On-island representation may be required by law, but that doesn’t mean finding the right partnership has to be stressful—and can even help make your property more profitable.
Did you know that Hawaiian law requires you to have an on-island personal representative when renting or leasing your property in Hawaii?
The purpose of a having an on-island representative is to have someone available in the event that an immediate problem arises. They are more than just an agent. They need to be available immediately in the event that problems or emergencies occur.
Are you aware that most national property management companies don’t provide one for you?
Hawaiian Management is a vacation and long-term rental management company that provides you with soup to nuts service and we are on-island, ready to care for your property, guests, and you!
Here are some of the most important things to know about renting out your property in Hawaii, where on-island representation is legally required.
Generally, you have three options when picking your representation.
- Manage the property yourself, on-location
- Employ a caretaker or custodian
- Hire a licensed real estate agent
Let’s look at the pros and cons of each option.
Self-Management
If you decide to self-manage your rental property while living out-of-state, the State of Hawaii’s Residential Landlord-Tenant Code requires that you hire an on-island agent to act on your behalf.
The local on-island representative will assist with the collection of taxes on your rental properties and also serve as the primary contact in the event of emergencies or natural disasters.
Hawaiian Management can not only act as your on-island representative but also offer full-service property management services, such as cleaning, linens, consulting, and long and short-term rental services.
Caretaker or Custodian
Another option is to employ a custodian or caretaker to manage the property. This person or company doesn’t have to be a licensed real estate agent; however, they must be on the rental property owner’s payroll!
The caretaker or custodian must be employed by the property owner and can only work as the caretaker for one property owner at a time. This person or company also acts as your local on-island contact when required.
Hawaiian Property Management can act as your on-island representative, no need to add another person to your payroll!
Licensed Real Estate Agent
Your last option is to hire a local licensed real estate agent to assist with vetting tenants and collecting rent. Make sure that you choose your real estate agent carefully!
A local Hawaiian real estate agent should be:
- Familiar with Hawaii’s laws and landlord/tenant rules. Make sure that your real estate agent is familiar with all local laws and rules that relate to rental property management, such as the Hawaii Landlord Tenant Code, state tax reporting requirements for transient accommodation operators, and Hawaii’s fair housing laws.
- Experienced and willing to assist in the management of your rental property. Marketing the rental property, collecting rent, booking guests, handling maintenance and repair issues, responding to tenant or guest inquiries and complaints, and assisting in evictions are all part of rental property management. Finding and sourcing a local licensed real estate agent who is willing to devote the time and energy to helping you manage your property can be difficult.
- Manage geographically distant properties. Hawaii has unique geography, and rental property owners who rent or lease their property have additional obligations under Hawaiian law. A licensed real estate agent can assist and act as your on-island representative.
Finding a qualified real estate agent in Hawaii isn’t easy. That’s why Hawaiian Property Management offers full-service property management services. And guest what? Hawaiian Management is also a full-service Real Estate Brokerage able to help you find your perfect property or sell your home!
Regardless of who you choose to manage your property in Maui, be sure to select a qualified, educated and experienced professional!
What to Look for When Hiring a Rental Property Manager
It’s important to choose a professional on-island representative who fits your needs and is qualified, reliable, and knowledgeable about local laws and customs.
Here are the three main ways to help ensure you choose the right partner for your property or properties:
- Get referrals. If you know of other Maui property owners who rent or lease their condos, homes and other properties, ask them for referrals. Who manages their rental property? Are they happy with the service?
- Ask to speak with current clients. At Hawaiian Management we’re very proud of our long list of five-star reviews! Whomever you hire, be sure that they are highly recommended both online and by word of mouth. The island of Maui is a small community.
- Ask for a sample property management agreement. A qualified company or individual will have all their ducks in a row – include a thorough agreement template you can review. Also be sure to check licensing and prior compliance history with the Department of Commerce and Consumer Affairs Regulated Industries Complaints Office.
Finding a Property Manager That’s Right for You
As a property owner in Hawaii (also known as an absentee owner) who intends to rent or lease property while living outside the state or on another island, you’re required to designate an on-island agent to act on your behalf. The representative whom you select does not need to be a licensed real estate agent. It can be a company or a friend, but this representative cannot represent more than one property owner at one time and must be under your employment.
Owning property in Hawaii is a dream come true. Renting your property while you return to another island or back to the mainland shouldn’t be a headache. At Hawaiian Management we are proud of our five-star service and our local island expertise.
We’ll make sure that your rental property is clean, your rental is optimized for profitability, your linens are fresh with eco-friendly detergents, and your every need is professionally handled by Maui experts. We’ll act as your on-island representative and trusted guide to the property rental market. We professionally represent rental property owners, their guests, and real estate agents.
Contact us today to see how you can benefit from our Hawaiian property management services.
