Haw. Rev. Stat. § 516 § 516-70
Reversion of improvements.
Operative Text
(a) This section applies to all leases of residential lands as defined by section 516-1. (b) At the termination of any lease, or at the expiration of the lease term, the lessee may, if not then in default under the terms of the lessee's lease, remove all onsite improvements on the lot which were constructed at the cost of, or otherwise paid for by, the lessee, without compensating the lessor therefor. If the lessee notifies the lessor in writing within sixty days before the termination or expiration that the lessee declines to remove such onsite improvements and if the lessee is not then in default under the terms of the lessee's lease, and if the lessor refuses to extend the term of the existing lease or to issue a new lease for a term of at least thirty years at a rental that is mutually agreeable to the parties or failing such agreement that is determined by arbitration pursuant to chapter 658A, the lessor shall be required to compensate the lessee for the current fair market value of all such onsite improvements. Such improvements shall be appraised at the expense of the lessee. The appraiser selected shall be by mutual agreement of the lessee and the lessor or in conformance to chapter 658A. The compensation shall be determined by mutual agreement or in conformity with chapter 658A, and the compensation shall be paid within thirty days of determination. Such expense of arbitration shall be equally shared by both parties. [L 1967, c 307, §43; HRS §516-70; am L 1975, c 184, §2(19); gen ch 1985; am L 2001, c 265, §4]
Hawaii Revised Statutes § 516-70 governs what happens to improvements a residential land lessee has built or paid for when a lease ends. A lessee who is not in default may remove those improvements without paying the lessor anything. Alternatively, if the lessee notifies the lessor in writing—at least sixty days before the lease ends—that they do not wish to remove the improvements, and the lessor will not offer a new or extended lease of at least thirty years at an agreed or arbitrated rent, the lessor must pay the lessee the current fair market value of those improvements, with the appraisal cost borne by the lessee and arbitration costs split equally between the parties.
Plain English — not legal advice.
Under Haw. Rev. Stat. § 516-70, operators of residential land leases generally track whether a lessee is in default as the lease approaches its end, since default status affects the lessee's rights regarding improvements. If a lessee sends written notice within sixty days of termination declining to remove improvements, a compliant lessor either negotiates a lease extension or new lease of at least thirty years at a mutually agreeable or arbitrated rent, or prepares to compensate the lessee for the fair market value of those improvements within thirty days of the compensation being determined. Keeping clear records of lease terms, default status, and any written communications from lessees helps operators respond appropriately to the timelines set out in § 516-70.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Haw. Rev. Stat. § 516-70 gives residential land lessees who are not in default two meaningful options at the end of a lease: remove improvements they paid for at no cost to the lessor, or notify the lessor in writing—no later than sixty days before the lease ends—that they wish to leave the improvements behind. If the lessor then refuses to offer a qualifying new or extended lease, § 516-70 entitles the lessee to fair market value compensation for those improvements, with the process governed by mutual agreement or arbitration under chapter 658A. Tenants navigating these rights may benefit from consulting a tenant-rights organization or reviewing Hawaii's arbitration procedures under chapter 658A to understand the appraisal and arbitration cost-sharing rules that apply.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 23, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
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