Haw. Rev. Stat. § 519 § 519-1
Lease renegotiations; calculation of rent; definition.
Operative Text
(a) Whenever any agreement or document for the lease of private lands provides for the renegotiation of the rental amount or other recompense during the term of the lease and such renegotiated rental amount or other recompense is based, according to the terms of the lease, in whole or in part upon the fair market value of the land, or the value of the land as determined by its highest and best use, or words of similar import, such value, for the purposes of determining the amount of rental or other recompense, shall be calculated upon the use to which the land is restricted by the lease document. (b) The term "lease", "lease agreement", or "document" as used in this section, means a conveyance leasing privately-owned land by a fee simple owner as lessor, or by a lessee as sublessor, to any person, for a term exceeding five years, in consideration of a return of rent or other recompense. [L 1969, c 267, §1]
Hawaii Revised Statutes § 519-1 addresses how land value is calculated when a long-term private land lease allows for rent renegotiation tied to the land's value. Under this provision, if a lease ties renegotiated rent to 'fair market value' or 'highest and best use,' the value must be measured based only on what the land is actually permitted to be used for under the lease itself — not on some hypothetical or more profitable use. The rule applies to private land leases of more than five years where a fee simple owner or a sublessee is the lessor.
Plain English — not legal advice.
Property owners and managers operating under long-term private land leases governed by Haw. Rev. Stat. § 519-1 generally structure rent renegotiation clauses with an understanding that any value-based calculation will be constrained to the land's lease-restricted use. Compliant operators typically ensure that appraisals or valuations used during renegotiation reflect only the uses permitted by the lease document, rather than the land's theoretical highest and best use in an unrestricted market. Reviewing lease language carefully before initiating a renegotiation process helps ensure that the methodology for calculating rent aligns with what § 519-1 requires.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants holding long-term private land leases in Hawaii have a statutory protection under Haw. Rev. Stat. § 519-1 that limits how a landlord can calculate renegotiated rent when the lease ties rent to land value. Specifically, a landlord cannot use a valuation based on unrestricted highest-and-best-use scenarios if the lease itself restricts the land to a particular use. Tenants who believe a renegotiated rent amount was calculated using an impermissible valuation method may wish to review the lease terms carefully, consult a tenant-rights organization familiar with Hawaii land lease law, or explore whether raising § 519-1 as a defense or basis for dispute resolution is appropriate.
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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