In Hawaii, a landlord-tenant relationship is automatically established when a tenant commits to pay rent every month. This relationship gives each party certain rights and responsibilities.
Basic Landlord Responsibilities
As a landlord in Hawaii, you have a responsibility to maintain the rental property in a habitable condition and to fix repairs whenever necessary.
You also have a responsibility to ensure your tenant enjoys their rented home peacefully without unnecessary disturbance.
Basic Tenant Responsibilities
Tenants in Hawaii have a responsibility to pay their rent on time without fail. If they don’t, as a landlord, you have a right to take appropriate action to bring their tenancy to an end.
Tenants also have a responsibility to cover any excessive damages to the property. Excessive property damages are any damages exceeding normal “wear and tear”.
That said, every state has laws that stipulate specific rights and responsibilities for both tenants and landlords. As a landlord in Hawaii, it is essential you understand Hawaii Landlord-Tenant Laws.
Warranty of Habitability
Each state has its own laws which define what “habitability” means. Therefore, it’s important for both you and your tenant to educate yourselves on the habitability standards in Hawaii. This should be done prior to signing a lease or rental agreement.
As a landlord, the warranty of habitability will typically require you to provide crucial amenities in your rental property. Your tenant has the right to occupy the property comfortably and safely. Such amenities may include:
- Appliances
- Heating and Air Conditioning
- Trash disposal
- Mold remediation
- Handling of pests
If you fail to comply or breach the provisions laid out in the warranty of habitability, then your tenant may withhold rent or even terminate the lease without consequence. Again, this varies state to state.
Evictions
Each state has rules on how landlords must handle the eviction of a tenant. Among other things, the rules specify the eviction notices that landlords must serve their tenants, the legal reasons that may warrant an eviction, and the proper eviction procedure to follow.
Hawaii state laws may also dictate what actions constitute acts of retaliation or discrimination.
Security Deposits
As a landlord, you likely require a tenant to pay a security deposit before signing their lease. Many states have laws that govern the use and return of security deposits.
Some states limit the security deposit amount a landlord may ask their tenants to pay. Generally, the limit is relative to the monthly rent, with most security deposits being equal to or twice the monthly rent.
Certain states have laws regulating how landlords must store security deposits. Some states require landlords to place the deposits in interest-bearing accounts and dictate how interest is to be paid.
Most states have laws which dictate when and how landlords must return the security deposits to tenants.
Early Lease Termination
Life happens, and your tenant may want to end their lease early. Most states require tenants to provide their landlords with notices ranging from 15 to 60 days.
Statutes on lease terminations often state legally justifiable reasons why tenants may break their lease early. These reasons may include military service, domestic violence, and a violation of the lease by the landlord.
These statutes typically outline any obligations that both parties may have after a lease agreement ends. For example, the landlord may be responsible for re-renting the property as long as the tenant continues to pay rent until a new tenant is found. In some states, the tenant also has the right to sublease the property.
Rent Increase and Related Fees
Depending on your state, there are laws that dictate rent increases and related fees. Some jurisdictions even limit the amount you can raise your rent by.
Some states also cap the amount of fees a landlord can ask. Late fees, for example, are usually capped at a reasonable dollar amount.
Housing Discrimination
The federal Fair Housing Act prohibits discrimination in housing based on the following characteristics:
- Religion
- Race
- National Origin
- Familial Status
- Sex
- Disability
- Color
You may not discriminate against a tenant in Hawaii based on any of the aforementioned characteristics. Many states have additional classes. As a landlord, you must educate yourself on any additional classes in Hawaii.
Squatters Rights
Squatter’s Rights are a form of Adverse Possession. If a squatter occupies your property for a period of time and meets a set of guidelines then your property may legally become the squatter’s with no exchange of payment.
The guidelines differ from state to state. However, the squatter must typically possess the property in a hostile and adverse manner. They must also occupy the property in a way that is open and obvious.
Late Fees
It’s normal for landlords to impose a fee on late rent.
Some states have regulations regarding when a landlord may begin to collect a late fee, and how much they can collect.
However, most states do not limit the amount a landlord may charge for a late fee.
Below are guidelines for determining late fees in an unregulated state:
- While there is no law specifying the dollar amount, the fee must be reasonable.
- The fee should not start immediately. You should begin charging a late fee at least 3 days after the rent is past due.
- The fee should be a percentage of the rent. 5% is considered a reasonable amount to charge. However, if the rent is extremely late, 10% would be considered a reasonable amount.
Landlord Entry
Many states have laws outlining how a landlord can access a rented unit, but not all states do. It is important to familiarize yourself with the laws and regulations specific to Hawaii.
If Hawaii does not have a statute for how and when you may enter your tenant’s home, then you should include this information in the lease. Include information such as permissible time of entry, amount of notice, and reasons for entry.
Most states require landlords to give their tenants at least 24-hours’ notice before entering the property.
An emergency is the only time you should enter your tenant’s property without their permission. Otherwise, you should respect your tenant’s privacy and only enter the property when necessary.
Reasons to enter the property (with permission) include:
- To make necessary repairs and property improvements.
- To show the premises to prospective tenants or buyers.
Small Claims Court
If your tenant moves out without paying rent and the security deposit is not enough to cover the amount then you may consider going to small claims court to sue your former tenant.
You will have a case:
- if the lease is for a month-to-month tenancy and the tenant left without providing 30 days’ notice
- the tenant broke the lease before the end of the agreed term
As a landlord in Hawaii, you can take the tenant to small claims court when they break the terms of their lease and do not pay rent. You will bring the lease or rental agreement to court and present how much rent you are owed based on the period of time that the tenant did not pay rent.
As long as the tenant does not present a defense, nothing else will be required.
If the tenant presents a defense, they will likely attempt to prove that the property was not habitable. Under Hawaii “Warrant of Habitability” laws, you are required to provide a habitable property. A failure to offer a habitable property would mean that the tenant was justified in their lease-breaking.
Often, tenants won’t show up in small claims court, and therefore you will win by default if your case is credible. However, you should be prepared to have the tenant show up, and be ready to prove that the property was habitable.
Mandatory Disclosures
There are certain disclosures that the federal, state and local laws require landlords to make.
If your property was built before 1978, you are required to disclose to your tenants known information about the presence of lead-based paint. This is the only federal mandatory disclosure.
Other disclosures are defined by state and local laws. Most states require landlords to disclose:
- The use and return of security deposits. For example, how much it is, how the landlord intends to store it, whether it will accrue interest, and when it will be returned.
- Whether there are non-refundable fees. These often include pet fees and cleaning fees.
- Shared utility arrangements – for example, if a tenant pays a portion of a utility.
- Whether the property has existing damages.
- The identity of the landlord and the person authorized to receive legal papers and manage the premises.
- Presence of environmental hazards, such as bed bugs, radon, mold, and lead-based paint.
- Details on installation and maintenance of smoke and carbon monoxide detectors and alarms.
Please check what specific disclosures Hawaii requires, as every state has different laws.
Changing the Locks
Changing locks can become an issue between landlords and tenants if both parties are not aware of their rights.
Whether you want to change the locks or your tenant does, you need to know how you can proceed.
For example, you cannot change the locks on your tenant even if they have committed a lease violation.
Changing the locks without going through the correct eviction procedure is considered a “self-help eviction.” and is not legal in most states.
It is important to add a lock policy in your lease.You can prohibit a tenant from changing the locks, or require them to provide you with a key if they do change the locks.
Leasing Language
As a landlord, it’s imperative that you make the lease as detailed and as clear as possible. This helps minimize confusion and misunderstanding. You should also make sure that your tenant reads it and understands it before signing it.
The following are important items that the lease should at least include.
- Names and addresses of both parties to the lease. A lease agreement is a contract and should contain all the basic details of both parties to it.
- Term of the tenancy. The lease agreement should clearly state when the tenancy begins and when it ends.
- The rent amount: The dollar amount of rent should be specified in the lease. You should also specify other important details like when it becomes due, where it’s to be paid, and the amount of late fees, if applicable.
- The deposit amounts. Specify important details like the exact security deposit amount, where it’s to be stored, and conditions for its return.
- Details on the utilities. State who is responsible for paying the utilities. Normally, tenants pay for electricity, gas, and internet. Landlords, on the other hand, pay for garbage and water.
- Details on landlord’s entry. A properly written lease agreement will also state the amount of notice a landlord should give before entering a rental unit.
- Restrictions on number of occupants. Unless you have a legitimate reason to state otherwise, federal law allows 2 people per bedroom.
- The pet policy. As a landlord, you have a right to prohibit pets in your rental property. Note, however, that you cannot forbid “comfort” or “service” animals used by a disabled tenant.
- Rules for terminating a tenancy. You should also state in the lease agreement what grounds can lead to an early lease termination.
Landlord’s Sale of a Rental Unit
As the property owner, there are many reasons as to why you may want to sell your rental property. That said, however, when you have rented it out, there are rules you have to follow.
The exact rules to follow depend on whether the agreement is month-to-month or a fixed-term lease.
Month-to-month Agreement
If on a month-to-month basis, you will only need to give your tenant a 30-days’ notice for them to leave. You can mail the notice or deliver it in person.
Unlike a fixed-term lease, you don’t have to have a valid reason to terminate the agreement. In fact, it’s for this reason that it’s also referred to as a “no cause” termination.
Fixed-Term Leases
Terminating a fixed-term lease is a bit complicated when compared to a month-to-month agreement. Here, you need to give a valid reason for breaking the lease early. The following are the options you have when looking to terminate a fixed-term lease.
- Wait until the lease has run its full term.
- Sell the property with an active case.
- Consider paying your tenants to move out.
- Sell the property to your tenant.
- Invoke the provisions of the early termination clause if the lease has one.
Notice to Quit
A Notice to Quit is a letter which you give your tenant when you’re attempting to fix a lease violation. It’s served after a tenant violates the terms of the lease agreement. The violations may include things like:
- Keeping a pet when there is a “no pet” policy.
- Failure by the tenant to keep their unit in a clean and habitable condition.
- Subletting the property without the permission of the landlord.
- Disturbing the peace of the neighbors, for example, by throwing noisy parties regularly.
The Hawaii Notice to Quit informs the tenant that they have “X” number of days to fix the violation or leave the premises. Including all important details on the notice is imperative. Such details may include the property’s address, the name of the tenant, the unit number, and your signature.
Every state has different rules in regards to how the notice should be delivered. Some require the notice to be delivered in person, others by state marshals, and others by certified mail.
Once the notice has been served, your tenant will have two options. One, to fix the violation that they had committed. For example, to pay rent if they had fallen behind.
Or two, to disregard the notice. In such a case, you’ll be left with no other option than to file formal eviction proceedings against them in a court of law. The judge will then make the decision based on the evidence presented.