Please make sure your trip is safe and trouble free. We are concerned and do want you to have a good time but PLEASE be safe.  We are providing you with this information so that you’re not added to the growing list of people hurt and vacations ruined. If you rent through a licensed property manager on Island then you have support and service however as we explain below, if you don’t then your vacation is at risk.

Please read important information below for your safety.

Before you read below: If you give your CC# or send a check to an individual that is not a registered business then you are at risk and may be actually aiding and abetting in illegal activity in Hawaii as a number of people coming to Hawaii have found out. Common sense in today’s world tells you that once you give your CC# or send a check to an individual you are now at risk. You have opened yourself to fraud because they are not a licensed, insured business on Hawaii. Your monies are not being held in a trust account as required by State law, they are being commingled.

Vacation Rentals by Owners are illegal if they don’t have a licensed On Island Property Manager. The HRS statues of Hawaii:  Specifically states that rental property must be managed by an On Island licensed property manager. That manager must hold all client monies in a separate Trust account with no co-mingling of monies. Furthermore that agent must collect all taxes and report all monies generated for each rental at year end to the State and Federal government.

If you rent in Hawaii through a private owner then you must be made aware of the many problems with these rentals that you are not being told.  Your vacation is at risk because there are all sorts of problems on the Islands with illegally managed properties. Are you aware that visitor comments have to be approved by the owner of the property or owners can opt out of posting comments or sadly owners are editing the comments?  Negative comments will not be posted thus you will not know if there is a problem with the advertised condo or home.

If you love the Islands, please realize Hawaii is losing millions of $$$$ of tax revenue because of private owners NOT paying their taxes and it is costing locals their jobs.  There are lists of problems that range from no support on Island, keeping security deposits, foreclosed properties, double bookings and a larger and ever growing list of serious repair and service problems.  These problems are real and you are not being told.

Be aware for your protection and check that your owner is abiding by the law: Laws are there to protect you the consumer.

To protect your vacation make sure the Managing Agent information is supplied to you, on demand, or in a written statement. Secure the name, address and phone number of the principal Broker having direct management (legal manager with broker’s license) and responsibility over management operations before booking directly with an owner. Sadly many are not telling the truth to guests as we are finding out in increasing numbers.  Most of the owner direct rentals are illegal and in violation of Hawaii State laws that are written for your protection.

A number of guests are paying private owners and even after they have paid they are finding out from the private owner only weeks before they arrive that the condo was double booked.  What is really happening is that owners are getting a better offer and they are taking the higher offer.  It has happened numerous times.

The Law: Any owner or landlord who resides outside of the State or on another island from where the rental unit is located shall designate in writing an agent who resides on the same island where the unit is located to act in the owner's or landlord's behalf. In the case of an oral rental agreement, the information shall be supplied to the tenant, on demand, in a written statement. The Managing Agent must be licensed.

Must Hawaii property managers have a real estate broker's license?

YES. A real estate broker's license is required for any person or company that, for compensation, rents, or offers, attempts or agrees to the rental of any real property or who advertises or holds out to the public by any oral or printed solicitation or representation that she or her is engaged in the business of leasing or renting business enterprises or business opportunities or the real property of another, or leases, or who directs or assisting in the procuring of prospects or in the negotiation or closing of any transaction which does, or is calculated to, result in a leasing of real property; and all persons who advertise rental property information or lists.

Furthermore any sole proprietor who lives on Island and rents for less than 30 days must be registered with the Business Registration Division (BREG), and the Department of Commerce and Consumer Affairs.  If they can not provide you with this your trip is in jeopardy!!!!

They are required to obtain a fidelity or employee dishonesty bond to operate in Hawaii or a certified statement of insurance, completed and signed by an insurance representative, as proof of bond coverage. The Commission's rules require that BOTH the registration name and the trade name must appear in all advertising, including letterhead stationery and business cards. Does your private owner who says he lives in Hawaii have the required bonding, a separate trust account and registration with BREG? If not they are operating outside the law in the state of Hawaii and hurting the beautiful Islands and the great people of Hawaii.  LAWS ARE FOR YOUR PROTECTION.

Please be safe and smart and please enjoy your trip to Hawaii.

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