Security deposits in Rhode Island are regulated by Rhode Island General Laws § 34-18-1 to § 34-18-29. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Rhode Island state law generally limits security deposits to one month’s rent. An additional furniture deposit of up to one month’s rent, however, may also be required for a furnished rental unit where the replacement value of the furniture is $5,000 or more.

Holding & Interest Requirements

Holding Requirements: Rhode Island state law does not currently require security deposits to be held in a bank account within the state, in a separate account, or in an interest-bearing account.

Interest on Deposits: Rhode Island state law does not currently require landlords to pay interest to tenants on security deposits.

Information Provided to Tenant: Rhode Island state law does not currently require landlords/property managers to disclose where the security deposit is held.

Deposit Refunds

Timeline: Within 20 days after the tenant vacates the property or provides a forwarding address, whichever is later, the landlord/property manager must either (1) return the full security deposit to the tenant, or (2) provide the tenant with a written itemized notice of any deductions to the security deposit, together with the portion of the security deposit being returned.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent
• Amount due for reasonable cleaning expenses
• Amount due for reasonable trash disposal expenses
• Damages beyond normal wear and tear due to the tenant’s noncompliance with the lease or Rhode Island General Laws § 34-18-24

Documentation of Deductions: Rhode Island state law does not require any specific documentation or level of detail to be included in the itemized notice of deductions to the security deposit.

‍Penalties for Violations: Failure to return the security deposit or provide the written notice of deductions as required by Rhode Island state law may result in the landlord/property manager being liable for the full amount of the security deposit, damages up to 2x the amount wrongfully withheld, and attorney’s fees and court costs if the tenant wins in a lawsuit.

Sale of the Rental Property

The owner of the premises at the time of termination of the tenancy is bound by the obligations with respect to returning the security deposit.