Rules around self managing rental property in Hawaii

2 Replies

Looking for anyone who might know the rules and regs around self managing properties in Hawaii. I feel my plan might be bordering on what is allowed as a person self managing. I will try and explain the best I can and hope that someone can provide insight or direction on the plan.

I have a condo that I have converted to a rental. It is currently managed by a professional property manager. I'm planning to stop our current property manager agreement in order to self-manage. I no longer live in Hawaii, but my business partner still does. We are looking to manage the under the business and since he is still local, he would be considered the in-state "agent" (He is not a real estate agent, only a person in state to manage local affairs).
~Since it will be managed and collect rent under the business name (of which I am an owner), does that disqualify it as being "self managed"?
~Since my business partner is going to stand as that "in-state" agent/representative, but he is not the owner, does this require him to be a licensed RE Agent?
~If the above two questions don't disqualify us, do I need to register a new specific business just for the management of the property?

If there is anything else that I need to consider, please feel free to add.

No, your on island contact doesn't have to be licensed unless they manage property for someone else. 

As far as self-managing under your business, it depends on how your business is set up. Is your partner a member of the business that owns the property? If you are a LLC with multiple members you do need a real estate broker license, or to employ a broker, since the manager would technically be representing more than one party.

If it's a single-member LLC (just you), then you are fine to manage it yourself and have your buddy as island contact.

Here's the law itself. If it gets more complicated, consult a lawyer

https://www.capitol.hawaii.gov...

Originally posted by @Loren Clive :

No, your on island contact doesn't have to be licensed unless they manage property for someone else. 

As far as self-managing under your business, it depends on how your business is set up. Is your partner a member of the business that owns the property? If you are a LLC with multiple members you do need a real estate broker license, or to employ a broker, since the manager would technically be representing more than one party.

If it's a single-member LLC (just you), then you are fine to manage it yourself and have your buddy as island contact.

Here's the law itself. If it gets more complicated, consult a lawyer

https://www.capitol.hawaii.gov...

Appreciate the insight. This helps out a lot.