Implement strong eviction record sealing processes to protect Hawaiʻi renters

In Hawaiʻi’s competitive housing market, a single eviction filing—even one that doesn't result in actual eviction—can negatively impact renters for years. With mounting evidence showing the devastating consequences of this practice, it's time for lawmakers to take decisive action to protect vulnerable tenants.

Landlords in Hawaiʻi have the right to evict a tenant under many circumstances. Some reasons may be valid, but Hawaii's lack of renters protection laws, such as a Just Cause Eviction policy, leaves wide open the potential for abuse. Landlords can file eviction notices for reasons as trivial as having too many plants on a lanai, storing surfboards outside, or cooking foods with strong aromas. While these cases may ultimately be dismissed by a judge, the mere existence of an eviction filing on a tenant's record creates a significant barrier to finding future housing.

The problem lies in how rental screening systems operate. In today's rental market, property managers routinely use automated screening systems, with 68 percent of landlords nationwide stating they use the application fee to run a tenant background check on prospective tenants. These automated systems are designed to scrape data online, and will either flag or immediately filter out any tenant applicant who may be deemed a “risk.” However, these “risk factors” are often unfounded. These systems rarely distinguish between cases where tenants were at fault and those where they prevailed in court. 

Data from the Eviction Lab, one of the most comprehensive initiatives to track eviction filings across the nation, reveals the extent of this problem. Eviction Lab notes that court record data is consistently inaccurate and misleading, often leaving out information on the outcome in an eviction case, even when in favor of the tenant. 

In one study, researchers found that only half of eviction filings led to actual evictions. Hawaiʻi falls even less from the national trend, with only 38 percent of eviction filings in 2019 actually resulting in evictions. Yet all these filings—even the 62 percent that did not lead to eviction—remain on tenants’ records, unfairly portraying them as “risky” renters.

The consequences are severe. Tenants with eviction records face significantly limited housing options. Studies show that simply being named in an eviction complaint, regardless of the merits or outcome, can severely limit future housing options and prolong housing insecurity. These individuals/households are vulnerable to accepting any available unit, whether that be unstable tenancy duration terms, poorer housing conditions, higher rent, and/or longer commute distances. It’s even more difficult in tight housing markets like Hawaiʻi, where housing availability is already low. 

This system traps individuals/households in a devastating cycle. Studies have shown that those facing housing insecurity stemming from evictions struggle to maintain employment, their children's education is disrupted, and their mental and physical health suffers. Children are especially vulnerable to these impacts. Children who experience prolonged housing insecurity are more likely to experience homelessness later in life and are more likely to see reduced earnings in their careers. Yet, children under the age of 18 are the largest demographic to be evicted, comprising nearly half of all individuals evicted.

The economic impact extends beyond individual families. The costs ripple out to the entire community through increased use of emergency services by evicted individuals. The state of Hawaiʻi bears an estimated $31 million annually in costs related to homelessness resulting from evictions.

During the 2025 legislative session, Hawaiʻi Appleseed has been supporting House Bill 463, which would require the sealing of eviction records if the court rules in favor of the tenant. 

As originally proposed, the bill would have sealed records after the court has made a ruling in favor of the tenant. Hawaiʻi Appleseed supports automatically sealing eviction records at the point of filing, unsealing them only if landlords prevail within 60 days. This is the same approach taken by California. This approach is necessary because of the persistent nature of digital records—once information enters commercial background screening databases, it is extraordinarily difficult to correct, even when officially sealed by courts.

Tenant screening companies frequently report outdated and sealed eviction records due to inadequate data management practices. Once obtained, these records often remain in screening databases indefinitely, and are rarely if ever updated when evictions are sealed, dismissed, or otherwise resolved in a tenant's favor. 

HB463 has the potential to alleviate the harmful consequences of having an eviction filing on record. However, rather than strengthening the bill, the Senate Committee on Commerce and Consumer Protection weakened it significantly in its most recent hearing. It now merely seeks to conduct a study, rather than implementing any actual protections.

In a state already grappling with a severe housing affordability crisis, removing unnecessary barriers to housing access should be a priority. Hawaiʻi's renters deserve meaningful protections against the life-altering consequences of eviction filings. As the bill moves on in the process, a joint Senate Judiciary and Ways & Means committee hearing will have the opportunity to strengthen HB463 so that it implements an effective eviction record sealing process. Lawmakers should take the opportunity and help to break the cycle of housing instability in Hawaiʻi.