There are a few laws that must be followed in RI when you create a rental application for tenants. Failure to comply with these rules could lead to serious legal consequences and allow the tenant to sue.
Application Fee
You can charge as much as you wish as a rental application fee. There are no laws in Rhode Island providing a set limit, although it is recommended to only charge enough to cover the costs of any background checks. Any amount charged to the tenant is also non-refundable.
Security Deposit
Landlords cannot charge more than 1 months’ rent if they are leasing an apartment under Rhode Island law (§ 34-18-19).
Housing Discrimination Law
There are no set laws in Rhode Island that specifically limit housing discrimination. However, all states must adhere to the Fair Housing Act (FHA). The FHA is a federal law that prevents landlords from discriminating against tenants based on their:
- Race
- Nationality
- Religion
- Sex
- Familial status
- Disability
- Criminal history
As a consequence, you are not allowed to ask for any of these details on an RI Rental Application form, nor to include them in the decision-making process. However, in Rhode Island, certain exemptions from fair housing laws exist. These are as follows:
- Housing for older persons: it is allowed to ask for an applicant’s age for age-restricted communities (such as senior housing).
- Familial status: landlords may ask whether children will occupy the premises for two-family owner-occupied buildings.
- Private clubs: clubs that do not operate publicly and do not rent for commercial purposes can give preference to certain applicants.
- Religious organizations: religion can be used as a basis for giving priority to certain applicants for properties that are owned or managed by a religious organization that does not rent with commercial intent.
- Mrs. Murphy exemption: dwellings with four units or fewer, in which one unit is occupied by the owner, and where the landlord is not represented by a real estate agent, are exempt from fair housing requirements.
Notice of Eligibility
Tenants must be told about any specific screening criteria, as well as the reasons that they could be denied or approved by the landlord. To show that this information has been shared, a signature of acknowledgment from the tenant is required.
Consent Credit Check
Under the Federal Credit Reporting Act (FCRA), tenants being screened in Rhode Island must consent to any credit checks you wish to carry out. To make sure you comply with the law, the applicant must provide written acknowledgment of the screening on the application form.