FAQS

Answers to Your Commonly Asked Questions


“Rent Ready” Maintenance?
Maintenance that is required for re-renting the property is handled by Melissa Kalauli Realty, LLC. This includes painting, installation of new flooring, minor plumbing repairs such as leaky faucets, and the replacement of window blinds or screens. There is a cost to a property “turn around”, as these are the items you would be doing at your home if it were vacant. It is the best time to do major replacement if needed. It is always hoped that your tenant will stay a long time so that these costs are kept to the normal repairs costs of the year. We will always consult with you as the owner prior to having any work done.

Occasionally, the replacement of appliances is required such as a stove/oven, refrigerator, washer, dryer or dishwasher etc. We will get one bid from our trusted vendors and convey the price to owners for approval.

Large projects such as new roofs, remodelling/renovationg of a house, or preparing the house to sell, and/or coordination of contractors will be charged an hourly rate for the experts at Melissa Kalauli Realty, LLC to oversee the project.

 

Applicant screening?
Every person over the age of 18 years must complete an application. Applicants are screened to verify employment & income, check on any recent evictions, credit scores, late payments, accounts opened and closed, criminal history (if any), and much more. Our rental criteria serve to help find the best tenant for your property.

 

Can I do my own maintenance?
Absolutely, but it must be coordinated with Melissa Kalauli Realty, LLC and the tenant.

 

Do you provide Market Analysis for rents/sales?
Yes. Melissa Kalauli Realty, LLC is a full service real estate brokerage that offesr the best to our clients. Upon request, a Market Analysis of your area will be supplied.

 

Habitability and do I have to meet the requirements?
Rental property must adhere to habitability requirement of the State of Hawaii and the Hawaii Landlord-Tenant Code. Your property should be in rent-ready condition:
  • Effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors.
  • Plumbing or gas facilities which conformed to applicable law in effect at the time of installation, maintained in good working order.
  • A water supply approved under applicable law, which is under the control of the tenant, capable of producing hot and cold running water, or a system which is under the control of the landlord, which produces hot and cold running water, furnished to appropriate fixtures, and connected to a sewage disposal system approved under applicable law.
  • Electrical lighting, with wiring and electrical equipment which conformed with applicable law at the time of installation, maintained in good working order.
  • Building, grounds and appurtenances at the time of the commencement of the lease or rental agreement in every part clean, sanitary, and free from all accumulations of debris, filth, rubbish, garbage, rodents and vermin, and all areas under control of the landlord kept in every part clean, sanitary, and free from all accumulations of debris, filth, rubbish, garbage, rodents, and vermin.
  • Floors, stairways, and railings maintained in good repair.
 

How are maintenance requests handled?
If over $550.00, the owner is notified for approval unless it is an emergency. Melissa Kalauli Realty, LLC will contact the owner by phone if it an emergency, fire or flood occurs, Regular requests for maintenance will be emailed, but no action is needed on your part, it is for information only. Melissa Kalauli Realty, LLC will call a preferred vendor to handle all calls. Anything under $550.00, the Property Manager will use their best judgment in approving the work to be done.

 

How long will it take to rent my property?
Our goal: To Rent Your Property as FAST as possible. It normally takes 30-45 days. If the property is occupied, we start marketing your property as soon as we receive a 28-day from your tenant and verify with you that do not want sell. If the monthly rental amount is higher than the market will bear at the time, it will take longer and may take months, if not at all. The rental market “peaks and valleys” very quickly and we don’t want you caught, we will discuss a fair pricing for your unit. We want you to have all the options available to you. Selling: Melissa Kalauli Realty, LLC can list and market your property during the 28-day period before the tenant vacates and manage the listing until your property sells.

 

How should the property be prepared for a new Tenant?
If necessary, examples of the following can be done:
  • Fresh coat of paint
  • Pressure wash exterior
  • Replace old & worn blinds if included
  • Install new flooring if needed
  • Replace caulking if old and stained
  • Clean carpeting
  • Yearly maintenance
  • Legal compliance with state, county and city laws
Vendors are available to detail the property, as a competitive price. Normally it is around $25-$35 per hour depending on the size of the property.

 

Is an inspection done before and after the tenant vacates?
Melissa Kalauli Realty, LLC does an inspection of properties that we manage before the tenant moves in. When the tenant takes occupancy, they are given a move-in inspection form to complete also. It is suggested that they also take pictures. When the tenant vacated, a move-out inspection is done. The condition reports are then compared.

 

Security Deposit and Pets?
It is now a standard practice to add to a Pet Deposit for pets. All Owners have the right to not allow pets, but a large number of tenants do have pets. Melissa Kalauli Realty, LLC requires a Pet Addendum if the owner will allow a pet. It is also required that the tenant have renter’s insurance that will cover their pet in the event that the pet hurts someone or causes damage.

 

Security deposit, what happens when the tenant moves out?
Melissa Kalauli Realty, LLC handles all the normal repairs and maintenance that is needed to prepare the property for the next tenant. If the tenants have property damage to the unit, Melissa Kalauli Realty, LLC has the vendor bill separately so that Melissa Kalauli Realty, LLC can comply with the Hawaii state laws regarding what is normal wear and tear and what is tenant damage. Tenants receive copies of any invoices to verify the deduction from the security deposit.

State compliance of the handling the Security Deposit refund is done in an efficient manner, 14 days from the end of the lease, and/or once the keys have been returned and the tenant no longer has possession of the residence.

 

The Security Deposit?
The security deposit is regulated by the State of Hawaii.

The Hawaii Landlord-Tenant Code states that security deposits can be no more than one month’s rent.

 

What about the invoices for maintenance done?
All invoices are scanned to your online owner portal which you access through AppFolio, a secure website and password protected.

 

What happens with a maintenance emergency?
Melissa Kalauli Realty, LLC is on call throughout the day and most of the evening. During business hours, a vendor is sent out immediately. If after hours, calls go to our voice mail. After assessing the emergency, action is taken immediately or in the morning when vendors are open. If it can be delayed with no damage to your property, it is best to have vendors work during regular hours.

 

What happens with damage caused by the tenant?
Damage to the unit must be documented and proven that the tenant caused the damage. If it is, costs of repair/replacement may be held from the Security Deposit. However, if it is carpeting or other capital improvements to the property, there may be pro-rated amount that can be deduced, even it was in good condition. It goes by age of the item and depreciation is factored in.

It is prohibited, by contract, for the tenant to use the security deposit as last month’s rent but it does happen on occasion. The tenant may have prorated days that they owe you, and these charges can be subtracted from the Security Deposit. Tenants that have vacated may challenge funds retained for damages from the security deposit, but Melissa Kalauli Realty, LLC documents the move-out condition of the property.

 

What if the tenant pays the rent late?
All rents are due on the first day of each month and late after the 5th of the month. Often the tenant will call Melissa Kalauli Realty, LLC to say they are going to be late and state when a payment can be expected. If the rent is to be received after the normal date of transferring rental proceeds to the Owner (15th of the month), you will be notified so that you can take the necessary action with your accounting. Melissa Kalauli Realty, LLC will give the tenant a courtesy call for an update. The late fee is held by Melissa Kalauli Realty, LLC for the extra work that the tenant is causing in administration of the issue so that the cost is not transferred to you. If the tenant does not respond by paying rent, the late fee, a 5-day demand notice to pay rent or vacate is served. We hold the option of continue to eviction or accepting the payment.

 

What insurance liabilities do I have with investment property and how can I protect myself?
Owners of any property could be held liable for known and some unknown conditions at their properties, investment or occupied. You must carry the normal fire/liability insurance policy to cover your investment property adequately. Discuss your insurance needs with your insurance company and listen to them about the amounts and recommended limits for you. Our property management agreement has an indemnity clause that places basic liability for all acts on the owner which is a standard property management clause. Your Insurance company is required to add Melissa Kalauli Realty, LLC, the property manager as either additional insured or name the manager as an interested party to the policy at no extra cost. This addition will protect us both in the unlikely event of a lawsuit. Some insurance companies will not list property managers as additional insured or interested party. When this occurs, you may change companies or accept the liability personally.

 

What is a Section 8 or County Housing Voucher?
The Housing Authority of Hawaii County provides Housing Vouchers to low income people (working, seniors, and disabled, etc.) who qualify. The program is funded by the government. The program subsidizes the tenant’s rent. The Housing Authority decides what the reimbursable amount will be and the tenant pays the difference. For example, your 3/2 in Hilo rents for $1100 a month. The county will pay $600 and the tenant will pay $500 (this is only an example as actual amounts are determined by the Housing Authority). The Housing Authority will inspect the residence prior to occupancy and will do an annual inspection for health and safety issues.

 

What is the contingent reserve fund?
All owner accounts are required to maintain a contingent reserve fund. This account, held in your account within the trust account, is to cover any charges that might be incurred when rents do not cover the cost of maintenance. The amount is normally $150.00 but can be more depending on the age and maintenance of the property and what services the owner’s requests.

 

What other inspections can be done?
Melissa Kalauli Realty, LLC can order any inspection you wish on the property from roof, termite and whole house inspections.

Melissa Kalauli Realty, LLC does have seasonally maintenance inspections for health & safety on water catchment tanks. Gutter cleaning is also a standard item.

We suggest you have a “termite inspection” performed at least every two years to check for dry rot, leaks under the house or in the attic, and for infestations but you must request these additional inspections.

Inspections?
Melissa Kalauli Realty, LLC does inspections every six months which is included in your management fee. If an owner makes a request for inspections to be done at shorter intervals, it can be done for a minimal fee.

 

What services are offered through Melissa Kalauli Realty, LLC?
Melissa Kalauli Realty, LLC is a full service real estate brokerage: real estate sales, listings, 1031 exchange and property management.
All agents are licensed by the State of Hawaii, Department of Commerce and Consumer Affairs.
However, we did not stop with the simple Real Estate license, it is expected that agents and staff stay informed with current trends, legal updates, industry and fair housing knowledge. Additional education through continuing education classes yearly keep us informed on industry changes and needs.

 

How do you advertise?
Melissa Kalauli Realty, LLC offers several advertising options:
  • Signs: hot pink and black “For Rent” or “For Sale” signs for eye catching appeal.
  • Website: is listed as a favorite by many prospects so that they can keep track of our listings. Melissa Kalauli Realty, LLC listings are transferred to over 30 website search engines, giving your property more market exposure.
  • Local paper although 85% of our clients find us on the internet. This extra advertising cost depends on size of the ad.
  • Walk-ins. Our office is conveniently located and it draws many people looking for a new place to live. We always have current rental listings available outside our office.
 

When the vendor completed the work requested do we inspect the property?
Melissa Kalauli Realty, LLC inspects on a case by case basis as we have trusted vendors. If work is done on the outside of the home, we will drive by to check the completion. If the unit is occupied, the tenant is called to make sure that the work is done, no return trips are needed and that our vendor has left the property clean and the workmen were courteous.

When a maintenance request is received, the vendor is selected and a work order is emailed to the vendor. If the repair has more issues than first expected, the vendor calls before going over the contract amount. If the items are not worth repairing due to age or parts available, you are sent an email or called to review the issue and item. Always remember that if the items worked when the tenant rented the property and is not left as a courtesy, such as washer and dryer, the item must be repaired or replaced. The cost of use of these items is paid with the rent and cannot just be left broken. The tenant must notify Melissa Kalauli Realty, LLC if an item has failed or fails again after repair.

We use licensed and insured vendors who we trust for professional opinions and work. They are experts in their field. As property managers we have working knowledge of repairs but we are not experts.

 

Where does the Security Deposit get deposited?
Melissa Kalauli Realty, LLC holds the deposit in a trust account as it belongs to the tenant. Often, tenants feel more secure with the management company holding the funds due to current economic treads of foreclosure and owners not having the funds when they vacate.

 

Who does the repairs?
Melissa Kalauli Realty, LLC uses only licensed, insured trusted vendors. All the licenses are checked with the state contractor board, bonds, insurance and references are requested. If an owner wants to handle the repairs, we can’t guarantee the work. The owner will have to work directly with the vendor from start to finish.

 

Who signs the lease or rental agreement?
Full-management: The Property manager acts on the owner’s behalf as their agent and signs the agreement. The owner and manager work together as one.

 

Who will choose the tenant?
Melissa Kalauli Realty, LLC has over 25 years of qualifying the best tenants for hundreds of owners. Melissa Kalauli Realty, LLC complies with the strictly monitored, Federal Fair Housing guidelines.

Melissa Kalauli Realty, LLC will select the tenant based on the most qualified applicant.

Caution: If an owner suggests the Federal Fair Housing laws not be followed, we will help them to understand the laws. If the Owner will not abide by the Federal Laws, it may mean a long and lengthy battle, with the Owner losing, and with the Federal Government assessing extremely high fines. Melissa Kalauli Realty, LLC will not manage or cooperate with the violating property Owner. This is a huge issue and violation of these laws are very serious.

 

Why use Melissa Kalauli Realty, LLC rather than someone else?
Hopefully, after reading these questions and answers, you will see that Melissa Kalauli Realty, LLC offers value. The services offered far exceed most companies. Keeping your property rented is very important. Keeping you informed is important. Keeping your tenant happy is important, as a happy tenant takes better care of your property. WE know what works and have placed hundreds of people in homes and would love to help you with your real estate needs. We offer stability, knowledge, integrity and service.

We are an industry leader in technology making us convenient for renters and owners alike. We are also totally dedicated to professional property management. We are totally dedicated to your real estate needs, sales and management.
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