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

RI Bill Summary: Interest on Rental Security Deposits

This bill would require landlords in Rhode Island to pay interest on security deposits they collect from residential tenants. When a tenant rents a home or apartment, landlords typically collect a security deposit upfront — often equal to one month's rent — to cover potential damages or unpaid rent. Under this proposal, that money would earn interest while the landlord holds it, and that interest would be owed back to the tenant.

The bill would affect both landlords and renters across Rhode Island. Tenants would benefit by receiving a small amount of additional money back when their deposit is returned at the end of their lease. Landlords, on the other hand, would take on the new responsibility of tracking and paying that interest, which could mean adjusting how they manage or hold security deposit funds.

Currently, the bill has been introduced in the House and referred to the House Judiciary Committee. The committee has recommended it be held for further study, meaning lawmakers want more time to review it before taking action. A hearing has been scheduled for March 2026. No final vote has been taken, so this is not yet law.

It is worth noting that rules like this already exist in many other states, where landlords are required to hold deposits in interest-bearing accounts. The exact interest rate and specific requirements for how landlords would comply are details that would be spelled out in the final version of the bill.