Kawamoto claims disputed

By Andrew Gomes
Advertiser Staff Writer

People who have done business with billionaire landlord Gensiro Kawamoto yesterday fired back at the Japanese owner of 103 Hawai'i rental homes, insisting he is responsible for the run-down condition of so many of his properties.

A damaged fence, on left, remains unrepaired at a home in Portlock owned by Gensiro Kawamoto. The billionaire landlord had to approve any large expenditures, a former management firm employee said. Eugene Tanner • The Honolulu Advertiser

The conflicting pictures, which emerged a day after Kawamoto publicly blamed his longtime Hawai'i attorney and property management companies for the disastrous condition of his homes here, is classic Kawamoto — an enigmatic figure who has charmed and infuriated many.

The condition of his Hawai'i homes — concentrated in Hawai'i Kai, Windward O'ahu and downtown neighborhoods — has concerned communities where eyesore Kawamoto properties, including roughly 30 vacant ones, have hurt property values and in some cases damaged neighboring property.

Kawamoto on Wednesday said that until last year he had not seen his Hawai'i rental units in 10 years and that he was "shocked" by their appearances. He also said he fired his real estate management firm and local attorney, Carol Asai-Sato, who he said directed management of his Hawai'i properties.

Asai-Sato's firm, Alston Hunt Floyd & Ing, issued a statement yesterday saying the firm notified Kawamoto first, on Nov. 7, that it would no longer provide him legal services. "Mr. Kawamoto did not fire the firm," the statement read.

Alston Hunt stated the firm's service to Kawamoto over five years was provided with his knowledge and at his direction.

"Ethical obligations prohibit the firm from further comment regarding Mr. Kawamoto," the statement said.

Kawamoto did not respond to questions faxed to him in the past two days via Toyo Realty, a property management firm he hired last month.

Four property management firms that formerly managed Kawamoto's Hawai'i homes either declined comment or did not return calls yesterday.

But some people who were involved with more than one of the four companies said Kawamoto had to authorize any substantial expenditures for his property and that he routinely delayed and rejected requests to make repairs.

"He kept everything to a minimum," said a former employee of one of the property management firms, who requested anonymity.

An addendum to a Kawamoto home lease obtained and authenticated by The Advertiser reads that the owner will not be responsible for repairs or replacement of such things as sprinkler systems, dish washers and refrigerator ice makers.

Property managers said such provisions are not standard in Hawai'i leases. Other provisions in Kawamoto's home lease said broken solar water systems were excluded from the owner's responsibility if it was not the sole hot water source. If a ceiling fan breaks, only the light will be repaired. If major repair to a pool is necessary, the owner may drain and cover it up and the tenant will ask for no compensation, the lease provision said.

"I have a lovely pool house," said one tenant. "No pool. ... I have the biggest flower pot in Hawai'i Kai."

The tenant, who requested she not be named because of eviction fears, also said appliances such as dish washers, microwave ovens and garbage disposals are considered nonessential and Kawamoto's lease prohibits a tenant from making any repairs without prior written consent of the manager.

Richard Baker, a past president of the Maunalua/Triangle/Koko Kai Community Association in Hawai'i Kai said he received similar reports from Kawamoto tenants in the mid-'90s. He also said one former Kawamoto property manager told him in frustration that Kawamoto would not approve repairs normally made by a property manager.

"That is not consistent with what Kawamoto is saying," Baker said.

Kurt Winner, who has been the Maunalua/Triangle/Koko Kai association manager for the last 2 1/2 years, said it has only been in the past year that Kawamoto's properties have seen any significant improvement.

Winner said the changes started happening after a Jan. 11 meeting with a former Kawamoto property manager who was presented a copy of deed restrictions that mandate upkeep of home exteriors and vegetation.

"Surprisingly, a lot of things started getting done around here," Winner said. "(Kawamoto) appears to be moving. He's fixing up some of his homes."

The changes began in the past four or six months, Winner said, adding that no significant upgrades were made prior to then.

Tenants and one property manager also say Kawamoto raised the rent on all his Hawai'i homes a few months ago by as much as several hundred dollars a month, and pledged to try and resolve longstanding maintenance issues.

Shari Berinobis, who lives next to a Kawamoto property in Hawai'i Kai, where he owns about 70 houses, said she spent eight months futilely trying to have Kawamoto representatives take care of roots from his property that had strangled her sprinkler system and upheaved her Futura Stone pavement. "It's been quite a horrible mess," she said.

Then one day last month, Berinobis said Kawamoto's newest property management firm, Toyo Realty, responded to her complaint within hours.

Two weeks later, none other than the billionaire himself showed up at her door with a landscaper, property managers and an interpreter.

Berinobis said Kawamoto picked up a garden saw, cut through a root, examined the offending part of his rubber tree and immediately agreed to repair her sprinkler system and Futura Stone and replant her garden as well as make repairs to another neighbor's property.

Afterwards, Berinobis invited Kawamoto and his team into her house for juice, coffee and cookies. "He was extremely agreeable to make amends," she said. "He could not have been more delightful."

Billy Mills has lived in one of Kawamoto's homes for five years with his wife without dissatisfaction. Problems with pipes and the electrical system were fixed in timely fashion, he said. More minor things have been deferred, though the new management company said upgrades will be made.

Rockne Garvin, a former Kawamoto tenant in Portlock, said renting a Kawamoto home was an understood trade-off. "It was an $800,000 house and we were paying $1,800 a month in rent," he said. "I had a pool and a beautiful view of Diamond Head."

Minor defects such as peeling paint and rot around the windows were looked at promptly, but not repaired, he said. Anything potentially dangerous to tenants or their belongings was fixed. "They would only fix things that were super necessary," he said.

Residents and property managers wonder whether Kawamoto is making upgrades in preparation for selling the 103 homes, after he sold 58 Hawai'i homes — many for below-market prices — last year.

Or he could be fixing them to raise rent to market levels instead of charging hundreds of dollars below market, according to property managers and tenants.

Others simply don't know what to make of Kawamoto's moves.