Hawaii Rent-to-Own Lease Agreement

Overview

Lease Option

The lease option grants tenants the right to purchase the property during or at the end of the lease term.

Financial Aspects

The agreement outlines important financial details, including:

• Rent payments
• Late fees
• Security deposits

Process for Tenants

To initiate a rent-to-own agreement, landlords typically require prospective tenants to complete a rental application. This application assists landlords in assessing the suitability of tenants for the lease.

Benefits of Rent-to-Own Agreements

For tenants, this arrangement provides an opportunity to explore homeownership or manage financial challenges while residing in the property. For landlords, the benefits include securing committed tenants who are likely to care for the property, potentially leading to reduced maintenance costs.

Purchase Option

If the tenant decides to exercise the purchase option, both parties will generally utilize a residential purchase agreement to formalize the transfer of ownership.

Landlord-Tenant Laws

The legal framework governing landlord-tenant relationships in Hawaii is established under Title 28, Chapter 521, known as the Residential Landlord-Tenant Code. This chapter outlines the rights and responsibilities of both landlords and tenants in residential rental agreements.

Conveyance Laws

For matters related to property transfer, the relevant legal reference is Title 28, Chapter 502. This chapter pertains to conveyance laws, specifically addressing the Bureau of Conveyances and the recording of property transactions.

Statutes

• Haw. Rev. Stat. § 490:3-506.5 – Charges for dishonored checks
• Haw. Rev. Stat. § 521-21(b) – Rent
• Haw. Rev. Stat. § 521-21(d)(e) – Rent
• Haw. Rev. Stat. § 521-35 – Attorney’s Fees
• Haw. Rev. Stat. § 521-37 – Subleases and assignments
• Haw. Rev. Stat. § 521-38 – Tenants subject to rental agreement; notice of conversions
• Haw. Rev. Stat. § 521-42 – Landlord to supply and maintain fit premises
• Haw. Rev. Stat. § 521-43(a)(b) – Rental agreement, disclosure
• Haw. Rev. Stat. § 521-43(d) – Rental agreement, disclosure
• Haw. Rev. Stat. § 521-44(b) – Security deposits
• Haw. Rev. Stat. § 521-44(c) – Security deposits
• Haw. Rev. Stat. § 521-44(b)(2) and (e) – Prepaid Rent and Use of Security Deposit
• Haw. Rev. Stat. § 521-44(c)(g) and (h) – Security deposits
• Haw. Rev. Stat. § 521-51 – Tenant to maintain dwelling unit
• Haw. Rev. Stat. § 521-52 – Tenant to use properly
• Haw. Rev. Stat. § 521-53(a) – Access
• Haw. Rev. Stat. § 521-53(b) – Access
• Haw. Rev. Stat. § 521-54 – Tenant to use and occupy
• Haw. Rev. Stat. § 521-55 – Tenant’s responsibility to inform landlord
• Haw. Rev. Stat. § 521-56 – Disposition of tenant’s abandoned possessions
• Haw. Rev. Stat. § 521-62 – Tenant’s remedy of termination at beginning of term
• Haw. Rev. Stat. § 521-63(c) – Tenant’s remedy of termination at any time; unlawful removal or exclusion
• Haw. Rev. Stat. § 521-64 – [Effective 11/1/2024] Tenant’s remedy of repair and deduction for minor defects
• Haw. Rev. Stat. § 521-68 – Landlord’s remedies for failure by tenant to pay rent
• Haw. Rev. Stat. § 521-70(b) – Landlord’s remedies for absence, misuse, abandonment and failure to honor tenancy before occupancy
• Haw. Rev. Stat. § 521-70(c) – Landlord’s remedies for absence, misuse, abandonment and failure to honor tenancy before occupancy
• Haw. Rev. Stat. § 521-70(d) – Landlord’s remedies for absence, misuse, abandonment and failure to honor tenancy before occupancy
• Haw. Rev. Stat. § 521-71(a) – Termination of tenancy; landlord’s remedies for holdover tenants
• Haw. Rev. Stat. § 521-71(b) – Termination of tenancy; landlord’s remedies for holdover tenants
• Haw. Rev. Stat. § 521-71(d) – Termination of tenancy; landlord’s remedies for holdover tenants
• Haw. Rev. Stat. § 521-72 – Landlord’s remedies for improper use
• Haw. Rev. Stat. § 521-74 – Retaliatory evictions and rent increases prohibited
• Haw. Rev. Stat. § 521-78 – Rent trust fund
• Haw. Rev. Stat. § 633-27 – District courts; powers
• Haw. Rev. Stat. § 657-1 – Six years
• Haw. Rev. Stat. § 666-3 – Forfeiture, warning, notice to vacate, refunds