Rhode Island Rent Increase Laws 101
In the beautiful state of Rhode Island, with its rich history and stunning coastal landscapes, the rental market is a vital component of the economy. Approximately 34% of the state’s population is composed of renters. As you navigate through the unique landscape of Rhode Island rental properties, it becomes increasingly important for both tenants and landlords to understand the laws concerning rent increases.
Rent increase laws in Rhode Island impact not just the financial planning of tenants, but also the operational methodologies of landlords and property management companies. A solid understanding of these laws can prevent potentially expensive miscommunication and disputes. The knowledge becomes even more crucial when the rental industry would grow – as we are seeing – or slow down . The need for affordable housing is an increasingly pressing concern, especially with the projected population growth between now and 2030. It is essential to know what is required of you, and where to turn when additional assistance is required.
This article will dive into some of the important aspects of Rhode Island rent increase laws, including regulations governing the notice period required before a landlord can raise the rent, as well as any other essential requirements for landlords and ways to protect your rights as tenants.
The information presented in this article serves as an overview of the regulations surrounding rent increases in Rhode Island, but is not meant to be used as legal advice. Consult with a qualified attorney for specific issues.
Legal Caps on Rent Hikes
Although there are no state-wide laws limiting the amount or frequency of rent increases, some towns and cities in Rhode Island do have caps on the amount of rental fees that landlords are permitted to charge their tenants. For example, the town of East Greenwich has a rent control ordinance under Town Code Section 286 that limits rent increases to no more than ten percent in any twelve-month period, and municipalities such as Cranston, Warwick, Barrington, Foster, and West Greenwich also have rent control provisions. In the absence of a rent control statute, a landlord may generally demand a rent increase whenever the rental agreement permits. Unfortunately for tenants who are subjected to frequent rent increases, an increase in rent of any amount will usually be permissible unless there are specific requirements in the rental agreement establishing caps on the amount or frequency of increases. Even if there are no specific rent control provisions in place in your municipality, a landlord cannot demand rent in any amount in order to compel tenants to vacate the premises. Landlords may only charge fair market value for tenancy in their property, and otherwise may not use threats of financial loss to induce tenants to move. A tenant is also free to reject any increases on rent that they believe are unjust or unconscionable. In short, the law requires that rent increases must be in good faith and deemed reasonable under the circumstances; however, absent municipal rent control statutes or written lease provisions with caps or limits on rent, landlords may enforce any and all rent increases placed on their tenants.
Advanced Notice for Rent Increase
Landlords in Rhode Island must give their tenants advance written notice if they are planning to raise the amount of rent that a tenant pays. This notification must be a minimum of a three month notice, all the way up to a full six month notice. The RI landlord and tenant act outlines exactly how a landlord can terminate or change a rental agreement by saying, "Except as provided in § 34-18.1-7(b) and (c), a landlord shall not terminate or refuse to renew a rental agreement and/or increase rent: (1) That has a definite term such as a rental agreement for one (1) year; or (2) That is from month to month or longer without at least three (3) months’ prior written notice to the tenant/lessee, or if the rental agreement was last entered into or renewed prior to July 1, 1991, at least six (6) months’ prior written notice to the lessee/tenant . . ." This means that any time a landlord wishes to raise their tenant’s rent without forcing them out, they are required to give them at least three months notice, six months if their rental agreement was entered into or renewed prior to July 1, 1991.
The landlord may choose to handle delivering this notice verbally or in person, but they must make sure to put it in writing. They also cannot simply inform the tenant that their rent will be raised as part of a conversation about anything else, such as a routine walk through or monthly rent collection. This sort of important issue should have its own discussion and a treatise on tenants’ rights and landlords’ responsibilities. Many landlords choose to send a letter, sent certified mail with a return receipt to ensure that they have clear evidence of delivery and of the date that they were notified of the rent increase.
Landlords also cannot simply raise the rent as much as they please; they are required to take rental increases a little at a time. Rhode Island law says that "increases in rent shall not exceed once in any twelve (12) month period and shall not exceed twenty-five dollars ($25.00) per month per rental unit." A landlord can only enforce this policy if they maintained a stable rental rate for at least 12 months beforehand. This prevents a landlord from consistently charging a high rate for a time, then lowering the amount and raising it again, which could be used to confuse the tenant and force them to pay more than they want to over time. If a tenant cannot afford to pay rent, they should keep in mind that even though a landlord can only raise rent by $25 every year, if the same unit is rented out to someone else it may be charged a higher price, and a landlord can charge whatever amount they want when re-renting to a new tenant. That’s why many tenants in Rhode Island choose to create a rental agreement that lasts an entire year.
Tenant Protections in Rhode Island
Renters in Rhode Island are protected from unlawful rent increases under Rhode Island law. Specifically, where the language of a lease is silent on the question of rent increases or rental adjustment, landlords and tenants are required to follow the rules provided in the RI General Laws, Chapter 34-18-18. Therein it provides: "….It is the policy of this chapter to discourage the practice of increasing the rental charge above that agreed to in the lease and to encourage the owner or lessor to provide for rent increases in the rental charge over the period of the lease….A tenant may notify the owner or lessor in writing of his/her objection to any rental charge increase pursuant to the rental agreement. Such notice shall be made only on one occasion during any twelve month period. The increase shall not become effective until the expiration of thirty (30) days from receipt by the owner or lessor of the notice objecting to the increase. Upon receipt of notice by the owner or lessor of objection to the rental charge increase, the owner or lessor shall have thirty days to justify the increase or shall have forthwith to withdraw that portion of the rent increase as may be found unjust." Landlords are permitted to evade the above statute, but only if the rental agreement specifically provides otherwise (no ‘contracting-around’ the statute). It is also important to note that landlords cannot just ‘ignore’ the statute. There are potential civil penalties for non-compliance with the statute. There is no adverse action that a landlord can take against a tenant who sends a 30-day objection to the rental increase (and, in essence, prevents the increase from taking effect) because a tenant who does so is not in default of any lawful duty with regard to the landlord-tenant relationship. Tenants who do not receive a rent increase notification or who question a rent increase notification should know that a violation of this statute is an unfair and deceptive act. Tenants have the right to recover actual damages and reasonable attorney fees. An unlawful rent increase can trigger claims for punitive damages, should the tenant successfully prove malice on the part of the landlord. Furthermore, the tenant can recover actual damages, restitution, and the costs associated with the lawsuit.
Certain Exceptions and Special Cases
Exceptions to the general above-stated Rights are: non-renewable leases, commercial leases, new leases, newly constructed buildings, and rent control units. First, a lease is entered into for a term of one year and contains a specific rent amount. The lease then terminates and is renewed again for another 12 month term, with all terms the same except for the renewal date and rent. The Tenant has the right to a rental increase of only 5%, unless otherwise agreed to by the parties in writing. A tenant entering into a new lease/tenant is given exception for the first year from the 5% rent increase rule. Any negotiated increase in rent is permissible. So long as the rent is not increased more than once every 12 months, the lease is not renewed for another 12 month term, the lease becomes a new lease, and the increase is not more than 5%, no legal recourse is provided. This exception does apply to new leases on newly constructed apartments, notwithstanding a completed building permit application for that apartment prior to the effective date of these amendments. Finally, if a newly constructed apartment has no rent control caps and a year has elapsed since issuance of a certificate of occupancy, then the landlord may increase the rent beyond 5%.
Conflict Resolution and Legal Action
Issues over rent increases can be contentious, often leading to a rush to court or other dispute resolution avenues. Fortunately, there are several options available under Rhode Island law for both tenants and landlords in disputes over rent increases. For disputes that involve the interpretation of the lease, statutory rights to the rental parties, or a landlord’s refusal to provide necessary repairs to the premises, a tenant may choose to file a petition for equitable relief in Rhode Island Superior Court. The tenant may seek recovery of a full or partial refund of rent, a monetary award for damages caused by repairs that the landlord failed to address, or an order enjoining the landlord to take the requested action, such as providing water, heat , and necessary repairs. Filing a petition for equitable relief and equitable defenses to evictions are governed by R.I. Gen. Laws 1956 § 34-18-37 et seq. If a tenant violates a term of the lease, such as being significantly behind on rent, then a landlord may initiate a summary proceeding for eviction in Rhode Island District Court. However, even if the lease is violated by the tenant, other dispute avenues may be available to the tenant. For example, if a tenant chooses to challenge whether an increased rent is proper due to the landlord’s failure to make requested repairs, the tenant may assert this defense in the eviction proceeding. This issue is particularly common when a tenant attempts to remain on the premises while struggling to pay an increased rent. An eviction action may move swiftly in Rhode Island District Court, making this type of issue even more pressing.
Strategies to Discuss and Compromise on Rent Increases
Negotiating a rent increase can often feel like an uphill struggle for any tenant, but by keeping in mind some of the following points and taking an approach that focuses on collaboration over confrontation, tenants can minimize the disruption caused by a rent hike and maybe even avoid it altogether.
Communicate your concerns. The key to negotiating a successful rent increase is to communicate effectively with your landlord. Address the increase as soon as possible after receiving notice of the hike. As soon as you receive the rental increase notice, do your part to reach out to your landlord and address your concerns. The sooner you contact your landlord, the better the chances you can work together to arrive at an agreement that meets both of your needs.
Come prepared. Once you have addressed the need to negotiate, prepare your case. Make a list of reasons why the rent increase does not make sense, and then seek out any supporting information that you can gather. Provide this information to your landlord in a simple and straightforward manner. Provide them with as much information as possible regarding your current asset position, income, job status or any other information that may be relevant to the discussion. Communicating effectively with your landlord may help to smooth over some of the discord commonly associated with rent increase discussions.
Focus on the facts. Keep the facts at the forefront of the discussion during negotiations. Highlight the unfairness of the increase with a focus on the local rental market. If you have been a great tenant over time, point this out to your landlord. If your landlord has ignored past complaints about overdue repairs or other issues, be sure that you are not neglecting to mention this fact in the rent increase discussion. Above all, be sure to focus on the reasons why the increase is unfair, rather than yelling or making threats. If the information is communicated in a calm and reasonable manner, the landlord will be more likely to listen.
Consider the lease. If you believe that the rent increase is unjustified, review the lease you signed before moving into your current rental property. Review your lease with extra care if you have added children or pets to the property since renting. Many leases prohibit tenants from moving children or pets into the home without advanced written permission. Carefully review the lease and focus on ways in which the landlord has violated the lease in determining whether the rent increase is justified. While a tenant may be tempted to withhold rent payments in response to the rent increase, it is not advisable. It is far better to resolve the matter directly with your landlord. Be sure to obtain written confirmation of the outcome once you have reached an agreement.
Keep in mind that negotiation does not take place in a vacuum. Consider your relationship with your landlord as your guides toward reaching an advance rent agreement. Once you have made the initial approach, follow up with the landlord to ensure that all parties are fully aware of the terms of the agreement. Even if a landlord has imposed a rent increase unilaterally, they may be willing to negotiate it based on the facts that you present to them.
Effects of Rent Control Policies
Currently, there are no rent control policies in effect in the state of Rhode Island. However, there are proposed statewide rent control policies gathering local support. These proposed policies primarily seek to prevent declined income-earning individuals from being forced out of their homes in favor of wealthier residents. While this may sound like a positive change for lower-income households, the renters would not be able to relocate to a less-expensive neighborhood. With no alternative opportunities, this process would increase the demand for housing in already in-demand neighborhoods. Although the housing market would digest this change and weed out the wealthier residents who can’t afford the changes, the overall cycle of commutes, job openings or closings, pay rates and increased or decreased clout in the job market would remain the same for at least a generation. As long as these factors multiply, it would still be impossible for lower-income groups to work their way into wealthier neighborhoods without government bailouts such as the proposed rent control policies. So while it may seem that rent control policies of any kind would help low-income families, they can end up causing more harm than good. They would merely postpone the inevitable removal of wealthier residents and concentrate the problem into specific areas that may already be struggling with overcrowding.
Conclusion: Always Stay Informed and Proactive
Understanding your rights and responsibilities as a tenant or a landlord is crucial to avoiding misunderstandings and disputes surrounding a rent increase in Rhode Island. Not only should you know the specific provisions of your lease or rental agreement, but you must also stay apprised of the federal, state, and municipal laws that may apply to your situation . Because of how quickly laws can change, it’s important to consistently check if there are any new amendments that might affect you.
By being proactive in your inquiry into your rights and responsibilities, you can get ahead of the curve of any issues that may arise in your relationship with your landlord or tenant.