Thank Heaven for the Hawaii Association of Realtors Legislative Committee. They were recently successful in getting Senate Bill 2802 deferred. This bill would have required that Property Managers pay the tenant 6% interest on all security deposit money held on behalf of the tenant at the time the tenant vacaters the property. At present Property Managers are unable to co-mingle any company funds with these security depsits, thus virtually precluding the Property Manager from earning interest on such funds from the Bank or other holder of the funds. The logic here is that once interest would be paid by the bank and credited to the Property Manager Account, these funds that would accrue to the Property Manager would be intermingled with the tenant funds, and this is against the law. To view the Hawaii Senate Bill, click on the following link. SB2802_.htm SB2802 Status
Jerry Bangerter, RA Property Manager, RE/MAX Kai Lani, 25 Kaneohe Bay Drive #109, Kailua, Hawaii 96734 (808) 237-5333.