Community: Message List

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Fri, 08 Feb 2013 00:57:56 GMT

@bha If you listen to the accountants, that gives you a great deal of flexibility since they have rendered opinions on both sides of the issue. Of course accountants get paid for creating 1099s.

Realtors say that 1099s are not required.

And in the 2011 IRS 1099 instructions, the IRS says:

"The reporting requirement for rental property expense payments made after December 31, 2010, has been repealed". I guess you can take that at face value or try to read more into that statement

So, depending upon whether or not we want to do more paperwork, we can issue a 1099 - or not. The choice seems to be up to us each individually.

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Thu, 07 Feb 2013 21:12:24 GMT

There is really a good deal of confusion even within the accounting community. Here is an interpetation from another accountant:

"Rental of real property is more likely considered an investment activity rather than a trade or business. That being the case, I believe the landlord would NOT be required to issue Forms 1099-Misc to the attorney in your example or to other providers of services such as maintenance"

We should thank our government and the IRS for such clear regulations

Here is another opinion that 1099s are NOT required: http://speakingofrealestate.blogs.realtor.org/2011/04/08/600-1099-landlord-reporting-law-repealed/

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Thu, 07 Feb 2013 01:51:56 GMT

For clarification,

According to 2011 1099 instructions you do not have to issue 1099s for rental property expense

http://www.irs.gov/uac/Update-to-the-2011-General-Instructions-for-Certain-Information-Returns-(Forms-1097,-1098,-1099,-3921,-3922,-5498,-and-W-2G)----27-May-2011

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Thu, 07 Feb 2013 00:18:46 GMT

@BBB

Where is your condo in Maui??

The proposed legislation may result in some of those terms more fully defined.

That said, you want to make certain that you housekeeper is not renting or collecting rents, otherwisxe she is really acting as a property manager. I am not clear what she is doing, but if she is operating in a gray area, be very cautious, since if she runs into regulatory issues, she may be put out of action and you will be without a housekeeper.

You can separate sentences into paragraphs after you complete the entry

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Wed, 06 Feb 2013 11:43:44 GMT

@BBB. If you are in doubt whether your housekeeper is acting as a property manager You may want to sit down with an attorney to review what the law requires and what she is doing.

Of course another options are to make it very clear to your housekeeper that the scope of her duties is limited to housekeeping. That is how most owners do it - and many are further away than California.

A third option is to hire a property manager.

Whatever you do, please adhere to the laws of HI.

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Wed, 06 Feb 2013 03:16:10 GMT

BBB. What island is your property on? Perhaps other owners could recommend contractors and maintenance people for you.

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Wed, 06 Feb 2013 02:50:05 GMT

Replacing toaster does not require a license. Finding a contractor probably does not either. However, if she is managing the condo by offering it for rent and collecting rent, she is more than a housekeeper and should not be doing that for anyone other than you.

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Wed, 06 Feb 2013 00:59:08 GMT

Some people are confused: For those who are here are the folks that are involved in "rental by owner" and what they do

-Owner - owns and manages property. Advertises, collects rent oversees the management of the property

-Housekeeper / cleaning service - Cleans the property between guests (they do not do not manage the property or collect rent.)

- Local contact - They are available as a back-up in case there is a problem and the guest cannot reach the owner by cell phone or email. In reality they are called very infrequently and they do NOT do anything that requires a license. They do not manage the property or collect rent.

These are very straightforward concepts. There is no reason people should be confused about these functions, unless they choose to be confused because they think that confusion will work to their advantage.

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Mon, 04 Feb 2013 02:17:11 GMT

My email to Sen Baker:

Aloha Senator Baker

SB 41 as written is confusing.

It is particularly confusing in regards to the “local contact” required by Act 326, Sec 2.

As a non-resident property owner, I am concerned that property mangers are intentionally and unethically confusing matters for their own vested interests.

It is important that legislature has a clear understanding and any legislation is very clear that “local contacts” are not the operator or manager. They do not collect rent or offer to rent the property. The owner/operator does that.

I and other property owners who rent directly to guests have a very simple business model which is important for you to understand.

We advertise on the web, collect payments directly from our guests by check or credit card, remit taxes directly to the state, uses the services of a housekeeper or cleaning service (responsible for cleaning), call in a plumber or maintenance person as required, and have a local on island contact in case the guest cannot reach us.

In over 20 years of rentals, our guests only found it necessary to call our on island contact twice. Every other time a problem has arisen we resolved by phone and email directly with our guests. Guests appreciate our personal and quick response that most property managers do not give.

Local contacts should not require a realtor’s license. Their main function is to speak to guests if a problem arises and they cannot reach the owner and call the appropriate tradesman to resolve the problem.

There is absolutely no reason to limit a “local contact” to being the contact for only one property any more than there is reason to limit someone on the front desk in a hotel to only managing one room or a property manager to managing only one property.

Non-resident property owners are one of the greatest assets that Hawai’i has. We are in contact with prospective visitors to Hawai’i every day and provide them with the personalized services that property managers do not. We typically pay our housekeepers and maintenance people well above the average wage. If you put unreasonable restrictions on them, it will undermine Hawaii’s appeal for visitors and the Hawaiian economy.

Please do not be swayed by the misleading and unethical testimony of property mangers. Please do the right thing for the citizens of Hawaii, the local housekeepers and maintenance workers and the non-resident property owners who have invested in Hawaii and who help to attract thousands of visitors to Hawai’i each year.

SB 41 should re-affirm Act 326 in not limiting “local contacts” ability to be the local contact for more than one property.

Mahalo

Re: Hawaii Trying to Kill VRBO

community-no-reply@homeaway.com — Sat, 02 Feb 2013 18:20:57 GMT

Big bad Bart, if your housekeeper does more than just clean she may need to be licensed , depending upon what she does. However all owners I know who rent directly do not have their cleaning service do anything other than clean. The cleaners are not acting as a realtor or property manager. But property mangers who are advocating the restriction of our rights have been trying to confuse everyone, including the legislature. That is why it is important to make sure you use the right terminology.