Security Deposit Account for Landlords in {{ state }}​

Limit: In Rhode Island, landlords may collect a tenant security deposit of up to one month’s rent. Charging more than this amount is prohibited under state law, regardless of the tenant’s credit history, rental record, or whether pets are allowed. The deposit amount must be clearly stated in the lease agreement, and landlords are encouraged to use a dedicated security deposit bank account in Rhode Island to ensure compliance and proper handling of tenant funds.

Return Deadline: The landlord must return the tenant security deposit, along with an itemized list of deductions, within 20 days after the tenant vacates the property and returns the keys. Failure to return the tenant deposit or provide a written accounting within this timeframe may make the landlord liable for double the amount wrongfully withheld, plus court costs and reasonable attorney’s fees.

Acceptable Deductions: The tenant security deposit may be applied to unpaid rent, late fees, damages beyond normal wear and tear, cleaning costs, or expenses needed to restore the rental property to its original condition. The landlord must provide a detailed itemized list of deductions with supporting documentation, such as receipts or written repair estimates.

Where to Deposit: Rhode Island law requires landlords to hold all tenant security deposits in a separate, interest-bearing escrow account at a federally insured financial institution located in the state. The account must be maintained exclusively for tenant funds and cannot be commingled with personal or business accounts. Landlords must pay annual interest on the deposit to tenants who occupy the unit for one year or longer, at a rate equal to that earned by the account. Using a security deposit escrow account in Rhode Island or a landlord tenant security deposit bank account in Rhode Island ensures full compliance with state regulations and promotes transparency and accountability in managing tenant deposits.