2023 -- H 5690

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LC001305

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT

     

     Introduced By: Representatives Cruz, Potter, Batista, Speakman, Tanzi, Stewart, Boylan,
McNamara, Biah, and Voas

     Date Introduced: February 17, 2023

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-18-19 of the General Laws in Chapter 34-18 entitled "Residential

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Landlord and Tenant Act" is hereby amended to read as follows:

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     34-18-19. Security deposits.

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     (a) A landlord may not demand or receive a security deposit, however denominated, in an

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amount or value in excess of one month’s periodic rent.

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     (b) Upon termination of the tenancy, the amount of security deposit due to the tenant shall

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be the entire amount given by the tenant as a security deposit, minus any amount of unpaid accrued

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rent, the amount due, if any, for reasonable cleaning expenses, the amount due, if any, for

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reasonable trash disposal expenses and the amount of physical damages to the premises, other than

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ordinary wear and tear, that the landlord has suffered by reason of the tenant’s noncompliance with

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§ 34-18-24, all as itemized by the landlord in a written notice delivered to the tenant. The landlord

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shall deliver the notice, together with the amount of the security deposit due to the tenant, within

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twenty (20) days after the later of either termination of the tenancy, delivery of possession, or the

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tenant’s providing the landlord with a forwarding address for the purpose of receiving the security

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deposit.

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     (c) If the landlord fails to comply with subsection (b), the tenant may recover the amount

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due him or her, together with damages in an amount equal to twice the amount wrongfully withheld,

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and reasonable attorney fees.

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     (d) This section does not preclude the landlord or tenant from recovering other damages to

 

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which he or she may be entitled under this chapter.

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     (e) This section does not preclude any landlord who rents a furnished apartment from

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demanding or receiving a furniture security deposit if the replacement value of the furniture being

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furnished by the landlord valued at the time the lease is executed is five thousand dollars ($5,000)

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or greater, in which instance the landlord may charge a separate furniture security deposit of up to

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one month’s periodic rent.

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     (f) Upon termination of the tenancy, the amount of furniture security deposit due to the

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tenant shall be the entire amount given by the tenant as a furniture security deposit, minus the

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amount due, if any, for reasonable cleaning expenses and repair and the amount of physical

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damages to the furniture, other than ordinary wear and tear. The landlord shall deliver the notice,

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together with the amount of the furniture security deposit due to the tenant, within twenty (20) days

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after the later of either termination of the tenancy, delivery of possession, or the tenant’s providing

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the landlord with a forwarding address for the purpose of receiving the furniture security deposit.

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     (g) In the event the landlord transfers his or her interest in the premises, the holder of the

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landlord’s interest in the premises at the time of the termination of the tenancy is bound by this

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section.

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     (h) No rental agreement shall contain any waiver of the provisions of this section.

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     (i)(1) Any lessor or their agent who receives a security deposit, however denominated, in

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accordance with this section, shall, beginning with the first day of tenancy, pay interest at the rate

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of five percent (5%) per year or other such lesser amount of interest as has been received from the

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bank where the deposit has been held. Such interest shall be paid over to the tenant each year as

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provided in this section; provided, however, that in the event that the tenancy is terminated before

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the anniversary date of such tenancy, the tenant shall receive all accrued interest within thirty (30)

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days of such termination. If, after thirty (30) days from the end of each year of the tenancy, the

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tenant has not received said interest due or said notice to deduct the interest from the next rental

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payment, the tenant may deduct from their next rent payment the interest due.

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     (2) If the lessor fails to pay any interest to which the tenant is then entitled within thirty

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(30) days after the termination of the tenancy, the tenant, upon proof of the same in an action against

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the lessor within the district court, shall be awarded damages in an amount equal to three (3) times

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the amount of interest to which the tenant is entitled, together with court costs and reasonable

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attorneys’ fees.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- RESIDENTIAL LANDLORD AND TENANT ACT

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     This act would provide that landlords would pay interest on security deposits in residential

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landlord-tenant matters. The rate of interest would generally be five percent (5%).

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     This act would take effect upon passage.

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