What happens to the security deposit if the lease is terminated early? What about prepaid rent?
If the rental agreement has been terminated for all tenants, the security deposit or prepaid rent should be refunded as otherwise required by law after the landlord regains possession of the home.
If one or more tenants is moving out, and one or more tenants is staying, then the security deposit or prepaid rent will be divided up. Any tenants who are moving out will receive a prorated share when their part of the rental agreement ends.
With security deposits, either a judge or the tenants must determine in writing what percentage each tenant will get and give this to the landlord. If there isn’t anything in writing, then the landlord is allowed to give each tenant an equal share of the security deposit once his/her part of the rental agreement ends.1
1 HRS § 521-80(c)(1), (c)(2)