foster-realty-v2

Expect the Unexpected

Sat, 31 Jan 2026 01:39:17 GMT

There are several things that first-time landlords often don’t consider when they buy a rental

property. Take John, for example. He bought his first rental property thinking it would be simple:

collect the rent each month, pay the mortgage, and pocket the rest. For the first few months,

things went smoothly. But then the tenant lost his job, moved out early, and left the place a mess

and without paying the last month’s rent. John spent his weekends cleaning up, only to have the

water heater give out the next week. To make matters worse, his HOA sent him notice that

maintenance fees were increasing by $100 a month.

Unfortunately, John’s story isn’t unusual. Here are some ideas for aspiring landlords.

No matter how strong the rental market seems, there will always be downtime between tenants.

Smart landlords plan for one to two months of vacancy every year so they’re not blindsided

when the rent stops coming in.

Maintenance fees, property taxes, and insurance rarely stay the same. Landlord insurance costs

more than a standard homeowner’s policy, and it’s important to build these rising expenses into

your budget.

Plumbing leaks, broken appliances, pest infestations—these are inevitable. Our salty air and

humidity only speed up the wear and tear on properties. And then there are the big-ticket items:

roofs, windows, or even foundation issues. A good rule of thumb is to set aside about 10% of the

rent each month for repairs and maintenance.

Even the best tenants don’t always return a property in “move-in ready” condition. Repainting,

landscaping, and other turnover costs are part of the cycle.

New landlords sometimes forget to budget for professional services. From property managers to

accountants to attorneys, having the right team can save you money in the long run.

Landlords who succeed aren’t just collecting checks; they’re running a small business. The key

is to expect the unexpected by planning for vacancies, rising costs, repairs, and turnover. If you

budget wisely, set aside reserves, and treat your property like an investment instead of a gamble,

Hidden Stories Behind Abandoned Homes

Sat, 31 Jan 2026 01:27:57 GMT

We have all seen them. The mailbox is leaning against the fence, stuffed with unopened letters and junk mail, and the grass is so tall it hides the front steps. No one’s been home for a long time. Every community has a house everyone drives past and wonders about. Perhaps the owner passed away, the family relocated to the mainland, or the bank has yet to complete the foreclosure. Whatever the reason, each abandoned home has a story to tell.

In real estate, we often see homes frozen in time. Life has stopped, but the house waits. Sometimes, it happens suddenly, such as when a homeowner dies without a will or kupuna move into care. At other times, financial hardship leaves the property in limbo, neither sold nor properly maintained. Delays or disagreements can leave homes sitting vacant for years. On average, it takes approximately six years to complete the foreclosure process in Hawai’i.

In just a few months, stray cats move in, paint peels, vines climb walls, and everything seems to rust in the salt air. For neighbors, the sight of an abandoned home can be heartbreaking and upsetting, as these overgrown lots often attract pests, dumping, and trespassing, including squatters who occupy them for illegal activity, which can persist for years. However, even the worst can be brought back to life with patience and vision.

If there’s an abandoned property on your street, don’t look away. Report safety issues and stay involved. And if you’re a homeowner, take steps now to keep your property out of limbo by creating a will or trust and communicating with your family. These small steps can prevent your home from becoming another boarded-up property in the neighborhood.

Land Scams

elsie@foster-realty.com (Sylvia Foster) — Sat, 26 Apr 2025 02:12:49 GMT

Be aware of these sophisticated criminals!

Land scams have been around for years, but they have recently surged along the Waiʻanae Coast. Scammers, posing as property owners, attempt to sell land they do not own—often targeting vacant lots where there is no one present to intervene.

These fraudsters communicate exclusively online, using fake identification and fraudulent notary services to complete transactions. By listing properties well below market value, they entice eager buyers into rushing the deal. Some of these fraudulent sales have even made it to closing, with scammers walking away with hundreds of thousands of dollars before anyone realizes the deception. They typically seek out vacant properties with no mortgage, making the sale process easier and less likely to raise red flags. Because they are always located outside Hawaiʻi, they refuse to meet in person or via video, making verification more difficult.

In some cases, the real owner discovers the scam before it’s too late. They might drive by and notice a "For Sale" sign on their land, receive an unexpected notice in the mail or hear from a neighbor asking about the listing. Some only realize something is wrong after the sale and the property taxes have been paid by someone else or, in extreme cases, when construction begins.

The FBI reports that these scams are on the rise across the country, and real estate professionals are becoming more vigilant. However, scammers often bypass agents and target buyers directly. Verifying ownership is crucial, but it is not always easy since scammers use highly convincing fake documents. Asking questions only the real owner would know can help uncover fraud before it’s too late. While these criminals are becoming more sophisticated, taking extra precautions can prevent devastating financial loss.

Selling Quickly in a Competitive Market

Fri, 25 Apr 2025 18:28:44 GMT

How to stand out from the crowd!

The real estate market can be tricky to navigate, especially when there is a lot of competition. Standing out from the crowd becomes crucial to securing a buyer quickly. To increase the likelihood of a fast sale, it's essential to focus on the aspects of your property that will make it more appealing to buyers.

When it comes to what buyers are looking for, the kitchen and bathrooms are at the top of the list. These areas significantly impact a buyer's impression of a home, and an outdated or poorly maintained kitchen or bathroom can make the entire property feel less desirable. If you can afford it, consider renovating your kitchen and bathrooms.

Whether it's hardwood, laminate, or even high-quality vinyl, installing new flooring can make a world of difference. Buyers are increasingly moving away from carpeting these days. If replacing the entire flooring isn’t in your budget, consider installing new flooring in high-traffic areas like the kitchen, living room, or bathrooms.

If you’re on a tight budget, there are still plenty of affordable ways to improve your home and increase its appeal to buyers. A fresh coat of paint with new light switch plates and outlet covers can work wonders. If you can, remove old blinds or curtains. If replacing your cabinets isn’t an option, you can still make them look new by refinishing or painting them. Adding new knobs or handles can also make a big difference in modernizing their appearance. It can be tempting to tackle some projects on your own. However, if you’re not an expert, leaving certain tasks to professionals is better. The little imperfections that result from DIY projects can make even high-end materials look cheap, which could turn off buyers. Those flooring jobs are not as easy as they look!

While it's important to make your home stand out, don't go overboard with improvements that exceed the average home value in your neighborhood. Make sure your renovations and upgrades align with the value of other homes in your area.

With the increasing inventory of properties in some areas, it’s important to make your home stand out to potential buyers. Focus on the areas that will give you the best return on investment. Focusing on these improvements can boost your chances of selling quickly in a competitive market.

Summer Security Tips

Mon, 24 Jun 2024 22:22:07 GMT

Protect your home from thieves

Summer is prime time for home burglaries, especially between 10:00 am and 3:00 pm when most people are out. Summer is also when many of us go on vacation, leaving our homes vulnerable. While determined thieves may find a way in, there are several steps you can take to make your home less inviting to them.

First, consider installing home cameras. They are much more affordable now and can deter potential intruders just by being visible. Signage that indicates you have a security system or a dog may help. Motion detectors with bright lights are another effective measure, as sudden illumination can scare off would-be burglars. Additionally, keeping trees and hedges trimmed eliminates hiding spots, making it harder for thieves to lurk unnoticed.

Always lock your doors and windows, even if you are going out for just a moment. If you have deadbolts on your doors, use them. Surprisingly, many burglars simply walk in through an unlocked front door. If that’s secured, they often turn to first-floor windows. Lock and put a stick in sliding door and window tracks. Avoid leaving spare keys under mats or rocks—these are the first places thieves check. Have some slippers by the front and back doors instead. Leaving a television or radio on can also create the illusion that someone is home.

When you are away on vacation, make sure your home does not look deserted. Have a friend or neighbor collect your mail, or ask the post office to hold it. Arrange for someone to mow your lawn and bring in empty trash cans. Using a timer attached to a lamp can light up the house at night. A neighbor parking in your driveway can also make your home appear occupied.

These are just a few strategies to help safeguard your home. For more comprehensive advice, contact a security company or HPD.

NAR Lawsuits

Mon, 20 May 2024 21:43:49 GMT

The media is not telling the whole story.

There has been extensive media coverage regarding the recent lawsuits against the National Association of REALTORS® (NAR.) Unfortunately, some of this coverage is inaccurate so this is an attempt to explain the lawsuits and some of the changes that will soon affect all buyers and sellers under the currently proposed settlement agreement.

The NAR is the countryʻs largest trade organization with approximately 1.5 million real estate agents and others in the industry. The original class action lawsuits were filed in Illinois and Missouri and several copycat lawsuits followed. The argument was that sellers have been damaged by listing brokers who offer to share their commission with buyersʻ brokers which has led to fixed and inflated commissions. The bottom line is that some sellers felt that there has not been enough transparency regarding how real estate agents are compensated.

Instead of spending years litigating, the NAR has decided to accept the proposed settlement agreement which will change how agents do business. The settlement agreement has yet to be finalized, but as of this writing, we can expect to see changes as of mid-July. Sellers will now be banned from advertising the commission paid to buyer agents in the Multiple Listing Service (MLS.) Buyers will not be able to view properties for sale until they sign a “Buyer Representation Agreement” which formalizes the relationship and expectations between the buyer and the agent. If the seller does not wish to compensate a buyerʻs agent, the buyer will have to pay the agent. This could be a real dilemma for buyers with limited funds.

As with any big change, the fees and services will likely evolve as everyone gets accustomed to this new way of doing business. The most important thing to understand is that real estate commissions have always been negotiable. Complete transparency by all parties is the key to trust, integrity, and ethical behavior.

What's in an Interest Rate?

Thu, 21 Dec 2023 00:43:16 GMT

Interest Rates and Real Estate

A mortgage is defined as a loan used to buy a house. The buyer agrees to pay back the loan over time, typically 30 years with payments that include principal (the amount of the house) plus the interest (the charge for borrowing the money). The property is the lender’s collateral. In the same way a car is repossessed if car payments are not made, failure to make payments on a mortgage will result in foreclosure.

Mortgage interest rates make a huge difference in a buyer’s ability to finance a home and make the monthly payment. Mortgage rates are determined by several factors including the economy and inflation. Some may remember that mortgage interest rates climbed to over 18% back in the 1980s. This is truly hard to imagine especially when comparing it to the record low of 2.65% in 2021 that was caused by the pandemic. Today the interest rate for a fixed 30-year mortgage is hovering around 7% with indications that it will be even lower in 2024.

Mortgage interest rates change all of the time and there is no way to predict them. Things can happen that can cause a drastic change. The pandemic was a good example. Other changes can be brought about by the election of a new administration. As consumers, we do not have any control over these things. However, buyers with the best financial situations obtain the lowest possible interest rate so it is a good idea for buyers to keep their credit score as high as possible and build their savings. A credit score of 670 and above is generally considered good. The more money a buyer can put down and the higher their credit score, the lower their interest rate will be.

Quick Fixes

Mon, 17 Jul 2023 01:48:51 GMT

You can do it yourself!

Property Managers regularly receive maintenance calls that are easy to remedy. Below are some of the most common with a few quick-fix ideas that may save you some time, money, and frustration.

Smoke Detectors: If a smoke detector is chirping and there is no fire, it needs a new battery. If it keeps chirping or if it is over ten (10) years old, it should be completely replaced. Some properties now require a carbon monoxide detector so it makes sense to replace old smoke detectors with a combination unit. There are fancier hardwired models that connect to each other and others that can connect to your cell phone.

Electrical: It is particularly frustrating when an electrician is hired only to flip a switch. If something is not working, check your circuit breakers to see if any tripped. Flip them off and back on again. If applicable, check the GFIC outlet by pressing the reset button. Sometimes it is the item being plugged in that is faulty. Plug something else into the outlet and see if it works. If you still don’t have power, it is time to call an electrician.

Garbage Disposals: Like any appliance, disposals can sometimes overheat and stop working. There is usually a small reset bottom on the bottom of the disposal. If this doesn’t work and you can hear it humming, that usually means it is stuck. Using a disposal wrench which is sometimes taped to the outside of the disposal, can loosen the blades inside. If there is no wrench available, turn off the disposal at the breaker and use the handle of a plunger or a broomstick to try to move the blades around. If this doesn’t work or if there is no sound at all, it may require replacement.

Refrigerators: Sometimes all a refrigerator needs is to be defrosted. Ice can build up internally and shut things down. Sometimes it just needs a little kickstart. Both can be accomplished by unplugging the fridge completely from the wall (not just turning it off). Let it sit for a few hours and try again.

Faucets: If water sprays out in all directions when it comes out of a faucet, you may be missing a little attachment at the end of the faucet called an aerator. They are very inexpensive and can be found at all hardware stores. If you have low water pressure from one fixture, the existing aerator may be clogged and needs to be cleaned or replaced.

It is important to note that in some instances, a licensed contractor is required, especially in the case of electrical issues or major plumbing problems. You can check a contractor’s license status at https://mypvl.dcca.hawaii.gov/public-license-search/

What is Your Property REALLY Worth?

Mon, 17 Jul 2023 01:40:34 GMT

Where do you find the correct information?

There are several options for finding out the value of your property but the results can be very different. It is important to know which option is providing you with accurate information.

Zillow and other similar online programs provide estimates of value. Zillow estimates are called “Zestimates.” Algorithms that use various public information sources calculate these estimates of value. While they can be correct, especially if the property was sold recently, the numbers are often wrong. They do not consider the condition or special features of the property. Also, the sales information they use is sometimes very old. The values given by Zillow are not reliable enough to be used to obtain financing but can give you a ballpark number.

The Honolulu City and County’s yearly tax assessment can also provide an estimate of your property’s value but it also has problems. For example, the tax assessor may not know that your property has a better view than other properties that have sold recently. They also make no adjustment for a leasehold property versus a fee simple property. In these examples, the difference can be substantial and the taxpayer is paying property taxes based on the assessment. About 1,300 to 1,700 homeowners appeal their property tax assessment every year.

A real estate agent can provide a Broker Price Opinion, or a Comparative Market Analysis (CMA). These tend to be more accurate than tax assessments or online websites because the agent has access to the most recent sold data and knows more about the area and potential buyer preferences. It is important to select an agent that is familiar with the neighborhood and allow them access to the property to improve the reliability of the value provided.

While these options can provide you with some information, there is no substitute for an appraisal by a Hawaii-licensed and certified appraiser. An appraisal can cost between $550 and $800 for a typical single-family home. It is usually required by the lender to obtain a loan to purchase a home or to refinance an existing property. Sometimes a homeowner will have an appraisal done prior to listing for sale if it is an unusual property with special conditions or there are no comparable sales in recent history.

Who is Buying Real Estate?

Fri, 16 Jun 2023 23:41:24 GMT

Which generation are you?

Which age group is investing in real estate today? Did you guess the Millennials? Yes, the largest group in the population is the Millennial Generation (born 1981 -1996), also known as Generation Y. They are also the group buying the most homes in today’s market and they are mostly first time homebuyers. Millennial income increased dramatically during the pandemic and approximately 37% of current homebuyers are from this group.

Millennials are followed closely by the Baby Boomers (born 1946 - 1964) who are often selling their first homes and buying their “forever” homes. Boomers also tend to move the farthest to be closer to family.

Interestingly, Generation X (born 1965 – 1980) has the most money, but they come in third place. This may be because they are the ones that are the hardest hit by changes in the economy. They also tend to be the group that buys the most expensive properties.

The Traditionalists (born 1928 to 1945) come in next. One of the smaller populations, this group was also known as The Silent Generation because they were busy working hard during World War II and the bad economic times of the Depression and did not speak out as did other generations. This group buys the smallest properties.

The Greatest Generation (born before 1928) is a naturally dwindling population, accounting for the fewest number of real estate sales.

Generation Z (born 1997 – 2009) is the next generation that will take over as first-time homebuyers. Strong numbers are coming in for this group indicating that they have already learned the value of homeownership.

Our children and grandchildren will follow in Generation Alpha (born 2010 – 2024) and Generation Beta will be born between 2025 and 2039. Generation Alpha is currently predicted to be the wealthiest generation of all time.

Time for a New Roof?

Fri, 03 Mar 2023 07:11:02 GMT

Ideas for Maintaining, Repairing or Replacing

W ith all of the recent rain, we have been reminded that many of the homes in our community are in need of new roofs. Aside from active leaks appearing inside the house, there could be other signs that your roof needs attention including ceiling stains, mold development and shingles in your yard.

A roof should last a minimum of 25 to 30 years but there are easy ways to help ensure it lasts as long as possible. Like anything else, roofs require regular maintenance. Walk around your house and see if there are any trees growing over it. In addition to the danger caused if a large branch were to break off and land on the roof, the wind can cause damage with leaves dragging back and forth on the shingles. If your roof is old, it is a good idea to have a professional inspect it and remove any piles of old leaves and other rubbish.

Some homes are “attached” meaning they share a wall with the neighbor, which is different from a duplex that is owned by one person. In some projects, the Homeowner’s Association replaces the roofs when needed with funds from the owner maintenance fees. In other projects, cooperation between neighbors is critical. One neighbor may refuse or be unable to afford a new roof on his side. If this happens you can end up having to replace your side only and the two sides will be mismatched and unsightly. More importantly, it is unlikely that the roofing company will provide a warranty under these circumstances. Owners of attached homes should plan early with their neighbor for replacing their roofs.

If you have any questions or concerns, consult with a professional to have a look at your roof.

Understanding Dual Agency

Tue, 24 Jan 2023 22:17:16 GMT

Who represents who?

Dual agency occurs when both the seller and the buyer have the same real estate brokerage representing them as a fiduciary. In real estate, fiduciary duty to a client requires that the agent maintain duty of care, duty of loyalty and duty of obedience to their client. A dual agency situation is created if the buyer works with the listing agent or another agent within the same company.

Most would agree that it is impossible for an agent to obtain the highest price possible for the seller while getting the best deal for the buyer. This is why dual agency is illegal in several states. In Hawaiʻi, dual agency is permitted as long as disclosure is made to all parties. Some experienced Buyers will go directly to the listing agent for representation because they feel they could potentially get a better deal because the seller may be saving on the commission. For the most part, dual agency should be avoided whenever possible.

If you are looking to buy, seeking out an agent that specializes in buyer representation is a good idea. However, buyers do not have to hire another agent if they prefer to work with the listing agent or another agent within the same company. The agent can work with the buyer as a “customer” instead of a client. In this way, the agent does not have a fiduciary duty to the buyer but still must treat them honestly and fairly. The agent can assist the buyer with all of the details to get them to closing, but they cannot negotiate on their behalf.

Dual agency can be confusing and create a conflict of interest. Ask your agent to clarify agency prior to signing any documents and talk to an attorney if you have concerns.

"We Buy Houses"

Thu, 22 Dec 2022 18:56:09 GMT

Legit or scam?

T here are “We Buy Houses Fast” or similar signs on many street corners in our neighborhoods and you may have wondered what they are about and if it is a scam.

The short answer is maybe it is, maybe it is not. Legitimate buyers that post these signs are “flippers” who are looking for homes in disrepair or poor condition that the owner will sell for a price below market value. This can be advantageous for the homeowner who needs to get out of the property quickly and does not have the ability or desire to do any repairs needed for a buyer to obtain financing.

One of the worst scams involves a buyer convincing the homeowner to sign over the title to the property. The buyer then rents it out and pockets all of the rent money while nobody is paying the mortgage. This can go on for years until the property goes into foreclosure and the scam is revealed.

Another popular tactic used by con artists is to send the seller a check that is far more than the amount of the sale. They immediately ask for a refund of the difference before the check clears. The check will bounce of course and the homeowner has lost the money that was sent back.

Other scams include asking the homeowner to pay a fee for the potential buyer to evaluate the property. If someone asks for money to look at your property or wants to buy it without even seeing it, back away. A seller should not have to pay for anything upfront. It is also a red flag if they are rushing you or trying to get you to sign a contact right away. Never sign a deed outside of escrow and always reach out to a real estate professional if you have questions or are uncomfortable.

Remember that if it sounds too good to be true, it probably

Lead-Based Paint

Wed, 23 Nov 2022 18:13:38 GMT

Affects property built before 1978

Lead-based paint has been in the news recently with reportedly high levels discovered in public areas including the gun range, a day care center, and the water supply of numerous Hawaiʻi schools.

Most paint manufactured prior to 1978 contain lead. More than half of Hawaiʻi’s homes were built before 1980. It is estimated that 69% of homes built in Hawaiʻi between 1940 to 1959, and as much as 89% of homes built before 1940 contain lead-based paint.

In real estate, if the property was built prior to 1978, the landlord or seller is required by law to provide the tenant or buyer with a written disclosure regarding the presence of lead paint as well as a copy of the brochure “Protect Your Family From Lead in Your Home” from the United States Environmental Protection Agency (EPA). Buyers must be given a 10-day opportunity to test for lead in the paint. Properties built after 1978, vacation rentals, studio units, and housing for the elderly are exempt from these disclosure laws.

The EPA brochure discusses how lead gets into the body, how to test for lead-based paint and how to minimize risks. It is important to note that paint surfaces that are well maintained are generally not hazardous.

Certified inspectors can be found by visiting epa.gov/lead. If a property is found to contain lead-based paint, a contractor certified in the safe removal of lead is required to renovate. You should not attempt to remove it yourself. Many do-it-yourself repairs result in lead contamination due to failure to contain the dust and properly clean the area of contaminated debris.

The EPA brochure is available online at https://www.epa.gov/lead/protect-your-family-lead-your-home and the State of Hawaiʻi Department of Health also has numerous resources on their website.

Home Staging

Fri, 21 Oct 2022 19:49:55 GMT

Pros and Cons of Home Staging

Staging properties has become very popular in recent years and is even more important during a declining market. Staging can greatly increase the value of a property and lower the length of time it stays on the market. If the property is owner occupied, a professional stager can consult with the homeowner on cosmetic repairs and de-cluttering, and then stage the property using the owner’s own furniture. If the property is vacant, the stager will likely bring in their own inventory of furniture or rent what is needed.

Many sellers and agents prefer “virtual” staging because it is far less expensive than regular staging. Virtual staging is basically computerized decorating. The technology has improved so much that it can be difficult to tell it is just graphics. It is easy to add amazing details that can highlight the potential of the property. However, it can cause disappointment for a buyer that views an empty property that they expected would look like it does in the MLS photos. If not done correctly, the photos could be misleading and cause problems.

Model home staging is in a different category. The next time you visit a model home, see if you can spot the different ways the decorators make them look so beautiful. There are usually no window screens and no drapes that actually cover the entire window. This is to provide as much sunlight as possible and the buyer notices the view instead of the lack of privacy. There are also usually no interior bedroom or bathroom doors installed so the home will look larger. Every room is decorated using the latest in color and fabric trends to sell a particular lifestyle.

Staging is an excellent marketing tool as long as it is done correctly and the buyers can see what they are buying and can envision themselves living there.

The Market Shift

Mon, 03 Oct 2022 18:14:53 GMT

Create a win-win real estate transaction

H awaiʻi has experienced record-breaking sales figures in recent years and data from the Honolulu Board of Realtors shows the median cost for a home on Oʻahu remains well over $1,000,000. The current median for a single-family home along the Waiʻanae Coast is $515,000.

Changes in the economy, including the rise in interest rates has begun a significant shift in the real estate market. The market that regularly saw multiple offers and bidding wars is over for now and we are rapidly switching from a seller’s market to a buyer’s market.

Although a buyer’s purchasing power has decreased because of the higher interest rates, there are several strategies that sellers and buyers can use to get a property sold. The most popular of these strategies would be the “seller credit”. The seller raises his price in order to give that money back to the buyer. This credit can be used to pay down some of the buyers closing costs, which could include lowering the interest rate. Those funds can also be used for any needed repairs to the property. This strategy was commonly used prior to the pandemic and we are seeing it in use once again.

Lenders have limits to the amount the seller can credit a buyer, usually somewhere between 3% and 6%, and the property must appraise for the value of the purchase price including the credit. However, this strategy can be an excellent path forward for a buyer who may not have any cash, but has sufficient credit and can utilize one of the zero down loan programs available for Waiʻanae properties. The Seller also receives the full amount of the desired sale price creating a transaction where everyone can walk away happy.

COVID-19 Update

Mon, 06 Apr 2020 01:26:39 GMT

Tenant and owner obligations during pandemic

R ecently released statistics show most tenants in Hawaii (and nationwide) have been able to make their April and May rent payments on time and in full. This was encouraging news for landlords who are still required to pay their maintenance fees and other expenses. However, there is still some confusion and false information circulating regarding current landlord and tenant responsibilities.

Tenants are still obligated to pay the rent as per the Rental Agreement. While the l andlord cannot currently evict a tenant, at this writing the courts are scheduled to be open again in July and landlords can move forward with evictions at that time. If the rental is under a Federal Housing Program, it falls under federal jurisdiction and

tenants cannot be evicted until after July 26, 2020.

If the tenant is unable to pay the rent, there are several options available. A fast and easy approach is a payment plan with the landlord. An example would be to split t he rent into six equal parts to be added to the next six months of rent. This will keep the tenant current and avoid eviction if the landlord is willing.

There are also several community organizations with funds available to assist tenants with rent and utility payments. Contact the Aloha United Way at 211 for more information.

Landlords may NOT turn off utilities or lock out a tenant. Landlords also cannot raise the rent during this time and should continue to maintain their properties. The requirements of the Fair Housing Act must always be followed.

This information is not considered legal advice. If you need legal assistance or have questions, contact an attorney, The Legal Aid Society of Hawaii, or the State Office of Consumer Protection. Communication is key between landlords and tenants while we navigate through these challenging times together.

New Fire Safety Law

Sun, 02 Dec 2018 02:40:22 GMT

Fire prevention is everyoneʻs responsibility

The deadly fire in a high-rise condominium in Honolulu last year has led to the passing of a new law meant to help prevent future tragedies in condominium complexes. That building and hundreds more on Oʻahu built before 1975 do not have fire sprinkler systems. While the cause of that fire remains unknown, it is believed that the fire spread quickly because the individual units had louvered doors.

The new law falls short of requiring all buildings to install sprinklers, but it does force all buildings over ten stories to have safety evaluations within the next three years and to install required prevention items within six years. Fire rated doors on each unit may be an option for some buildings.

It is proven that building sprinklers and fire doors can save lives. Unfortunately, it is also very expensive for homeowners who could see their maintenance fees increase to cover the cost. Homeowner Associations who chose not to install the fire sprinkler systems will be required to installs signs in public areas of the building disclosing that choice to the public.

With the holidays upon us, decorations and fireworks pose even great fire risks. Be sure to use appropriate cords and lights, and water your Christmas tree and remove it once it becomes dry. Have a fire extinguisher in your home, take a few moments to test your smoke detectors, and have an evacuation plan.

Whether you reside in a condo or a single family home, fire prevention is everyoneʻs responsibility.

Rental Lease Terminations

Thu, 11 Oct 2018 01:08:35 GMT

Requirements to terminate a Rental Agreement in Hawaii

One of the most misunderstood portions of Hawaii’s Landlord-Tenant Code concerns lease terminations.

We frequently hear people refer to a “30 day notice”. This is common on the mainland, but Hawaii’s laws are different. If a Tenant is on a month-to-month lease, the Landlord must provide the Tenant with 45 days “Notice to Vacate”. However, if the Tenant wishes to terminate, they need only provide 28 days notice.

If the Tenant provides notice, it must be in writing and the Tenant is responsible for the rent until the 28 ^th day.

If the Landlord provides notice, it must also be in writing, but the Tenant is free to leave at any time after receiving the notice. They must vacate no later than the 45 ^th day and must pay rent until the day they vacate. (Unless there are repairs or cleaning to be done in which case the Landlord may charge the Tenant for each day it takes to remedy.)

Fixed leases (such as the typical one year lease) are deemed terminated at lease expiration. No notice needs to be provided by either party. The Tenant is free to vacate and the Landlord may also assume that the Tenant is vacating. A Tenant who stays beyond lease expiration can also be considered a “Holdover Tenant” and be charged twice the rent. Thus it is important for Landlords and Tenants to discuss their plans with each other prior to lease expiration.

In Hawaii, the Landlord does not need to give a reason to the Tenant to vacate. However, many Landlords have decided to take advantage of the current market and list their properties for sale. A sale is usually accomplished much faster and easier when the property is vacant.

The Hawaii’s Landlord-Tenant Code is available at http://cca.hawaii.gov/hfic/files/2013/03/landlord-tenant-handbook.pdf .

Property Boundaries

Sat, 16 Jun 2018 01:19:41 GMT

Who owns that mango?

In real estate, the one that owns land, “shall own the earth to its center and up to the heavens”. But who owns the mangoes?

It is that time of year again for mangoes (and other fruits, vegetables and flowers) along with the inevitable disagreements over who owns them. It doesn’t help that Hawaiʻi does not have laws that directly address this issue.

Everyone can agree that the tree itself belongs to the owner of the lot where the treetrunk is located. From there, it can get complicated. In some states, the fruit always belongs to the tree owner. In Hawaiʻi, branches hanging over on a neighbor’s property belong to the neighbor. Therefore, thatmango hanging over to the neighbor’s property belongs to the neighbor. The neighbor also has a right to cut off any branches that are hanging over because they are in his air space. However, care must be taken not to kill the tree or they could be held liable for damages.

For huge trees that are hanging over with large branches, the owner of the tree is responsible for cutting it back if it is reasonable to assume that it could cause damage to the neighbor’s property.

Consult with an attorney for any unresolved dispute. As with most things in life, communication is key and hopefully there are enough mangoes for everyone.

Basic Termites

Tue, 02 Jan 2018 00:57:37 GMT

There are different types of termites

Because of Hawaii’s tropical weather, we have one of the worst termite problems in the country with millions of dollars in damage to structures every year.

There are basically two different types of termites. Probably the most well known is the drywood termite. Drywood termites are responsible for the droppings found around baseboards and window sills. They also love to eat wood furniture. The treatment for drywood termites is normally tenting. If it is a small area or if tenting is impractical (such as in a condo), there are sprays on the market that can be used.

Drywood termites are sometimes confused with winged carpenter ants. You can tell the difference between the two by their bodies. The ant has a cinched waist with two distinct parts to his body and crooked antennae. The termite’s body is one long piece with straight antennae.

The other type of termite, and by far the most destructive, is the subterranean (or ground) termite. Subterranean termites can eat through an entire house in a matter of months. They are white in color and travel through mud tunnels that appear as if made of sand. Their tunnels are sometimes confused with the mud tunnels made by wasps.

The treatment for ground termites is pumping poison into the ground or installing a baiting system.

Termites are not something that you can completely prevent. But to lower the chances of an infestation, removed untreated wood from your yard, keep moisture away from the base of the home, and keep the slab of the home visible so you can see any tunnels that de velop.

The warranties for termite treatment are usually only for a few years. It is important to monitor your home for termites by having regular inspections by a professional to avoid costly repairs.

Pros and Cons of Section 8

Mon, 01 Jan 2018 23:32:08 GMT

Could Section 8 be right for you?

T here are both pros and cons involved with Section 8, also known as the Housing Choice Voucher Program.

Pros :

1. The program assists those families that may otherwise be homeless.

2. The homeowner is assured of receiving timely monthly payments of the subsidized portion of the rent.

3. The tenant is assured a safe and healthy home.

4. Section 8 pre-screens tenants. (It is a very basic screening so further screening is recommended).

5. The parties will initially agree to a one-year lease and tenants tend to stay for several years thereafter.

Cons :

1. There is a large amount of documentation involved for both the tenant and homeowner.

2. There can be delays in the inspection required by Section 8 before the tenant can move in. A failed inspection results in further delays while the homeowner rectifies failed items.

3. The homeowner may face substantial cost for repairs in order to pass the required inspection.

4. The Fair Market Rent is not determined by either the tenant or the homeowner. The rental unit must pass a “rent reasonableness” test.

5. It can be several weeks before the ho meowner receives the first rent payment.

There are good Section 8 tenants as well as bad, but that is the case in any group. As with all rental properties, maintenance and care concerns can be reduced with good communication and regular inspections .

The Section 8 program is not right for everyone but can be beneficial to both tenant and homeowner under the right circumstances.

Home Warranty Plans

Mon, 02 Oct 2017 00:44:20 GMT

Do you really need one?

Y ou have probably seen the television ads for home warranty programs depicting the frustrated homeowner having to deal with a large expense that he would have avoided had he purchased one of their plans. You know, the ones with the air conditioner on fire or the pending zombie apocalypse

Home warranty plans are frequently offered to the buyer of a new home as part of t he sale. The warranty companies love these plans because it’s a new home and chances are slim that anything will break down. If it does, there are already other warranties in place from the homebuilder and the appliance makers. If the

warranty plan is free as a gift from the Seller or real estate agent, then take it. But paying for one in a new home doesn’t make much sense.

I n an older property, the concept of a warranty plan does make sense, but be aware that there are few vendors willing to service our area because of the traffic. Instead, ask the Seller to give you a credit for the amount of the home warranty plan. Make sure you have a detailed home inspection so you know what is likely to fail soon and

plan for it. It is always a good idea to set aside a reasonable sum each year to cover

routine maintenance and repairs.

Remember that these warranty companies care about one thing and one thing only - g etting the repair done at the absolute lowest cost. They will contract with the vendor giving them the best deal, which usually means bad service for the consumer. You may find yourself calling them day after day with no response, or finally having the repair done only for it to fail again. You also must pay a service fee of $75.00 to $100.00 for each visit and that is in addition to the annual cost of the plan itself.

The plan can be a good investment if you are faced with a major repair. If you decide to purchase one, read the fine print and make sure to know exactly what will be covered.

Real Estate Changes

Mon, 02 Oct 2017 00:25:16 GMT

Whatʻs new for 2022?

T here have been major changes recently that affect real estate sales in Hawaiʻi. Effective May 1, 2022, Hawaiʻi became the first state to enact a law that requires Sellers to disclose whether the property being sold is at risk of a sea level rise. To see if a property is within a sea level rise exposure area that requires disclosure, go to the State’s website at www. hawaiisealevelriseviewer.org and enter property risk 3.2.

Many of the properties along the Waiʻanae Coast are l ocated within this exposure area. These properties are not just along the coastline but include other areas that are s usceptible to flooding from streams.

As of March 28, 2022 Sellers must provide Buyers with disclosure forms specifically indicating whether the property is a legal vacation rental or not. If the Seller indicates that the property is a legal vacation rental, the Seller must also provide the permit number and tax clearance certificates proving that all General Excise and Transient Accommodations taxes have been paid.

The only two areas in Waiʻanae that are resort-zoned are where the Mākaha Sheraton once stood and within Mauna ʻOlu in Mākaha Valley. Other resort-zoned areas on Oʻahu are parts of Ko Olina, Waikiki and Turtle Bay. Outside of these areas, a Non-Conforming Use Certificate that was issued prior to September 1990 is required. There are currently 24 properties on the Waiʻanae Coast with a certificate and they are all oceanfront condominiums.

Effective October 23, 2022, short-term rentals must be a minimum of 90 days instead of the current 30 days. Violators will be faced with large fines. There is a grace period for people currently renting legally for 30-89 days, but they must switch over to a minimum 90-day rental as of April 2023. This change is being made in an effort to increase the inventory of long-term rentals.

Service Animals Are Not Pets

Thu, 17 Aug 2017 02:56:29 GMT

What is a true service animal?

A true service animal is one that has been trained to assist a disabled individual in performing certain tasks. One of the more common types of trained service animals is the seeing-eye or guide dog that assists the blind. Another example would be the diabetic alert dog that is trained to alert to a change in blood sugar levels. A service dog has received extensive training and will not bark or otherwise misbehave. Many times they will wear a harness or other identifier. However, be aware that there are people online selling fake service dog certifications without even knowing anything about the animal. Most, but not all, true service animals are dogs.

A landlord may request verification from the tenantʻs health provider confirming the animal is needed by the tenant. However, the landlord may not ask the tenant about the disability itself. A service animal is NOT a pet and the landlord is therefore not permitted to charge a disabled tenant a pet deposit. However, the landlord may charge the tenant for any damages the animal may cause.

An emotional support animal (ESA) is not a trained service animal. Its purpose is to provide comfort to someone who suffers from anxiety and/or similar issues. As with a service animal, the landlord may not collect a pet deposit for an ESA. However, they may evict the tenant is the animal is damaging the property or creating other problems.

A landlord may decide not to accept an ESA in their rental unit if it causes them undue hardship As an example, a landlord may deny as ESA if it will result in an increase in their insurance premium. Insurance companies have been known to cancel homeowner policies if there are certain breeds of dogs on property (i.e. Pit Bulls and German Shepards).

Understand the difference between a service animal and an emotional support animal. The laws can be complicated and it is always best to contact an attorney for assistance if needed.

Accessory Dwelling Units

Tue, 18 Jul 2017 02:18:44 GMT

What is an ADU?

I n September of 2015, Mayor Kirk Caldwell signed the Accessory Dwelling Unit (ADU) bill into law in an effort to address the critical housing shortage.

An ADU may be built on a lot of no less than 3,500 sq. ft. For lots of 3,500 to 4,999 sq. ft. the dwelling may be no larger than 400 sq. ft. (approximately the size of a one-bedroom unit at Makaha Surfside). If the lot is 5,000 sq. ft. or larger, the ADU may be up to 800 sq. ft. (equivalent of a two-bedroom at Makaha Valley Plantation).

The dwelling must be used for long-term rentals only. A long-term rental is defined as a minimum of six months. The property owner or their representative must reside on the property in either the original home or the ADU. At the time the Mayor enacted this City ordinance, he anticipated that it would create 5,000 new rentals. As of March 2017, approximately 1,200 homeowners have submitted applications, only 150 have been permitted, and there is no data on how many have actually been completed.

Applications have been denied for various reasons, including inadequate parking and narrow streets in older neighborhoods, but most have been because of inadequate sewer capacity. In addition, most neighborhoods with associations have covenants that prevent adding an ADU to those properties.

In an effort to encourage more applications, the City instituted a temporary waiver of some of the permitting fees, a cost savings of up to $10,000. Permit applications are required to be reviewed within 60 days or they are automatically approved.

Several companies offer ADU “kits” starting in the $20,000 price range and can provide assistance with financing. Building an ADU can provide rental income for homeowners, increase the property’s value, assist young families in getting sta rted, or help our aging to stay at home.

Rental Scams

Sat, 01 Jul 2017 23:16:30 GMT

Do you know what to look for?

There are several scams out there targeting every area of real estate. The most frequently seen in our community is the online rental scam. The scammers will locate a vacant home and repost it, usually on Craigslist, at a ridiculously low price. After luring in potential tenants, the con artist will promise keys in exchange for the

security deposit and first month’s rent. They require the money be sent to them in certified funds, usually to a location out of the country, and they then promptly disappear.

Another scam involves homeowners that will rent their property when it is in foreclosure. They have stopped paying their mortgage and are pocketing the money each month without disclosing to the tenant that the bank will eventually come for the property.

So how do you protect yourself? Research similar properties online and know the market. Search the property address. If it is a scam, chances are it will pop up as a property used as a vacation rental or one that is actually for sale and not for rent at all.

Do some research on the property owner and/or their agent as well. Owners who live off island are required by Hawaii State Law to have a representative on Oʻahu to assist the tenant. Always ask to meet them in person and don’t rely solely on email. If the owner does not require an application and a signed written Rental Agreement, something is really wrong. Perhaps the best and easiest way is to talk story with the neighbors. They will likely have lots to share. Trust your gut and remember that if it sounds too good to be true, it’s probably a scam.

Not All Contractors Are Created Equal

Tue, 02 May 2017 00:52:13 GMT

Protect yourself by using a licensed contractor

Chances are that you won’t be complaining about the bad job done by that unlicensed contractor you hired. That’s because they will probably never do any of the work. They will show up to estimate your project, promise you the moon, and then ask you for money upfront to purchase materials. And, you guessed it. Poof! They disappear never to be seen by you again.

Hawai'i State Law requires that you hire a licensed contractor for work over $1,000. This includes labor AND material. You must also hire a licensed contractor if the project requires a building permit or there is plumbing and/or electrical work involved.

There are continues attempt to raise this amount to $3,000 but it i s easily defeated by contractors and others who benefit from keeping this amount at only $1, 500. It is unfortunate as there are many jobs that are too big for a handyman, but also too small for the contractors to be interested. It is just not worth it for them, especially in our area with our current traffic problems.

Yes, hiring a licensed contractor is going to cost you more money. They have expenses to run their business including licensing fees, workman’s compensation insurance, etc. You will have recourse if you hire a licensed contractor. Remember, you could be held liable for someone hurt on your property if the company you hired is unlicensed.

To protect yourself, confirm the license number provided to you and know the different types of licenses. Unlicensed contractors have been known to use a General Excise Tax license number on their promotional materials. This is NOT a contractor’s license number. You can search online or call the Regulated Industries Complaints Office at 808-587-4272.

There is no guarantee that you won’t have any problems with a licensed contractor. But, it’s more than likely you’ll have nothing but problems hiring one that is unlicensed.

Do You Know Your Number?

Thu, 16 Mar 2017 02:11:41 GMT

Credit Scores Explained

D o you know your number? Your credit score (also commonly known as a FICOscore) is an indication of how you pay your bills. It helps mortgage companies, landlords, and other creditors decide whether you are trustworthy and will pay back the debt. Car insurance companies also base the cost of your insurance on

your credit score.

A credit score is a number between 300 and 850. Someone with a score under 500

is deemed highly unlikely to pay their bills while someone with a score close to 850

is a good credit risk.

760 – 850 = Excellent 620 – 659 = Fair

700 – 759 = Very Good 580 – 619 = Poor

660 – 669 = Good 500 – 579 = Very Poor

Your credit score also affects the interest rate that you will be able to get on a loan. If your score is very low, you might still be able to qualify for that car, but you will be paying a very high interest rate.

Your score is determined by several factors including the amount of outstanding debt you have as well as the timeliness of your payments. Making all your payments on time is critical. A single missed credit card payment, for example, can cause a devastating drop in your score. We have seen some buyers have their mortgage

denied during the escrow period because of just one late credit card payment.

Unfortunately, many credit reports have errors. Many times scores are low because of unpaid bills, usually medical bills that you may have never seen. You are entitled to a free copy of your credit report each year from one of the three major credit reporting agencies (Experian, Equifax, and TransUnion).

Take control of your finances, check your credit report for errors today, and ifneeded, work on increasing your score for a brighter future.

Tenant Insurance

Wed, 01 Mar 2017 23:24:21 GMT

Do you really need tenant insurance?

If you are a tenant, you might not realize how important Renterʻs Insurance can be for when disaster strikes. Once that tsunami warning is issued, or worse, when that siren is going off, itʻs already too late. It is not just natural disasters you need to worry about.

Several of the condominiums along the Leeward Coast were built in the 1970ʻs and some of the deteriorated plumbing is beginning to fail. Water can pour down the walls of your apartment from upstairs ruining your personal belongings. The landlord is only responsible for restoring the property, not for reimbursing you for your things.

During a lightning storm, an electrical surge throughout one of the properties that we manage blew out every single electrical appliance in it. In this particular case, the refrigerator, stove, and window air conditioners all belonged to the tenant.

A burglar smashed a glass door o get a tenantʻs possessions and they got mostly everything. Being a victim of a robbery is an awful thing, however, the reality is that the landlord is only responsible for fixing the door.

Properties can completely burn down and it does not matter what caused the fire. The landlordʻs policy will cover damage to the house only. If you have the right renterʻs insurance, the policy can also pay for a hotel room for you.

What if your dog bites someone? What if you friend falls down gets hurt at your rental? Do your children like to throw things down the toilet? The incidents that can happen are many.

Talk to your insurance agent today. You may be surprised at the reasonable cost for one of these policies. Remember, it is not "if" something will happen, it is "when".