LAW WEEK ON TAKE 2.
TODAY'S TOPIC, LANDLORD/TENANT
LAW.
Kelly: TALKING TO ATTORNEY
STEWART TO ANSWER COMMON
QUESTIONS ABOUT THIS TOPIC.
HAPPY TO HAVE YOU.
BECAUSE THIS IS SOMETHING THAT
MOST PEOPLE HERE IN HAWAI'I
HAVE TO DEAL WITH.
SO LET'S GET RIGHT TO THE
QUESTION.
THESE ARE COMMON QUESTIONS
THAT YOU GUYS GET ALL THE
TIME.
RIGHT?
YES.
Kelly: PERFECT.
SO FIRST QUESTION.
WHAT SHOULD PERSPECTIVE
TENANTS BE CAREFUL ABOUT
BEFORE RENTING.
ONE CASEY HAD RELATIVELY
RECENTLY, OLDER COUPLE RENTED
A LUXURY CONDOMINIUM.
AND BEFORE THINK MOVED IN, --
BEFORE THI THEY MOVED IN, HADN'T
PURCHASED RENTER'S INSURANCE.
UNIT WENT UP IN FLAMES WHILE
THEY WERE POSSESSION.
ASSOCIATION'S INSURANCE
COVERED THE DAMAGE.
INSURANCE COMPANY CAME AFTER
THEM AND SOUGHT TO BE
REIMBURSED UNDER SUBROGATION
CLAIM.
THEY WERE ON THE HOOK FOR
POTENTIALLY HUNDREDS OF
THOUSANDS OF DOLLARS BECAUSE
THEY DIDN'T GET THE RENTER'S
INSURANCE.
Kelly: THAT'S SOMETHING
YOU SHOULD BE GETTING RIGHT
OFF THE BAT?
RIGHT.
DEPENDS ON THE LEASE.
SOMETIMES IT'S NOT REQUIRED.
SOMETIMES IT MIGHT BE COVERED
UNDER THE OWNER'S INSURANCE.
IN THIS CASE, RENTER'S
INSURANCE WAS REQUIRED.
Kelly: ANY OTHER ADVICE
FOR TENANTS?
SURE.
OFTENTIMES, A LOT OF TENANTS
DON'T REALIZE IF THEY SIGN A
LEASE FOR A SET TERM, THEY'RE
RESPONSIBLE UNTIL THE END OF
THE TERM.
SO IF IT'S ONE YEAR LEASE AND
THEY WANT TO GET OUT AFTER
THREE MONTHS, THEY COULD
POTENTIALLY BE LIBEL TO THE
LANDLORD FOR RENT FOR THE REST
OF THE YEAR UNTIL LANDLORD
FINDS A REPLACEMENT TENANT.
OFTEN, TENANTS DON'T KNOW THAT
AND IF YOU TRY TO TERMINATE A
LEAST EARLY WITHOUT GOOD
REASON, THE LANDLORD CAN
OBTAIN A CIVIL JUDGMENT
AGAINST YOU FOR FUTURE RENT,
ATTORNEY'S FEES, LEGAL COSTS,
AND IT CAN REALLY PILE UP.
SO BEST ADVICE, IF YOU HAVE TO
BREAK A LEASE, TRY TO TALK
WITH THE LANDLORD, COOPERATE,
WORK OUT SOME KIND OF DEAL
INSTEAD OF JUST NOT SAYING
ANYTHING AND NOT APPEARING
THIS COURT.
THAT'S NOT A GOOD IDEA.
Kelly: NO.
DEFINITELY NOT.
KIND OF PROBLEMS LIKE THAT,
ARE THERE INSTANCES EVER OF
FRAUD INVOLVING THE LEASES?
YOU KNOW, IN THE LAST
COUPLE OF YEARS, I'VE SEEN
MORE OF IT.
PROBABLY BECAUSE THERE'S A
TIGHT RENTAL MARKET.
AND WITH CRAIG'S LIST, THERE'S
A LOT OF ADVERTISEMENTS FOR
RENTALS.
TURNS OUT SOME OF THESE PEOPLE
POSING AS OWNERS, IN THE
STATE, AGE OF, YOU KNOW,
SOCIAL MEDIA AND CELLPHONES,
WIRE SECURITY DEPOSIT FOR
FIRST MONTH'S RENT WITHOUT
ACTUALLY MEETING LANDLORD OR
AGENT, TURNS OUT THE PERSON IS
PROBABLY NOT EVEN IN HAWAI'I
AND ONCE YOU WIRE THAT MONEY,
IT'S GONE.
YOU WANT TO DO YOUR DUE
DILLIGENCE AND MEET THE AGENT
IN PERSON.
GO INSIDE.
MAKE SURE THAT THEY HAVE THE
AUTHORITY TO ENTER INTO A
CONTRACT.
Kelly: RIGHT.
THAT'S FOR KIND OF BEFORE
YOU'RE OFFICIALLY IN THERE.
IS THERE EVER ANY FRAUD WITH
AN OFFICIAL?
OR IS THAT TYPICALLY MORE.
TYPICALLY.
ONCE YOU ENTER INTO A
CONTRACT, IT'S LEGALLY BINDING
DOCUMENT.
COURTS HAVE JURISDICTION OVER
IT.
I THINK THE THING IS TENANTS
SHOULD BE CAREFUL BEFORE THEY
ENTER INTO THE LEASE.
MAKE SURE THAT THEY GO THROUGH
INSPECTION TO MAKE SURE
NOTHING IS BRO BROKEN.
NO HAZARDOUS CONDITIONS.
ONCE YOU TAKE POSSESSION, YOU
WAVE AT THAT RIGHT.
Kelly: INTERESTING.
WHAT ABOUT FOR COMMERCIAL
LEASES?
ANY ADVICE FOR A COMMERCIAL
TENANT?
YOU KNOW, COMMERCIAL
TENANTS TEND TO BE MORE
SOPHISTICATED, BUT THEN AGAIN,
YOU SEE A LOT OF PEOPLE DOING
START-UP BUSINESSES.
NEVER DONE A LEASE AND ONE
POTENTIAL THING THAT
COMMERCIAL LESSEES SHOULD MAKE
SURE THEY UNDERSTAND IS
THEY'RE OFTEN ASKED TO SIGN
WHAT'S A PERSONAL GUARANTEE.
SO COMPANY IS, IT'S TENANT,
BUT LANDLORD WANTS PERSONAL
GUARANTEE.
ONCE YOU SIGN THAT PERSONAL
GUARANTEE, THAT MEANS EVEN IF
IT'S THE COMPANY THAT'S ON THE
LEASE, YOU'RE PERSONALLY LIBEL
FOR ANY BACK RENT, FUTURE
RENT, LEGAL FEE, PENALTIES.
BASICALLY, BY SIGNING A
PERSONAL GUARANTEE, YOU'RE
GIVING UP THE PROTECTION.
YOU WOULD OTHERWISE GET FROM
HAVING A CORPORATION AND
OFTENTIMES, A LOOK OF SPOUSAL.
YOU WANT TO MAKE SURE THAT YOU
UNDERSTAND WHAT RESPONSIBILITY
YOU'RE TAKING.
Kelly: RIGHT.
THAT IT'S YOUR NAME AND NOT
NECESSARILY THE BUSINESS.
YOU REALLY ARE GOING TO TAKE
CARE OF THIS.
WHAT ABOUT TIPS FOR LANDLORDS?
FOR LANDLORDS, BIGGEST
THING IS THE SECURITY DEPOSIT.
ONCE A TENANT VACATES THE
PREMISES, WHETHER LEGALLY OR
IN BREACH, LANDLORD HAS 14
DAYS TO IT EITHER RETURN THE
SECURITY DEPOSIT IN FULL OR
SEND A WRITTEN NOTICE TO THE
TENANT WITH ITEMIZATION SAYING
SECURITY DEPOSIT IS BEING
WITHHELD FOR THIS, THIS, THAT
AND THE OTHER.
IF THE LANDLORD, YOU DON'T GET
THAT LETTER OUT WITHIN 14
DAYS, THE TENANT AUTOMATICALLY
HAS THE RIGHT TO ROW KUPAOA
THE ENTIRE SECURITY -- RECOUP
THE ENTIRE SECURITY DEPOSIT.
AS A LANDLORD, OFTEN SEE IT
JUST SEND OUT A LETTER WITHOUT
A CERTIFIED MAIL RECEIPT.
OFTEN JUDGES, WON'T THINK
THAT'S ENOUGH TO PROVE IT.
Kelly: NO PROOF.
GOOD TO KNOW.
THANK YOU SO MUCH.
AGAIN YOU GUYS ARE GOING TO BE
COVERING TODAY LANDLORD/TENANT
LAW.
IF YOU HAVE ANY QUESTIONS,
HAVING POTENTIALLY PROBLEMS
WITH YOUR RENTERS OR LANDLORD,
PERFECT TIME TO ASK ANY
QUESTIONS.
IF YOU DO HAVE ANY FOR TODAY'S
ACTION LINE.
LAW WEEK.
TOPIC IS LANDLORD LEASE
TENANT.
COMPLETELY FREE.