Hawaii trust accounting rules for vacation rental managers

In Hawaii, managing real estate for others is brokerage, and client money goes into a Hawaii trust account by the next business day. Here is what Chapter 467, the Commission’s rules and the transient accommodations tax chapter say.

Sources checked 2026-10-25 · Regulator: Hawaii Real Estate Commission (DCCA Real Estate Branch)

Hawaii at a glance

License
Broker license to rent or manage for others; exemptions for single-owner caretakers, hotels, condo hotel operators’ staff
Trust account
Federally insured trust account in Hawaii by the next business day
Records kept
3 years, kept in Hawaii
Reconciliation
No frequency found in the rules

Details and citations for each point are below.

Who needs a license

  • A real estate broker includes anyone who, for others, rents or offers to rent, or manages or offers to manage, real estate. Acting as a broker without a license is prohibited.Haw. Rev. Stat. § 467-1; Haw. Rev. Stat. § 467-7
  • Exemptions include an owner (or someone acting under the owner’s power of attorney), anyone who manages, rents or operates a hotel, and a custodian or caretaker — defined as an employee of a single owner, so it does not cover a manager with several owners.Haw. Rev. Stat. § 467-1; Haw. Rev. Stat. § 467-2

Short-term rental rules

  • Managing condominium units for transient lodging is operating a condominium hotel, and condominium hotel operators register with the Commission and carry a fidelity bond ($500 per unit, $20,000 to $100,000). Active licensed brokers are exempt from that registration and bond.Haw. Rev. Stat. § 467-30
  • A condominium hotel operator’s employees who only provide customary hotel services do not need a real estate license.Haw. Rev. Stat. § 467-30
  • Transient accommodations must display the name, phone number and email of a local contact — someone on the same island — with the registration, and include them in advertising.Haw. Rev. Stat. § 237D-1; Haw. Rev. Stat. § 237D-4

The trust account

  • Brokerage firms keep a trust fund account in Hawaii at a federally insured bank or recognized depository, with the principal broker as trustee, and deposit trust funds by the next business day after receipt.Haw. Admin. R. § 16-99-4
  • Rental deposits and rental receipts are kept in special bank accounts separate from the broker’s own funds. Commingling is prohibited, except a minimum amount to keep the account open.Haw. Admin. R. § 16-99-3; Haw. Admin. R. § 16-99-4; Haw. Rev. Stat. § 467-14
  • The account may or may not bear interest, as agreed in writing; without an agreement, interest goes to the owner of the funds.Haw. Admin. R. § 16-99-4
  • Earned commissions and management fees may not be left in the client trust account beyond a reasonable time.Haw. Admin. R. § 16-99-4

Advance rents and deposits

  • A salesperson who receives security deposits or rental income turns them over to the principal broker or broker-in-charge by the next business day.Haw. Admin. R. § 16-99-4
  • Hawaii’s Residential Landlord-Tenant Code excludes day-to-day transient stays in a hotel or motel.Haw. Rev. Stat. § 521-7

Records and how long to keep them

  • Brokerage firms keep records of all trust funds for at least three years, in Hawaii, showing payer, payee, date, amount and purpose.Haw. Admin. R. § 16-99-4

Reconciliation and ledgers

Check with the Hawaii Real Estate Commission (DCCA Real Estate Branch)

We could not confirm these from a primary source, so we don’t state them as rules:

  • Whether the hotel exemption covers managers of individual vacation homes or condos — “hotel” is not defined in the chapter and we found no Commission ruling.
  • Who must designate a local contact, and whether the duty is limited to off-island owners — the current statute defines the contact and the display duty but we could not confirm the rest.
  • The Commission’s rules were read on a mirror (Cornell LII), not the official PDF.
  • Any trust or records rules specific to condominium hotel operators.

Sources

Each source was read on 2026-10-25.

  1. Haw. Rev. Stat. § 467-1 — Hawaii State Legislature
  2. Haw. Rev. Stat. § 467-2 — Hawaii State Legislature
  3. Haw. Rev. Stat. § 467-7 — Hawaii State Legislature
  4. Haw. Rev. Stat. § 467-14 — Hawaii State Legislature
  5. Haw. Rev. Stat. § 467-30 — Hawaii State Legislature
  6. Haw. Rev. Stat. § 237D-1 — Hawaii State Legislature
  7. Haw. Rev. Stat. § 237D-4 — Hawaii State Legislature
  8. Haw. Rev. Stat. § 521-7 — Hawaii State Legislature
  9. Haw. Admin. R. § 16-99-3 — Cornell LIIRead on Cornell LII (history to 12/19/2016); the official DCCA PDF could not be parsed.
  10. Haw. Admin. R. § 16-99-4 — Cornell LIIRead on Cornell LII (history to 12/19/2016); the official DCCA PDF could not be parsed.

The reconciliation itself

Whatever your state’s rules, the monthly check is the same idea: the bank, your books and what you hold for each owner and guest should agree. Our three-way reconciliation guide walks through it with a free worksheet. If your reservations run on VacayOps, trust accounting is part of the Full Platform: guest payments are recorded into trust, owner statements build each owner’s balance, and the month’s reconciliation is signed off and exported as a PDF for your accountant. VacayOps records and reconciles the money in your own bank and processor accounts. It never holds or moves funds.

Other states

Questions about Hawaii trust accounting

Do I need a real estate license to manage vacation rentals in Hawaii?
Managing or renting real estate for others is brokerage. The caretaker exemption covers only an employee of a single owner, and condominium hotel operators register separately. Confirm your setup with the Hawaii Real Estate Commission.
How quickly must Hawaii brokers deposit trust funds?
By the next business day after receipt, in a federally insured trust account in Hawaii.
Who gets the interest on a Hawaii trust account?
Whoever the written agreement names; without one, the owner of the funds.
How long do Hawaii trust records have to be kept?
At least three years, in Hawaii.