Tenant Application & Screening Fees: When Well-Intended Policy Collides with Federal Law

Hawaiʻi lawmakers are once again grappling with a real and important problem: the cost burden renters face when applying for housing. With vacancy rates tight, prospective tenants often submit multiple applications, paying multiple screening fees in the process.

House Bill 2188 (2026), titled the Hawaiʻi Tenant Screening Fairness Act, attempts to address this issue by requiring landlords to accept “comprehensive reusable tenant screening reports” purchased by applicants and, in many cases, prohibiting landlords from charging an application screening fee when such reports are provided HB2188. The goal is reducing duplicative costs for tenants and it is understandable. However, the mechanism proposed in HB 2188 creates serious legal, compliance, and liability issues for housing providers, particularly independent “mom-and-pop” housing providers who already operate under a dense web of regulation.

At the heart of the problem is a conflict with federal law. Read more.

Hawaii Landlord / Tenant News