Home’s Space Separately

Rent is far from the only factor to consider when you’re thinking about renting out multiple rooms in your home to different tenants.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

A homeowner recently called me wanting to know, “How can I rent all five rooms out separately in my home?” This wasn’t the first time this question has been posed to me, so I decided it’d be a good topic to cover today.

Whenever I’m asked this question, I’m quick to point out one of the biggest problems that could arise: Oftentimes, roommates simply don’t get along and aren’t cooperative.

“The fact is when you bring five strangers with diverse personalities into one setting as tenants, it’s very tough to manage and keep the peace.”

Further, the more tenants you have in your space, the greater the chances that this will occur, and I can promise you that all of them will be operating on a different schedule. Having five tenants share the expenses for water, electricity, cable, internet, garbage, and mail, and so on is a definite recipe for conflict.

People in Hawaii have a tendency to cite the supposed success that their family members have experienced in doing this in their home. The fact is when you bring five strangers with diverse personalities into one setting as tenants, it’s very tough to manage and keep the peace.

If you want my opinion, renting out your space in this fashion is a bad idea. Verbal conflict is one thing, but it can sometimes lead to physical conflict, at which point the police will have to get involved. This is something that’s actually happened at one of our own units. I don’t like dealing with these types of situations, and I don’t think you want to either.

If you have any questions or you’d like some advice on some alternative solutions to renting out space in your property, please reach out by calling us at 808-445-9223, emailing us at Info@HIPacific.com, or by visiting us online at HIPacific.com. We’ll talk to you soon!

Why You Should Always Offer Parking With Your Rental Properties

If you’re going to rent a home out here in Hawaii, you’re going to need parking. Here’s why.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

One issue that people often ask me about is whether or not they need to offer parking. Sometimes, investors can get a huge discount on a unit by not offering parking. On the rest of the island, however, there’s no parking unless you pay for it. There’s a parking shortage, as I’m sure most of you are aware.

If you don’t have a parking space for your unit, however, you can forget about renting that unit out. Where is your tenant or their guests going to park? Where will we park when we go to service the unit with a plumber or electrician?

“If you have a parking space, you have options.”

If you have an investment question about a parking space and if it’s worth it to add one, that’s a good idea. If you have a parking space, you have options. If you don’t, I probably won’t manage your unit because it will be so hard to show and find a tenant for your unit. The bottom line is that you need to have parking and no much is too much. Our island doesn’t have enough parking as it is. Do what you can to add more and you’ll reap the benefits.

If you have any questions for me in the meantime about your parking situation or anything else related to the management of your investment property, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

The 2 Reasons You Would Hire a Property Manager

If you truly want to protect your rental and make money off of it, you need to hire a property manager.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

As I always say, there are two reasons why you would hire a property manager:

1. To protect your home

2. To make you money

How does a property manager accomplish these things for you? Let me tell you how we at HI Pacific Property Management do the same thing for our clients.

“We take these responsibilities very seriously, which is why we have rent guarantees, eviction guarantees, and communication guarantees.”

To protect your home, we do thorough four- and six-month inspections. If you have tenants moving into your home who have pets, we also make them sign a property condition form.

How do we put money in your account? We set up an automatic payment system with your tenants so that you get paid on the fifth of each month—unlike most other states, Hawaii does not have a five-day grace period. The only exceptions are Labor Day and the Fourth of July weekend.

We take these responsibilities very seriously, which is why we have rent guarantees, eviction guarantees, and communication guarantees.

On that note, if you have any questions about the benefits of hiring a property manager or the way we do business, don’t hesitate to reach out to me. I’d love to speak with you.

How to Make More Money on Your Investment With Pets

Should you allow your tenants to bring pets into your rental property? If you’re charging a pet deposit, I think it’s a no-brainer.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

If you’re a single-family homeowner/investor and are wondering whether you should allow your tenants to have pets or not, I’ve got some advice for you today. Pet deposits can be taken in addition to your security deposit and it can be up to one month of rent. You can’t take a child deposit or a spousal deposit, but you can take a pet deposit.

“More damage is done by termites and house guests than pets.”

I would say that seven out of every 10 applicants that are looking for a home to rent today have a pet. I will also tell you that pet owners are more conscious about their pets these days. A lot of times, more damage is done by guests, termites, and people other than by pets. The pet damage we’ve seen is actually very minimal, and if something does happen, you can just keep the deposit.

If you have any questions about this topic or about anything else related to the management of your property, don’t hesitate to give us a call or send us an email. I look forward to hearing from you soon.

Why Loss-of-Rent Coverage Is a Must

Loss-of-rent coverage is an essential for property owners, especially here in Hawaii. Here’s how it works.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

Did you know that there is insurance you can get that will cover you in the loss of a tenant or in the loss of your rental home? It’s called loss-of-rent coverage, and here’s how it works.

Insurance companies will give you coverage for liability, loss of property in your home, and more. For just a few dollars every year, they will pick up the face value of your lease in the event that your home becomes uninhabitable due to fire, flood, or another catastrophe. Make sure you get no-cap coverage, because the company will probably only give you three months of it otherwise.

“Make sure to get no-cap coverage.”

This is an important step in protecting your investment and your lease income. If you have any questions about this type of coverage, call your insurance specialist today.

If you have any other questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

The Hammer Is Coming Down on Vacation Rentals

They’re cracking down on vacation rental properties. Here’s what that means for you.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

I get a lot of calls and questions about vacation rentals. They ask me, “Can I make my home on Kailua a vacation rental?”

Regardless of what you’ve seen your neighbors do, the answer is no. The question about vacation rentals is about to end; it’s been up for a vote and on the city council’s docket for the last two sessions, and they’re trying to end it. And recently, we found out the mayor is going to end the question for good.

There are three main areas of Honolulu that allow vacation rentals:

  1. Waikiki, which has a zone for mixed-use rentals.
  2. Ko Olina, which is zoned as a vacation rental, mixed-use housing area.
  3. Turtle Bay, which has grandfathered-in transit accommodation units.

If you’re in a residential area, there are fines coming down the pipeline. These will be anywhere from $10,000 to $100,000 per day, which will be levied against the homeowner. If you’re considering vacation rentals, you have to decide if it’s worth it. Personally, I don’t even get involved because I don’t want to bring bad news to owners about fines.

“If you’re currently in the vacation rental business, things are about to get scary. “

They’re saying there are currently 8,000 illegal vacation homes—only 800 are legal.

If you’re currently in the vacation rental business, things are about to get scary. You should ask your property manager what’s going to happen in the near future. In the meantime, if you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

 

Why Your Property Manager Needs Move-Out Addendums

Today I’ll go over how to present a tenant with what to expect when they move out.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

Here at Hawaii Property Management, we have all of our tenants sign a move-out addendum. This 15-point document states what the buyer must do when they decide to move out of one of our properties. By signing the addendum, tenants are required to do things like getting the carpets professionally cleaned and generally making sure the property is in the exact condition determined by the property condition form as when they moved in.

The property condition form is filled out and completed by a property manager prior to the tenant moving in. That way, we have a good basis for what the unit’s conditions were like at the time it was passed into the care of the tenant upon moving in.

We also do a 10-day walkthrough with the tenant after they move in to make sure the property condition form, the move-out addendum, and all the other documents filled out leave no room for surprises on the tenant’s part.

“Our goal is to prevent any sort of confusion in the process as a measure to protect the owners of the properties.”

We’ve been in a couple situations where we’ve taken over a tenant from another property manager, only to find that there were no addendums signed and no property condition forms filled out—there was only the five-page Hawaii Association of Realtors lease. That’s it.

If you have a property manager who doesn’t do a move-out addendum and a property condition form, you’ll have no way of knowing what the unit looks like when the tenant moves out.

Our goal is to prevent any sort of confusion in the process as a measure to protect the owners of the properties.

If you have any questions about this topic, feel free to reach out to me. I’d be glad to help and advise you.

Our Eviction Guarantee & How Much of a Difference-Maker It Can Be for You

Evicting a tenant can be such a hassle, but the eviction guarantee we offer to you, the owner, lifts that financial burden off your shoulders.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

Property management companies can be distinguished by the services they offer. One additional service we offer owners is the “eviction guarantee.” You aren’t likely to find this service offered through other management companies.

If you’re unfamiliar with how this guarantee works, allow me to explain: If we put a tenant in your property, and they must be legally evicted by way of Hawaii’s landlord-tenant code, we promise to pay all legal fees.

This puts a check on us and ensures that we don’t become complacent in our selection of tenant applicants. In fact, this is a chief reason why I got into this business—I could never find a property manager that could be held responsible for this painstaking process.

“If we put a tenant in your property, and they must be legally evicted by way of Hawaii’s landlord-tenant code, we promise to pay all legal fees.”

It’s our job to be diligent in conducting background checks and to make the necessary calls up front. Otherwise, we risk letting in a tenant that is evasive about rent payments or worse. Ask yourself: Who pays for that? If you’re with any other property manager, you’ll be on the hook for legal costs relating to the eviction, and I’ve seen that run anywhere from $1,000 to $6,000.

What will you get with us?

We’ll run checks on their background, credit, income statements, LES statement, their job contract, and we’ll also check with their last two landlords. These sorts of checks are all very important, and, along with our eviction guarantee, they’re part of the package when you work with us.

If you have any questions regarding the eviction guarantee and what we can do for you, as an owner, please give us a call at 808-445-9223. I look forward to speaking with you and answering your questions directly!

How Monster Homes Can Adversely Affect You

Local officials are getting ready to drop the hammer on so-called ‘monster homes.’ Here’s what you need to know.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

Our city government has passed laws, changed laws, and done everything else in their power to discourage developers from building what some call ‘monster homes,’ which are huge homes that can have upward of 20 rooms inside.

In fact, a home that was featured on the front page of our local paper has 28 rooms in it! Where do these people park? What are they doing to the sewer system? What if someone leaves a burner on and the whole house catches fire?

These monster homes are changing the face of the rental market. If one of these homes is next door to you, it will affect many things, including the ingress and egress of your own residential street. These developers often are doing things that are illegal. If you’ve been following this issue like I have, you’ll know that even people who are trying to abide by the law are having issues getting their permits approved—including myself.

“If you’re in contact with a councilmember or senator, it might be a good idea to share with them your opinion on the subject.”

This is a very sore subject for me. The building department holds people like me to the same standard as they do for developers building monster homes, but those developers don’t get fined.

However, they’re now going to levy $25,000 to $100,000 fines per day on these developers, who may eventually have to knock down the monster houses they’re building. It’s a big deal.

If you’re in contact with a councilmember or senator, it might be a good idea to share with them your opinion on the subject.

If you have any questions about this or other real estate issues in Hawaii, please don’t hesitate to reach out to me. I’d love to further educate you.

When Can the Security Deposit Be Retained?

When does a property owner have the right to keep the security deposit and when don’t they? I’ll answer that question in detail today.

Find Out How Much Your Home Will Rent For in Today’s Market

Learn More About Guaranteed Rent

 

The topic of the security deposit is one I’ve previously covered, but it warrants further discussion. From my experience, nothing is more hotly contested or talked about in property management than security deposits, and problems often arise on both the tenant and owner sides.

When and for what reason can a security deposit be kept? This is often a source of contention between tenants and owners, and I’d like to shed some light on this for owners: Security deposits can only be retained for damages or a broken lease.

Let’s first consider a situation where damage might be involved. Say a tenant is moving out of the unit in a timely fashion, but there is damage left behind. The onus lies with the owner to give notice and quotes for repair costs to that tenant within 14 calendar days.

“Security deposits can only be retained for damages or a broken lease. “

We as property managers hold the security deposits, so if an owner is not letting us know what’s going on and not acting within that 14-day window allowed by law, it’s punishable in civil court by up to three times the penalty. That two-week window takes effect the day the tenants turn in their keys.

Now, what if a tenant breaks their lease? If, for any reason, a tenant decides to leave the property prior to the lease’s end, property management reserves the right to retain the security deposit.

For any questions about what I covered today, whether you’re an owner or a tenant, go ahead and give your HI Pacific property manager a call. They’d be happy to share their knowledge of the 29-page landlord-tenant code with you.

Next Page »