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6/4/2024
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Senate approves Mack’s security deposit interest legislation
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STATE HOUSE – The Senate today approved legislation sponsored by Senator Tiara Mack that would require landlords to hold their tenants’ security deposits in interest-bearing federally insured deposit accounts and that, within 20 days of the end of the tenancy, any remaining interest accrued be paid to tenant along with the security deposit.
Senator Mack notes that recent data indicates that almost one-third of Rhode Island residents are cost-burdened by the rise in housing prices and that the average Rhode Island renter’s income has drastically lagged behind the continually rising costs to find suitable housing for themselves and their families.
“A renter’s security deposit should be protected and at a time when the costs of living are crippling many Rhode Islanders, interest that is earned on a renter’s security deposit should rightfully belong to the renter and be returned to them in a timely manner. The housing crisis is one of Rhode Island’s most serious issues and this legislation will offer significant protection and relief for struggling tenants and renters, while also allowing the tenants hard-earned money to work for them, as well,” said Senator Mack (D-Dist. 6, Providence).
The legislation (2024-S 2919aa) would require landlords of six or more dwelling units to deposit security deposits into federally insured deposit accounts earning interest at a rate not less than the prevailing market rate for regular savings accounts. All of the interest that is accrued would be the tenant’s property.
Upon termination of the tenancy, the amount of the security deposit due to the tenant, plus all interest accrued and minus any amount of unpaid accrued rent, or costs for reasonable cleaning expenses, or physical damages to the premises, other than ordinary wear and tear, would need to be delivered to the tenant within 20 days. Along with the security deposit, the landlord must also deliver an itemized list of the costs deducted from the security deposit.
The bill now heads to the House for consideration where Rep. Cherie L. Cruz (D-Dist. 58, Pawtucket) has introduced the legislation (2024-H 7746).
For more information, contact:
Andrew Caruolo, Publicist
State House Room 20
Providence, RI 02903
(401)222-6124
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