Owner Education / Leases
Your Tenant Wants to Break the Lease Early. What Do They Still Owe?
What military orders change, what a departing tenant owes under Hawaii law, and how to handle an exit agreement and the deposit.
Say you've got a tenant five months into a one-year lease on your Honolulu two-bedroom. Then a message comes in: they're moving out at the end of next month.
Now what?
They signed for a year, so they owe you the year, right? In Hawaii it isn't that simple. A servicemember with qualifying orders can end the lease under federal law, and you can't charge them for leaving. Most other tenants do owe you money, but Hawaii caps it, whether you re-rent or not.
So before you add up months, ask why they're leaving. That decides which rules apply. From there, how quickly you find another tenant makes a big difference.
This is about fixed-term leases. Month-to-month tenants just give written notice at least 28 days ahead and owe rent through the 28th day (HRS 521-71).
When the reason is military orders
Under the Servicemembers Civil Relief Act (50 U.S.C. 3955), a tenant can end a residential lease if they joined the military after signing it, or signed while serving and then got orders for a permanent change of station (including separation or retirement) or a deployment of at least 90 days.
They give you written notice and a copy of the orders. Electronic delivery counts, and so does a commanding officer's notification, certification or verification of their duty status in place of formal orders.
On a lease with monthly rent, it ends 30 days after the next rent due date following delivery of the notice. Notice arrives June 10, rent is due on the 1st: the next due date is July 1, so the lease ends July 31.
Your tenant owes rent through July 31 (prorated if that falls mid-period) plus any lease obligations unpaid then, such as reasonable excess-wear charges. You can't charge an early termination fee, and rent paid in advance for time after July 31 must be refunded within 30 days of that date. Knowingly holding a lawfully departing servicemember's deposit or belongings to cover later rent is a federal misdemeanor.
When a tenant on a property we manage hands us orders, I confirm the orders are legitimate and have the team check them independently. Once they check out, we shorten the lease, update the move-out date and treat it like any other move-out. Checking that orders are real is one thing. Asking for paperwork beyond the notice and the orders is another.
Hawaii's own servicemember law, HRS 521-83, is narrower. Apart from a provision for the family of a servicemember who dies on active duty, it covers a tenant on a lease of a year or less, or month to month, ordered into on-post quarters who would lose their housing allowance by not moving.
If your tenant isn't military
A tenant who's taken a job on the mainland is a different story.
If a tenant with no legal right to leave early moves out and makes clear, by what they say or do, that they aren't coming back, HRS 521-70(d) limits what they owe you for leaving to the lesser of two amounts. The first is the rent for the rest of the lease. The second is the rent for the time it should reasonably take to re-rent the home at a fair rent, plus the difference between that fair rent and their rent, plus a reasonable commission for re-renting.
That second figure applies whether or not you actually re-rent. A quick, made-up example: $3,000 rent, six months left. The first figure is $18,000. If a home like yours should reasonably re-rent in about a month at the same rent, the second is about $3,000 plus a reasonable commission. That's the cap, even if the home sits empty all six months. The law doesn't say how many days is "reasonably necessary," so any argument is about that.
Why fast re-renting matters
So start the day the notice arrives. Your tenant still lives there, but you can show the home to prospective tenants with at least two days' notice, at reasonable hours (HRS 521-53).
Price for today's market, not the old lease. Our Owner FAQs note that market conditions vary, but most well-priced Honolulu rentals lease within two to four weeks. See our guides to pricing and marketing.
Or agree on a way out
A written deal may be simpler. Hawaii law recognizes that a lease can end by mutual agreement. Check your lease for early-exit terms, then put the deal in writing, signed by everyone on the lease: move-out date, rent owed through it, showing access, and when the tenant's obligations end.
As for using the deposit as last month's rent: no part of the deposit counts as last month's rent unless your tenant gives 45 days' notice of vacating and you both agree in writing (HRS 521-44). Agreeing doesn't waive your remedies for damage, but make sure something would be left for cleaning and repairs.
The deposit can't be the penalty
Under HRS 521-44, a deposit can cover only the listed items "and no others": unpaid rent, damage, cleaning back to move-in condition, unreturned keys, pet damage, utilities you supplied that weren't in the rent, and damages caused by a tenant who wrongfully quits.
Within 14 days after the tenancy ends, return the balance with a written itemization of anything you keep and evidence of the costs. Miss that and you can't keep any of it. The one exception to the written notice is a tenant who wrongfully quit. For deposit purposes, a tenant absent 20 days in a row or more without written notice is treated as having wrongfully quit (time you've been paid rent for doesn't count as absence), and you may then keep the entire deposit. Itemize anyway, since that's exactly what a tenant may dispute. Our security deposit guide has more.
Who's leaving, and what they owe
Military orders aren't the only protected reason to leave early.
| Who's leaving | What they give you | What they owe |
|---|---|---|
| Servicemember with orders for a permanent change of station or a deployment of 90+ days (federal law) | Written notice and the orders (a commanding officer's verification counts) | Prorated rent to the termination date and lease obligations unpaid then. No early termination charge. |
| Servicemember ordered into on-post quarters (HRS 521-83) | At least 30 days' written notice (15 if month to month), the orders or a commanding officer's verification, and the commanding officer's written proof the allowance request was denied | Rent to the termination date and earlier amounts owed. No penalty, fees or future rent. |
| Domestic violence victim (tenant or immediate family member living there) in the prior 90 days, on a lease of a year or less (HRS 521-80) | At least 14 days' notice, a listed document and, in most cases, a short written statement | Rent to the termination date and earlier amounts owed. No fee or penalty. |
| Tenant with a signed exit agreement | What the agreement requires | What the agreement says |
| Anyone else leaving early without a legal right (HRS 521-70) | No notice period in 521-70 | The lesser of remaining rent or the re-rent figure |
Key takeaways
- Ask why your tenant is leaving before you count months.
- Written notice plus qualifying orders ends the lease on the statute's date, with no termination fee.
- A tenant leaving without a legal right owes a capped amount, so re-rent fast.
- Itemize and return the deposit balance within 14 days.
Common questions
Does a deployment shorter than 90 days count?
Not under the federal deployment rule, which requires orders to deploy for at least 90 days. If you aren't sure orders qualify, get advice before saying no.
What if my tenant backs out before moving in?
Under HRS 521-70(e), if they make clear before move-in that they won't honor the tenancy, they owe the lesser of: all money deposited with you, one month's rent at the agreed rate, or rent until the home is re-rented at a fair rent, plus the rent difference, reasonable costs and a reasonable commission, whether or not you re-rent.
Before you reply
Start with why they're leaving and what your lease says. Then follow the rule that applies, or start marketing and consider a written exit agreement. More in our lease agreement guide, landlord-tenant law guide and, for owners with orders, our PCS guide.
Talk to us first
If a tenant at your Oʻahu rental wants out early, call us before you reply. We'll review the lease and the notice with you and help plan the re-rent. Our pricing page shows what management costs. Call (808) 427-7778 or contact us.
Sources
- 50 U.S.C. 3955, termination of residential leases by servicemembers; United States v. Integrity Asset Management LLC, No. 3:22-cv-00287 (W.D. Tex.), complaint filed August 19, 2022.
- HRS 521-83, early termination by servicemember tenants; HRS 521-80, early termination by victims of domestic violence.
- HRS 521-70, landlord's remedies for abandonment and failure to honor a tenancy before occupancy; HRS 521-71, termination of tenancy, including month-to-month notice and mutual agreement; HRS 521-53, landlord's access; HRS 521-44, security deposits.
- DCCA Office of Consumer Protection, Handbook for the Hawaii Residential Landlord-Tenant Code, on abandonment, servicemembers and security deposits.
This article is general information for rental property owners and is not legal advice. It describes Hawaii and federal law as they stood on the date of writing. The terms of your own lease and your tenant's specific orders or documents matter. For a specific situation, consult a Hawaii attorney.
