Rhode Island security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
It’s not legally required to hold a tenant’s security deposit in Rhode Island in a dedicated escrow account. But it’s still a good practice to keep funds in a separate security deposit bank account in Rhode Island.
{{ state }} security deposit
limits
The maximum security deposit in Rhode Island is one month’s rent, which is slightly below the average security deposit across other states.
{{ state }} security deposit interest
Interest on security deposit in Rhode Island isn’t required as per the state law security deposit rules. It means you don’t need to pay the security deposit interest rate to tenants even if you keep funds in an interest-bearing account.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month's rent
No
Rhode Island law does not require a landlord to keep a tenant’s security deposit in an escrow account.
Repairs, unpaid rent or fees, and reasonable cleaning and trash disposal expenses
20 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in Rhode Island?
Rhode Island's security deposit limit is one month’s rent, which also includes the first and last month's rent.
Is interest required on tenant security deposits in Rhode Island?
No. Rhode Island security deposit interest is not required. It means you can keep these funds in an interest-bearing or non-interest-bearing landlord-tenant security deposit bank account in Rhode Island, and not pay interest to the tenants.
How should I issue a security deposit receipt to tenants in Rhode Island?
By law, you’re not required to give a written receipt to a tenant, but it’s still a good practice to avoid conflicts. Include the deposit amount, the date, the property address, and your signature, and send it via mail to the tenants.
How many days to return a security deposit in Rhode Island?
A landlord must return the tenant's security deposit in Rhode Island within 20 days after the tenant ends, delivers possession of the unit, or gives a forwarding address.
What can a landlord deduct from a security deposit in Rhode Island?
Whether it is a house rental, apartment, or condo, a landlord can deduct for unpaid rent, reasonable cleaning expenses, trash removal, and physical damage beyond normal wear and tear. If you wrongfully withhold funds, a judge may ask you to pay the tenant double damages.
Can a security deposit be used for unpaid rent in Rhode Island?
Yes. You can deduct any unpaid accrued rent from the deposit at the end of the tenancy. Although not required by law to use a security deposit escrow account, Rhode Island landlords often use the deposit to cover final rent balances if the tenant fails to pay.
Can landlords keep a security deposit for breaking a lease in Rhode Island?
Yes, a landlord security deposit in Rhode Island can be used to cover unpaid rent or damages resulting from the early termination of the lease. However, you must still provide the itemized list of deductions within the 20-day window to avoid penalties.
