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

Statutory Limit

The maximum security deposit for residential rentals in Rhode Island is strictly limited to one month's periodic rent under RIGL § 34-18-19(a). This absolute limit applies regardless of the property type — apartments, single-family homes, condos, or duplexes, and regardless of whether the unit is furnished or unfurnished. There is no statutory exception allowing an additional "furniture deposit."

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 law (RIGL § 34-18-19) does not mandate that landlords pay interest on security deposits to tenants, nor does it establish a statutory interest rate. Any claims that landlords with a certain number of units must pay interest are typically based on unenacted legislative proposals rather than current law.

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

Unlike some states, Rhode Island law does not explicitly mandate that security deposits be held in separate escrow or trust accounts. However, maintaining separate deposit accounts remains a strong industry best practice to avoid commingling funds and to ensure the deposit can be returned promptly within the 20-day deadline.

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. Clear Communication — Clearly state the deposit amount and return conditions in the lease agreement.
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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