Rhode Island Security Deposit Laws in 2024

How Much of a Security Deposit Can a Landlord Charge in Rhode Island?

In Rhode Island, landlords are allowed to collect a security deposit equivalent to the first month's rent when a tenant moves into a rental unit. For example, if the monthly rental rate is $1,000, the landlord can require a security deposit of $1,000. 

There is no limit on security deposit amounts for furnished apartments in Rhode Island. Landlords renting out furnished units can charge a security deposit of more than one month's rent if they choose to.

Rhode Island landlords are also permitted to collect additional security deposits for tenants with pets. Pet deposits can be charged on top of the standard security deposit equal to one month's rent. The extra pet deposit is meant to cover any potential damages caused specifically by the animals in the rental unit.

What Should a Tenant Get from the Landlord When Paying the Security Deposit in Rhode Island?

When a tenant pays a security deposit in Rhode Island, the landlord is required to provide the following:

Receipt for Amount Paid

The landlord must provide the tenant with a written receipt stating the amount of security deposit paid by the tenant. This provides documentation of the deposit amount in case of any future disputes.

Terms for Return of Deposit

The rental agreement or lease should contain language specifying the terms under which the security deposit will be returned to the tenant. This includes details like the timeframe for return and any reasons the landlord may deduct from the deposit.

Record of Existing Damages

The landlord must provide the tenant with a detailed checklist or statement of existing damages to the rental unit, if any. This is important for the tenant to review and sign to document any pre-existing conditions, which the landlord cannot later deduct for. The tenant should thoroughly inspect the unit and ensure any damages are noted before signing.

Getting proper documentation from the landlord when initially paying the security deposit can help protect the tenant's rights and avoid deposit deduction disputes when moving out. Under Rhode Island law, the landlord has responsibilities when collecting a security deposit, and the tenant should receive a receipt, terms, and record of damages.

What Happens if a Tenant Decides Not to Take the Apartment After Paying the Deposit in Rhode Island?

If a tenant changes their mind and decides not to rent the apartment after already paying the security deposit, the landlord must return the full deposit amount within 20 days. 

However, there are some exceptions where the landlord may be able to retain part or all of the deposit if the tenant fails to comply with the rental agreement:

• If the tenant cancels within 7 days of the lease start date, the landlord can keep 1 month's rent as liquidated damages.
• If the tenant backs out more than 7 days before the lease start, the landlord must make reasonable efforts to re-rent the unit. If successful, the deposit must be returned within 20 days of the new lease signing. If unsuccessful, the landlord may keep 1 month's rent as damages.
• If the tenant violates the rental agreement by failing to complete the application process or provide required information, the landlord may retain fees to cover losses.

So in summary, if a Rhode Island tenant has a change of heart after paying the security deposit but before signing a lease, the landlord must return the full deposit within 20 days in most cases. The exceptions are if the tenant cancels shortly before move-in or otherwise fails to comply with the rental agreement, allowing the landlord to keep a portion as specified damages.

How Does a Tenant Get Their Security Deposit Back in Rhode Island?

In Rhode Island, tenants must take certain steps to ensure they get their full security deposit back from their landlord. 

First, the tenant must provide the landlord with a forwarding address in writing. This should be done when the tenant gives notice that they are moving out. The landlord needs the forwarding address to know where to send the deposit refund check and itemized deductions list after the tenant moves out.

Second, Rhode Island law requires landlords to return security deposits within 20 days after the end of the tenancy. This includes sending any remaining deposit money after lawful deductions. The landlord must send the deposit refund check to the forwarding address provided by the tenant.

Third, along with any refunded money, the landlord must provide tenants with an itemized list of any deductions from the deposit. This list should clearly explain the reason for each deduction and the dollar amount, such as unpaid rent, damages beyond normal wear and tear, or cleaning charges if specified in the lease. The deductions must be reasonable and necessary. Normal wear and tear cannot be deducted.

Following these key steps will help ensure tenants get back the maximum amount of their security deposit from their Rhode Island landlord when they move out. Providing a forwarding address, allowing the 20 day timeframe, and reviewing the itemized deductions list are all important for tenants to get their full deposit returned.

What If the Landlord Does Not Return the Full Deposit in Rhode Island?

If the landlord does not return the full security deposit amount within 20 days after the end of the tenancy, the tenant has the right to sue the landlord in Rhode Island small claims court. Under state law, if the court determines the landlord wrongfully withheld any portion of the security deposit, the landlord will be liable for double the amount wrongfully withheld. 

For example, if the security deposit was $1000 and the landlord only returned $700 without sufficient justification, the tenant could sue for the $300 wrongfully withheld. If the tenant wins the small claims court case, the judge will order the landlord to pay back double the $300, meaning $600. 

Additionally, the prevailing tenant is entitled to court costs and reasonable attorney's fees. So even if a tenant does not have a lawyer, they can still recover filing fees and other expenses incurred in bringing the small claims case. The judge will order the landlord to pay those costs on top of the double damages.

This double damages provision gives tenants significant leverage in getting their deposits returned in full. Most landlords will comply with the law to avoid potentially paying double as well as court fees if sued. But for landlords who wrongfully withhold deposits, the tenant has a clear recourse in small claims court under Rhode Island law.

Is a Lawyer Needed to Sue a Landlord in Small Claims Court in Rhode Island?

No, a lawyer is not required for a tenant to sue a landlord in small claims court in Rhode Island. Small claims court is designed for people to represent themselves without needing to hire an attorney.

The rules and process in small claims court are simplified to make it easy for individuals to navigate the system on their own. There are no formal rules of evidence and the hearing is conducted in an informal manner by a judge or magistrate.

Tenants have the right to act as their own lawyers and speak for themselves in a small claims court case against a landlord in Rhode Island. The tenant can file the claim, present evidence at the hearing, and make their argument directly to the judge. 

While a lawyer may be helpful, the small claims court system provides guidance and assistance for individuals without legal representation. Both the tenant and the landlord are on equal footing in arguing their side of the case to the judge.

With the more relaxed rules and procedures, tenants can feel comfortable handling their own small claims court case without needing to hire an attorney. The focus is on enabling the tenant to represent themselves in getting a fair hearing and judgment on their security deposit dispute with minimal barriers or legal formalities.

What Happens at the Small Claims Court Hearing in Rhode Island?

The small claims court hearing is an informal proceeding designed for people to resolve disputes without needing attorneys. At the hearing, both the tenant and landlord will have a chance to present their evidence and make their case before the judge.

The tenant should bring documentation showing the amount of their original security deposit, proof they provided a forwarding address, and any photos, emails, or other evidence related to improper deductions. The tenant will explain to the judge why they believe the full deposit or a portion of it was wrongfully withheld. 

The landlord has the burden of proving that any deductions they made were reasonable and necessary. This means the landlord must show evidence like receipts for cleaning or repairs, photos of damages, and a breakdown of charges. If the lease allows for non-refundable fees, the landlord must prove those were spelled out in the original rental agreement.

The judge will consider the evidence presented by both sides and make a determination on whether the landlord rightfully withheld all or part of the security deposit. If the judge agrees the landlord improperly kept the deposit, the court will order the landlord to repay the tenant the wrongfully withheld amount, potentially doubled as a penalty under Rhode Island law. The judge can also award court costs and reasonable attorney's fees to the tenant.

The small claims court judge has wide discretion in deciding security deposit disputes. Their judgment will be based on evaluating whether the landlord met their burden of proving deductions were necessary and lawful versus any evidence the tenant presents to show the deposit should be returned in full.

How Does a Tenant Collect if They Win in Small Claims Court in Rhode Island?

If the judge rules in favor of the tenant in small claims court in Rhode Island, the court will order the landlord to pay the amount of the judgment. This is usually the amount of the security deposit that was wrongfully withheld, plus any additional damages awarded by the judge.

The court order alone does not force the landlord to pay the judgment. If the landlord still refuses, the tenant has a couple options to collect the money:

Request Execution of the Judgment

The tenant can ask the court to issue a writ of execution against the landlord's property. This allows a sheriff or constable to seize assets like bank accounts or personal property to satisfy the judgment. The seized property can then be sold at auction.

Garnishment of Wages or Bank Accounts

The tenant can file a garnishment action that forces the landlord's employer or bank to turn over funds. The employer will be ordered to withhold a portion of the landlord's paycheck to pay the judgment. The bank will be ordered to surrender funds from the landlord's account.

Garnishment is a powerful tool for collecting judgment amounts from recalcitrant landlords. The tenant does not need to know the employer or bank's name - the court can order the landlord to disclose their accounts subject to garnishment.

In most cases, the threat of garnishment or execution is enough to get an uncooperative landlord to pay up. Tenants who prevail in small claims court have the law on their side to collect security deposit judgments through the court if necessary.

Are Landlords Required to Pay Interest on Security Deposits in Rhode Island?

Yes, Rhode Island law requires landlords to pay interest on security deposits. The specific requirements are:

• Interest Rate - Landlords must pay 5% annual interest on security deposits. 
• Accrual Period - The interest accrues from the date the security deposit is paid by the tenant until the date it is returned to the tenant. This means interest accrues for the entire time the landlord holds the security deposit.
• Payment Timeline - The accrued interest must be paid to the tenant within 30 days after the tenancy ends and possession of the dwelling unit is returned to the landlord.

So in summary, Rhode Island landlords are required to pay 5% annual interest on security deposits. This interest starts accruing when the deposit is paid and continues until the deposit is returned. The accrued interest must be paid to the tenant within 30 days after the tenancy ends.

Frequently Asked Questions

What is the maximum security deposit a landlord can charge in Rhode Island?

In Rhode Island, landlords are permitted to collect a security deposit up to the amount of 1 month's rent when renting out an unfurnished unit. For furnished apartments, there is no limit on the maximum security deposit amount a landlord can charge. Landlords can also collect additional deposits for tenants with pets.

When does a landlord have to return a security deposit in Rhode Island?

Rhode Island law requires landlords to return a tenant's full security deposit within 20 days after the end of the tenancy and delivery of possession. The landlord must send the deposit to the tenant's last known address along with an itemized list of any deductions for damages, unpaid rent, or other charges permitted by the lease.

Can a landlord in Rhode Island deduct damages from a security deposit?

Yes, Rhode Island landlords can deduct the cost of damages from the tenant's security deposit, but only if the damages exceed normal wear and tear. Cosmetic damages like minor scuffs on the wall or worn carpet would be considered normal wear and tear that cannot be deducted. But substantial damages like broken appliances, holes in the wall, or stained carpets can be deducted.

What can a landlord deduct from a security deposit in Rhode Island?

Permitted deductions in Rhode Island include unpaid rent owed by the tenant, cleaning costs to return the unit to the same condition as when the tenant moved in, and damages exceeding normal wear and tear. The lease agreement may also specify other lawful deductions like late fees or pet damages. A landlord cannot deduct for normal wear and tear.

Does Rhode Island require interest to be paid on security deposits?

Yes, Rhode Island law requires landlords to pay 5% annual interest on security deposits. This interest accrues from the date the deposit was given until it is returned to the tenant. Landlords must pay or credit this interest to the tenant within 30 days after the end of the tenancy.

How long does a landlord have to return a security deposit in Rhode Island after a tenant moves out?

20 days.

Can a landlord charge a nonrefundable fee instead of a security deposit in Rhode Island?

No, Rhode Island landlords are only allowed to collect a refundable security deposit. Charging nonrefundable fees like "move-in fees" or "redecorating fees" is prohibited under Rhode Island law. The only exception is if the lease allows charging nonrefundable pet fees.

What happens if a landlord does not return a security deposit in Rhode Island?

If the landlord wrongfully retains a security deposit in Rhode Island, the tenant can sue the landlord in small claims court for double the amount of the deposit wrongfully withheld, plus court costs and reasonable attorney fees.

What is the penalty if a landlord illegally withholds a security deposit in Rhode Island?

The penalties for a landlord wrongfully withholding a tenant's security deposit in Rhode Island include:

• Having to pay the tenant double the amount of the deposit wrongfully withheld
• Paying the tenant's court costs and reasonable attorney fees 
• Potentially facing other fines or penalties imposed by the court

How can a tenant get their security deposit back from a landlord in Rhode Island?

If a Rhode Island landlord does not return the full security deposit within 20 days after the tenant moves out, the tenant can file a claim against the landlord in small claims court. The tenant does not need a lawyer. In court, the tenant must prove the deposit amount, and the landlord must justify any deductions. If the tenant wins, the court can order the landlord to repay the deposit.