A new law governing tenant screening fees is set to take effect in Hawaii on May 1, 2024. The law, known as Act 200 (SLH 2023) and codified in Hawai‘i Revised Statutes § 521-46, aims to protect renters and promote transparency in the rental application process.
Under the new law, landlords are prohibited from charging applicants for a residential dwelling unit a tenant screening fee that exceeds the actual cost of obtaining information about the applicant. Any charges that exceed the cost must be returned to the applicant. Landlords must refund the tenant any fees not used for authorized costs within 30 days of submitting the screening request.
"The new law ensures fairness in the tenant screening process and protects applicants from unreasonable fees," says the spokesperson for the Office of Consumer Protection (OCP), the agency responsible for enforcing the law.
The fee can only be charged at the time the rental application is processed and may only be charged to an adult 18 years and older or an emancipated minor who is applying to rent the residential dwelling unit.
To remain compliant with the law, landlords are encouraged to familiarize themselves with these new requirements. The OCP has published Frequently Asked Questions on their website at https://cca.hawaii.gov/ocp/landlord-tenant/ for more information.
In addition, a Frequently Asked Questions document regarding tenant screening fees will be disseminated to real estate industry stakeholders, tenant-advocacy groups, and legal services organizations. It is available online at https://cca.hawaii.gov/ocp/TenantScreeningFeeFAQ.
To further assist landlords and tenants, the OCP operates the Hawai‘i Residential Landlord-Tenant Information Center, a free service that offers information about Hawai‘i's Residential Landlord-Tenant Code and other laws affecting residential landlords and tenants. The Information Center can be reached at the following numbers between 8:00 AM and 12:00 PM:
- Honolulu Office (O‘ahu/Kaua‘i): 808-586-2634
- Maui Office (Maui/Moloka‘i/Lāna‘i): 808-243-4648
- Hilo Office (Hawai‘i Island): 808-933-0910
With the implementation of this new law, Hawaii aims to ensure fairness and transparency in the tenant screening process, providing renters with greater protection against excessive fees.