Rhode Island Security Deposit Laws: Limits, Returns, and Deductions

Rhode Island security deposit laws are governed by §34-18-19 of the Residential Landlord and Tenant Act. This guide covers deposit limits, allowable deductions, return deadlines, and the consequences of non-compliance.

Security Deposit Limits

Standard Residential Properties

The maximum security deposit for unfurnished residential rentals is one month's periodic rent. This limit applies regardless of the property type — apartments, single-family homes, condos, or duplexes.

Furnished Apartments

For furnished apartments where the replacement value of the furniture is $5,000 or more, landlords may collect an additional furniture security deposit of up to one month's periodic rent. This means the total deposit for a qualifying furnished unit could be up to two months' rent.

Pet Deposits Landlords may collect additional pet deposits to cover potential damages caused by pets. There is no statutory cap on pet deposits. However, landlords cannot charge pet deposits for service animals — doing so would violate fair housing laws.

Interest on Security Deposits Rhode Island requires landlords of six or more dwelling units to hold security deposits in interest-bearing accounts. The interest belongs to the tenant. Landlords must pay or credit 5% annual interest on the deposit, accruing from the date the deposit is given. The interest must be paid or credited to the tenant within 30 days after the tenancy ends.

What Can Be Deducted

Landlords may deduct from the security deposit only for:

1. Unpaid rent — Any rent owed through the end of the tenancy
2. Physical damages — Damage beyond ordinary wear and tear
3. Reasonable cleaning costs — Costs to return the unit to move-in condition
4. Trash removal expenses — If the tenant left behind refuse

What is NOT Deductible

• Normal wear and tear — Faded paint, minor scuffs, worn carpet
• Pre-existing conditions — Damage that existed before the tenancy
• Routine maintenance — Painting between tenants, replacing worn appliances
• Costs beyond actual damages — Inflated or fabricated charges

Return Deadline: 20 Days

Landlords must return the security deposit — or provide an itemized statement of deductions — within 20 days after the later of:

1. Termination of the tenancy
2. Delivery of possession by the tenant
3. Receipt of the tenant's forwarding address

Itemized Statement Requirements

If any portion of the deposit is withheld, the landlord must provide:

• A written, itemized list of damages and the cost of each
• The amount being withheld for each item
• The remaining balance being returned to the tenant

Penalties for Non-Compliance

If a landlord fails to comply with Rhode Island's security deposit laws:

Separate Accounts Rhode Island does not require all landlords to hold deposits in separate bank accounts. However, landlords with six or more units must hold deposits in interest-bearing accounts as described above. Even where not legally required, maintaining separate deposit accounts is a best practice to avoid commingling funds.

Best Practices for Landlords

1. Document move-in condition — Take dated photos and videos of every room before the tenant moves in
2. Use a move-in/move-out checklist — Have the tenant sign and date it
3. Maintain separate accounts — Keep deposits separate from operating funds
4. Track interest obligations — If you own 6+ units, calculate and credit interest annually
5. Return deposits promptly — Don't wait until day 20; earlier returns demonstrate good faith
6. Keep detailed records — Maintain receipts for all deductions
7. Provide itemized statements — Even when no deductions are made, send a written confirmation

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