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
Landlords in Rhode Island generally cannot charge a rental application fee. Under § 34-18-59, you may only charge a tenant for the actual cost of a credit check or criminal background check. Furthermore, if the applicant provides a report dated within the last 90 days, you cannot charge them any fee at all.
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
Rhode Island has robust protections under the Rhode Island Fair Housing Practices Act. In addition to the federal Fair Housing Act (FHA), state law prevents landlords from discriminating against tenants based on:
- Race or color
- Nationality or ancestral origin
- Religion
- Sex, sexual orientation, or gender identity/expression
- Familial status
- Disability
- Marital status
- Victim status (domestic abuse)
- Lawful source of income (including government assistance)
- Military status
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 certain 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.