AN ACT RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT (Provides that landlords would pay interest on security deposits in residential landlord-tenant matters.)

H8113

2026 -- H 8113
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LC005286
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT

Introduced By:
Representatives Cruz, Handy, Potter, Ajello, Stewart, Batista, Shanley,
Cotter, Giraldo, and Kislak

Date Introduced:
February 27, 2026

Referred To:
House Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Section 34-18-19 of the General Laws in Chapter 34-18 entitled "Residential
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Landlord and Tenant Act" is hereby amended to read as follows:
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34-18-19. Security deposits.
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(a) A landlord may not demand or receive a security deposit, however denominated, in an
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amount or value in excess of one month’s periodic rent.
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(b) Upon termination of the tenancy, the amount of security deposit due to the tenant shall
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be the entire amount given by the tenant as a security deposit, minus any amount of unpaid accrued
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rent, the amount due, if any, for reasonable cleaning expenses, the amount due, if any, for
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reasonable trash disposal expenses and the amount of physical damages to the premises, other than
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ordinary wear and tear, that the landlord has suffered by reason of the tenant’s noncompliance with
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§ 34-18-24, all as itemized by the landlord in a written notice delivered to the tenant. The landlord
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shall deliver the notice, together with the amount of the security deposit due to the tenant, within
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twenty (20) days after the later of either termination of the tenancy, delivery of possession, or the
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tenant’s providing the landlord with a forwarding address for the purpose of receiving the security
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deposit.
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(1) All security deposits received by a landlord of six (6) or more dwelling units shall be
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deposited into federally insured deposit accounts earning interest at a rate not less than the
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prevailing market rate of interest for regular savings accounts as established in § 19-9-2 or another
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standard adopted by the department of business regulation in concurrence with the department of

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housing. All interest accrued shall be the property of the tenant.
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(2) Upon termination of the tenancy, the amount of security deposit due to the tenant shall
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be the entire amount given by the tenant as a security deposit, plus all interest accrued, minus any
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amount of unpaid accrued rent, the amount due, if any, for reasonable cleaning expenses, the
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amount due, if any, for reasonable trash disposal expenses and the amount of physical damages to
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the premises, other than ordinary wear and tear, that the landlord has suffered by reason of the
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tenant's noncompliance with § 34-18-24, all as itemized by the landlord in a written notice delivered
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to the tenant.
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(3) The landlord shall deliver the notice, together with the amount of the security deposit
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due to the tenant, within twenty (20) days after the latter of either termination of the tenancy,
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delivery of possession, or the tenant's providing the landlord with a forwarding address for the
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purpose of receiving the security deposit.
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(c) If the landlord fails to comply with subsection (b), the tenant may recover the amount
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due him or her, together with damages in an amount equal to twice the amount wrongfully withheld,
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and reasonable attorney fees.
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(d) This section does not preclude the landlord or tenant from recovering other damages to
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which he or she may be entitled under this chapter.
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(e) This section does not preclude any landlord who rents a furnished apartment from
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demanding or receiving a furniture security deposit if the replacement value of the furniture being
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furnished by the landlord valued at the time the lease is executed is five thousand dollars ($5,000)
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or greater, in which instance the landlord may charge a separate furniture security deposit of up to
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one month’s periodic rent.
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(f) Upon termination of the tenancy, the amount of furniture security deposit due to the
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tenant shall be the entire amount given by the tenant as a furniture security deposit, minus the
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amount due, if any, for reasonable cleaning expenses and repair and the amount of physical
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damages to the furniture, other than ordinary wear and tear. The landlord shall deliver the notice,
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together with the amount of the furniture security deposit due to the tenant, within twenty (20) days
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after the later of either termination of the tenancy, delivery of possession, or the tenant’s providing
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the landlord with a forwarding address for the purpose of receiving the furniture security deposit.
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(g) In the event the landlord transfers his or her interest in the premises, the holder of the
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landlord’s interest in the premises at the time of the termination of the tenancy is bound by this
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section.
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(h) No rental agreement shall contain any waiver of the provisions of this section.

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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT
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This act would require that residential landlords of six (6) or more dwelling units hold their
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tenants' security deposits in interest-bearing federally insured deposit accounts minus written
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accounting deducting allowable amounts due to the landlord and, within twenty (20) days of the
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end of the tenancy, any remaining interest accrued shall be paid to the tenant.
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This act would take effect upon passage.
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