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The Honolulu Advertiser

Posted on: Sunday, June 27, 2004

RENTERS
The rental market is tight and getting even tighter

 •  Tips for renters

By Kelly Yamanouchi
Advertiser Staff Writer

Tri Le found himself in need of a new apartment recently when his landlord sold the one he had been calling home.

Harsha Reddy, who just graduated from medical school and moved to Hawai'i to start an internship, is looking for a two-bedroom rental. Reddy has checked out the Chateau Waikiki.

Photos by Andrew Shimabuku • The Honolulu Advertiser

Legal Aid Society of Hawai'i

Call 536-4302 on O'ahu or (800) 499-4302 on the Neighbor Islands.

www.legalaidhawaii.org — Click on "Resources," then click on "Affordable Rental Listings" to find links to listings, rental tips, rental assistance programs and other information.
Le quickly realized this is not the easiest time to be looking for a rental in Honolulu. The housing boom of the past four years has reduced the supply of rental units, and a tighter supply has led to higher prices.

"It's a really stressful, taxing process to try to find a home," said Le, a massage therapist living in Waikiki. "There's just not a lot available."

O'ahu rents are at the highest they've been in at least 14 years, according to Data@Work, a real estate market analysis firm in Honolulu. The average rent for apartments is $1,461, up from $935 in 1997. Rents breached the $1,000 mark in 2001. The last time rents were in the four figures was 1994.

But a bigger problem for renters is a narrow selection of properties.

"It's a very tight market," said Lurline Johnson, vice president of Property Profiles Inc. "It's really difficult for the renters right now. ... They run into lack of availability first of all."

P.J. Moore, president and principal broker of The Property Managers Ltd. in Kahala, called it a matter of supply and demand.

"You don't have the supply and you do have the demand," she said.

That's partly because of fewer investors buying properties to rent and some owners taking units back from the rental market for family members or children, Johnson said.

Five years ago, renters had their pick of properties, said Johnson, who manages 300 units, including single-family homes and apartments.

"It was a totally different marketplace," Johnson said. "We as landlords were saying, 'I'll paint it!' We were standing on our heads trying to get people to rent places."

But now, she hears people say they have been looking for two or three months for a rental, "and I'm hearing it more and more."

Harsha Reddy, who just graduated from medical school and moved to Hawai'i to start his internship, was looking for a two-bedroom place "that's going to be a secure, safe place," he said. He wanted two parking spots — a rarity in apartment rentals here. It would be nice, he said, to find a building with an exercise room and pool, too.

Brianna Besen, a nurse who just moved to Hawai'i to work at Kapiolani Medical Center, said the good news is that "if you're willing to pay for it, you can get it."

But she said she and her roommate are picky. They want an apartment close to work with two equal bedrooms, enough parking and a lanai.

"You want to feel safe, plus be close to things," Besen said.

An apartment that Le, Reddy and Besen looked at during a property showing this month was a two-bedroom furnished apartment at the Chateau Waikiki that goes for $1,800. Over the years, it has been home to a variety of renters, from students to nurses to an engineer who moved from Japan with his family, said property manager Nancy Thomas of Thomas Properties.

The $1,800 sticker price is "a little high in the two-bedroom market, but not for Waikiki," Thomas said.

The high prices and limited supply affect renters no matter what their situation.

From left, Harsha Reddy, Brianna Besen and Cherise Jones tour the pool deck during a property showing at the Chateau Waikiki, where a two-bedroom furnished apartment was going for $1,800. That sticker price is considered high in the two-bedroom market, but not for Waikiki. Some of the amenities these potential renters are looking for: two parking spots, an exercise room, pool, lanai and a secure location.
Some are renting because they don't want to buy a house with housing prices at near record highs. Some can't afford a house at these prices. Others just prefer to rent.

Thomas recommended that, no matter what the situation, those looking for rentals should "sit down and figure out what they really want" in an apartment or house, to make their search more efficient.

If they don't, "They're just kind of looking everywhere," Thomas said.

The places where it is hardest to find rentals are Kailua and Kane'ohe because so many people would like to live in a cozy beachside town with cool weather.

In those two towns, "if anything comes up available on the market it sells right away," Moore said.

Hawai'i Kai also attracts a lot of rental seekers.

But West O'ahu is one of the easier areas to find rentals, from 'Ewa to Kapolei to Makakilo. "Those just aren't as popular because of the commute time," Thomas said.

No matter where you look, Hawai'i does not have a lot of new rental development like certain growing cities on the Mainland, and that surprises some who move here. The rel-

atively stagnant supply also causes difficulty for local residents who want to find a new place and are left without a lot of selection.

Those who have the most difficult time finding a place are renters with pets and those who want two or more parking stalls for a one-bedroom apartment. More people are looking for exercise rooms, Thompson said, but such an amenity is less common than swimming pools and barbecue grills.

The rental market could become even tighter when military housing renovation projects start and military families must find alternative housing in the meantime.

"There just aren't as many rentals as there had been," Johnson said.

• • •

Tips for renters

It can take anywhere from a few days to a few weeks to find a rental, so start early if possible

• Figure out what kind of apartment or house you're looking for — close to work or somewhere else? Furnished or partly furnished? How much are you willing to pay? How much parking do you need?

• Read newspaper classified listings of rentals and search on the Internet every day of your search to catch new listings before they are taken

• When you find a listing you like, get the address and drive by the property and around the neighborhood to see if you like it, before making an appointment to see the unit.

• Be upfront if you have pets

• Consider gathering some of the following material to be among the first applicants to fulfill qualifications for a rental:

1. Letters of employment, referrals, references
2. Tax returns
3. Bank statements
4. School information — acceptance, registration, financial aid, scholarships, grants, etc.
5. Recent credit report (within one month)
6. Pay stubs