Residential Landlord And Tenant Act
If enacted, this bill would significantly enhance tenant protections regarding security deposits. It ensures that tenants are not only limited in the amount they can be charged for security deposits but also entitled to interest accumulation on those deposits, thereby promoting fairness in landlord-tenant financial dealings. Additionally, the legislation imposes financial penalties on landlords who fail to return security deposits in compliance with the outlined procedures, which includes the payment of damages up to three times the amount wrongfully withheld.
House Bill 5690 aims to amend the Residential Landlord and Tenant Act in Rhode Island, specifically addressing provisions concerning security deposits. The bill stipulates that landlords may not demand security deposits exceeding one month’s periodic rent. Furthermore, it introduces a mandatory requirement for landlords to pay an interest rate of five percent per year on security deposits held from the outset of tenancy. This interest would be payable annually to tenants and any unpaid interest upon termination of the tenancy must be settled within a specified timeframe.
The bill could spark debate among stakeholders in the real estate sector. Landlords may view the requirement to pay interest on security deposits as an added financial burden, potentially leading to increased rental costs for tenants as landlords may opt to raise rent to cover these expenses. Conversely, tenant advocacy groups are likely to support the bill as it provides greater financial transparency and accountability from landlords, reducing the chances of wrongful withholding of tenant funds. The discussion surrounding the bill may highlight the balance between protecting tenant rights and ensuring landlord viability in the housing market.