Hawaii Rent Late Fees: 2025 Complete Guide

Understanding Hawaii's Unique Late Fee Framework

Hawaii stands among the minority of states with an explicit statutory cap on rent late fees, providing clear boundaries for both landlords and tenants. Unlike states relying on vague "reasonableness" standards, Hawaii Revised Statutes § 521-21(f) establishes a firm 8% maximum on unpaid rent for residential late fees—one of the most tenant-protective frameworks in the nation.

This clarity benefits both parties: landlords understand their legal limits, while tenants can easily identify non-compliant fees. However, recent legislative proposals and new mediation requirements starting February 2025 signal potential shifts in Hawaii's rental landscape that all stakeholders must understand.

Maximum Late Fee Laws Under HRS § 521-21(f)

Hawaii Revised Statutes § 521-21(f) governs late fees for residential rentals, establishing:

• Maximum cap: 8% of unpaid rent amount
• Calculation basis: Percentage of the specific rent payment that is late, not monthly rent total
• No daily caps: Unlike Iowa's tiered system, Hawaii allows the full 8% once rent is late
• Statutory clarity: One of only 16 states with explicit percentage caps

Example Calculations

Hawaii's 8% cap applies consistently across rent amounts:

• $1,000 monthly rent: Maximum late fee = $80
• $2,000 monthly rent: Maximum late fee = $160
• $3,000 monthly rent: Maximum late fee = $240
• $1,500 monthly rent (partial payment of $1,000): Maximum late fee on remaining $500 = $40

Importantly, the 8% applies to the unpaid portion of rent. If a tenant pays $1,000 of $2,000 rent on time, late fees only apply to the remaining $1,000, capping at $80 rather than $160.

Source: Hawaii Revised Statutes § 521-21(f)

No Statutory Grace Period Requirement

Hawaii law does not mandate grace periods before late fees apply. Landlords may charge late fees:

• The day after rent is due (e.g., fees on the 2nd if rent due on the 1st)
• After any grace period specified in the lease agreement
• According to lease terms, provided fees don't exceed 8%

Industry Standard Practice

Despite no legal requirement, Hawaii property management best practices recommend:

• 3-5 day grace period: Most professional landlords provide this buffer
• Late fees starting the 6th day: Common lease language states "Late fees apply if rent not received by the 5th of the month"
• Goodwill gesture: Grace periods reduce tenant friction and demonstrate professionalism

Landlords charging fees immediately on the 2nd of the month, while legal, risk tenant disputes and reputational damage in Hawaii's tight-knit island communities.

Sources: Hawaii Property Management Coalition, Hawaii Landlord-Tenant Code Handbook

Proposed SB347: Reduction to 5% Cap

In the 2024 legislative session, Hawaii lawmakers introduced Senate Bill 347 (SB347) proposing to:

• Reduce maximum late fees from 8% to 5%
• Align Hawaii with states like Oregon and North Carolina
• Further protect tenants amid Hawaii's housing affordability crisis

Status and Impact

As of November 2024, SB347 remains in committee. If passed in 2025:

• $2,000 rent: Maximum late fee would drop from $160 to $100 (37.5% reduction)
• Effective date: Likely July 1, 2025, requiring immediate lease amendment
• Retroactive application: Unclear whether existing leases would require mid-term modifications

Landlords should monitor this legislation closely and prepare contingency plans for fee structure adjustments. Tenant advocacy groups argue 5% better balances landlord cost recovery with tenant financial stability.

Source: Hawaii State Legislature SB347 (2024 Session), Hawaii Appleseed Center for Law & Economic Justice

Mandatory Mediation Before Eviction (Effective February 5, 2025)

Starting February 5, 2025, Hawaii implements mandatory mediation for all non-payment evictions under the Center for Alternative Dispute Resolution (CADR) program:

Key Requirements

• Trigger: Before filing eviction for non-payment, landlords must complete mediation
• Timeline: Mediation sessions scheduled within 10 business days of request
• Cost: Sliding scale fees ($50-$150 based on income), with free mediation for qualifying low-income tenants
• Outcome: If no agreement reached, landlord proceeds to eviction court

Impact on Late Fee Disputes

This new requirement affects late fee enforcement:

• Dispute resolution: Tenants can challenge excessive fees during mediation before eviction filing
• Settlement opportunities: Mediators may negotiate partial fee waivers or payment plans
• Documentation burden: Landlords must prove fees comply with 8% cap and lease terms
• Delay costs: 10-day mediation period adds time before eviction proceedings begin

Landlords implementing compliant 8% (or lower) fees will find mediation smoother, as excessive fee disputes often prolong resolution.

Source: Hawaii Revised Statutes § 666-23 (amended 2024), Hawaii State Judiciary CADR Program

Bounced Check and NSF Fees: $30 Maximum

Separate from late fees, Hawaii law caps non-sufficient funds (NSF) fees at $30 per occurrence under Hawaii Revised Statutes § 490:3-806:

• First bounced check: $30 maximum
• Subsequent bounced checks: $30 each (no escalation allowed)
• Combined with late fees: Landlords may charge both NSF fee ($30) and late fee (8% of unpaid rent) if applicable

Example Scenario

Tenant writes $2,000 rent check that bounces on the 5th of the month:

• NSF fee: $30 (statutory maximum)
• Late fee: $160 (8% of $2,000), assuming no grace period or grace period expired
• Total fees: $190

Landlords must document NSF fees separately from late fees in accounting and lease enforcement.

Source: Hawaii Revised Statutes § 490:3-806

Key Statutes & Legal Framework

Hawaii's residential landlord-tenant law consolidates under Hawaii Revised Statutes Chapter 521, with late fees specifically governed by:

HRS § 521-21(f) - Late Fee Cap

"No late fee shall exceed eight per cent of the amount of rent due."

This single sentence provides crystal-clear guidance, avoiding the ambiguity of "reasonableness" standards in states like California or Texas.

HRS § 521-71 - Landlord Remedies

Governs eviction processes for non-payment, including:

• 5-day notice to quit for non-payment (separate from grace periods)
• Prohibition against self-help evictions
• Requirements for formal court proceedings

HRS § 666-23 - Mandatory Mediation (Effective 2/5/2025)

Requires pre-eviction mediation for all residential non-payment cases, creating new dispute resolution pathways.

HRS § 490:3-806 - Dishonored Check Fees

Caps NSF fees at $30, preventing excessive bounced check penalties.

Sources: Hawaii Revised Statutes Chapters 490, 521, 666

Landlord Best Practices for Compliance

1. Lease Language Precision

Hawaii leases should include:

• Explicit fee amount: "$X or 8% of unpaid rent, whichever is less"
• Grace period: "Late fees apply if rent not received by [date]"
• Calculation method: "Fee applies to unpaid portion of rent only"
• NSF provisions: "$30 fee for bounced checks, separate from late fees"

Sample Clause: "If rent is not received by the 5th day of the month, Tenant agrees to pay a late fee of 8% of the unpaid rent amount. For monthly rent of $2,000, the maximum late fee is $160. If Tenant pays partial rent on time, late fees apply only to the unpaid balance. Late fees are separate from and in addition to any $30 NSF fees for bounced checks."

2. Documentation and Record-Keeping

Maintain detailed records:

• Rent payment dates and amounts
• Late fee calculations with date assessed
• Grace period expiration dates
• Tenant payment history
• Communication regarding late payments

In mediation proceedings (mandatory as of 2/5/2025), documentation proves compliance and fee reasonableness.

3. Proactive Communication

Best practices include:

• Rent reminders 3-5 days before due date
• Immediate notification when payment not received
• Grace period reminders ("Rent received by the 5th avoids late fees")
• Payment plan offers for tenants facing temporary hardship

4. Prepare for Mediation Requirements

Starting February 2025:

• Budget 10-15 days for mediation before eviction filing
• Prepare fee calculation documentation for mediators
• Consider settlement authority for mediators (e.g., fee waivers for immediate payment)
• Factor mediation costs ($50-$150) into eviction expense planning

Tenant Rights & Protections

Challenging Excessive Fees

Hawaii tenants can dispute late fees exceeding 8% through:

1. Written Dispute to Landlord

Send written notice citing HRS § 521-21(f) and calculating proper fee amount. Request refund of excess within 15 days.

2. Mediation (Mandatory Before Eviction)

If facing eviction, raise fee disputes during mandatory mediation. Mediators review lease terms and fee calculations.

3. District Court Action

File small claims (up to $5,000) or regular district court case for:

• Refund of illegal fees
• Breach of lease claims
• Violation of HRS § 521-21(f)

4. Tenant Resources

• Hawaii Appleseed Center: Free tenant legal resources and advocacy
• Legal Aid Society of Hawaii: Free legal representation for qualifying low-income tenants
• Mediation Center of the Pacific: Low-cost dispute resolution services

Protections Against Retaliation

HRS § 521-74 prohibits landlord retaliation for tenants who:

• Challenge illegal late fees
• Request mediation
• File complaints with housing authorities
• Exercise legal rights under Chapter 521

Retaliatory evictions or fee increases within 6 months of tenant complaints are presumed illegal.

Sources: Hawaii Revised Statutes § 521-74, Legal Aid Society of Hawaii, Hawaii Appleseed Center

Common Mistakes Landlords Must Avoid

1. Exceeding 8% Statutory Cap

Mistake: Charging $200 late fee on $2,000 rent (10%)

Risk: Illegal fee, subject to tenant refund claims and potential court-ordered penalties

Solution: Always calculate 8% precisely and round down if uncertain

2. Applying Fees to Total Rent Instead of Unpaid Amount

Mistake: Tenant pays $1,500 of $2,000 rent; landlord charges 8% of $2,000 ($160) instead of $500 ($40)

Risk: Overcharging violates HRS § 521-21(f), creates mediation disputes

Solution: Calculate fees only on unpaid balance

3. Failing to Include Late Fee Terms in Lease

Mistake: Charging late fees without written lease provision

Risk: Unenforceable fees, tenant refusal to pay, mediation/court losses

Solution: Ensure all leases have explicit late fee clauses matching statutory limits

4. Ignoring Mandatory Mediation (Post-2/5/2025)

Mistake: Filing eviction for non-payment without completing mediation

Risk: Court dismissal, restart eviction process, wasted filing fees

Solution: Schedule CADR mediation before eviction filing, document completion

5. Combining NSF and Late Fees Incorrectly

Mistake: Charging $60 NSF fee (exceeds $30 cap) plus late fee

Risk: NSF fee violation of HRS § 490:3-806

Solution: Separate NSF fees ($30 max) from late fees (8% max), document each clearly

6. Not Monitoring SB347 Legislative Changes

Mistake: Continuing 8% fees if SB347 passes reducing cap to 5%

Risk: Non-compliance with new law, potential mid-lease amendments required

Solution: Monitor Hawaii Legislature website, prepare fee reduction contingency plans

Example Calculations for Hawaii Landlords

Scenario 1: Standard Late Payment

• Rent: $2,500/month, due on 1st
• Grace period: Through 5th day of month
• Payment date: Tenant pays on 8th (3 days late)
• Calculation: $2,500 × 8% = $200 maximum late fee
• Result: $200 late fee is compliant

Scenario 2: Partial Payment

• Rent: $1,800/month, due on 1st
• Payment: Tenant pays $1,200 on time, $600 on 12th
• Calculation: $600 (unpaid amount) × 8% = $48 maximum late fee
• Result: $48 late fee applies to unpaid $600 only

Scenario 3: Bounced Check Plus Late Fee

• Rent: $3,000/month, due on 1st
• Check bounces: On 3rd day of month (within grace period)
• Tenant pays cash: On 9th (after grace period expires)
• Calculation:
  • NSF fee: $30 (statutory max per HRS § 490:3-806)
  • Late fee: $3,000 × 8% = $240 (rent was late after grace period)
• Total fees: $30 + $240 = $270

Scenario 4: If SB347 Passes (5% Cap)

• Rent: $2,000/month
• Current law: $2,000 × 8% = $160 max
• Under SB347: $2,000 × 5% = $100 max
• Reduction: $60 (37.5% decrease)

Frequently Asked Questions

1. Can my landlord charge a flat $200 late fee on $2,000 rent?

No. $200 on $2,000 rent equals 10%, exceeding Hawaii's 8% statutory maximum. The legal maximum is $160. Tenants can dispute and demand refund of the $40 excess.

2. Is there a grace period required by law in Hawaii?

No. Hawaii law does not mandate grace periods. However, most leases provide 3-5 day grace periods as industry standard. Late fees can legally apply the day after rent is due if no grace period exists in the lease.

3. What happens if SB347 passes reducing late fees to 5%?

Landlords would need to:

• Reduce fees to 5% maximum starting the effective date (likely July 1, 2025)
• Amend existing leases or wait for renewal periods (depending on final bill language)
• Notify tenants of reduced fee structure
• Update all lease templates and property management systems

4. Can landlords charge late fees on top of NSF fees for bounced checks?

Yes. NSF fees ($30 max) and late fees (8% of unpaid rent) are separate charges:

• NSF fee: For dishonored check administrative costs
• Late fee: For late rent payment (which occurs when check bounces)

Total fees can legally include both, provided each stays within statutory limits.

5. How does mandatory mediation starting February 5, 2025 affect late fees?

Impact:

• Before evicting for non-payment, landlords must complete mediation
• Tenants can raise late fee disputes during mediation sessions
• Mediators may negotiate fee waivers or payment plans
• Excessive fees (above 8%) will be flagged and challenged
• Adds 10-15 days to eviction timeline

6. Can late fees apply to utilities if included in rent?

It depends. If lease states total rent includes utilities as part of monthly payment, late fees apply to total unpaid amount. If utilities are billed separately, late fees typically apply only to base rent (check lease language).

7. What if my lease was signed before the 8% cap existed?

Current law applies. Hawaii's 8% cap governs all residential leases regardless of signing date. Pre-existing leases with higher fee provisions are legally unenforceable above 8%, even if tenant agreed to more.

Conclusion: Hawaii's Clear But Evolving Framework

Hawaii's 8% late fee cap under HRS § 521-21(f) provides rare statutory clarity in residential rental law. Both landlords and tenants benefit from explicit limits that reduce disputes and litigation. However, several developments require ongoing attention:

Key Takeaways

• 8% maximum: Late fees cannot exceed 8% of unpaid rent (not total monthly rent)
• No grace period mandate: State law doesn't require grace periods, but 3-5 days is industry standard
• SB347 proposal: Potential reduction to 5% cap in 2025—monitor legislature closely
• Mandatory mediation: Starting February 5, 2025, complete CADR mediation before eviction filing
• NSF fees: Separate $30 cap for bounced checks under HRS § 490:3-806
• Tenant protections: Strong rights to challenge excessive fees via mediation or court

Action Steps for Landlords

1. Review all lease agreements to ensure late fee clauses comply with 8% cap
2. Implement 3-5 day grace periods to align with industry standards
3. Prepare for mandatory mediation starting February 2025 (budget time and cost)
4. Monitor SB347 progress and prepare contingency plans for 5% cap
5. Document all fee calculations meticulously for potential mediation/court review
6. Use RentLateFee.com calculator to verify compliance before charging fees

Action Steps for Tenants

1. Verify late fees don't exceed 8% of unpaid rent amount
2. Request written calculation breakdowns from landlords
3. Challenge excessive fees immediately via written dispute
4. Utilize free mediation services if facing eviction
5. Contact Legal Aid Society of Hawaii or Hawaii Appleseed for assistance
6. Know your rights under HRS Chapter 521 and anti-retaliation protections

Hawaii's late fee landscape balances landlord cost recovery with tenant protection more equitably than most states. With potential further pro-tenant reforms on the horizon and new mediation requirements taking effect, staying informed ensures compliance and fair treatment for all parties.

Need to verify if a late fee is compliant? Use the RentLateFee.com Calculator for instant Hawaii-specific analysis with official statute citations.

Last Updated: November 21, 2025. This guide provides general information and should not be construed as legal advice. Consult a Hawaii-licensed attorney for specific situations.

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🔗 Related State Guides

Understanding late fee regulations in neighboring states can help you compare different approaches and understand regional trends. Here are related state guides:

1. California Rent Late Fee Guide

Why it's relevant: Similar high rental costs

2. Washington Rent Late Fee Guide

Why it's relevant: Pacific state with grace period

3. Oregon Rent Late Fee Guide

Why it's relevant: Similar tenant protections

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Additional Resources

• Rent Late Fee Calculator - Calculate your state's legal maximum
• Rent Grace Period Laws by State - Compare grace period requirements
• Security Deposit Laws - Understand deposit regulations