Hawaii security deposit law gives landlords the knowledge they need to steer clear of avoidable issues like unclear deductions or missed deadlines, which often disrupt rental relationships. Thankfully, a clear understanding of these rules supports confident decision-making.
In this guide, you can learn everything you need to know about these regulations, including maximum amounts landlords can request, how to store deposits, whether interest applies, legal reasons to deduct, returning deposits, handling disputes, and more.
Statutes Regulating Hawaii Security Deposits
Hawaii security deposit rules appear in Chapter 521, Section 44 of the Hawaii Revised Statutes, which outlines how landlords collect, manage, and return deposits for residential rentals.
Maximum Security Deposit Amounts Under Hawaii Law
Landlords can collect a security deposit of up to 1 month’s rent for most residential rentals. This cap remains consistent regardless of lease term or contract length. Landlords may also request an additional deposit for tenants with pets, which allows an extra pet deposit of up to 1 month of rent, but does not include service animals or emotional support animals.
Security Deposit Storage Regulations
Hawaii law does not require landlords to place security deposits in a separate account or share storage details with tenants. Since the statute sets no specific storage rules, landlords may hold these funds in any manner that supports their rental operations, as long as they return the deposit in accordance with HRS requirements.
Security Deposit Interest in Hawaii
Hawaii landlords do not have to place security deposits in interest-bearing accounts, and state law does not require any interest to be paid to tenants.
Making Security Deposit Deductions
Security deposit deductions help Hawaii landlords maintain a rental property in good condition and address issues that arise during a tenancy. Tenants sometimes default on rent or cause damage beyond normal wear and tear, and landlords need reliable funds to cover missed payments or restore the unit to its earlier state.
When Landlords Can Deduct
Hawaii landlords may draw from a tenant’s security deposit for the following reasons:
- Repair damage that exceeds normal wear and tear and affects the unit’s condition.
- Restore any areas that were changed without the landlord’s approval during the tenancy.
- Replace furnishings or items missing at the end of the lease.
- Cover unpaid rent or other charges listed in the rental agreement.
- Pay for cleaning needed to return the unit to its original cleanliness.
When Landlords Can’t Deduct
Hawaii landlords may not draw from a tenant’s security deposit for the following reasons:
- Address conditions that reflect ordinary wear from everyday tenant use.
- Charge for cleaning when the tenant leaves the unit in a reasonably clean condition.
- Replace items worn down from expected long-term use.
- Repair issues that existed before the tenant moved in.
- Cover costs unrelated to the tenant’s occupancy or rental obligations.
Necessary Documentation to Accompany Deductions
Hawaii landlords must provide tenants with a written, itemized list of all security deposit deductions, though state law does not require receipts, invoices, or other supporting documentation. Landlords may include these documents to provide extra clarity, but the statute does not require them to do so.
What to Do When Deductions are Greater Than the Deposit
Tenants sometimes leave damage that costs more to repair than the security deposit covers, so Hawaii landlords need a clear plan to collect any remaining balance. Landlords can reach out to former tenants to request payment and should document all damages and repair costs.
Landlords who cannot recover the remaining amount can also offload the matter to a collections agency or file a claim in the Hawaii Small Claims Court.
Returning Security Deposits to Tenants
Hawaii law outlines clear rules for how landlords must return any remaining portion of a tenant’s security deposit after eligible deductions, which helps ensure tenants receive timely and accurate refunds.
Required Timeline for Return
Hawaii landlords must return the remaining deposit or provide an itemized list of deductions within 14 days after the tenant vacates and returns possession of the unit. The 14-day timeline starts once the tenant fully moves out and hands over the keys (or completes the handover in another agreed way).
Method for Return
Hawaii law does not require a specific payment method, so landlords may return the deposit by check, electronic payment, or any other reasonable option. When landlords withhold part of the deposit, they must include a written, itemized statement of deductions with the balance.
Penalties for Late Return
Hawaii landlords who miss the 14-day deadline or fail to provide the required itemized statement lose the right to keep any part of the deposit. In these cases, tenants can seek to recover the full amount and pursue additional damages for any portion withheld in violation of Hawaii law.
Security Deposit Disputes
If a tenant disagrees with how a landlord handles their security deposit, they have every right to dispute the decision. Tenants usually start by requesting written clarification, and if they can’t resolve the issue directly with the landlord, they may proceed with mediation or file a claim in court.
Landlords prepare for security deposit disputes by using move-in and move-out checklist tools, staying current with accounting and bookkeeping, and including clear terms within their lease agreements. Strong documentation, familiarity with Hawaii law, and strict attention to required timelines can also prevent and manage disputes.
Using Condition Reports to Document Damage
When handling security deposits in Hawaii, landlords should use detailed condition reports to track a unit’s condition, reduce disputes, and simplify rental management.
To streamline the process, use property management software to create digital reports, including photos and videos, directly from a smartphone. By documenting the property before move-in and again after move-out, you can build strong evidence for non-negotiable deductions.
Sign up for a free TurboTenant account to streamline documentation and manage security deposits with confidence.
FAQs: Hawaii Security Deposit Law
Can a landlord deduct painting from a security deposit in Hawaii?
A Hawaii landlord may deduct painting costs only when a tenant causes damage that goes beyond normal wear and tear. Routine repainting tied to ordinary use does not qualify as a deductible expense under Hawaii law.
Are nail holes considered normal wear and tear in Hawaii?
Small nail holes usually count as normal wear and tear in Hawaii. Landlords cannot deduct for minor marks from reasonable use, but they may deduct when extensive holes or wall damage exceed what Hawaii law considers ordinary wear.
Does the landlord or tenant have to pay for carpet cleaning in Hawaii?
A Hawaii landlord may charge a tenant for carpet cleaning only when the tenant leaves stains, excessive dirt, or damage beyond normal wear and tear. Routine cleaning tied to everyday use does not qualify as a deductible expense.
What happens if a landlord doesn’t return a security deposit within 14 days in Hawaii?
A Hawaii landlord who misses the 14-day return deadline or fails to provide an itemized deduction statement loses the right to keep any part of the deposit. The tenant may recover the full amount and pursue additional damages allowed under Hawaii law.
