Rhode Island’s security deposit law sets firm expectations around how landlords collect, hold, and return tenant funds. Understanding these rules helps property owners avoid common problems like disputed deductions, missed deadlines, and disagreements at move-out.
This guide explains everything you need to know, including how much landlords can collect, proper storage requirements, whether interest applies, lawful deductions, return timelines, dispute handling, and other key compliance regulations.
Statutes Regulating Rhode Island Security Deposits
Rhode Island houses its security deposit rules in Title 34, Chapter 18, Section 19 of the Rhode Island General Laws, which outline how landlords collect, hold, and return residential deposits.
Maximum Security Deposit Amounts Under Rhode Island Law
Rhode Island limits residential security deposits to no more than 1 month’s rent. This cap applies to all residential rental agreements, regardless of lease length, property type, or other circumstances. State law does not provide exceptions that allow landlords to collect a higher deposit.
Rhode Island also applies this rule uniformly across the state. Local governments cannot impose different security deposit limits that override state law.
Security Deposit Storage Regulations
Rhode Island requires landlords to hold security deposits in a separate escrow account at a federally insured financial institution. Landlords must also provide tenants with a written receipt stating the deposit amount and identifying the bank where the funds are held. These requirements ensure proper handling of tenant funds throughout the tenancy.
Because the law requires separation, landlords may not keep a tenant’s security deposit in a personal account or combine it with rent payments or other operating funds.
Security Deposit Interest in Rhode Island
Rhode Island does not require landlords to place security deposits in interest-bearing accounts. Landlords may keep deposits in the required escrow account without paying any interest to the tenant.
Making Security Deposit Deductions
Security deposit deductions help landlords maintain the long-term condition of a rental property. Tenants sometimes fail to pay rent or cause damage beyond normal wear and tear, and landlords rely on deposit funds to cover associated costs.
When Landlords Can Deduct
Rhode Island landlords may draw from a tenant’s security deposit for the following reasons:
- Damage that exceeds normal wear and tear and needs repair
- Unpaid rent or other charges owed under the lease agreement
- Cleaning costs required to restore the unit to move-in cleanliness
- Replacement of fixtures or items damaged due to tenant negligence
- Repairs needed to address the tenant’s unauthorized alterations
When Landlords Can’t Deduct
Rhode Island landlords may not draw from a tenant’s security deposit for the following reasons:
- Improvements that enhance the property beyond its earlier condition
- Routine cleaning expected as part of regular turnover
- Repairing aging or worn items that deteriorated under ordinary use
- Costs tied to required landlord maintenance responsibilities
- Damage caused by events outside the tenant’s control
Necessary Documentation to Accompany Deductions
Rhode Island requires landlords to provide tenants with a written, itemized list of any deductions taken from the security deposit. State law does not require receipts or invoices, but the list must clearly describe each charge and show the exact amount withheld.
What to Do When Deductions are Greater Than the Deposit
Tenants sometimes leave damage or unpaid charges that exceed the amount held in the security deposit. When this occurs, Rhode Island landlords may bill the former tenant for the remaining balance and should maintain thorough documentation to support the claim. Landlords must send the required itemized list within 20 days after the tenant vacates the unit.
If the tenant refuses to pay, the landlord may pursue the outstanding balance in Rhode Island small claims court.
Returning Security Deposits to Tenants
Rhode Island law outlines how landlords must return any remaining portion of a tenant’s security deposit after applying all lawful deductions.
Required Timeline for Return
Rhode Island requires landlords to return the remaining deposit and provide an itemized list of deductions within 20 days after the tenancy ends and the tenant delivers possession. The 20-day period begins once the tenant moves out and returns the keys, which gives landlords time to inspect the unit and determine any valid deductions.
Method for Return
Rhode Island permits landlords to return the deposit using any reasonable payment method, such as a check or electronic transfer. Landlords must include a written, itemized list of deductions with the refund, and the list must clearly explain each charge and show any balance owed to the tenant, if applicable.
Penalties for Late Return
If a landlord fails to return the deposit within 20 days or keeps funds without proper justification, Rhode Island law states that they forfeit the right to retain any portion of the deposit. When a landlord acts in bad faith, the tenant may also recover twice the amount wrongfully withheld, along with potential court costs.
Security Deposit Disputes
When tenants disagree with how a landlord handles their security deposit, they have every right to raise a dispute. Most tenants start by requesting clarification in writing, then move to a formal demand if they believe the deductions lack justification. If communication stalls, some tenants may seek mediation or file a lawsuit.
Landlords should prepare by using move-in and move-out checklists, staying up-to-date with accounting and bookkeeping, and including clear terms in all lease agreements. Strong documentation, regular review of Rhode Island requirements, and careful attention to timelines also reduce the likelihood of disputes.
Using Condition Reports to Document Damage
Landlords who manage security deposits should use detailed condition reports to capture the property’s condition at key stages of a tenancy, streamline communication, and make deductions far less negotiable.
To get started, use property management software to create digital reports with photos and videos directly from a smartphone. Documenting the property’s condition before move-in and after move-out makes security deposit deductions far easier to navigate.
Sign up for a free TurboTenant account to keep every security deposit decision backed by strong, organized records.
FAQs: Rhode Island Security Deposit Law
Can a landlord deduct painting from a security deposit in Rhode Island?
A landlord may deduct painting costs only when a tenant leaves damage that goes beyond normal wear and tear. Routine repainting between tenants does not qualify. Landlords may charge only when heavy markings, stains, or wall damage require more than a basic touch-up.
Are nail holes considered normal wear and tear in Rhode Island?
Small nail holes usually fall under normal wear and tear in Rhode Island, so landlords cannot deduct for light picture hanging. Larger holes, wall anchors, or excessive fasteners may be considered damage, allowing landlords to deduct repair costs when the walls require noticeable maintenance.
Who has to pay for carpet cleaning in Rhode Island, the landlord or the tenant?
A landlord may deduct carpet-cleaning costs only when a tenant leaves stains, odors, or damage beyond normal wear and tear. General turnover cleaning does not qualify for a deduction. Landlords may charge only when a tenant creates a condition that requires deeper or specialized cleaning.
What happens if a landlord doesn’t return a security deposit within 20 days in Rhode Island?
If a landlord misses the 20-day deadline, the tenant may seek to recover the full amount wrongfully withheld. When a landlord keeps funds without proper justification and acts in bad faith, the tenant may also receive twice the amount owed, along with possible court costs.
