Hawaii Residential Lease Agreement

Introduction

A Hawaii residential lease agreement is a legally binding contract between a landlord and tenant that establishes the terms and conditions for renting a residential property in exchange for monthly rent. This type of agreement is typically for a fixed period of one year, though month-to-month arrangements are also common under Hawaii law. ^[1]

Hawaii landlord-tenant relationships are governed by the Residential Landlord-Tenant Code, codified in Hawaii Revised Statutes (HRS) Chapter 521. This comprehensive statute establishes the rights, obligations, and remedies available to both landlords and tenants throughout the tenancy. The Code applies to rental agreements for dwelling units in Hawaii, with certain exceptions including hotels, hospitals, and certain public housing. ^[1]

Hawaii's unique island geography and housing market create specific considerations for residential leases. The state has some of the highest housing costs in the nation, making tenant protections particularly important. Recent legislative updates, including changes to eviction procedures and the addition of rental application screening fees (effective May 2024), reflect ongoing efforts to balance landlord and tenant interests. ^[15]

Legal Definition

Under HRS Chapter 521, a "rental agreement" means any agreement, written or oral, which establishes or modifies the terms, conditions, or rules concerning the use and occupancy of a dwelling unit or premises. A "dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by one person who maintains a household or by two or more persons who maintain a common household. ^[1]

The "landlord" is defined as the owner, lessor, or sublessor of the dwelling unit or the building of which it is a part, and also includes any person authorized to act on the landlord's behalf for the purpose of managing the premises or receiving rent. The "tenant" is a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others. ^[1]

Required Disclosures

Hawaii law mandates several important disclosures that landlords must provide to tenants. Failure to comply with these disclosure requirements can result in penalties and may affect the enforceability of certain lease provisions. ^[3]

Landlord Identification and Contact Information

The landlord must disclose in writing the name and address of the owner or the owner's agent authorized to receive rent, notices, and demands. This information must be kept current at all times. If this information is not provided, the person who rents the dwelling to the tenant becomes responsible for all landlord obligations under the Code. ^[3]

General Excise Tax Number

Landlords must provide their general excise (GE) tax number to all tenants. This disclosure is required so that eligible tenants can apply for the low-income household renters' tax credit when filing their Hawaii state income taxes. ^[3]

Move-In Condition Report

Before the tenant takes possession, the landlord must document the condition of the premises, including any furnishings and appliances provided. Both parties should sign this inventory report. This protects both landlord and tenant when determining responsibility for damages at move-out and provides a basis for any security deposit deductions. ^[2]

Lead-Based Paint Disclosure (pre-1978 Properties)

For properties built before 1978, federal law requires landlords to: (1) disclose any known lead-based paint or lead-based paint hazards; (2) provide the EPA pamphlet "Protect Your Family From Lead in Your Home"; (3) include a Lead Warning Statement in the lease; and (4) allow tenants 10 days to conduct a lead inspection before signing. Landlords must retain disclosure records for at least 3 years. ^[12]

Out-Of-State Landlord Agent Designation

Any owner or landlord who resides outside Hawaii or on a different island from where the rental unit is located must designate an agent residing on the same island as the rental property to act on the landlord's behalf. This ensures tenants have local access for service of process and other communications. ^[3]

Written Lease Copy

For written rental agreements, the landlord must furnish the tenant with a copy of the signed lease. Additionally, the landlord must provide a written receipt for all rent payments at the time of payment. ^[3]

Penalty for Non-Disclosure

If the landlord fails to comply with any disclosure requirement within 10 days after proper written demand by the tenant, the landlord is liable to the tenant for $100 plus reasonable attorney's fees. ^[8]

Security Deposit Laws

Maximum Amount

Hawaii law limits the standard security deposit to a maximum of one month's rent. Landlords may not require or receive any other money at the beginning of the rental agreement except the first month's rent and the security deposit. ^[4]

Pet Deposit

Permitted Uses

A Security Deposit May Only Be Used For:

remedying Tenant Defaults for Unpaid Rent

Repairing accidental or intentional damages beyond normal wear and tear

Cleaning the dwelling unit to restore it to the condition at move-in

Compensating for damages caused by pets

***Replacing unreturned keys, key fobs, parking cards, garage door openers, or mailbox keys ***^[4]

Return Requirements

The landlord must return any remaining portion of the security deposit to the tenant within 14 days after termination of the rental agreement. If making deductions, the landlord must provide a written itemized statement of damages and the amount withheld. The return is presumptively proven if mailed to the tenant's address before midnight of the 14th day. ^[4]

Penalty for Non-Compliance

Critical: If the landlord fails to return the security deposit or provide the required itemized statement within 14 days, the landlord forfeits the right to retain any portion of the deposit and must return the entire amount to the tenant. ^[4]

Normal Wear and Tear

Landlords cannot deduct for "normal wear and tear," which refers to the natural deterioration that occurs from ordinary use over time. Examples include minor scuffs on floors, small nail holes from hanging pictures, and gradual carpet wear in high-traffic areas. ^[4]

Rent Payment Laws

No Grace Period

Hawaii law does not require a grace period for rent payment. Rent is due at the time and place agreed to by the parties in the rental agreement. If payment is not made on the due date, the landlord may begin the eviction process by serving a 5-day notice. ^[9]

Maximum Late Fee

NSF (bounced Check) Fee

If a tenant's rent check is returned for insufficient funds, the landlord may charge a fee of $30 under Hawaii law (HRS 490:3-506.5). ^[11]

Rent Receipts

Landlords must provide written receipts for all rent payments at the time of payment. This requirement helps tenants maintain records of payments made and provides proof in case of disputes. ^[3]

Landlord Obligations

Habitability Requirements

Under HRS 521-42, the landlord must maintain the dwelling unit in a habitable condition throughout the tenancy. Specifically, the landlord shall at all times during the tenancy: ^[2]

Comply with all applicable building and housing laws materially affecting health and safety

Keep common areas of multi-dwelling unit premises in clean and safe condition

Make all repairs and arrangements necessary to keep premises in habitable condition

Maintain all electrical, plumbing, sanitary, heating, ventilating, air-conditioning facilities in safe working order

Maintain kitchen facilities and appliances in safe working condition

Provide and maintain appropriate receptacles and conveniences for garbage and rubbish removal

Right of Entry

A landlord may enter the dwelling unit only for the following purposes: inspection, repairs, improvements, services, or to show the unit to prospective tenants or purchasers. The landlord must provide reasonable notice (typically 2 days) and enter only at reasonable times. Tenants may request a specific time for entry. In emergencies, no prior notice is required. ^[1]

Prohibition on Self-Help Eviction

Landlords are strictly prohibited from engaging in "self-help" eviction tactics such as: changing locks, removing doors or windows, shutting off utilities, removing tenant's belongings, or physically removing the tenant. Penalties for illegal lockout or utility shutoff include two times the monthly rent or free occupancy for two months. All evictions must go through the court process. ^[1]

Tenant Obligations

Under HRS 521-51, tenants have the following obligations to maintain the dwelling unit: ^[5]

Comply with all applicable building and housing laws affecting health and safety

Keep the dwelling in a clean and sanitary condition

Dispose of garbage, rubbish, and other waste in a clean and safe manner

Keep all plumbing fixtures as clean as their condition permits

Use all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities properly

Not deliberately or negligently destroy, damage, deface, or impair any part of the premises

Comply with all covenants, rules, and regulations in the rental agreement

***Conduct themselves and require household members and guests to conduct themselves in a manner not disturbing to neighbors ***^[5]

Eviction Notice Requirements

Hawaii law establishes specific notice periods and procedures before a landlord may begin eviction proceedings. Recent amendments have added mediation requirements to the eviction process. ^[9]

Nonpayment of Rent

5-Day Notice to Pay or Quit: If the tenant fails to pay rent when due, the landlord must provide a written notice giving the tenant 5 business days (excluding weekends and holidays) to pay the overdue rent or vacate the premises. ^[9]

15-Day Mediation Notice (Required)

Important Update: Before filing an eviction action in court for nonpayment, the landlord must provide notice to the tenant at least 15 calendar days before filing. This notice must also be sent to the applicable mediation center for the county. If the tenant schedules mediation within the 15-day period, the landlord must wait 30 calendar days from the date of notice before filing. ^[9]

Lease Violations

10-Day Notice to Cure or Quit: For material noncompliance with the rental agreement or tenant obligations (other than nonpayment), the landlord must give the tenant at least 10 days' written notice specifying the violation. The tenant may cure the violation within this period. ^[1]

Month-To-Month Termination

For month-to-month tenancies, the required notice periods differ for landlords and tenants: ^[10]

***Landlord to Tenant: ***At least 45 days written notice before termination

***Tenant to Landlord: ***At least 28 days written notice before termination

Habitability Defense

In an eviction proceeding for failure to pay rent, the tenant may assert breach of the implied warranty of habitability as a defense. If successful, this may reduce or eliminate the rent owed for the period of uninhabitable conditions. ^[9]

Tenant Remedies

Repair and Deduct

Under HRS 521-64, tenants have specific rights to repair issues and deduct costs from rent under certain circumstances: ^[6]

For Health or Safety Violations

If a government agency notifies the landlord of a health or safety violation, the landlord must commence repairs within 5 business days. If the landlord fails to act, the tenant may: (1) make repairs immediately, or (2) obtain two written estimates and have the lower-cost work done. The tenant may deduct from rent up to $500 or one month's rent (whichever is greater) for actual repair costs. ^[6]

For Other Defective Conditions

For other conditions that violate habitability requirements, the landlord has 12 business days after written notification to commence repairs. If the landlord fails to act, the tenant may make repairs and deduct up to $500 from rent. ^[6]

Limitations

Total repair costs chargeable to the landlord during any 6-month period cannot exceed three months' rent. This remedy does not apply if the condition was caused by the tenant's lack of due care. ^[6]

Fees and Deposits Summary

Notice Periods Summary

Special Considerations for Hawaii

Rental Application Screening Fees (new 2024)

Effective May 1, 2024, landlords (including property managers) may charge rental application screening fees to prospective tenants under HRS 521-46. This fee is charged at the time the rental application is processed and applies only to adults 18 years or older and emancipated minors. ^[15]

Assistance Animals

Under Hawaii law (HRS 515-3), landlords must provide reasonable accommodations for tenants with disabilities who have assistance animals. This includes: no additional pet deposit may be charged, no "no pets" policy can be applied, and the landlord may not require the animal to be certified or registered. Medical documentation of the disability-related need may be requested. ^[4]

Interest on Security Deposits

Hawaii law does not require landlords to pay interest on security deposits. Unlike some other states, there is no obligation to hold deposits in interest-bearing accounts. ^[4]

Hawaii's High Housing Costs

Hawaii consistently ranks among the most expensive states for housing. This economic reality makes the protections under HRS Chapter 521 particularly important. Tenants should be aware that the 8% late fee cap (one of the higher caps nationally) was a legislative choice that recognizes Hawaii's unique housing market. ^[15]