Rhode Island Security Deposit Collections & Holdings

Rhode Island Security Deposit Collections & Holdings

Last Updated: December 20, 2022 by Ashley Porter

Quick Facts Answer
Maximum / Limit Either 1 or 2 Months’ Rent
Receipt Requirement None
Inventory Requirement None
Interest Requirement None

To learn about laws on security deposit returns in Rhode Island, click here.

Maximum Security Deposit Allowed in Rhode Island

Rhode Island law limits the maximum security deposit to one month’s rent. If a pet deposit is also charged, the combined total cannot exceed this amount. However, if the unit is furnished over a value of $5,000, a landlord can charge up to two months’ rent.

Furniture Security Deposits. If rental units in Rhode Island are furnished over a value of $5,000, landlords can require an additional deposit. The additional furniture deposit is limited to one month’s rent, so the total maximum deposit, in this case, is two months’ rent.

Can Landlords Charge an Additional Pet Deposit in Rhode Island?

In Rhode Island, landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the total security deposit cannot exceed one month’s rent. Landlords cannot exceed the limit by giving them another name like “pet deposit” or “damage deposit”.

This law does not prevent landlords from adding a monthly pet premium.

How Much Rent Can a Landlord Collect Upfront in Rhode Island?

Landlords in Rhode Island can collect the first month’s rent in advance. However, landlords can only collectone additional month’s rent in advance, whether called a “security deposit” or “last month’s rent”, unless the unit is furnished. “Last month’s rent” is considered a security deposit by the law.

If rental units in Rhode Island are furnished over a value of $5,000, landlords can require an additional deposit, so the total maximum deposit, in this case, is two months’ rent.

Security Deposit Collections in Rhode Island

While other states have additional requirements for landlords that collect a security deposit, such as providing certain documentation of the condition of the unit at move-in, Rhode Island does not.

Do Landlords Have to Provide a Receipt for the Security Deposit in Rhode Island?

Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in Rhode Island.

What Obligations Do Landlords Have to Establish the Condition at Move-in in Rhode Island? 

Rhode Island law does not have specific obligations before a tenancy. While other states like Washington have pre-tenancy obligations like a written inventory of damages, Rhode Island does not.

Landlords are always required to ensure their property is habitable and compliant with state and local housing codes.

Security Deposit Holdings in Rhode Island

Rhode Island law does not require landlords to hold security deposits separate from other funds. Some other states mandate how and where security deposits are held, but Rhode Island does not.

Are Tenants Entitled to Interest on Their Security Deposit in Rhode Island?

Rhode Island law does not require landlords to provide interest on held security deposits.

How Are Security Deposits Accounted for in Rhode Island?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in Rhode Island?

When a property is sold in Rhode Island, the seller must transfer the security deposit to the new owner, who must handle it according to the same rules.

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