Introduction
Hawaii is a stunning vacation spot and has a premier rental market. America’s 50th state can be a great state for real estate investing, but you must first do your research into exactly what being a Hawaii landlord entails. There is little real estate available in this area, and there are many aspects of being a Hawaii landlord that are different from other states. This article will spell out the top rental laws to know as a landlord in Hawaii, from evicting tenants to organizing security deposits.
Required Disclosures
In most states, landlords are required to disclose whether there are any lead-based paint hazards in the property and the name of the person authorized to manage and receive notices for the premises. Hawaii tenants are also entitled to have a copy of the lease agreement, as well as a written inventory describing it’s the condition of the property and the furnishings and appliances within it. The landlord and the tenant should each sign a copy of the property condition form.
Evictions
One of the tougher parts of being a landlord is having to evict tenants. Removing someone from their home is never a pleasant process, and it can be legally complicated. It’s also important to note that the average rent price in Hawaii is extremely high, and eviction rates are climbing. Be sure to know Hawaii state law and their guidelines for how to best carry out evictions.
What happens with a lease violation in the state of Hawaii? Landlords can provide the tenant with 10 days to either fix their lease violation or to vacate the property. If the tenant does neither, the landlord can file an eviction action in court.
In the case of unpaid rent, landlords can send a rent demand notice and give the tenant five days to pay their rent or quit the property.
If the tenant causes irremediable damage to a person or the property, the landlord can send an immediate notice to quit the property and file for eviction thereafter.
Rent and Fees
Landlord tenant laws in Hawaii state that unless the landlord has specified an alternative due date in the lease agreement, rent is due on the first of the month at the dwelling unit.
Rental application fees and grace periods are not regulated in Hawaii, so landlords can charge what they feel is appropriate. It’s important to note that only reasonable policies will hold up in court.
Late fees can be a maximum of 8% of the rental amount due, and if a tenant’s rent check bounces, the landlord can charge $30 to cover any incurred fees from the bank.
Tenants also have remedies under Hawaii law. If a tenant notifies their landlord of a necessary repair in their unit and the landlord does not begin that repair within five days, the tenant can arrange for the repair themselves. They can deduct up to $500 from rent but must show receipts to do so.
Hawaii average rent prices are some of the highest in the nation at $2,850. Be sure that you’re following all state laws when collecting rent payments and other fees.
Security Deposits
Security deposits in Hawaii are limited to one month’s rent. If the tenant has a pet and is eligible to pay a pet deposit, that deposit can be less than or equal to a month’s rent.
Hawaii landlords are not required to pay interest on security deposits, nor do they have to keep them in a separate bank account from their personal finances.
Landlords can withhold funds from security deposits for unpaid rent or fees, damages by the tenant or the tenant’s pet, cleaning, repairs, or failure to return keys. However, any deductions must be itemized and returned to the tenant alongside the remainder of their security deposit within 14 days after the lease terminates.
Fair Housing Protections
Federally, landlords are prohibited from discriminating against tenants based on race, color, religion, gender, national origin, familial status, and disability. In Hawaii, tenants are also protected from discrimination in housing based on gender identity/expression, sexual orientation, marital status, ancestry, age, HIV status, and pregnancy.
Conclusion
While writing up your Hawaii lease agreement, it’s important to consult your state’s laws regarding rental properties. Disregarding them could land you in legal trouble with your tenants and damage your reputation as a compliant landlord. Consult other landlords in your area if you have questions or talk to a real estate attorney.
