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H 7130Real Estate

Property - Residential Landlord and Tenant Act

This bill modifies security deposit rules, allowing deductions for cleaning, separate furniture deposits, and installment payments for deposit increases.

Held for study
Population
Affected
35
Introduced Jan 15, 2026Committee House Judiciary

Plain-English Summary

This legislation updates the Residential Landlord and Tenant Act regarding security deposits. It introduces a provision allowing tenants to pay any increase in their security deposit over a twelve-month period if their rent is raised. The bill also permits landlords to deduct reasonable cleaning and trash disposal expenses from a security deposit upon the end of a tenancy. Furthermore, it allows landlords of furnished apartments to charge a separate furniture security deposit of up to one month's rent, provided the furniture's value is at least $5,000, and establishes specific rules for the return of this deposit.

For younger readers

When you rent a home, you usually pay extra money called a "security deposit" to cover any damage. This new rule changes how that works. First, if a landlord raises the rent and asks for a bigger deposit, the renter can take a whole year to pay the extra money instead of paying it all at once. Second, landlords can now keep some of the deposit money to pay for cleaning or throwing away trash when a renter moves out. Finally, if the apartment has expensive furniture, the landlord can ask for a second deposit just for the furniture.

Who & Where It Applies

Impacted groups
LandlordsTenantsProperty ManagersRenters of Furnished ApartmentsReal Estate Agents
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Provides financial relief to tenants facing rent hikes by allowing them to pay any associated increase in their security deposit in installments over 12 months, preventing sudden financial shocks.
  • Sets a high value threshold ($5,000) for furniture deposits, which protects low-income tenants in basic furnished units from being charged arbitrary or excessive additional fees.
  • Maintains strict timelines and penalty structures (double damages) for the return of the new furniture security deposit, ensuring landlords remain accountable for holding tenant funds.
  • Expands the reasons a landlord can withhold a security deposit to include "cleaning" and "trash disposal," which are often subjective terms that could be abused to unfairly retain tenant money.
  • Allows for a second security deposit (furniture) equal to a full month's rent, essentially doubling the upfront cost for some rentals and making housing less accessible for those with limited savings.
  • The inclusion of "reasonable" expenses without strict fee schedules creates a loophole for landlords to nickel-and-dime tenants for standard turnover costs that should be business expenses.
For Conservatives
  • Protects property owners' investments by explicitly allowing deductions for cleaning and trash disposal, ensuring landlords are not left paying for a tenant's mess.
  • Recognizes the financial risk of renting furnished units by permitting a specific security deposit to cover potential damage to high-value assets.
  • Clarifies the legal grounds for deposit withholdings, potentially reducing frivolous disputes by codifying that cleaning costs are a valid deduction.
  • Interferes with private contracts by mandating that landlords must accept a 12-month payment plan for deposit increases, forcing them to assume financial risk and delay full security.
  • Imposes an arbitrary $5,000 value floor on furniture deposits, preventing landlords with furniture worth less than that amount from securing their property with a specific deposit.
  • Increases the regulatory burden on property owners by creating new categories of deposits that must be separately tracked, itemized, and accounted for under threat of penalty.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 5 additions

SECTION 1. Section 34-18-19 of the General Laws in Chapter 34-18 entitled "Residential Landlord and Tenant Act" is hereby amended to read as follows: 34-18-19. Security deposits. (a)(1) A landlord may not demand or receive a security deposit, however denominated, in an amount or value in excess of one month’s periodic rent.

(2) If a landlord increases an existing tenant's rent and subsequently increases the existing tenant's security deposit, the tenant may pay a prorata amount of the difference between the previous security deposit held and the new security deposit over a twelve (12) month period.

(b) Upon termination of the tenancy, the amount of security deposit due to the tenant shall be the entire amount given by the tenant as a security deposit, minus any amount of unpaid accrued rent, the amount due, if any, for reasonable cleaning expenses, the amount due, if any, for reasonable trash disposal expenses and the amount of physical damages to the premises, other than ordinary wear and tear, that the landlord has suffered by reason of the tenant’s noncompliance with § 34-18-24, all as itemized by the landlord in a written notice delivered to the tenant. The landlord shall deliver the notice, together with the amount of the security deposit due to the tenant, within twenty (20) days after the later of either termination of the tenancy, delivery of possession, or the tenant’s providing the landlord with a forwarding address for the purpose of receiving the security deposit.

(c) If the landlord fails to comply with subsection (b), the tenant may recover the amount due him or her, together with damages in an amount equal to twice the amount wrongfully withheld, and reasonable attorney fees.

(d) This section does not preclude the landlord or tenant from recovering other damages to which he or she may be entitled under this chapter.

(e) This section does not preclude any landlord who rents a furnished apartment from demanding or receiving a furniture security deposit if the replacement value of the furniture being furnished by the landlord valued at the time the lease is executed is five thousand dollars ($5,000) or greater, in which instance the landlord may charge a separate furniture security deposit of up to one month’s periodic rent.

(f) Upon termination of the tenancy, the amount of furniture security deposit due to the tenant shall be the entire amount given by the tenant as a furniture security deposit, minus the amount due, if any, for reasonable cleaning expenses and repair and the amount of physical damages to the furniture, other than ordinary wear and tear. The landlord shall deliver the notice, together with the amount of the furniture security deposit due to the tenant, within twenty (20) days after the later of either termination of the tenancy, delivery of possession, or the tenant’s providing the landlord with a forwarding address for the purpose of receiving the furniture security deposit.

(g) In the event the landlord transfers his or her interest in the premises, the holder of the landlord’s interest in the premises at the time of the termination of the tenancy is bound by this section.

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

SECTION 2. This act shall take effect upon passage.