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Natori Law Office LLLC

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1003 Bishop St • Pauahi Tower • Suite 1360 • Honolulu, HI 96813
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  • Home
  • Our Attorneys
    • Nathan Natori
    • Ryan Mukai
  • About Us
    • Your Initial Meeting
    • Clients
    • Testimonials
    • Fees
    • Outer Island
      • Big Island
      • Maui
      • Kauai
  • Practice Areas
    • Real Estate
      • Purchase & Sale of Hawaii Real Estate
      • Agreement of Sale
      • Commercial
      • Encroachment
      • Eviction
      • For Sale by Owner
      • Landlord / Tenant
      • Brokers & Realtors
      • Water Rights
      • Partition
    • Business
      • Forming A Business
      • Acquiring A Business
      • Corporate Governance
    • Financial Institutions
    • Construction
    • Debt Collection
    • Finance
    • Foreclosure
    • Franchise
    • Health Care
    • Land Use
    • Lobbying
    • Nonprofit
    • Public Utilities
    • Guardianship
    • Probate
  • News
  • Articles
  • Contact Us

Why a Landlord Must Tailor the Standard Hawaii Rental Agreement

The Hawaii Rental Agreement produced by the Hawaii Association of Realtors has become the standard form used in renting Hawaii real estate.   Although I believe in using well-crafted, standard documents for real estate transactions, they all can be tailored to better suite my clients.  During negotiations I can often times delete language or add language that does not “kill the deal” for my client.

A good example of how the standard Hawaii Rental Agreement actually hurts landlords in a particular situation is when the fixed rental period ends on a particular date.  Many times a landlord tells me that he/she will have a new tenant move in on the day after the fixed rental period ends because the incoming tenant will be paying more rent and the current tenant is trouble.

The problem for the landlord is they did not carefully read the Hawaii Rental Agreement and did not tailor the Rental Agreement to favor the landlord.

Paragraph 5 does say the “Fixed Rental Agreement which, unless otherwise agreed to in writing, will end on _________________.”  However, the last sentence of Paragraph 16.H provides, “If TENANT stays in the Unit after TENANT’S Rental Agreement is ended, TENANT will be a HOLDOVER TENANT and may be liable for twice the monthly rent under the Rental Agreement on a prorated daily basis for each day TENANT is a HOLDOVER TENANT.”

Thus, the tenant may not vacate the premises at the end of the rental period, and in fact may stay longer.   The failure of the tenant to vacate may result in the landlord being in breach with the new, incoming tenant.

The consolation to the landlord is supposed to be the financial penalty to the tenant for staying beyond the rental period.  Many landlords think they are entitled to twice the rent.  The problem with that conclusion is the Rental Agreement uses the word “may be liable for twice the monthly rent under the Rental Agreement”.

The word “may” is a problem for the landlord.  When I represent the landlord I replace the word” may” with the word “shall”.

As you can see standardized forms are beneficial, but only up to a point. Contact us for a consultation. We’ll guide you through this process and tailor the Hawaii Rental Agreement.

More Articles on Hawaii Real Estate Law
  • Duties and Responsibilities of the Selling Agent Regarding the Hawaii Seller’s Real Property Disclosure Statement for Hawaii Residential Real Estate
  • Hawaii Agreement of Sale
  • Hawaii “For Sale by Owner”
  • Hawaii Commercial Lease Interest Rate and Usury
  • Hawaii Commercial Leases: Issues You Must Consider
  • Hawaii Contractors Disclosure Requirements to Hawaii Homeowners
  • Hawaii Land Court Petitions Explained
  • Hawaii Regular System and Land Court Recording System
  • Hiring a Hawaii General Contractor
  • Landlords Who Reside Outside of Hawaii Are Required to Have Hawaii Property Managers
  • Mandatory Seller Disclosures for Hawaii Residential Real Estate
  • Probate of Hawaii Real Estate Owned by Japanese Citizens
  • Should a Hawaii Purchase Contract (DROA) Be Used in Purchasing Hawaii Commercial Property?
  • Terminating Co-Ownership of Hawaii Real Estate Property
  • The Process of Claiming and Attaching a Mechanic’s or Materialman’s Lien in Hawaii
  • The Role of Hawaii Attorneys in Purchasing Hawaii Residential Real Estate
  • The Security Deposit Under Hawaii’s Residential Landlord-Tenant Code
  • Understanding the “As Is” Addendum to the Hawaii Association of Realtor’s Standard Form Purchase Contract
  • Using a Letter of Intent in a Hawaii Real Estate Sale or Purchase
  • What Is the Hawaii Dual Agency Disclosure Form?
  • Why a Landlord Must Tailor the Standard Hawaii Rental Agreement
  • Why a Purchaser of Hawaii Real Estate May Want to Delete an Arbitration Paragraph
  • Why Hawaii Commercial Leases for Exactly a Five Year Term Should Be Avoided
  • Why Your Surveying Paragraph in a Hawaii Purchase Contract May be Inadequate When Purchasing Hawaii Residential Real Estate

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Aditya S.

Nathan is thorough, detailed, and knowledgeable.

Natori Law Office LLLC
1003 Bishop St
Pauahi Tower, Ste 1360
Honolulu, HI 96813

Ph: (808) 275-0155

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