How Landlords Can Adjust Lease Rent Every Two Years

(a) During a renegotiated rent period, the renegotiated lease rent for the residential apartment of an owner-occupant may be adjusted biennially by the lessor in accordance with this section. A lessor may, but is not required to biennially adjust the lease rent for the residential apartment. If biennially adjusting the lease rent, the lessor may do so only with the approval of the department. A renegotiated lease rent for a residential apartment, as adjusted in accordance with this section, shall be deemed within the applicable maximum. (b) For the purposes of this section, the following definitions apply unless the context clearly indicates or requires a different meaning. Biennially Adjusted Lease Rent. The annual renegotiated lease rent, as biennially adjusted. Current Lease Rent. The annual renegotiated lease rent in effect before a biennial adjustment. Effective Date of Biennially Adjusted Lease Rent. The date on which a biennially adjusted lease rent takes effect. As provided under subsection (c), that date is two years after the effective date of the current lease rent. (c) During a renegotiated rent period, the renegotiated lease rent for the residential apartment of an owner-occupant may be adjusted biennially. The biennially adjusted lease rent shall be determined by multiplying the current lease rent by a rent factor. The rent factor shall be determined by dividing: (1) The average consumer price index for the six-month period encompassing the effective date of the biennially adjusted lease rent; by (2) The average consumer price index for the six-month period encompassing the effective date of the current lease rent. The biennially adjusted lease rent shall be effective from the date which is two years after the effective date of the current lease rent. (d) When there is less than two years between the effective date of the current lease rent and the commencement of a new renegotiated rent period, the current lease rent shall not be biennially adjusted under this section. (e) The council is aware that the consumer price index is an average figure that is published every six months and may not accurately reflect the change in consumer prices as it applies to Honolulu on the biennial adjustment date. Accordingly, the biennially adjusted lease rent may be revised with a six-month period after the official reporting of the applicable consumer price index. The revision shall reflect the actual, official change, if any, in the consumer price index. The revised amount shall be the biennially adjusted lease rent in effect.