The bill amends Section 34-18-19 of the Residential Landlord and Tenant Act to establish new requirements for security deposits held by landlords of six or more dwelling units. It stipulates that these landlords must deposit security deposits into federally insured accounts that earn interest at a rate not less than the prevailing market rate of interest for regular savings accounts, as established in 19-9-2 or another standard adopted by the Department of Business Regulation in concurrence with the Department of Housing. All interest accrued shall be the property of the tenant.

Upon termination of the tenancy, the total amount due to the tenant will include the original security deposit plus any accrued interest, minus any allowable deductions for unpaid rent, reasonable cleaning expenses, reasonable trash disposal expenses, and damages to the premises beyond ordinary wear and tear. The landlord is required to provide a written notice detailing these deductions and the total amount due within twenty days after the termination of the tenancy, delivery of possession, or the tenant's provision of a forwarding address for the purpose of receiving the security deposit.

The act will take effect upon passage.

Statutes affected:
8113: 34-18-19