Hawaii Deposit Disputes: The Forwarding Address, Small Claims and Sales of the Property

By the FigureMyTax Editorial Team · How we calculate

Hawaii settles most deposit disputes in small claims court without lawyers, within a year. Here is how the mailing presumption works, what happens when a landlord sells and what the statute does not require.

Why give the landlord an address?

The mailing presumption in the statute protects a landlord that mails the deposit or notice to an address supplied by the tenant with acceptable proof of mailing and a postmark before midnight of the 14th day (HRS 521-44(c)). A tenant who moves without giving an address risks a missed notice and a hard fight about it. Send the address in writing and keep a copy.

How does the small claims case work?

If the sides disagree about the landlord’s right to claim and keep the deposit, either one can start an action in the small claims division of the district court, and in that action neither side may be represented by a lawyer, including salaried employees of the landlord or tenant. If the landlord was entitled to keep money, the court awards the landlord the amount in dispute plus costs (521-44(g), (h)).

What is the time limit?

All actions to recover a landlord’s complete or partial retention of the deposit must be started within one year after the rental agreement ends (521-44(c)). Calendar the date.

What if the building is sold?

The new owner is bound by the deposit section. The original landlord must give an accounting of the deposits to its successor at or before the transfer, and within 20 days the successor must tell each tenant the amount credited to them. If the successor does not, it is presumed the tenant paid a deposit of at least one month’s rent at the rate charged when the tenant first rented (521-44(f)).

Is interest owed on a Hawaii deposit?

The deposit section does not require the landlord to pay interest or to keep the money in a separate account; it provides that the tenant’s claim to the deposit comes before any creditor of the landlord, including a trustee in bankruptcy, even if deposits are commingled (521-44(b)).

Is there a move-out inspection right?

The section does not set a move-out inspection right for tenants. Ask the landlord in writing to walk through the unit with you, take dated photographs of every room and keep them with the lease. See the Hawaii deposit return deadline calculator for the date your landlord’s clock ends.

A worked example of the damages

A landlord keeps $500 of a deposit without sending the required written notice in time. It is not entitled to keep any of it, so the tenant can recover the $500 and the cost of suit; if the court finds the retention wrongful and wilful, it may award up to $1,500 plus costs. A tenant must bring the case within one year after the rental agreement ended, in the small claims division of the district court, without lawyers.

What to bring to small claims

Bring the lease, the deposit receipt, your forwarding address and proof you sent it, the landlord’s notice with the evidence it attached, your photographs and a short timeline with the date the rental agreement ended. The court can award the tenant the amount wrongfully kept plus costs, or the landlord the amount in dispute if it was entitled to keep it, and neither side may use a lawyer in that division.

Where to get help

The Office of Consumer Protection can explain deposit rights and the small claims process, and the district court clerk can explain the forms and the filing fee. Bring the lease and every notice, with the dates.

One more habit

Keep copies of everything you send, and send important papers by a method that gives you a dated receipt.

Frequently asked questions

Official sources

• HRS 521-44: security deposits

This is general information, not legal advice. It is based on the cited Hawaii statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Hawaii attorney.