We noticed that you're using an unsupported browser. The TripAdvisor website may not display properly.
We support the following browsers:
Windows: Internet Explorer, Mozilla Firefox, Google Chrome. Mac: Safari.

Things to consider if Rental is also For Sale?

Which Hanalei hotels are on sale?
mm/dd/yyyy mm/dd/yyyy
See hotels
Seattle
posts: 12
Things to consider if Rental is also For Sale?

Hi,

We are shopping around for rentals for Hanalei area for next Jan-Feb timeframe for a month's stay. Turns out that the one I am currently considering is also for sale. The rental is through an agency, and has a TVR number.

What should/can I do to protect the dates I reserve? Is there a clause that should be added to rental agreement about honoring rental agreements upon sale? I am wondering about how reasonable it would be for new owner to honor a rental so many months out? Maybe a non-issue? Pics look great, but read stories on this forum of houses no longer maintained that were for (esp. short) sale.

Turns out my alternate rental in Haena does NOT have a TVR number....sigh. Which situation is a worse risk? ;)

Thoughts? Thanks in advance.

California
posts: 26,283
reviews: 88
1. Re: Things to consider if Rental is also For Sale?

Scroll down a bit and we just discussed this in another thread.

You certainly could have a clause included to say if the house sells and the new owners don't honor the rental you get 100% of your monies back. Going through a rental company can make you feel a bit safer as they have other inventory to offer you if it does sell or the bank takes over.

As we said in the other thread, I wouldn't be too concerned if the house was for sale, I would be concerned if it has been on the market a lonnnngggg time, the price keeps going down and/or its in a short sale situation. Not many houses are selling in Haena (unless they are 10 million and you are Julia Roberts who bought it) but I would be more concerned with the condition of the rental if its in a short sale. Some people keep their rentals up (they want them to look good for the possible buyer) but others can't maintain them for lack of funds. If you don't feel comfortable in this situation there are tons and tons of rentals in Haena. Check out Bali Hai Realty or Hawaiigaga.

Hilo, Hawaii
Destination Expert
for Hilo, Island of Hawaii
posts: 29,227
reviews: 4
2. Re: Things to consider if Rental is also For Sale?

You need to realize that you have no power to enforce your rental agreement with a new owner, unless the sale contract specifies that existing rental monies and leases will be transferred.

The buyer specifies in the offer whether or not he/she wants the transfer. If the buyer wants the property for personal use or long term rental, he/she won't check that term on the form.

The seller has a choice about how to offer the property. Theoretically seller could say it is only for sale as a rental, but I can't imagine a seller doing that in this market.

Your money lies with the seller if the property sells before your visit and it is not bought for purposes of continuing a VR. You take a risk. You sure don't want to contemplate suing the seller if he/she doesn't return your money.

As a personal note, I had a vacation rental that I sold when I sold my/our main home. The way I handled it was to inform the prospective renter and not to finalize any rental (accept payment) for dates I was not sure of owning the home. I lost money doing that, but my ethics were more important to me.

On a separate note, I would not rent any property that is up for a short sale, because that property is on the verge of foreclosure, plus banks do not get into transferring rental monies and leases as far as I know.

Have you seen the listing? Is it a short sale or not?

Hilo, Hawaii
Destination Expert
for Hilo, Island of Hawaii
posts: 29,227
reviews: 4
3. Re: Things to consider if Rental is also For Sale?

PS. Was posting at same time as jebett. Good point that renting from an agency's pool you are guaranteed to have a rental, even if it's a different unit.

I personally like to rent the exact unit I am going to get, but not everyone feels that way. On one occasion I lucked out renting from an agency because they didn't clean my unit in time and they had to give me one that was twice as nice for the same money. That was lovely.

La Mirada...
Destination Expert
for Kauai
posts: 11,088
reviews: 97
4. Re: Things to consider if Rental is also For Sale?

>>>Turns out my alternate rental in Haena does NOT have a TVR number....sigh. Which situation is a worse risk? ;)<<<

I would be way more worried about a property for sale (especially if it was short sale) than I would one without a TVR number. Many of the rentals that were denied or could not apply for a TVR number because they were on land zoned AG will be able to apply as of August 16, 2010. The mayor signed a bill allowing some of the rentals to be grandfathered in. Also I believe that vacation rentals of over 30 days need not have a TVR # - I remember that was a big part of the bill. If you're renting for a month, everything should be fine!

thegardenisland.com/news/local/govt-and-poli…

3Chihuahuas

Edited: 8:23 pm, September 13, 2010
Seattle
posts: 12
5. Re: Things to consider if Rental is also For Sale?

Oops - sorry for repeat topic! I thought I'd already read this topic recently, but then couldn't find it, and thought I imagined it. All this online research is making me cross-eyed!

From what I could tell, property has been on and off market for over a year (is that a long, long time??). Price is above what it was listed last time, and it is on high end realty sites with no mention of short sale (they have to say that, yes?). It is offered for rent by Hanalei Land Company, which seems to have several very nice rentals in Hanalei, but yes, it would be tough to switch last minute and find someplace for so many days (we may stay as long as 2 months).

Thank you, thank you for all y'all's advice!

Thanks for answer on no-TVR place...the Haena place is a great deal, but maybe too great? Can't get any info/reviews on it except what's on VRBO, which reads a bit like something the owner wrote (same odd spelling of a word in description as in review!).

California
posts: 26,283
reviews: 88
6. Re: Things to consider if Rental is also For Sale?

HLC is a reputable company.

If you are staying 2 months I would not risk the chance it could sell. If it did sell and HLC had to find you other accommodations it would tough for them to find something for that long. Like I said there are many more fish to fry in that region. Just be careful of Haena. Though there are many lovely homes for rent there are a lot that are not that nice, but might look that way online. Heana can get wet and damp with mold issues in the homes. My biggest advice would be make sure it does have reviews and lots of them.

Seattle
posts: 12
7. Re: Things to consider if Rental is also For Sale?

Good to know about Haena. That is kind of how I am feeling about the non-TVR place there - very charming online, but who knows until we get there, and then we're there for a month or more!

On the Hanalei house for sale/rent, good advice.

So, the search continues...feeling very lucky to get to stay on Kauai so long, but its making finding the perfect longer-term spot all the more difficult!! I guess we could split up the trip between a few places, but had an idea of finding this really great place and staying put!

Thanks again - your feedback is much appreciated!

8. Re: Things to consider if Rental is also For Sale?

-:- Message from TripAdvisor staff -:-

This topic has been closed to new posts due to inactivity. We hope you'll join the conversation by posting to an open topic or starting a new one.

To review the TripAdvisor Forums Posting Guidelines, please follow this link: http://www.tripadvisor.com/pages/forums_posting_guidelines.html

We remove posts that do not follow our posting guidelines, and we reserve the right to remove any post for any reason.

Removed on: 4:16 am, March 13, 2011