Here is how some shady Realtors and illegal vacation rental owners are trying to scam the City Officials and avoid violations with fake 30-lease contracts.
The following is the “fine-print” found in some unscrupulous Oahu Real Estate Firms’ lease agreements:
SPECIAL TERMS FOR OAHU 30-DAY RENTALS ONLY
LAND USE ORDINANCE COMPLIANCE: In accordance with City and County of Honolulu Land Use Ordinance section 21-10.1, this property is provided to you, exclusively, for a period of 30 days or greater. You are electing to occupy this property for the exact days outlined in the booking details. By law, the property cannot be rented to or occupied by other tenants during any portion of the 30-day term. If you should choose to occupy the property for additional nights within the 30-day rental term, a full payment of any additional charges must be made prior to such occupancy. We (Realtors) may modify the actual dates of the 30-day or longer Rental Period at its discretion up until the Arrival Date.
PROPERTY USAGE CHARGE: Guest understands and agrees that the Rental Charges are determined based on Guest’s planned Arrival and Departure dates, and that Owner and Agent incur significant costs based on the number of days that Guest actually occupies and uses the Property. Guest further understands and agrees that in the event that they occupy the Property for more days than specified, based on the Arrival Date and Departure Date, that Guest will pay an additional Property Usage Charge, plus state and county General Excise and Transient Accommodation Taxes thereon; and Guest authorizes Agent to charge their credit card on file for the full amount of that Property Usage Charge (if any), plus taxes, plus a Credit Card Processing Fee of 3.5%.
A Declaratory Ruling from the DPP Director said this is ILLEGAL!
The guest’s’ rental charge and their rights of possession of the property are restricted by their “planned Arrival and Departure dates”. And if they stay longer than their “planned Arrival and Departure dates”, they are charged a so-called “Property Usage Charge”
It’s time for the Board of Realtors, RICO and the State Attorney General to prosecute these Realtors!
Bills 85 & 89 (Menor version) will make these types of scams a violation. Please support these bills!