Aloha!
There is much to be thankful for in this season and we at Choice Advisors Property Management sincerely appreciate the relationship we have with you. For this reason we are continuing our $150 voucher for your referrals and welcome any questions you or our friends may have about our property management services. We hope you enjoy the following information which provides an update to the industry and how you are affected as a property owner.
Policy modifications and economic shifts have disrupted the market for investment properties by making things difficult for owners of short-term rentals. The controversy created by ordinance 22-7 (Bill 41) has frightened off potential buyers and put property owners of short-term rentals in a pinch. The good news is that although there is concern over this particular segment of the industry, the overall demand for rental housing remains strong.
Rental units on Oahu are still very competitive with the median price for a one-bedroom at $1,825, two-bedrooms at $2,225 and three-bedrooms at $3,150. For more information by area or number of bedrooms, you can view the third quarter (July-September 2022) rental market report provided by the Honolulu Board of Realtors (HBR).
Overview of Q3 Oahu Long-Term Rentals
(July 2022 - September 2022)
Oahu Long-Term Rentals for September 2022
Other industry news that we’d like to share is for those who may need assistance paying their rent. A re-opening of rental assistance portal has recently been announced by The Office of Economic Revitalization (OER) and the Council for Native Hawaiian Advancement (CNHA). You may want to pass on this information to those whom you feel may qualify for and apply to the Rental and Utility Relief Program. Applicants may email the OER at oer@honolulu.gove, or they may call (808) 768-2489 (CITY) from 8 a.m. to 4:30 p.m., Monday through Friday.
Finally, we are pleased to learn of the October 13, 2022 order of Federal Court Judge Watson granting Hawaii Legal Short-Term Rental Alliance's (HILSTRA) motion for preliminary injunction in its fight against the ordinance 22-7 (Bill 41) which bars the City and County of Honolulu, as well as the Department of Planning and Permitting, from enforcing or implementing the ordinance's prohibition of 30 to 89 day rentals until further notice.
The Honolulu Board of Realtors has highlighted the following:
- 90-day or longer fixed-term rentals converting to month-to-month rentals under the Hawaii Residential Landlord-Tenant Code (HRLTC), before or after October 23, 2022, are exempt from Ordinance 22-7.
- Tenancies commencing as month-to-month at the outset, whether written or unwritten, under the HRLTC, before or after October 23, 2022, should fall outside the restrictions of Ordinance 22-7. The terms for month-to-month rentals are essentially indefinite and should not be treated as tenancies with terms of less than 90 consecutive days under Ordinance 22-7.
- Less than 30-day home rentals with existing non-conforming use certificates (NCUC) will continue to be allowed after October 23, 2022, subject to revised annual renewal compliance measures.
- Early occupancy agreements for the benefit of buyers and post-closing occupancy agreements for the benefit of sellers in a sales transaction do not involve “transient occupants” as an element of Bed and Breakfasts (B&Bs) and Transient Vacation Units (TVUs) as defined under the ordinance and therefore fall outside the restrictions of the ordinance.
- The short-term rental disclosure requirements under Ordinance 22-6 remain in effect. Sellers must timely disclose to buyers in every residential sales transaction whether the property is a legal short term rental or not under the ordinance.
For more information on short-term rentals, click here or feel free to contact us at propertymanger@choicehi.com or call 808.784.4488.
Other industry news that we’d like to share is for those who may need assistance paying their rent. A re-opening of rental assistance portal has recently been announced by The Office of Economic Revitalization (OER) and the Council for Native Hawaiian Advancement (CNHA). You may want to pass on this information to those whom you feel may qualify for and apply to the Rental and Utility Relief Program. Applicants may email the OER at oer@honolulu.gove, or they may call (808) 768-2489 (CITY) from 8 a.m. to 4:30 p.m., Monday through Friday.
Finally, we are pleased to learn of the October 13, 2022 order of Federal Court Judge Watson granting Hawaii Legal Short-Term Rental Alliance's (HILSTRA) motion for preliminary injunction in its fight against the ordinance 22-7 (Bill 41) which bars the City and County of Honolulu, as well as the Department of Planning and Permitting, from enforcing or implementing the ordinance's prohibition of 30 to 89 day rentals until further notice.
The Honolulu Board of Realtors has highlighted the following:
- 90-day or longer fixed-term rentals converting to month-to-month rentals under the Hawaii Residential Landlord-Tenant Code (HRLTC), before or after October 23, 2022, are exempt from Ordinance 22-7.
- Tenancies commencing as month-to-month at the outset, whether written or unwritten, under the HRLTC, before or after October 23, 2022, should fall outside the restrictions of Ordinance 22-7. The terms for month-to-month rentals are essentially indefinite and should not be treated as tenancies with terms of less than 90 consecutive days under Ordinance 22-7.
- Less than 30-day home rentals with existing non-conforming use certificates (NCUC) will continue to be allowed after October 23, 2022, subject to revised annual renewal compliance measures.
- Early occupancy agreements for the benefit of buyers and post-closing occupancy agreements for the benefit of sellers in a sales transaction do not involve “transient occupants” as an element of Bed and Breakfasts (B&Bs) and Transient Vacation Units (TVUs) as defined under the ordinance and therefore fall outside the restrictions of the ordinance.
- The short-term rental disclosure requirements under Ordinance 22-6 remain in effect. Sellers must timely disclose to buyers in every residential sales transaction whether the property is a legal short term rental or not under the ordinance.
For more information on short-term rentals, click here or feel free to contact us at propertymanger@choicehi.com or call 808.784.4488.
We are happy to announce that we have launched our Choice Advisors Property Management website! This site allows both Tenants and Owners 24/7 access to valuable resources and information about the Oahu rental market.
2022 CAPM Promotion
As a token of our appreciation for your loyalty, we would like to offer a special promotion for 2022. If you refer someone who uses our property management services in the new year, we would like to thank you with a gift voucher for $150 to be used toward our property management services in 2022.
This is just one way we can show our appreciation for your referrals.