Rhode Island House Bill H8113

Rhode Island 2026 Regular Session

• Introduced: 2/27/26
• Refer: 2/27/26

Caption

Provides that landlords would pay interest on security deposits in residential landlord-tenant matters.

Impact

This bill aims to enhance consumer protections for renters in Rhode Island. By requiring that security deposits earn interest, it not only provides a potential financial benefit to tenants but also promotes responsible management of the funds collected by landlords. In essence, tenants will be entitled to a security deposit refund that includes any interest earned at the prevailing market rate, barring deductions for allowable damages or unpaid rent. This shift could lead to increased compliance and transparency in landlord-tenant relationships, paving the way for improved financial fairness.

Summary

House Bill H8113 introduces amendments to the Residential Landlord and Tenant Act, with a focus on security deposits associated with residential leases. The bill mandates that landlords of six or more dwelling units must maintain tenants' security deposits in interest-bearing, federally insured accounts. Any interest accrued in these accounts during the tenancy will belong to the tenants, highlighting a significant shift in the financial responsibilities of landlords towards their tenants regarding security deposits.

Contention

The introduction of H8113 could lead to debates amongst stakeholders in housing advocacy and commercial real estate. Supporters may argue that securing tenant interests is a necessary step towards fair housing practices and could prevent potential abuses from landlords who might previously withhold security deposits unjustly. Conversely, landlords might voice concerns regarding the increased financial burdens this could impose, particularly for smaller property owners who may find it more challenging to maintain compliance with these new operational requirements.