The bill amends Section 34-18-19 of the General Laws in Chapter 34-18, known as the "Residential Landlord and Tenant Act," to include new provisions regarding security deposits. The bill stipulates that landlords may not demand or receive a security deposit greater than one month's rent. Upon the end of a tenancy, the landlord must return the full security deposit to the tenant, minus any unpaid rent, reasonable cleaning and trash disposal expenses, and costs for damages beyond ordinary wear and tear. This must be itemized in a written notice and delivered to the tenant within 20 days after the tenancy ends, possession is delivered, or the tenant provides a forwarding address.

The bill introduces a new requirement for landlords of six or more dwelling units to deposit tenants' security deposits into interest-bearing federally insured accounts. The interest rate must be at least the prevailing market rate for regular savings accounts or another standard set by the department of business regulation in concurrence with the department of housing. All interest accrued is the property of the tenant and must be included with the security deposit returned at the end of the tenancy. The bill also includes provisions for furniture security deposits, transfer of landlord interest, and prohibits rental agreements from waiving these provisions. The act would take effect immediately upon passage.

Statutes affected:
2824: 34-18-19