Landlord claims that it is our fault the outlet does not work

My daughter and her husband are renting the downstairs of a house in Kailua, Hawaii.  Her husband is military.  The landlord lives in California and visits and stays in the upstairs only twice in the last 10 months.  She usually stays 2-3 months.  This landlord has got to be the worst I have ever heard of.  She complains and yells at these people about everything.  "Don’t leave a towel on the lawnchair, someone might want to sit there", "Don’t leave the outside light on so long", etc.  The rainy season began in November and they did have a large amount of rain.  However, the roof leaks and they had to put a bucket in the middle of their living room to collect the water.  Also in the bedroom.  The ceiling is bowed and stained, and the laminate floor is bubbled up.  They have had an electrical problem in the kitchen since October.  The kitchen is very small and contains a stove, refrigerator and microwave.  There is one other outlet.  Upon plugging in the toaster one morning, it did not work.  The landlord has not fixed it and is now stating it is because they overloaded the outlet.  WE are sure that she is setting up a case to retain the security deposit. Now she is telephoning the Commanding Officer every time she gets an e-mail request for maintenance from my daughter and husband.   Any suggestions?  I am a property manager in Wisconsin and feel confident about going to court in Wisconsin, but am not familiar with Hawaii.  The lease expires on March 31, 2011.  Should they not pay the March rent in fear that she will retain the security deposit?  We are talking about a lot of money here ($2900)….