Haw. Rev. Stat. § 516D § 516D-12
Mandatory arbitration of rent renegotiation.
Operative Text
(a) Every residential lease shall contain a provision for the mandatory arbitration of any rent renegotiation reopening. (b) In the event that a residential lease does not contain a mandatory arbitration provision, the following arbitration procedure shall apply: (1) Rent shall be determined by three impartial arbitrators, who shall be recognized real estate appraisers; (2) Each party shall select an arbitrator, both of whom shall select the third arbitrator; (3) The three arbitrators shall determine the rent renegotiation which shall be final, conclusive, and binding on both parties; and (4) Lessor and lessee shall each pay one-half of all proper costs and expenses other than attorneys' fees. [L 1989, c 168, pt of §4; ree L 1990, c 277, pt of §1]
Hawaii Revised Statutes § 516D-12 requires that every residential lease covered by Chapter 516D include a clause mandating arbitration whenever a rent renegotiation reopening occurs. If a lease omits such a clause, the statute supplies a default procedure: each party picks one arbitrator (who must be a recognized real estate appraiser), those two choose a third, and the panel's rent determination is final and binding on both sides. Costs and expenses—excluding attorneys' fees—are split equally between the parties.
Plain English — not legal advice.
Under Haw. Rev. Stat. § 516D-12, compliant residential lease agreements drafted by property owners or managers include an explicit mandatory arbitration clause covering any rent renegotiation reopening. Operators who discover that an existing lease lacks such a clause should be aware that the statutory default procedure automatically governs, requiring each side to select a licensed real estate appraiser as arbitrator. Landlords operating under the default procedure are generally responsible for paying half of all arbitration costs other than attorneys' fees.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Haw. Rev. Stat. § 516D-12 gives residential tenants a right to have rent renegotiation disputes resolved through arbitration rather than unilateral landlord action, and this right applies even if the lease itself contains no arbitration clause. Under the default procedure, tenants participate in selecting an arbitrator—who must be a recognized real estate appraiser—and the resulting rent determination is binding on both parties. Tenants who believe this provision is not being honored may wish to consult a tenant-rights organization or review their options with a housing attorney familiar with Hawaii's leasehold laws.
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.
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