Hawaii Landlords Face New Mediation Mandate Before Eviction Filings

Effective February 8, 2026, a new statewide Pre-Eviction Mediation Filing Program in Hawaii mandates that landlords must attempt mediation with tenants before initiating residential eviction proceedings for non-payment of rent. This two-year pilot program is designed to offer an alternative resolution, aiming to reduce the number of evictions and provide tenants with a pathway to resolve rent arrears before legal action escalates.

The Change

The core of this new policy is a requirement for landlords to first engage in mediation facilitated by the Community Mediation Centers. Only after a successful mediation attempt, or if mediation fails to resolve the issue, can a landlord proceed with filing an eviction lawsuit in court for cases involving unpaid rent. This adds a procedural hurdle that was not previously a statewide requirement, potentially altering established timelines for addressing tenant non-payment.

Who's Affected

Real Estate Owners

This program directly impacts all residential landlords, property owners, and property management companies across Hawaii. The primary consequence is an extended timeline for recovering possession of a property when a tenant defaults on rent. Landlords who fail to participate in or document their attempt at mediation may have their eviction filings rejected by the courts, forcing them to restart the process. This could lead to significant delays in re-renting units and collecting the outstanding arrears, directly affecting cash flow and return on investment. For investors and developers holding residential properties, this represents a change in the risk profile and operational procedures for managing tenant non-payment.

Small Business Operators (Owning Commercial Property)

While this pilot program specifically targets residential evictions for non-payment, small business operators who own commercial properties should remain aware of the broader policy direction. The fact that the state is implementing mandatory alternative dispute resolution for property-related disputes signals a potential for similar approaches in other sectors. Changes in property owner rights and tenant protections often create ripple effects. Business owners managing any form of rental property should monitor legislative trends for future implications.

Second-Order Effects

Policy Ripples and Tenant Stability

The introduction of mandatory pre-eviction mediation is likely to lead to an initial increase in mediation service utilization. If successful in resolving disputes, it could lead to greater tenant stability, reducing turnover costs for landlords in the long run. However, the mandatory step inherently delays the eviction process. This delay, coupled with potential ongoing non-payment, could strain landlords' finances, especially for those relying on consistent rental income to cover mortgages, property taxes, and maintenance. This strain, if widespread, could eventually translate into upward pressure on rental rates for new leases as landlords seek to recoup lost income and increased administrative burdens, impacting affordability for future tenants.

Legal and Administrative Load

Courts and legal aid services will likely see an initial increase in inquiries and challenges related to the proper implementation of the mediation requirement. Property managers will need to invest time in training staff on the new procedures and maintaining detailed records of mediation attempts. This administrative overhead is an indirect cost that will affect the overall cost of property management.

What to Do

For Real Estate Owners and Property Managers:

Act Now:

1. Update Eviction Protocols Immediately: Revise your standard operating procedures for handling non-payment of rent to explicitly include mandatory participation in mediation.
2. Document Everything: Ensure meticulous record-keeping of all communication with tenants regarding rent arrears, the notification of mediation, and the outcomes of mediation sessions. This documentation will be crucial if eviction proceedings become necessary.
3. Engage with Mediation Centers: Familiarize yourselves with the Community Mediation Centers and their process. Understand the timelines for scheduling mediation and the required documentation to initiate the process.
4. Communicate with Tenants: Proactively communicate the new mediation requirement to tenants, especially those who may be experiencing financial difficulties, to encourage early engagement and resolution.
5. Review Lease Agreements: While this policy applies regardless of lease terms, ensure your lease agreements clearly outline the process for addressing rent arrears and tenant disputes, aligning with current legal requirements.

For Small Business Operators (Commercial Property Owners):

Watch:

1. Monitor Policy Developments: Keep abreast of any legislative changes or discussions regarding mediation requirements for commercial tenancies. The success or challenges of this residential pilot could influence future policies.
2. Review Commercial Lease Terms: Evaluate your current commercial lease agreements for clauses related to dispute resolution and non-payment. Ensure they are robust and align with potential future regulatory changes, even if not immediately impacted.

Action Details

Real Estate Owners and Property Managers must immediately update their eviction protocols to incorporate mandatory mediation for non-payment of rent cases. Failure to do so by February 8, 2026, risks rejection of eviction filings, leading to extended property vacancy and financial loss. Document all mediation attempts and outcomes thoroughly to ensure compliance and support any subsequent legal action.

Sources

• Maui Now: Information on the launch and details of the Pre-Eviction Mediation Filing Program.
• Hawaii State Judiciary: General information on court procedures and landlord-tenant law in Hawaii. (Note: Direct link to program details may not yet be available on their public site, referring to official government announcements is sufficient for context).
• Hawaii Community Mediation Centers: Provider of mediation services, essential for understanding program implementation.
• Hawaii State Legislature: For tracking legislative intent and potential future modifications to housing laws.