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blackburied wrote:
aurorasands wrote:
Correct me if I'm wrong, but the Hawaii landlord law defines who can be an owner's agent. Only a licensed realtor can serve more than one owner. This law existed when we bought our condo in 2009. The current legislation doesn't change that.
I do not beleive that's correct.
Note that I'm saying that the landlord-tenant law doesn't define who can be an owners agent.
You are correct that only a licensed realtor can serve more than one owner.
Hmm. Our AOAO requires that we have an on-island contact and I believe they refer to HRS 467 as the guiding rules. I will check further. Is there an attorney on board who can verify what the current requirements are as to who may serve as an on-island contact?
aurorasands wrote:
Hmm. Our AOAO requires that we have an on-island contact and I believe they refer to HRS 467 as the guiding rules. I will check further. Is there an attorney on board who can verify what the current requirements are as to who may serve as an on-island contact?
IANAL, but you can read 467-2 for yourself... it's fairly clear:
§467-2 Exceptions. The provisions requiring licensing as a real estate broker or
salesperson shall not apply:
(1) To any individual who, as owner of any real estate or acting under power of
attorney from the owner, performs any of the acts enumerated in the definitions of
real estate broker and real estate salesperson with reference to the real estate;
provided that the term "owner" as used in this paragraph shall not include any
individual engaged in the business of real estate development or brokerage or
include an individual who acquires any interest in any real estate for the purpose
or as a means of evading the licensing requirements of this chapter; and provided 4
further that the term individual "acting under power of attorney" as used in this
paragraph shall not include any individual engaged in the business of real estate
development or brokerage or any individual who acts under a power of attorney
for the purpose or as a means of evading the licensing requirements of this
chapter;
...
It goes on to exempt a "caretaker" too (and caretaker" is defined up-front to be 1:1).
We are currently exempt, as owners, from requiring a licensed agent to manage our property... although the PM's will side-track you and say things like "the exemption requires a caretaker".
And, as shown previously, the on-island contact is in HRS 521... and, as explained above, refers to an "agent", but that law does not define "agent" to be "licensed real estate agent", but again, PM's will argue otherwise.
In searching 467, I can't find any instances of "on/off-island" (nothing about "island" at all) nor "without the state" (seven occurrences of "without", non pertaining to remote owners). The "on-island contact to be given to all guests" is only in the landlord-tenant law, HRS 521-43(f).
I did search all Hawaiian law for the use of "agent"... there are 1040 (ominous number!) instances of "agent", and very few have anything to do with "licensed real estate agent".
To search all the laws for any given string, Google for: "agent" site:www.capitol.hawaii.gov/hrscurrent/ ... where "agent" is the string you're searching for. Most of the "without the state" matches are part of the term "within or without the state"... HRS 567 is one of the very few laws that doesn't include the "within or" part.
As other posters have stated, the “illegal vacation rental” issue is becoming a significant part of these bills. To state that "only" tax compliance is required by Hawaii vacation rentals is in my opinion, sending the wrong message. My impression is the legislatures believe anyone who is willing to break zoning laws is most likely also breaking tax laws. I will not support RBOAA or any group who condones illegal vacation rentals. It not only violates my moral compass, but it also reflects poorly on me and our industry.
In resposnce to sjsf.....as I have posted previously.
There is significant problem with illegal vacation rentals in residential neighborhoods (not zoned for vacation rentals). This problem has been exasperated by the real estate collapse. Many residential homes in foreclosure (or behind on payments) are being illegally rented to vacationers as a stop-gap measure to produce income. As you can imagine the neighbors are very unhappy. The homes are falling into disrepair and being illegally rented to tourists, disturbing their neighborhood, and violating zoning laws.
These citizens are rightfully angry and want something done. They will support any measure that appears to address this issue.
The problem is that these bills lump illegal vacation rentals in the same group as law abiding, tax paying owners of condos in hotel zones.
It is our job to let the Hawaiian people know we agree with their complaints against illegal rentals, and support paying our GE and TA taxes, but that the current set of bills will have severe negative economic consequences on the State’s Tourism and Real Estate market.
The legislator has done a good job of muddying the water on these issues. They are effectively spraying machine gun fire into a crowd of law abiding citizens in a misguided attempt to hit a few bad guys.
The majority of voters in Hawaii will only take note when they think it will effect their pocketbooks.
I like your analogy, islandadventures, that
They are effectively spraying machine gun fire into a crowd of law abiding citizens in a misguided attempt to hit a few bad guys.
There is no proof that the "non-residents" are the non-tax paying problem, and I've posted several times that the zoning issue problem and illegal TVRs are probably more the root of the problem (or, potentially, cash-accepting on-island residents). But no matter which, this solution will not provide an increase in taxes. The letter from your HOA asserting that this is a "a tax information sharing program between the state Department of Taxation and the Counties " is funny because this will result in an increase in governmental bureaucracy and HOA requirements. I see more taxes and fees in order for the HOA to report to the County and the County to report to the DOT. In addition, creating these laws is NOT going to make offenders jump on the compliance bandwagon.
The DOT needs to be empowered with the ability to enforce their laws, which may include expanding their powers (some of their previous testimony has said they cannot look into tax records due to privacy laws) and enabling them to staff for enforcement. I see a short term budget imbalance, paid back by increased revenues through the additional enforcement staff.
The tax issue needs to be separated from the "point of contact" issue in a bill so that we can clearly discuss the privacy rights of our on-island representative. While I am available 24/7, and I can call my service people and have them respond just as easily as my on-island contact, I am happy to "concede" this over having to have a property manager. However, I should not have to put this person's name in my advertising.
message just received from RBOAA....
Aloha,
HB2078 and SB2947 have both been received back to originating houses and they have both been disagreed with. Which means that they will go to Conference.
Conference committees will be set up with Chairs and committee members from each house. They will meet and try to make the bills satisfy both houses if they cannot agree the bills will die. If they do agree they will go to the governor.
So you ask where does that put us? We have no idea what the bills may end up looking like. From now on it is a closed door negotiation and we must continue to try and educate the legislation that the contents in these bills are not appropriate for all the various reasons we have stated before.
Alicia will be traveling to Hawaii on behalf of all of us next week and will meet with as many Senators and Representatives as she can. She will also be meeting the Small Business Regulatory Review Board and seek their assistance.
We will continue to our efforts with phone calls, emails and faxes. We will update you with further details next week and we may need you to take quick action once again.
If any of you are on the islands or plan on being there in the next couple weeks, please try and meet face to face with the legislators.
Fight On!
Team RBOAA
The problem I see is that most of the postings on this site are logical responses to the issues stated in the bills. However, the conclusion that I keep returning to after the legislators have continued to ignore rational suggestions, is that the real issue is not taxes. The real issue is that they have they have constituents such as property managers and unions that would like to put us our of business. They are only using taxes as the stated reason, while the real reason is we are competition and the property managers cannot compete effectively.
who says rboaa supports anything illegal? You seem to be coming to conclusions not supported by any facts and that is not helpful at all.
from my iPad
jwe,
I don't disagree with you that what seems to behind these measures does not have to do with the publicly stated reason "taxes", our challenge is that all we can deal with 'publicly' is "taxes". we are not privvy to the private discussions between politicians and their constituents or special interests who may have a larger role in this election year.
And, we can all agree that we do in fact support having local contacts and paying taxes. So while this may fall on some deaf ears, ie any politicians who are not really concerned about taxes, we can at least support the principles that the casual reader of these bills would seem to think they are crafted to address - payment of taxes and retaining a local contact. We do not have other options in how we address the legislators.
I agree with alohaes that it's important to focus on the specific issues. But jwe is also right. We need to specifically address the political issue.
In particular, the politicians who will make these decisions in the next week need to be reminded that the Unions and the Property Managers are not their only constituents. If these bills pass in their current form, they will have a severe negative impact on tourism and depress property values. That affects everyone on the islands. And when that message gets out - along with the fact that some politicans decided to trade the interests of the many for a favored few - it's not going to help them in their re-election campaigns.
I have fought with the legislation successfully, on several occasions over the last few years. There is but one way to win this: in the media. The local outer island voters have only one way to know what is going on in Oahu: the newspaper. You need to be hitting all of the islands newspapers "letters to the editor". It is the most read page after the front page. That is where we need to be sending our info. If all of the businesses and people that we employ know they are about to lose our business, and the business of our guests, then it is personal to them. I have been down this road and its the only way. The legislators don't care about being legal, they don't care about us and they are ignorant about economy.
Go to the papers en masse.
i agree. We just need to make certain that we do not loose sight of what their real goals are
excellent point.
So we all know what to do
Each of us should write letters to the editor for the island where our individual property is located
jwe wrote:
who says rboaa supports anything illegal? You seem to be coming to conclusions not supported by any facts and that is not helpful at all.
I can see where a previously made statement was misconstrued as RBOAA supports illegal vacation rentals (or, at least supports legislation to ease restrictions and make some currently illegal rentals legal). I can't find that post today, so it must have been deleted, or I was misinterpreting.
I think it is very wise to have the HVROA focus on "easing current restrictions" on its own, while the RBOAA focuses on "losing our right to manage our own property", and safe and secure methods of informing guests of local contacts, and ways for DoTax to more readily/effectively catch tax cheats without excessive regulatory burden. By keeping these foci separate, RBOAA membership can rest easy that they are not supporting anything currently illegal, and be able to differentiate itself when locals complain that we're supporting illegal rentals.
Of course, if these bills are passed, then the RBOAA will find itself supporting "easing of current laws" requiring PM's, etc..., and could then be construed as supporting what will then be illegal activity.
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