Overview of RI Lease Agreements
An RI Lease Agreement is one of the most important and vital documents to have in place for both a landlord and tenant. A lease agreement in Rhode Island is a legally binding contract governing the relationship between the landlord (lessor) and tenant (lessee). In its most basic form, an RI lease agreement will outline terms such as the property being rented, monthly rent due, and duration of occupancy: i . e. one-year lease, month to month, etc. More complex RI Lease Agreements may include additional rental items, such as the furniture, storage units, vehicles, swimming pool, or boat slip. It is wise to have a Rhode Island lease agreement drafted or at least reviewed by an RI Real Estate Attorney prior to signing, to avoid pitfalls and mistakes which could prove costly at a later date.
Basic Elements of an RI Lease Agreement
The following are some typical lease terms for Rhode Island leases:
-Identification of all parties to the lease.
-Address of the premises to be rented.
-Description of the premises to be rented including, without limitation, all appliances and fixtures.
-Duration of the lease.
-Rent:
-Time and method when it is to be paid.
-If it will not be paid weekly, then due date will be based on that time period and due date will be other than Monday, equal installments of rent.
-When is the tenant required to pay the rent and what are the accepted payment methods (I.e. in person by hand, through the mail, by using an online portal, etc.)
-If payments ever late, the amount of the late fee to be paid and if it will be monthly or a flat fee.
-If security deposits are to be paid, how much, when to be paid, is it to be deposited into a bank account and if so, where and how will it be held, etc.
RI General Laws Section 34-18-6.1 entitled "Late charges" provides that a landlord may only impose a reasonable, ordinary, or good faith late fee on residents and ensures renters who are late in making their rent payments are not subject to unreasonable fees. If a residential lease in Rhode Island provides for late fees, the lease must provide that the late fee will either be included in the rental agreement term itself or within a separate written addendum and be clearly labeled as a "late fee." Any late fee in excess of five percent (5%) of the monthly rent or a pro-rated amount based on the rent period shall be deemed unreasonable; no more than one (1) late charge shall be imposed in any thirty-day period. A landlord or lessor shall refund to the tenant or lessee any portion of a late fee that is not reasonable in accordance with the provisions of this section. Unless a later date is specified in writing in the lease, any late fee must be paid no later than the first day after the grace period.
Rhode Island Law Requirements
Rhode Island law imposes many terms and conditions on the relationship between landlords and tenants of residential properties. Landlords and tenants are subject to the terms of the Rental Housing Act, codified at Title 34, Chapter 18 of the Rhode Island General Laws, (the "Act"). As part of the Act, the regulations of the Rhode Island Department of Business Regulation at 230-RICR-80-00-1 and Rhode Island Common Law must also be considered.
The Act requires that all leases, however short, be in writing, and that certain information be inserted as required (Section 18-9). Substantial notice provisions are set forth in the Act (Section 18-17), which require a landlord to provide notice of rent increases or lease non-renewals (30 days), and a tenant to give notice of any intention to terminate or not renew a lease (30 days). The Act stipulates conditions under which a tenant may withhold rent payments (Section 18-7), as well as certain rights of the tenant upon default of a lease (Section 18-26). The landlord and tenant may contract, as well, for certain terms outside of those provided for in the Act. The Act provides that failure to comply with the terms of a rental agreement may excuse a tenant from performance, so long as the tenant is not at fault (Section 18-8). The Act prohibits a landlord from retaliating against a tenant with regard to the lease relationship, and prescribes a damages formula for use by tenants to sue landlords for violations of those rights (Section 18-12). Any lease term that waives a tenant’s rights under the Act is unenforceable against the tenant (Section 18-27).
In addition to the Act, Rhode Island Common Law carries various Terms & Conditions for tenancy. Those are summarized in an older legal newsletter from 1995: The Rental Housing Act established a new standard for rental agreements which supersedes prior laws governing the relationship of landlord and tenant. However, many of the old laws, which had been inconsistent with the new, were repealed. This leaves the Landlord/Tenant relationship in the hands of the cases. There are some basic principles which govern the relationship: the tenant is responsible for ordinary and reasonable cleaning, and only responsible for damages in excess of ordinary and reasonable use. Willful damage is damnum absque In addition, at least one case states that a landlord is entitled to damages for interior and exterior wear and tear following the termination of a lease, Id. as well as for normal usage. All damage done to the property must be paid by the tenant, unless the tenant proves that the property was worthless to the landlord and unusable for normal profit, Lucy v. Keller, (1922) 44 R.I. 205, 115 A. 368. A tenant may not be deprived by the landlord of the quiet enjoyment of the premises, id., however, a tenant must take the property in its present condition. If any defect exists at the time the lease is made the tenant is bound, and cannot surrender the property. However, a landlord will be liable for latent defects, but the tenant is entitled to demand repairs before he can bring an action of distress; if the landlord is negligent in having the repair made a tenant may assume responsibility to have the repair made, and withhold rent until the defect is cured. The right of distress is only prevented by the tenant’s surrendering the lease to the landlord, id.; if he does so while any rent is due, the landlord is not liable for negligence in keeping the place in repair. Further, while a tenant has no right to lock the door of the premises, a tenant may erect a locking door between himself and another tenant of the same premises if there is sufficient partition so as to secure the privacy of each from the other; and, a lock on a gate across the common hall is also valid. An eviction by the landlord, or a condemnation of the premises, terminates the tenancy.
Common RI Lease Provisions
Common clauses typically included in an RI lease agreement encompass the termination of tenancy, maintenance of premises, and pet policies.
Termination of Tenancy: The RI landlord-tenant statutes provide no special notice requirements for termination of month-to-month tenancies when the term is specified to end on the day prior to, rather than on the anniversary of, the selection of the initial term. See G.L. 1956 §§ 34-18-21 to -26; however, the standard language as a default specifies a termination notice period equal to one half of the duration of the rental period, unless it is greater than two months, in which case two months’ notice is required.
Maintenance of Premises: In Rhode Island, it is the duty of every landlord renting residential premises to provide a rental unit that is fit for human habitation, as well as to maintain any common areas in a safe and clean condition and to comply with the requirements imposed by the applicable provisions of the Rhode Island Housing Code, if one exists in the municipality where the realty is located. However, the duty of the landlord may be assigned to the tenant by clause of the lease agreement; a copy of the rental unit inspection report must in such a case be given to the tenant and signed by both the landlord and tenant, which shall remain a part of the lease agreement. A rental unit is deemed unfit for human habitation if the unit is so defective that it materially deprives the tenant of the use, habitability, or reasonably safe repair of any part of the premises, including but not limited to a defect that poses a risk to the tenant of any physical harm or material damage to the property.
Pet Policy: In Rhode Island, a landlord has the burden of proving a tenant has violated a no-pet clause, if one is contained in a written lease agreement, as opposed to requiring a tenant to prove a landlord has waived an express termination right based on a violation of the no-pet clause. See G.L. 1956 § 34-18-34. If a tenant fails to comply with a no-pet clause in a lease, then a landlord is entitled to possession via summary ejection, and may also be entitled to liquidated damages of three month’s rent as well as any other damages or costs. However, damages are capped at one month’s rent for "reasonable costs" for the landlord to return to normal operation.
Tips for Writing an Effective RI Lease Agreement
While the landlord-tenant relationship may be very specific and sometimes uncertain when it comes to interpretation under Rhode Island law, it is always advisable that landlords draft a comprehensive and enforceable RI lease agreement. As discussed more fully in an earlier blog post, the lease agreement is critical because it overrides the lease statutes in the event that the lease agreement contains specific terms that govern areas where the statute is silent. Given that a lease agreement can be updated over time, a lease agreement should also include a clause that addresses which version of the lease controls in the event of a conflict between the lease and a later version of the lease in the event of an amendment. If you are leasing a residential unit, you may also have to comply with various local ordinances, so be sure to check with the applicable municipality to ensure compliance with both local and state laws. Here are some tips and best practices to keep in mind when drafting a lease agreement:
Define all major terms at the outset of the lease. An RI lease agreement should always disclose what constitutes rent, additional rent, the term of the lease, the commencement date and the expiration date. It should also explain whether the lease will renew automatically or if either party must take action to extend its term, in addition to describing the effect of not renewing the lease. Additionally, a good lease agreement should define the leasehold premises sufficiently to avoid any possible dispute. Finally, it is important to identify the identity of the parties and the nature of the relationship to avoid any confusion about what type of lease is being granted.
Identify payment procedures. A RI lease should describe how , when and where payments should be made. If there are any penalties associated with late payments, those should be itemized in the lease agreement as well. If the landlord may demand payment in the form of a certified check, money order or other form, these limitations should be expressly stated in the lease agreement. Landlord’s should also include the address to which notices may be delivered under the lease.
Build in your flexibility. Every RI lease should afford its landlord certain rights to enter leased premises. The statute of frauds may not limit the rights to enter, but a good lease agreement will specify the times when landlords may enter (with notice). If anything is being done on the premises that may change the nature of the property (such as demolition or major renovations to a kitchen or bathroom), the lease should address whether a landlord may enter without notice.
Incorporate a legal remedies clause. If a landlord wants a transferee to feel the sting of being in breach of a lease, it is important to include a remedies clause. Landlords should specifically reserve the right to recover attorneys’ fees related to any action taken to collect rental payments, unfortunately, many judges do not enforce the attorneys’ fee provision unless it is abundantly clear.
Get it in writing. In a state where the legislature has codified the application of the statute of frauds to all leases with a term of greater than one year, it is surprising how few landlords make the investment in a formal lease agreement. Every landlord should make a habit of having a comprehensive and enforceable RI lease agreement in place. If a lease has not recently been updated, it is probably worth revisiting the terms to ensure compliance with the statute and best practices.
Avoiding Common Lease Agreement Issues
A common problem Landlords and Tenants have in Rhode Island is either creating a lease that is ambiguous, or they sign a lease without reading it. This can result in either side seeking to hold the other in breach. Problems include, but are not limited to: Is the water bill included with the rent? Do you have to shovel the snow? Does the Tenant need permission to have guests or sublet the premises?
It is unfortunate, but due to other obligations, many people do not read their leases. They tend to sign and assume it covers everything that it should cover. Playing the "Gotcha" game does not often end well. More often than not, the better route is to work together to resolve the issue. Often times, there is a simple compromise.
It is important to take the time to get everything out on the table and covered in the lease before you sign. You and the Landlord may have negotiated a number of points. Keep a list of these items so when the lease is signed, you can go through and ensure it was included. Tell the landlord that you are going to cross off any blanks so you both know no one comes back to add something that was left out later. Do not be afraid to ask that an addendum be added for anything you feel is important to protect you both.
Rhode Island courts will generally uphold the terms of a lease if both the Landlord and Tenant enter into a valid lease agreement. Many clauses may be written to the advantage of one party over the other. The better course of action between the parties is to discuss this upfront and try to come to a compromise. Figure out where you both are coming from and come up with a solution.
One common pitfall for Landlords is failing to enforce your rights. If you do not enforce the lease, you may be creating a situation where the Tenant believes you have given up the right to enforce that particular situation. An obvious example is Rent payment. If a Landlord allows partial payment without the ability to collect the rest, this can be viewed by the Tenant as you have given up the right to collect the balance. And in some situations, it may make it very hard for you to try to collect the full amount even after the payment agreement is complete.
Another common mistake is not keeping records of communications or changes to the lease. It may be a good idea to include an addendum section in your lease that all changes must be made in writing and signed by both parties.
Keep your business head on when dealing with a Tenant. Avoid the personal attack and stick to the terms of the lease. You may not believe your Tenant is treating your property with respect, but you should stick to the terms of the lease. The best way to handle those issues would be to review the lease with the Tenant so any provisions that deal with the situation are known and understood. If it continues, speak to an attorney about the best way to deal with the situation.
Most landlords will just go to court if a tenant is late with the rent or not paying at all. This is the remedy set forth by statute and should be the first thought. But, Part II of R.I.G.L. Sec. 34-18-22 actually allows for mediation between the landlord and tenant. Mediation provides them both with control over how the rental relationship will proceed. If you and your tenant can agree it will save both parties time and money. It is a good way to deal with issues right away.
The Rhode Island Residential Landlord and Tenant Act lays out the law that protects the tenant/landlord relationships. A lease is an agreement between the parties that is protected by the law. As a landlord, it is important to know what loopholes are protected and which can lead to exposure.
Amending and Renewing an RI Lease
There are several options available to a tenant and landlord who wish to modify or extend their lease agreement, including: (i) an amendment of the original lease; (ii) a new lease; or (iii) an extension of the current lease. Amendments to the current RI lease generally are used when the parties seek to modify only certain terms and conditions. Such amendments must be drafted and agreed upon by the parties and then signed by the parties. If there are several amendments to the same lease, the parties may want to consider drafting a modification agreement that consolidates all of the amendments and restates the entire lease along with all amendments. If the parties desire to change the duration of the original RI lease, they must execute a new lease or an extension of the current RI lease. Negotiating a new RI lease provides landlords and tenants with an opportunity to revise any other terms of their initial RI lease.
Helpful Resources for Landlords and Tenants
The Rhode Island Secretary of State’s Free Data Program contains a list of FAQs for landlords and tenants as well as information on how to file a complaint in housing court. The Rhode Island ACLU has articles on a tenant’s right to privacy , tenant’s legal rights when living in housing with lead, a landlord’s obligation to keep premises habitable, and retaliatory action by landlords against tenants. These articles contain additional resources and examples of cases.