Security Deposit Rules in Rhode Island
TL;DR
In Rhode Island, landlords may collect no more than one month’s rent as a security deposit. It must be returned within 20 days after the tenant moves out, along with a detailed, written statement of deductions, if any. Failure to comply can result in financial penalties and legal challenges. Proper handling protects both landlords and tenants.
Who This Applies To
These rules affect:
Residential rental properties in Rhode Island
Landlords who collect security deposits
Tenants who paid a deposit at move-in
Month-to-month and fixed-term lease agreements
⚠️ Security deposit rules are strictly enforced and frequently reviewed in Rhode Island courts.
How Much Can a Landlord Collect?
Rhode Island law sets clear limits:
Maximum deposit: One month’s rent
Any amount above this limit is illegal
Collection must occur before or at move-in, never after
Exceeding the legal limit can result in penalties and may impact your ability to enforce lease terms.
How Security Deposits Must Be Handled
Landlords must:
Keep the deposit separate from personal funds
Maintain accurate financial records
Use the deposit only for lawful purposes
💡 Important: A security deposit is not extra rent. It cannot be freely used during the tenancy.
When Can a Landlord Keep Part of the Deposit?
Deductions are permitted only for:
Unpaid rent
Damage beyond normal wear and tear
Costs from lease violations
❗ Normal wear and tear—like minor scuffs, small nail holes, or aging carpets—cannot be deducted.
Example:
If a tenant leaves unpaid rent or damages a wall, the landlord may deduct the repair cost but must provide a clear, written explanation.
The 20-Day Return Deadline
After the tenant moves out, landlords must:
Return the remaining deposit within 20 days
Provide a written, itemized list of deductions
Send both to the tenant’s last known address
Missing this deadline can result in penalties, even if the deductions were legitimate.
What Happens If the Deposit Is Not Returned Properly?
Failing to comply can lead to:
Tenants seeking financial recovery
Courts awarding damages to the tenant
A weakened legal standing in future disputes
Security deposit violations are among the most common landlord mistakes seen in Rhode Island courts.
Common Mistakes Landlords Make
Some frequent errors include:
Charging more than one month’s rent
Missing the 20-day return deadline
Failing to provide an itemized statement
Deducting for normal wear and tear
Using vague or unsupported deductions
Even honest mistakes can result in costly disputes.
Best Practices for Landlords
To avoid conflicts:
Document the unit’s condition at move-in and move-out with photos
Keep receipts for repairs and maintenance
Track deadlines carefully to comply with the 20-day rule
Communicate clearly with tenants regarding any deductions
Proper documentation protects both landlords and tenants and can prevent legal disputes.
What to Do Next
If you’re handling a security deposit:
Confirm the amount collected is within the legal limit
Review the move-out condition of the property
Prepare an itemized statement of deductions
Send both the deposit and statement within 20 days
📄 Proper handling ensures compliance, avoids disputes, and protects your rental income.
Frequently Asked Questions
Q: Can a landlord use the security deposit for last month’s rent?
A: No, not unless both parties explicitly agree in writing. Deposits are for damages or unpaid rent, not prepayment.
Q: Does the deposit earn interest?
A: Interest depends on the type of property and account used. Not all deposits earn interest. If you’re unsure, check state or local regulations.
Q: What if the tenant does not provide a forwarding address?
A: Landlords should send the deposit and itemized statement to the tenant’s last known address to fulfill legal obligations.
Q: Can a landlord keep the deposit if the tenant breaks the lease?
A: Only for actual damages or unpaid rent. The deposit cannot be automatically retained.
Q: How can landlords avoid disputes over security deposits?
A: Maintain accurate records, photos, and receipts, communicate clearly, and follow legal timelines.
By Alex Parmenidez, REALTOR® | Coldwell Banker Realty
Alex Parmenidez | Realtor® Licensed CT-MA-RI | Coldwell Banker Realty
196 Waterman St, Providence, RI 02906
C: (401) 426-4825 | O: (401) 351-2017
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