What Is the Hawaii Lease Agreement?
Hawaii Lease agreements are lawfully enforced agreements operating under the Hawaii landlord-tenant code for the use of residential/commercial land/property. The Hawaii rental agreement regulates and governs the obligations and responsibilities of both the landlord and the tenant.
Parties Involved in the Hawaii Lease Agreement?
The parties to a Hawaii lease agreement are:
- Landlord: The party who owns the property to be put on the lease.
- Tenant/renter: The party who will rent the property in return for a rent. A tenant can be an individual or a company.
Purpose of a Hawaii Lease Agreement
- A lease agreement manifests legal obligations that are mandated to be followed by both the parties, that is, the landlord and the tenant. Typically, the lease agreement provides the jurisdiction of the area where the flat or building is situated. A lease agreement helps in resolving and settling disputes, which may arise as a result of non-compliance of terms and conditions. This ensures that both parties take the arrangement in a formal sense, thereby upholding the sanctity of the contract. A written document helps in the formalization of relations.
- It also gives the landlord a sense of security and guarantees that his property will not be misused. He is given the opportunity to establish guidelines in consonance with the nature of the property. Such guidelines may include rules about parking spaces, or rules such as ‘no pets’, or notices about rental payments. This makes the landlord certain that his property will be used only in accordance with his wishes.
What Are the Contents of a Hawaii Lease Agreement?
Essential contents of a Hawaii rental agreement constituted under Hawaii rental laws are as follows:
- Premises – The property to be leased out needs to be sufficiently described. The area, number of rooms, fittings and fixtures, open areas all need to be included in the agreement so as to avoid any dispute later on.
- Lease Term – This clause talks about the duration for which the agreement is entered into. Typically, a lease is for a fixed period of time. However, it may also be open-ended.
- Rent – The amount of rent to be paid is typically captured in the lease agreement. The mode of payment, the bank details, and the time of payment is also captured in the lease agreement to avoid any kind of dispute later on.
- Deposit – The security deposit is a lump sum pf money that the tenant gives to the landlord to hold for the entire duration of the lease agreement. Such a deposit ensures that the tenant does not damage the property or misuse it in any way.
- Occupancy/Use – The renter’s rights Hawaii inter alia includes permitted uses of the property
- Utilities – All houses require the electricity, gas, and water bills to be paid. This clause talks about the kinds of utilities (gas, water, electricity), which are to be borne and who will pay for them.
How to Draft a Hawaii Lease Agreement?
What points should be considered while drafting the same?
- Firstly, you need to acquaint yourself with the local state laws. There might be some statutory requirements present which need to be incorporated in the agreement. It is requisite to have an understanding of the same.
- While drafting the security deposit clause, make sure to mention that it is refundable on the expiration of the term of the lease. Make sure not to include a security deposit in the event of an open-ended agreement.
- The payment schedule of rent, along with a statement that it will be revised and increased by a stipulated percentage every year, should be included in the agreement.
- Lastly, both parties should be completely assured of the terms of the agreement before signing it. There must be no ambiguity, thereby allowing one of the parties an opportunity to exploit the other.
Benefits and Drawbacks of a Hawaii Lease Agreement
- By spreading the amount of rent over a protracted period of time, it reduces the cash flow burden on the tenant.
- It allows both parties to be assured that they will not be wronged.
- It allows a degree of formality to the understanding between two parties. Unlike a verbal agreement, it does not leave scope for dispute
- The major drawback of a lease is that in the event of miscommunications and conflicts between the two parties, they are stuck with the agreement until and unless a default event occurs. Otherwise, they have to wait for a minimum stipulated period before they can end the agreement.
- Renewal of lease agreement often depends upon the will and power to negotiate the lease agreement.
What Happens in Case of Violation?
There are many specifications in the ‘Hawaii Landlord-Tenant Code’ or a lease, with respect to a number of issues ranging from maintenance of property, deposits, and rents, etc. In case either party does not fulfill or fulfill in the manner prohibited any of these stipulations, they are liable for a violation of the lease agreement. A violation would lead to the eviction of the tenant or termination of the lease.
With a surge in demand for housing facilities, a lease has become an important form of contract. It not only brings a sense of formality in the understanding between a landlord and a tenant but also enables both parties to secure legal backing in case of violation by the other.
Sample for Hawaii Lease Agreement
A sample of the Hawaii Lease Agreement can be downloaded from below.