The bill amends Section 34-18-19 of the General Laws in Chapter 34-18, known as the "Residential Landlord and Tenant Act," to make several changes regarding security deposits. The bill specifies that landlords may not demand or receive a security deposit greater than one month's rent. It also outlines that upon termination of the tenancy, the security deposit due to the tenant should be the full amount given by the tenant, plus any accrued interest, 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 delivered to the tenant within 20 days after the tenancy ends or the landlord receives a forwarding address from the tenant.

The bill introduces new requirements for landlords of more than six dwelling units to deposit all security deposits into federally insured deposit accounts that earn interest at a rate not less than the prevailing market rate for regular savings accounts. The interest accrued on these deposits is to be the property of the tenant and must be distributed accordingly upon the end of the tenancy. Additionally, the bill modifies the penalties for landlords who fail to comply with these provisions. If a landlord fails to comply with the interest-bearing account requirement, the tenant may recover the amount due plus reasonable attorney's fees. The bill also addresses the transfer of security deposit accounts upon the landlord transferring their interest in the premises and prohibits rental agreements from waiving the provisions of this section. The act would take effect upon passage.

Statutes affected:
2919  as amended: 34-18-19
2919: 34-18-19