Overview
Hawaii security deposit laws are governed by Hawaii Revised Statutes § 521-44 (security deposits) and § 521-66 (return requirements). Hawaii has one of the shortest return deadlines in the nation at just 14 days, and disputes must be resolved in small claims court. A security deposit compliance platform is essential for meeting these tight deadlines.
Maximum Security Deposit
Hawaii limits security deposits as follows:
- Regular security deposit: Maximum of 1 month's rent
- Pet deposit: Additional deposit of up to 1 month's rent (only if tenant has pets)
Service Animal Exception
Landlords cannot charge an additional deposit for service animals, as they are not considered pets under federal and state law.
Return Timeline
Hawaii has one of the shortest return deadlines in the country: (California similarly requires—see California security deposit laws.)
- Landlords must return the deposit within 14 days after the tenant surrenders the property (returns keys and vacates)
- The landlord is in compliance if the notice is postmarked before midnight on the 14th day
- Certified mail with return receipt requested is recommended
Itemization Requirements
Landlords must return the deposit (or balance) along with an itemized statement of any deductions, including:
- The specific damages or charges deducted
- The cost associated with each item
Interest Requirements
Hawaii does not require landlords to pay interest on security deposits.
Landlords are not obligated to place deposits in an interest-bearing account, and any interest earned belongs to the landlord.
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Cleaning costs if needed to restore the unit to its original condition
- Other charges specified in the lease
Normal wear and tear cannot be charged to the tenant.
Penalties for Non-Compliance
If a landlord fails to comply with Hawaii's security deposit laws:
- Failure to provide itemization or return the deposit within 14 days results in forfeiture of any portion of the deposit
- The landlord must return the entire deposit to the tenant
Dispute Resolution
Hawaii law requires that security deposit disputes be resolved only in small claims court. The statute of limitations is one year from the date the rental agreement terminated.
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. See how Passive works to automate this process.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.