June Points-of-Interest

Aloha!

Winter showers and a windy Spring have given way at last to a glorious Hawaiian tropical summer. Remember to take a moment to savor the sweet life of relaxing beach side with family and friends and recapture the carefree days of your youth. I wish you all a renewing, refreshing, and rejuvenating summer experience and hope that you enjoy this month's edition of Trinity's Points-of-Interest.

Revenue Report:
Great news! Despite the harsh realities of the economy, the Hawaii visitor arrival declines, and the swine flu scare which is still plaguing us, Trinity Hawaii is bucking all trends. Our monthly revenue figures show net rents up 32.3% in April and 37.41% in May, compared to these same time periods last year. Thank you to our owners who have helped by adjusting your asking rental prices accordingly and given us the freedom to negotiate in your best interests as the seeds of your trust have blossomed into a successful spring season.

Rental Report:
The Windward side is doing a fabulous job of filling long term vacancies. Last week we closed on 3 of our 5 vacant Windward long term homes AND picked up a new long term management client whose home was filled with a long term tenant before the ink dried on the management contract. The South Shore and Metro areas are plugging along as well and are gaining momentum with inquiries up from just a month ago.

Sales Summary:
Our sales team has been busy as well with new signage and a new business card on the horizon. We'd also like to welcome to the team, Mr. Rick Prill. Rick, who formerly owned a Gold Coast condo managed by Trinity, brings with him a wealth of knowledge in buying, selling, and investing in real estate. He will be listing his home in Lanikai for sale soon, so keep an eye out you savvy investors as this may be a winner!

That's all for now. I hope that you enjoyed this month's Points-of-Interest. As always, please feel free to contact me with any questions or just to chat about the market in general. Have a sweet summer time!

Warm Regards,
Carissa Leonida
Director of Operations,
Trinity Properties LLC

Sales, Rentals, and Property Management
Toll Free (888) 939-0444
Office (808) 247-7521
Direct (808) 673-6800
carissa.leonida@trinityproperties.com
www.trinityproperties.com

May Points-of-Interest

Aloha Owners,

Another month has flown by and we are gearing up for the peak summer rental months. Thank you to everyone for your feedback on this newsletter. The response has been lovely and appreciated and it is our goal to continue to provide you up-to-date information on the Hawaii real estate market. So once again, let us delve in:

SHORT TERM RENTALS:
Rather than recap what you already know about the slowing economy, depressed rates, last minute bookings, crazy hotel package deals, etc, I would like to focus this section on what you can do to give your home a competitive edge above the competition:

Professional Photos: You know the saying "A picture speaks 1000 words"? Well, that is absolutely true. We have found a new photographer who does an excellent job at a very attractive price that includes professional photos, interactive floor plan, and virtual tour. Pricing depends on the square footage of your home and I would highly recommend you consider this service. Click on the links below for samples of homes that have already been done. Please contact me if this is a tool you would like to capitalize on:
Hale Malia Paiko
Hale O Keniki
Peace Retreat

LONG TERM RENTALS:

Increased inventory as seller's who have not been able to sell de-list their properties and add then to the rental market. We receive at least a call a week now from homeowners in this situation looking for options.

With increased inventory, we have had several tenants choosing not to renew their leases because they were able to find excellent replacement rentals at lower rents. Examples: $8,500 to $6,000, $9,000 to $6,000 $10,000 to $7,000. These are at the higher end of the scale but even in the $5,000 to $6,000 range we find that the market is very weak.

Time on the market is normally 4-5 weeks. That is now 3-4 months even through the normally busy summer season.

Loosing potential renters who are attracted initially but were able to find something less expensive.

Hawaii unemployment rate has doubled to 6.5% and is the highest it has been in 30 years.

General nervousness in the market.

Military are filling in the slack in some cases but not in the volume we've seen in the past.

Vacation rentals that are normally not competition for long term rentals are slow and being added to available inventory.

What to do?
Lower the asking rent. Some rent is better than none. Rent for shorter term - six months would be acceptable. Even at that it is a matter of waiting, as we are seeing.

We send out bi weekly emails to all Realtors, past tenants, vacation rental agents, and prospects. We will continue to do this as well as keep up our ads in Craigslist, Military, Hon Advertiser and our website presence.

We would recommend investing in professional photos of the property (see the section Professional Photos under the Short Term Rentals section).


Consider This:
Hawaii's legislature recently overrode a veto by Governor Linda Lingle to RAISE taxes, including the Transient Accommodations Tax or the "Hotel Tax". Although this bill has not yet been passed, you should be privy to it's implications for your home(s) as if passed, will take effect July 1:

The state income tax will increase from 8.25 percent to up to 11 percent on single taxpayers who make $150,000 or more a year, heads of households who earn $225,000 or more a year, and couples who make $300,000 or more a year. The tax increase would apply to roughly the top 2.6 percent of state taxpayers and is expected to generate more than $96 million in revenue over the two-year term of the budget.

The transient accommodations tax will go up by 1 percentage point in July — from 7.25 percent to 8.25 percent — and another 1 percentage point in July 2010 — from 8.25 percent to 9.25 percent. The tax increase would apply to operators of hotel rooms, apartments, condominiums, beach houses and other places rented to visitors or local guests. The increase would likely be passed on to consumers and is expected to generate more than $88 million over the two-year budget term.

The conveyance tax on the sale of properties of $2 million or more and on second-home purchases will rise in an effort to generate $8 million in revenue over two years.

Cited from the online edition of the Honolulu Advertiser. For the full article CLICK HERE.

As always, please feel free to contact me should you have any questions on your home. I look forward to hearing from you on having your home professionally photographed with interactive floor plan and virtual tour!

Warm Regards,
Carissa Leonida
Director of Operations
Trinity Properties LLC
Sales, Rentals, and Estate Management
Toll Free (888) 939-0444
Office (808) 247-7521
Direct (808) 673-6800
carissa.leonida@trinityproperties.com
www.trinityproperties.com

April Points-of-Interest

Aloha Owners,

I hope you all had a Blessed Happy Easter! The spring is upon us and Trinity has sprung into action to become a lean, mean, economy-defying machine.

STAFFING CHANGES:
We want to take a moment to wish a fond farewell to Cynthia Bostick, Reservations, who's last day was April 1. Cynthia's role is being temporarily filled by myself, Carissa Leonida. And we'd also like to extend a warm welcome to Meredith Kwock, who has officially taken on the role of Administrative Assistant.

SHORT TERM RENTALS:
Summer interest is peaking and requests are starting to trickle in for the Christmas/New Year holiday as well. Month long requests have seen an increase with the typical request is $15K - $25K/month, Diamond Head, 4 bedrooms, pool, oceanfront. Weekly requests are also increasing with a typical request of $550-650/nt, 4-5 bedrooms, beachfront, Kailua/Lanikai, pool, a/c. Competition is downright fierce. For example, just 2 week ago I saw a competitor slash their rate on a decent 4 bedroom, Lanikai beachfront home to a mere $10K for the month of May, which included all tax and fees. As such, we will continue to present you any and all offers on your home(s) and ask you to keep an open mind, even though the offers may seem low.

LONG TERM RENTALS:
This past month we received notice from multiple high-end, long term tenants who need to either default on their rent or are not planning on renewing due to the economic environment. We will be trying to place these tenants, who have otherwise been excellent renters, into our more affordable accomodations. Those furnished LT homes that are being vacated will be rented ST through the summer and most have already secured ST summer tenants. We have also been fielding a high volume of long term requests. The typical request is for 3-4 bedroom, single family home, $3500/month, and is usually from a family with young children. Homes over $5K/month are sitting vacant longer and may need an adjustment on the rental rate to bring it more in line with today's market.

PROPERTY MANAGEMENT:
The demand for property management has hit an all-time high and we foresee that it will continue to trend upward. These high end homes are looking to rent both Long and Short Term and are in the areas of Lanikai, Kailua, and Hawaii Kai. All are beachfront or offer a sweeping ocean panorama. We are continuing to carefully screen all property management inquiries to ensure that we are able to keep our occupancy rates up for all of our owners.

SALES:
Congratulations to Annie Kwock, R and Chris Mercer, RA who will be co-listing Hale O Keniki at $1.725M. This is an excellent offering in the glut of homes sitting stagnant on the market, as it is one of the lowest priced per sq ft in the Kailua Beachside neighborhood.

Current market stats at a glance (deemed reliable but not guaranteed):
Kailua Beachside Active Listings: 22
Median Days on Market: 83
Median Price: $2.15M

Lanikai Active Listings: 30
Median Days on Market: 77
Median Price: $2.449M

DH Diamond Head Neighborhood Active Listings: 38
Median Days on Market: 98
Median Price: $3.6M

Kahala Kahala Neighborhood Active Listings: 39
Median Days on Market: 85
Median Price: $2.95M

For a full market analysis on your home, please contact Annie Kwock, R (annie@trinityproperties.com 808-780-4444).

Warm Regards,
Carissa Leonida
Director of Operations
Trinity Properties LLC
Sales, Rentals, and Property Management
Toll Free (888) 939-0444
Office (808) 247-7521
Direct (808) 673-6800
mailto:carissa.leonida@trinityproperties.com
http://www.trinityproperties.com/

March Points-of-Interest

Aloha Owners!

I hope you've all been enjoying the last of these blustery winter weeks. We've got a lot to cover in this month's "Points-of-Interest", so let's jump right on in:

SHORT TERM RENTALS
Requests are continuing to come in waves with most at $500-600/nt, staying March - May, and nearly all asking for a discount. Below are a few examples of what your fellow homeowners are booking at:

• Example A: Home advertised at $650/nt is taking offers of $500 - 550/nt.
• Example C: Home advertised at $850/nt is taking offers of $600 - 650/nt.
• Example B: Home advertised at $2750/nt is taking offers of $1250 - 1500/nt.

Our goal is the same: To maximize the return on your investment. If you receive an offer that seems insulting, please know that we are simply trying to keep your home occupied and what you ultimately decide to take or pass on is up to you. We will not present an offer that we do not feel is a good offer. We will not present an offer that is far below the scope of what we are finding the market will bear. Working together, despite all circumstance, we are confident it will be a successful 2009!

LONG TERM RENTALS
The increase in inventory for long term rentals surpasses that of short term rentals hands-down. We receive several requests a week from owners looking to rent their homes long term and I will tell you first-hand that they are not picky about what they get for rent. We have passed so far on most all of these requests as it is our duty to you to make sure that we are able to fill the inventory that we have before taking on much of anything new. Here are a few recent examples:

• Example A: Fully furnished, moderate and across street from Lanikai beach, no view, 4 bedroom home asking $5K/month. Had serious offer of $4300/month but drawn out negotiations. Status: Still fielding offers.
• Example B: Fully furnished, brand new and luxurious, Lanikai beachfront, pool, 3 bedroom home rented at $11K/month for 6 months. Status: Occupied.

What you should garner from this is two-fold: 1) desperate owners and increasing inventories make for lower rents in the market, and 2) if a reasonable offer presents itself, act quickly.

MARKETING:

• New Alliance: HawaiianBeachRentals.com. Hooray! This additional exposure has already resulted in bookings for some of you!
• New Trinity Website: Experienced some setbacks and is currently behind schedule. We will keep you posted on the progress.
• New Opportunity: HomeAway.com. This has resulted in tremendous lead generation for those owners currently participating. Because of the results we've experienced, we would like to enroll your home and deduct the $300/year cost from your monthly proceeds. To OPT OUT, please contact Carissa by March 31. We will call you to discuss over these next few weeks as well.

SALES UPDATE:
presented by
Annie Kwock, R
(808) 780-4444
"Please call me anytime to discuss your home value or to search for investment opportunities."

I just returned from a presentation by Paul Brewbaker, one of Hawaii's most respected economists. According to Paul:

• No longer is there a time lag between the mainland (and specifically the West Coast). Hawaii's real estate market is in "real time" with the US mainland and the rest of the world.
• Hawaii's median prices have dropped slightly, however, we have not seen the same precipitous fall that is plagueing California. Our selling prices on the whole are steady in most markets. The number of sales has dropped and days on the market is longer but the selling prices in the luxury market have remained steady.
• Hawaii's unemployment rate remains relatively low at about 4% vs 8-10% in California, indicating an underlying strength in the Hawaii economy. According to Warren Buffet we will see sales rebound when "greed overcomes fear" and you won't know where the bottom of the market is until it is behind you.... That means that NOW is a great time to buy real estate.

Economist Views 2009 As Bottom For Hawaii Real Estate
February 12th, 2009 categories: Honolulu Real Estate 101
Bank of Hawaii senior veep and chief economist, Paul Brewbaker, spoke to the Maui Chamber of Commerce this past Friday. Over the 17 years I have been following Paul he has been dead on with his predictions. He called the early 90’s recession and a median price for Honolulu homes in the range of $650,000. Brewbaker thinks 2009 is the bottom of our woes.

“The economy is sickly for now, but it could pick up in the second half of this year and continue on the upswing in 2010, economist Paul Brewbaker said Friday. That rebound could come sooner if Congress quickly passes an economic stimulus plan meant to speed up the nation’s recovery, he said. A deal on an economic stimulus measure was announced Friday after Brewbaker’s talk. “I’m pretty sure 2009 is the bottom,” he said. Brewbaker, senior vice president and chief economist for Bank of Hawaii, spoke at the Maui Chamber of Commerce’s annual Paul Brewbaker Ph.D. Economic Forecast Luncheon, sponsored by Bank of Hawaii. CLICK HERE TO READ THE MAUI NEWS ARTICLE.

Note that in the past Honolulu has led the Oahu real estate market out of economic down turns. Honolulu real estate may be poised for foreign investors to take advantage of differences between their currency and the American dollar. Check this quote from and article at Pacific Business News: “The dollar’s fall against foreign moneys is affecting consumer purchases — from the flow of cash at currency exchange shops in Waikiki to foreign visitors buying real estate. The euro and the Chinese yuan and everything in between are moving higher against the dollar,” said Paul Brewbaker, chief economist for Bank of Hawaii.” READ THE WHOLE ARTICLE BY CLICKING HERE.

While the economy persists in a very weak state nationwide, the local real estate industry, thankfully, remains steady. Research shows that the Oahu housing market has been performing differently from the mainland market. According to Harvey Shapiro, research economist for the Kaimuki-based Honolulu Board of Realtors, the mainland housing prices have been dropping by double-digit percentage points, and some cities' have dropped over 30 percent in just one year. In Honolulu, our housing prices are stable. READ THE WHOLE ARTICLE BY CLICKING HERE.

That about wraps it up for this month's "Points-of-Interest". We are always here to answer any questions you may have regarding Hawaii's real estate market and thank you again for the opportunity to be of service.

Warm Regards,
Carissa Leonida
Director of Operations

Trinity Properties LLC
Sales, Rentals, and Property Management
Toll Free (888) 939-0444
Office (808) 247-7521
Direct (808) 673-6800
carissa.leonida@trinityproperties.com
www.trinityproperties.com

Introduction

Aloha!

As a continuing effort to keep you abreast of what we've been doing for you and what we've been seeing in the market, we will be sending out a brief monthly "Point of Interest" email, which you will also be able to find online at: trinityproperties.blogspot.com.

This month's topic: Blast Email

Many owners have been asking why they don't see their home regularly in our blast emails. Here's how our blast email program works:

We send out one email promotion per month and to keep everything fair, we rotate the homes featured in each email promotion.

To avoid being captured by automatic email filters as "spam", it is not realistic to include every home that we manage in every one of our email promotions. There are a number of factors that trigger a "spam filter", which include too many photos and too many links. This past go-round, we featured 2 short term / 2 long term / 2 mixed use: CLICK HERE.

We also need to avoid having the recipients of the 6800+ emails we send out manually turning us in as "spam". If we have too many recipients opting out or turning us in, we will be bumped from the service we currently use.

For us to rotate through all of our managed properties, you can expect your home to be featured once every four months or so.

That's it!

I hope this helps to answer any questions you may have on our blast email program. And I hope that you will find these monthly Point of Interest pieces of value.

Please feel free to contact me with any questions on your property or otherwise. We look forward to working with you toward a successful 2009!

Warm Regards,
Carissa Leonida
Director of Operations,
Trinity Properties LLC

Sales, Rentals, and Property Management
Toll Free (888) 939-0444
Office (808) 247-7521
Direct (808) 673-6800
carissa.leonida@trinityproperties.com
www.trinityproperties.com