Q Why isn't there a state law to require that a landlord pay a fair interest rate to a renter on the amount of the security deposit? In my case, I put down $1,500, which would earn interest in a bank account. Other companies have to pay interest on deposits, why not landlords?

A. Christine Hirasa, spokeswoman for the state Department of Commerce and Consumer Affairs, said the short answer is that landlords don't have to because there's no state law to require it. But she said the answer is more complex because there have been proposals at the state Legislature in the past to require landlords to pay interest on security deposits but no law has been enacted.

Backers said an interest requirement would mean renters get the money back plus a little more when they leave. If a renter didn't keep up the property, the landlord could benefit by earning a little more to help with repairs.

After the reader who wrote started researching the topic, he said he found that the electric and phone companies are required by state law to pay interest on security deposits held there.

Legislative reports show that some people supported that proposal, while others argued that it would be cumbersome to mom-and-pop type renters with only one or two units on the market. State records show the debate goes back to at least 1987 when a proposal emerged to require renters of 25 or more dwelling units to pay 5 percent interest.

But interest rates change with the economy, so any fixed interest rate could end up being more than what banks are paying, opponents said. Any interest earned would mean the landlord would be taxed on that income without any guaranteed return.

Other lawmakers argued that this proposal — which was designed to help consumers — could end up hurting them if landlords decided to increase the rent to make up for the cost and hassle dealing with the interest.

For more information on various consumer issues including landlord-tenant information on the Web, go to www.hawaii.gov/dcca.