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Key Takeaways

  • Out-of-state property owners MUST hire a Hawaii-licensed property manager on the same island as the property
  • Property managers must hold a broker license or work under a principal broker
  • The property manager requirement applies to all rental properties owned by nonresidents
  • Property managers must maintain trust accounts for security deposits and rental income
  • Vacation rentals have additional registration and tax requirements in Hawaii
Last updated: January 2026

Hawaii Property Management & Nonresident Owners

Hawaii has unique requirements for property owners who do not reside in the state, particularly regarding property management.

Nonresident Owner Requirement

Mandatory Property Manager

Critical Hawaii Rule: Out-of-state property owners MUST hire a Hawaii-licensed property manager or resident manager located on the same island as the rental property.

RequirementDetails
Who must complyProperty owners residing outside Hawaii
Property typeAny residential rental property
Manager locationMust be on the SAME ISLAND as property
LicensingManager must be licensed or work under broker

Why This Requirement Exists

ReasonExplanation
Tenant protectionEnsure local contact for emergencies
AccessibilityManager can respond quickly
Legal complianceEnsure adherence to Hawaii laws
Trust accountsProper handling of funds

Penalties for Non-Compliance

ViolationConsequence
No local managerViolation of HRS 521
Tenant rightsTenants may have additional remedies
HREC actionPotential investigation

Property Manager Requirements

Licensing Requirements

OptionDescription
Licensed brokerCan manage property independently
SalespersonMust work under principal broker
Resident managerSome exemptions for on-site managers

Property Manager Duties

DutyDescription
Collect rentOn behalf of owner
Maintain propertyArrange repairs and maintenance
Handle tenantsLease enforcement, communications
Trust accountsHold deposits, pay expenses
AccountingProvide owner statements

Trust Account Requirements

Security Deposits

Property managers must:

RequirementDetails
Separate accountTrust account in Hawaii bank
No comminglingCannot mix with personal funds
AccountingTrack each tenant's deposit
ReturnWithin 14 days of move-out

Rental Income

RequirementDetails
CollectionCollect on behalf of owner
AccountingMonthly statements to owner
DisbursementPer management agreement
RecordsMaintain for 3 years minimum

Vacation Rentals

Registration Requirements

Hawaii has strict vacation rental regulations:

RequirementDetails
RegistrationMany counties require registration
ZoningMust be in permitted zone
TaxesGET and TAT required
Local lawsCounty-specific rules vary

Transient Accommodations Tax (TAT)

TaxRate
TATApproximately 10.25%
GET4.5% (varies by county)
CombinedApproximately 14.75%+

County Regulations

CountyVacation Rental Rules
HonoluluStrict registration, many areas prohibited
MauiRegistration required, enforcement active
Hawaii (Big Island)Varies by zone
KauaiLimited areas permitted

Landlord-Tenant Law (HRS 521)

Key Provisions

ProvisionDescription
Security deposit limitOne month's rent maximum
Return of depositWithin 14 days of move-out
HabitabilityLandlord must maintain premises
RetaliationProhibited against tenant complaints

Notice Requirements

Notice TypeDays Required
Termination (month-to-month)45 days
Rent increase45 days
Entry for repairs2 days
Entry for showing2 days
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Hawaii Nonresident Owner Requirement
Test Your Knowledge

Where must a property manager be located for an out-of-state landlord in Hawaii?

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Test Your Knowledge

What is the maximum security deposit a landlord can charge in Hawaii?

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