Hawaii Sublease Agreement

A Hawaii sublease agreement is a legal contract that allows a tenant, referred to as the “sublessor,” to rent out all or a portion of their rental property to a new tenant, known as the “sublessee” or “subtenant”. This agreement outlines the terms and conditions under which the sublessee occupies the rental unit, including payment obligations and responsibilities for damages.

Hawaii Sublease Agreement

Hawaii Sublease Agreement

Right to Sublet

In Hawaii, tenants generally have the right to sublet their rented property without obtaining the landlord’s consent unless the original lease explicitly states otherwise. This rule does not apply to properties owned or administered by a government agency. If the original lease requires landlord consent for subleasing, tenants must obtain written permission before proceeding.

Laws and Requirements

Sublease and Assignment Provision Laws

The legal framework governing subleasing in Hawaii is outlined in the Hawaii Revised Statutes § 521-37, which details the provisions related to subleases and assignments. The Residential Landlord-Tenant Code, found in Chapter 521 of the Hawaii Revised Statutes, also provides relevant regulations.

Security Deposit Obligations

Under Hawaii law, the maximum security deposit a landlord can collect is limited to one month’s rent. Landlords are required to return the security deposit within 14 days after the lease term ends, along with an itemized statement of any deductions made from the deposit.

Notices

Sublessors must provide subtenants with a five-day written notice to pay rent or vacate the premises. Additionally, a 45-day written notice is required to inform subtenants of the intent not to renew the sublease.

Components of a Hawaii Sublease Agreement

A standard Hawaii sublease agreement typically includes the following elements:

  • Names of the Parties: Identification of the original tenant (Sublessor) and the new tenant (Sublessee).
  • Rental Unit Location: The address of the rental unit as per the original lease.
  • Term: Start and end dates of the sublease.
  • Rent: Amount, payment schedule, and payment method.
  • Utilities: Specification of which utilities are paid by the Sublessee and which by the Sublessor.
  • Security Deposit: Details regarding the security deposit, including the maximum amount and return conditions.
  • Pet Deposit: If applicable, an additional deposit not exceeding one month’s rent.
  • Return of Security Deposit: Conditions for the return of the security deposit within 14 days after the lease term.
  • Liability: Sublessee’s liability for damages, with the Sublessor responsible for any damage impacting the landlord.
  • Authorized Occupants: Identification of tenants and guests allowed in the rental unit.
  • Inventory of Included Items: List of items included in the sublease.
  • Lead-Based Paint Notice: Required notice if the rental unit was built before 1978.
  • Master Lease Inclusion: Attachment of the original lease and any exceptions.
  • Disputes: Procedures for resolving disputes, potentially through mediation or arbitration.
  • General Conditions: Statement that the written agreement contains all terms and can only be modified in writing.
  • Smoking Policy: Any restrictions on smoking within the rental unit.
  • Landlord’s Consent: Description of how landlord consent is obtained if not included in the original lease.
  • Signatures: Signatures and dates for all parties involved.

Tax Implications of a Sublease

In Hawaii, sublessors may be subject to various taxes if they sublease for less than 180 days:

  • General Excise Tax (GET): 4.5% statewide.
  • Transient Accommodation Tax (TAT): 10.25% on rentals of less than 180 days.
  • County-Specific Taxes: Each county may impose additional TAT. For example, on O’ahu, the combined tax rate may reach 17.75% (including the 4.5% GET and 10.25% TAT).

Short-Term Rental Regulations

Ordinance 22-7 (2022) prohibits operating short-term rentals (30-90 days) outside resort zones, although existing operators may continue pending legal review. Counties may require permits for short-term rentals, which can increase operational costs.

Filing and Payment

Sublessors must register with the tax authority and will be assigned a filing frequency (monthly, quarterly, semiannually, or annually). Even if no rentals occurred, sublessors must file “zero dollar returns” to avoid penalties or legal action.

Statutes

FAQs

In Hawaii, tenants generally do not need their landlord’s permission to sublet unless the original lease specifically requires it. However, this rule does not apply to properties owned or administered by the state or county.

A Hawaii sublease agreement should include the names of the parties, rental unit location, term of the sublease, rent details, utilities responsibilities, security and pet deposits, return of security deposit conditions, liability clauses, authorized occupants, and a smoking policy, among other elements.

Sublessors in Hawaii may be subject to the General Excise Tax (GET) and the Transient Accommodations Tax (TAT) if they sublease for less than 180 days. The statewide TAT is 10.25%, and additional county taxes may apply, leading to a combined tax rate that can exceed 17% in some areas.

Even after granting consent for a sublease, landlords in Hawaii retain the right to reject a subtenant based on valid reasons, such as a poor rental history or criminal background. This means that tenants should ensure their potential subtenants meet the landlord’s qualifications.

In Hawaii, landlords must return a security deposit within 14 days after the end of the lease term. If there are deductions, landlords are required to provide an itemized statement of those deductions.

Hawaii state law limits the security deposit to a maximum of one month’s rent. If a pet deposit is required, it can be an additional amount not to exceed one month’s rent, allowing for a total deposit of up to two months’ rent.

Yes, short-term rentals (30 to 90 days) are restricted outside of resort zones in Hawaii due to Ordinance 22-7, passed in 2022. However, existing operators may continue while the law is under review.

Sublessors in Hawaii must provide a written notice of five days to subtenants to pay rent or vacate the premises. Additionally, they must give 45 days’ written notice if they intend not to renew the sublease.