With some of the most spectacular natural beauty in the world, Hawaii is a coveted destination for everyone from travelers to retirees. Whether you are a property owner catering to travelers or you own rental properties that you rent out long term, you probably have a long line of applicants waiting for your properties.
Rental Prices Steadily Increase in Hawaii
Rent prices throughout Hawaii have shown a steady upward trajectory over the past several years. Currently, the average rent price in Hawaii depends exactly on which island the property is located. For instance, the average rent in Honolulu on the island of Oahu is currently about $2,100 per month, according to Rent Jungle. That price represents a six percent increase over the last six months, and an increase from about $1,600 per month since 2009. On the Big Island of Hawaii, the average rent price overs around $2,700 per month.
According to the National Low Income Housing Coalition, the percentage of renter households in Hawaii is about 42 percent. Consequently, purchasing a home is beyond the financial reach of many people in Hawaii. This has contributed significantly to the large number of renter households in Hawaii and turned the local market in favor of landlords.
Landlords in Hawaii Hampered by Restrictions
While rental properties in Hawaii are in high demand, that does not mean that landlords and property managers do not face challenges. Among the most significant challenges faced by property owners in Hawaii is the requirement that any landlord who resides outside the state or another island must designate a property manager who is actually on the same island that the property is located to act as the property manager. This information must be designated on the written rental agreement. While all state rental agreements have a tendency to be somewhat unique, when it comes to renting properties in Hawaii, property owners have a few additional areas of due diligence they must ensure they meet in order to remain in legal compliance. This is precisely why it is so important to ensure that the correct rental agreements in place. By working with a service such as VerticalRent, property owners can ensure they do not have to worry about any compliance issues by generating state-specific lease agreements.
In addition, Hawaiian landlords must also ensure they adhere to extremely specific security deposit deadlines. Under Hawaiian law, landlords are required to return a tenant's security deposit within 14 days after the rental property has been surrendered by the tenant to the landlord, according to NOLO. Although property owners are allowed to charge a security deposit, that amount is limited to one month of rent. Rental prices may be on the rise in Hawaii, but a single month of rent can quickly be consumed by damages if a tenant is less than responsible with a rental property. This means it is even more important for property owners in Hawaii to conduct due diligence when screening tenants. An excellent way to handle that is with a comprehensive tenant screening through a service like VerticalRent.