Landlord sends notice of Hawai'i Kai evictions

By Andrew Gomes
Advertiser Staff Writer

About 20 Hawai'i Kai home renters were upset after their Japanese billionaire landlord, Gensiro Kawamoto, raised their rent this month, then on Tuesday told them they have until Jan. 31 to move out.

Renter Anna Daigle, who expects an eviction notice, says she repaired a gap "that wide" between the tub and wall, and resurfaced the stained tub because landlord Gensiro Kawamoto would not do the repairs. Deborah Booker • The Honolulu Advertiser

Kawamoto, in a telephone interview, said he wants to sell 27 homes to take advantage of soaring prices. In June, Kawamoto sold 15 homes in 10 days.

Reaction to the plan has not approached the uproar from civic leaders that erupted three years ago when Kawamoto gave 570 California renters 30 days to move out. Still, affected Hawai'i Kai residents aren't happy.

"During the holidays you get an eviction notice?" said Bob Swallow, a Haha'ione Elementary School employee who has rented a Kawamoto house for two years. "It was quite a shock."

Other tenants, including state Department of Land & Natural Resources conservation police officer Michael Harken, said they are perplexed by the timing of the notice. "Increase my rent, I figure I'll be here for a little while," he said. "I'm pretty upset about it."

The 72-year-old real estate magnate notified tenants of the eviction plans in a three-sentence letter:

"In accordance with the Hawaii Revised Statutes, the owner is required to give a forty-five (45) day written notice to vacate. This letter shall constitute such notice. The last day that you may occupy the rental property is January 31, 2005."

Kawamoto said he is seeking a broker to market the homes, and that he intends to reinvest the proceeds in Hawai'i, though he did not elaborate.

The plans add to the intrigue of Kawamoto's Hawai'i real estate investing, which have included unrealized plans to build affordable housing on Maui and developing a Kaka'ako high-rise.

Nearly three years ago, Kawamoto announced plans to dispose of all his Hawai'i homes, after seeing for the first time in nearly a decade the poor condition of many of his properties.

Kawamoto scaled back the plan and only sold about 60 homes in 2002. He pledged to fix up neighborhood eyesores, but several remained as of August.

Since August, Kawamoto has closed on eight homes for $6 million, about twice what he paid in the late '80s, according to property records.

At least four Kawamoto homes are on the market, according to advertised listings.

Swallow said that if his rental is put on the market, he'd at least like the first opportunity to acquire it for the asking price. "Why not give us a chance to buy them?" he said.

Kawamoto said he has received offers from tenants that were below what he feels is market value.

Some tenants said they are upset that Kawamoto, who they said refused to pay for most repairs, left them to improve the homes to a better condition than when they moved in.

Swallow estimated he spent $4,000 on his rental, including a professional paint job, new carpet, new screens and fixing wallboard around the windows.

Kawamoto said it has always been his intention to keep well-maintained properties and charge higher rent, but has blamed past property management companies for the lack of repairs — a claim several of his past property management firms refute.

Other tenants are more concerned about finding a suitable rental in today's tight market, especially because Kawamoto's rents tended to be below market as an understood trade-off for the conditions.

"Trying to find another place out here in my price range is going to be tough," Harken said. "If we have to pay $300 or $400 more a month it will be hard for us."

Leslie Wall, a 14-year Kawamoto tenant, said she'll miss her pool the most, because she uses it to help with therapy for multiple sclerosis. "I don't imagine I can replace that," she said. "I'm not even sure what to do right now. Bottom line, though — he does own his property."

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.