Hawaii Landlord-Tenant Law Essentials for the Real Estate Exam
Last updated: April 2026
For aspiring real estate professionals in the Aloha State, understanding the intricacies of property management and leasing is non-negotiable. Whether you plan to specialize in sales or property management, the Hawaii real estate licensing exam heavily tests your knowledge of state-specific leasing regulations. Master these concepts, and you will be well on your way to passing the state portion of your exam. For a broader overview of all exam topics, be sure to bookmark our Complete Hawaii Exam Guide.
In this article, we will break down the essential components of the Hawaii Residential Landlord-Tenant Code, highlighting the exact timelines, legal limits, and tax obligations you need to memorize for test day.
The Hawaii Residential Landlord-Tenant Code (HRS Chapter 521)
In Hawaii, residential tenancies are governed by the Hawaii Revised Statutes (HRS) Chapter 521, commonly known as the Residential Landlord-Tenant Code. The Office of Consumer Protection (OCP), a division of the Department of Commerce and Consumer Affairs (DCCA), provides oversight and information regarding these laws.
It is crucial for exam candidates to remember that HRS Chapter 521 applies strictly to residential properties. Commercial leases, transient vacation rentals (under certain circumstances), and institutional housing (like university dorms) are typically exempt from this specific code and are governed by common law or other specific statutes.
Security Deposits: Strict Limits and Timelines
Security deposit regulations are one of the most frequently tested topics on the Hawaii real estate exam. The state has strict rules designed to protect both the landlord's property and the tenant's funds.
Maximum Deposit Amounts
Under Hawaii law, a landlord may not require a security deposit in excess of one month's rent. However, there is a notable exception: a landlord may charge an additional "pet deposit" not to exceed one month's rent.
Exam Trap Warning: Landlords are strictly prohibited from charging a pet deposit for service animals or emotional support animals, as this violates both state and federal fair housing laws.
The 14-Day Return Rule
When a rental agreement terminates, the landlord has exactly 14 days to either return the security deposit in full or provide the tenant with a written, itemized accounting of any deductions along with the remaining balance. Valid deductions include unpaid rent, cleaning costs, and compensation for damages beyond normal wear and tear.
If a landlord fails to provide this accounting within 14 days, they forfeit the right to retain any part of the deposit, and the tenant may sue for damages equal to up to three times the amount of the wrongfully withheld deposit.
Critical Notice Periods in Hawaii
Memorizing notice periods is essential. Because these numbers differ significantly from other states, examiners love to test them. Using spaced repetition for exam prep is a highly effective way to commit these specific timelines to memory.
Month-to-Month Tenancies
- Landlord Termination: A landlord must give the tenant at least 45 days' written notice to terminate a month-to-month tenancy.
- Tenant Termination: A tenant must give the landlord at least 28 days' written notice to terminate a month-to-month tenancy.
Rent Increases and Evictions
- Rent Increases: For a month-to-month lease, landlords must provide 45 days' written notice before increasing the rent. For leases less than month-to-month (e.g., week-to-week), 15 days' notice is required.
- Failure to Pay Rent: If a tenant fails to pay rent, the landlord must issue a 5-day written notice to pay or quit. If the tenant does not pay within those 5 days, the landlord can file for summary possession (eviction).
- Landlord Entry: A landlord must give a tenant at least 2 days' notice before entering the premises for inspections or repairs, except in cases of emergency.
Critical Hawaii Landlord-Tenant Timelines (Days)
Hawaii Tax Obligations: GET and TAT
Unlike many other states, Hawaii imposes specific taxes on rental income that property managers and landlords must strictly adhere to. This is a vital area of knowledge for the state exam.
General Excise Tax (GET)
Hawaii does not have a traditional sales tax; instead, it has the General Excise Tax (GET), which is assessed on the gross income of businesses, including rental income. All rental income in Hawaii—whether long-term or short-term—is subject to GET. The base rate is 4%, but with county surcharges, it can be up to 4.5% or 4.712% depending on the island.
Transient Accommodations Tax (TAT)
If a property is rented for less than 180 consecutive days, it is classified as a transient accommodation. In addition to the GET, the landlord must also pay the Transient Accommodations Tax (TAT). The state TAT rate is currently 10.25%, and counties have the authority to add their own TAT surcharges (often an additional 3%).
Practical Example: If you are managing a vacation rental in Maui that is rented for 7 days at a time, you must collect and remit BOTH the GET and the TAT on the gross rental income.
Lease Agreements and Unique Property Laws
A valid lease agreement in Hawaii must clearly outline the terms of the tenancy, rent amounts, and a clear description of the property. Because Hawaii's geography and historical land division system are unique, property lines and access rights can sometimes complicate rentals.
For example, if you are managing a beachfront rental, you need to understand where the public beach ends and the private property begins. This requires a solid grasp of Hawaii water rights and riparian law. Furthermore, ensuring the lease correctly identifies the property boundaries might require familiarity with Hawaii metes and bounds legal descriptions, especially for rural or agricultural long-term leases.
Practical Exam Scenario: Applying the Law
Let’s look at how these rules might appear on your real estate exam.
Scenario: Jane is a tenant on a month-to-month lease in Honolulu. On May 1st, she decides she wants to move out by May 15th and gives her landlord 15 days' written notice. The landlord informs her that her notice is insufficient. Who is correct under Hawaii law?
Answer: The landlord is correct. Under HRS Chapter 521, a tenant on a month-to-month lease must provide a minimum of 28 days' written notice to terminate the tenancy. Jane would be responsible for rent for the full 28-day period following her notice, regardless of whether she vacates the property on May 15th.
Frequently Asked Questions (FAQs)
1. What is the maximum security deposit a landlord can charge in Hawaii?
A landlord can charge a maximum of one month's rent for a security deposit. They may also charge an additional pet deposit up to one month's rent, provided the animal is not a legally protected service or assistance animal.
2. How long does a Hawaii landlord have to return a security deposit?
Landlords have 14 days from the termination of the rental agreement to return the security deposit or provide a written, itemized list of deductions along with any remaining balance.
3. How much notice must a landlord give to terminate a month-to-month lease in Hawaii?
A landlord must provide at least 45 days' written notice to terminate a month-to-month tenancy. Conversely, a tenant must provide at least 28 days' written notice.
4. Do landlords have to pay taxes on long-term rental income in Hawaii?
Yes. All rental income, regardless of the lease duration, is subject to the General Excise Tax (GET). Long-term rentals (180 days or more) are exempt from the Transient Accommodations Tax (TAT), but GET still applies.
5. Can a landlord enter a rented property without notice in Hawaii?
Generally, no. A landlord must provide at least 2 days' notice to enter the property for standard reasons like repairs or inspections. The only exception is in the case of a genuine emergency (e.g., a burst pipe or fire).
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