Rhode Island

Security Deposit Amount

Rhode Island law limits the maximum security deposit a landlord can require to one month's rent. A landlord cannot demand a deposit exceeding this amount.

Options for Holding

There is no specific requirement in Rhode Island law dictating that landlords must hold security deposits in a separate account or in an interest-bearing account. Therefore, landlords can hold the security deposit in any account of their choosing.

Notification Requirements

Rhode Island does not require landlords to notify tenants about where the security deposit is being held.

Payment of Interest Earned

Landlords in Rhode Island are not required to pay tenants interest on security deposits unless it is explicitly stated in the lease agreement. There is no statutory mandate for interest to be earned or paid on security deposits.

Timeline for Returning

Landlords must return the security deposit within 20 days after the tenant vacates the property, terminates the lease, or provides written notice of the lease ending. If the landlord is withholding any portion of the deposit, they must provide an itemized list of damages or other charges.

Claims Process

Landlords may deduct from the security deposit for unpaid rent, damages beyond normal wear and tear, and any other costs associated with tenant violations of the lease. The landlord must provide an itemized written statement detailing all deductions within the 20-day period. If the landlord fails to provide this list, they forfeit the right to make any deductions.

If the tenant disputes the deductions, they may file an action in small claims court.

Rhode Island allows landlords to make deductions from the security deposit for the following reasons:

• Unpaid rent
• Damages to the property beyond normal wear and tear
• Unpaid utility bills if the tenant was responsible for utilities
• Cleaning costs beyond what is reasonable and necessary to restore the property to its original condition
• Other lease violations that cause financial loss to the landlord

Normal wear and tear, such as faded paint or minor carpet wear, cannot be deducted from the security deposit.

If a landlord fails to return the security deposit or provide an itemized list of deductions within the 20-day window, they may be held liable for up to twice the amount of the deposit. Tenants may also recover reasonable attorney fees and court costs if they need to pursue legal action to recover the deposit.

Furnished units: Landlords who rents a furnished apartment may receive a furniture security deposit if the replacement value of the furniture being furnished is 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.