Hawaii security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
A security deposit bank account in Hawaii isn't legally required. But, keeping a tenant security deposit Hawaii residents pay in a separate ledger is a best practice to maintain clear separation and make returning the funds easier when the tenant moves out.
{{ state }} security deposit
limits
The maximum security deposit Hawaii law permits is one month’s rent. Given the high cost of housing, the average security deposit is usually the full one-month maximum. If a tenant has a pet, you can charge an additional pet deposit, not exceeding the base security amount.
{{ state }} security deposit interest
State law security deposit rules do not require you to pay out any earnings to your tenants. You won't need to track a specific security deposit interest rate or worry about annual distributions, as paying interest on security deposit Hawaii funds is not legally mandated.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month’s rent
No
No escrow account required; recommended to keep funds separated
Unpaid rent, repairs, lease violations, and cleaning costs
14 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Hawaii?
The Hawaii security deposit limit is set at one month's rent. If the tenant has a pet, you can charge an additional pet deposit, but this can’t exceed one month's rent. When starting a lease, you can collect the first and last month's rent, plus the security deposit, but only if the "last month's rent" is explicitly agreed upon in writing as a separate advance payment, not part of the security deposit itself.
Is interest required on tenant security deposits in Hawaii?
No, landlords are not required to pay interest on deposits. While you aren't mandated to use a specific landlord-tenant security deposit bank account in Hawaii, many owners choose to keep funds in a separate account for better record-keeping. Because there is no Hawaii security deposit interest requirement, any interest earned on the funds generally remains with the landlord.
How should I issue a security deposit receipt to tenants in Hawaii?
While a receipt is not legally required, it is recommended to offer one. Inlclude the deposit amount and date and send to tenants. Documenting the payment helps you and the tenant resolve any dispute later on.
How many days to return a security deposit in Hawaii?
To return the tenant security deposit, Hawaii law allows you 14 days. If you don’t return the full deposit or share an itemized list of deductions, you forfeit the right to keep any portion of the deposit, even if there are legitimate damages.
What can a landlord deduct from a security deposit in Hawaii?
You can cover unpaid rent, cleaning costs, or repairs for damages that go beyond normal wear and tear. These rules apply to any house rental, apartment, or condo. To protect your landlord rights security deposit claims, give an itemized list of deductions within the 14-day window. If you wrongfully withhold the money, a tenant can sue for double damages.
Can a security deposit be used for unpaid rent in Hawaii?
Yes, the funds in the security deposit escrow account Hawaii can be used to cover rent that the tenant still owes when they move out.
Can landlords keep a security deposit for breaking a lease in Hawaii?
If a tenant is breaking lease terms early, the landlord security deposit Hawaii law allow you to use the funds to cover lost rent or the costs of cleaning and repairing the unit for a new tenant.
