On October 1, 2009 I officially launched my partnership with Hawaiian Airlines HawaiianMiles program. The way it works is simple. Buyers and Sellers who work exclusively with me have the opportunity to earn THOUSANDS of HawaiianMiles on their Kauai real estate transactions. I was the first, and am still the only real estate agent on Kauai with a HawaiianMiles partnership.

Due to the overwhelmingly positive response I have received these past three months, I have decided to continue the partnership into 2010! If you are interested in earning thousands of HawaiianMiles on your next real estate transaction, please send me an email or call me for details. Also, feel free to share this information with anyone you know who might be interested...I truly appreciate your referrals! Happy New Year!

 

I’ve been asked this question a lot recently from clients who are uncertain whether they should put their house on the market, rent it out, or do both. It really depends on the individual’s situation. Now is not the best time to sell unless you really NEED to sell or really WANT to sell NOW. In many cases if you purchased your property in recent years chances are you aren’t going to make any profit off the sale, and it’s likely you won’t even break even and will probably be selling at a loss. For this reason many owners are choosing to rent out their properties instead of selling while they wait for the market to turn upward.

Some choose to rent out their property while listing it for sale so they can continue to receive rental income while trying to sell. This option has both pros and cons. Of course most sellers would be happy to have income from their property while it’s for sale rather than have it sit empty for possibly several months on the market. The negative to this would be that tenants might not keep the property up to top showing condition like an owner would do, so the property might not show as nice or clean as it would if it were vacant or owner occupied. Another negative is Hawaii landlord-tenant code states a tenant must be given 2 days minimum notice for any showings. They can always agree to allow you to show it sooner, but they must be given 2 days notice so you could potentially lose out on prospective buyers who want to see the property sooner than that.

If you have a long term rental currently tenant occupied and are considering listing the home for sale, I would suggest you set up a time to discuss your plans with your tenant either in person or by phone. You might consider offering your tenant a small reduction in rent in exchange for their kind cooperation in keeping the property in the best showing condition possible, and in recognition of the inconveniences the tenant will experience having to make the home available for showings. I’ve found that tenants really appreciate a landlord who is sympathetic to the hassles of living in a home that is for sale and offers to give them back something in return for their assistance and on-going cooperation, whether it be a reduction in the monthly rent, a gift card of some kind, or any other form of appreciation, it will go a long way and probably end up to be well worth the cost.

Late last month the Kauai County Council voted in favor of passing Bill 2322 commonly referred to as the ADU Extension Bill. The Additional Dwelling Unit (ADU) Extension Bill extends the deadline for obtaining a building permit for the construction of an ADU on Agricultural or Open zoned land. The original deadline of Dec.15, 2009 has been extended to Dec.15, 2014. The only property owners who will benefit from this extension are those who had obtained a completed ADU Facilities Clearance Form by June 15, 2007. Therefore, the passing of the ADU Extension Bill does not open the process up to any new applicants for an Additional Dwelling Unit, even if the property would still qualify now.

Good news for those who want to buy a home between now and April 30th of 2010! The Extended Home Buyer Tax Credit was included as part of the government’s plan to stimulate the U.S. housing market and help improve the difficult economy and all the challenges it brought with it. Congress recently passed new legislation that extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. In addition, the new legislation expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service.

When one purchases a property on Kauai, it is likely that there will be Neighborhood Covenants, more commonly called CC&Rs (Conditions, Covenants and Restrictions) attached to your deed, a previous deed or recorded separately on the title.  These covenants are basically the specific rules that apply to a neighborhood or subdivision. They are written when the subdivision is developed and are usually recorded.

Sometimes they have a time limit after which they expire; many of the older subdivisions on Kauai no longer have enforceable CC&Rs. Covenants are more restrictive than any County laws pertaining to the same neighborhood.  For example, in a neighborhood where the County allows for two houses per acre under zoning, the CC&Rs might only allow for one house, no matter how big the lot. Examples of restrictions we often see on CC&Rs include: no noxious odors or certain animals, no obstructing a neighbor's view, no guest houses and  no metal roofs. CC&Rs can usually be changed if the majority of the neighborhood agrees to the change, however this might be challenging based on the numbers of people who have to agree.

The County of Kauai will not enforce CC&Rs, and therein lies the issue.

Although Buyers feel protected by their CC&Rs, they may be, in fact, VERY difficult to enforce. Say your neighbor builds a guest house that is legal according to the County, but not allowed by the CC&Rs. The only way to stop him is to hire an attorney and file a suit. Plus, many attorneys claim that if the CC&Rs have already been broken (is this the 2nd guest house in your neighborhood?) than the CC&Rs are considered null and void. Of course, most people don't want to go to the expense of filing a lawsuit, so in many neighborhoods on Kauai violations of the CC&Rs are evident.

So once again, the old saying "Buyer beware" holds true here. Before you buy, read the Conditions, Covenants and Restrictions carefully and decide which items are important to you. Check to see if they have already been broken, because if they have, they are probably no longer enforceable.