Property Management

In Hawaii, what must a property manager do with tenant security deposits?

AA. Deposit them in the manager's operating account for investment
BB. Hold them in a separate trust account✓ Correct
CC. Forward them to the property owner immediately
DD. Return them to tenants within 30 days of receipt

Explanation

Security deposits must be held in a separate trust account (not commingled with operating funds). This protects tenants' funds and is required by Hawaii's Landlord-Tenant Code and real estate license law.

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