All Forum Posts by: Colby Hanley

Aloha Jamaal

Thank you for your service. I am not sure if you have a VA rating, but if you do in Texas you can receive a property tax break.

The disabled veteran must be a Texas resident and must choose one property to receive the exemption. In Texas, veterans with a disability rating of: 100% are exempt from all property taxes. 70 to 100% receive a $12,000 property tax exemption.

We have similar rules in Hawaii.  I live/own a multi-unit property and receive the reduction for the portion I live in.  You may want to look in to this option.

 Thank you for sharing Michael, it's a fun calculator to play with.

I have had this happen a few times, I just ask that they allow me to advertise and show the unit if needed prior to them moving out.  So far it has not been an issue and as the old tenant moves out the new one moves in the next day or two later.  So little if no lost rent for me, and all tenants are happy.  I would say the big thing is good communication between all parties, making sure everyone understands and is in agreement throughout the whole process.

The last success for me, was a house and cottage that I (refi) in April 2022 $720,000 30-year fixed at @3.25% located in Makawao Maui, renting for $5,500 with net cash flow of $1500 per month. The property had a $619k acquisition cost, $145k rehab, and $1.1m ARV (appraised). So I have about $40k in the deal after everything is said and done. Like others say they are not common, but they are out there even in Hawaii.

Aloha Jason,  

I am not aware of any meet-up at that time, but if I do I will let you know.  Hawaii has been very slow to open up after covid for the locals but tourists have no problem.  There have not been many if any meet-ups for the last two years.  Even if there are no meet-ups we could meet and talk real estate, I know a few of the local investors in Maui.

Congratulations, all the hustling you do is paying off. 

What island is it on and the area if you know?  It could make a difference in the options he might have.

Good morning Loren,  @Loren Clive I understand what you are saying about paying the same rate but we don't so to me this is the next best thing. If you do not want to sign a one-year rental agreement to save on your property tax that is your choice but you will not receive the tax credit. To me, it's like HUD/Section8 you can deal with it or not it is your choice no one is making do it. If you do choose to take it there are some strings/red tape atached to receive it, welcome to US government programs.

For me, it is not a big deal most of my tenants have rented from me for over 5 years.  I have had tenants move from one of my rentals to another one as their living requirements have changed and they needed more space or less space.  I have also had tenants not stay the original six-month rental agreement due to personal reasons.  Had a tenant get into a physical confrontation with a neighbor four months into the rental agreement and wanted to move.  Had one buy a home and move again about four months into the six-month agreement.  My wildest one was taken away by Federal agents and moved in to witness protection, I have no clue what happened all I know is the agents were there showed their badges and paperwork, and the tenant and their personal items were gone in about an hour. The shortest I have had was one week, tenant seemed good when we screen them but once they moved in they seemed to have some sort of mental issue, maybe bipolar, I'm not sure but they were unhappy when I told them they were not allowed to have dogs per the agreement, they said the dogs were just visiting.  I told them either way no pets allowed so they requested to move out, which I allowed, I do not need the grief. 

The Maui rental market is so hot my point is if a tenant wants to break a rental agreement let them you will have a new tenant in the next day if you want.  A friend advertised a 2b/1ba cottage in Pukalani in January for $2000 per month and received over 80 inquiries about it.  They felt overwhelmed so they took the ad down and relisted it at $2400 per month and got eight inquiries and was able to pick a tenant that they are very happy with.

I agree a lot can happen in a year but that is why as landlords we need to screen, have reserves, and keep open lines of communication with our tenants.  Yes, even if we do this things can go wrong but that is just the nature of the beast.

Aloha Colby

Aloha BP Ohana,

It seems like nothing but bad news lately, so how about some good news. Maui County has passed new property tax relief for long-term rental landlords to encourage landlords to rent LTR vs STR. They are offering to start in this relief in 2022 it will give a $200,000 tax exemption to landlords that have tenants longer than 1 year in their property. This exemption before was only available to homeowners that occupied the property and did not rent it out. Even more great news, they are also going to up the homeowner exemption to $300,000 for owners that have an ADU on their property that is rented for greater than 1 year. Please see the link for more information.

 https://www.mauicounty.gov/civ...

Aloha Chris,

Yes, you do.  You are allowed to pass it visibly and any applicable county surcharge to the tenant, but you are not required to do so. The tax is on (you) the business and not on the customer.  If (you) the business passes on its GE tax, the maximum pass-on rates, which include the county surcharge if applicable, are as follows:

City and County of Honolulu: 4.7120% (effective January 1, 2007 – December 31, 2030)
County of Hawaii:  4.4386% (effective January 1, 2019 – December 31, 2019) and 4.7120% (effective January 1, 2020 – December 31, 2030)
County of Kauai: 4.7120% (effective January 1, 2019 – December 31, 2030)
County of Maui: 4.1666% (no county surcharge)

Most landlords in Hawaii tend to include it in the advertised rental price.