H 8108Housing

Property - Residential Landlord and Tenant Act

This bill caps annual rent increases at four percent and establishes penalties for landlords who violate this limit.

Held for study

Population
Affected

Introduced Feb 27, 2026Committee House Judiciary

Plain-English Summary

This legislation, cited as the "Rent Stabilization Act," prohibits landlords in Rhode Island from increasing rent by more than four percent annually. It also bans any rent increases during the first year of a tenancy. If a landlord ends a tenancy without cause or refuses to renew a lease, they cannot raise the rent for the next tenant by more than the four percent cap. Landlords may apply for exemptions to raise rent higher if they prove significant increases in taxes, insurance, or necessary repair costs. Violators are liable for damages equal to three months' rent.

For younger readers

This new rule helps families who rent their homes. It says that the owner of the house, called the landlord, is not allowed to raise the price of the rent by a large amount. They can only add a tiny bit extra (four percent) to the price each year. Also, they cannot raise the price at all during the first year a family lives there. If the landlord breaks this rule, they have to pay money to the family. This helps make sure families can afford to stay in their homes without the price suddenly going way up.

Who & Where It Applies

Impacted groups

LandlordsTenantsProperty Management CompaniesReal Estate InvestorsSecretary of Housing

Impacted communities

All

Constitutional & Fiscal Check

None Likely. While rent control measures are often challenged as "takings" under the 5th Amendment, the Supreme Court has generally upheld them provided they allow landlords a "fair return" on investment. This bill includes specific mechanisms for landlords to request exemptions and pass through costs for taxes, insurance, and necessary repairs, which likely satisfies constitutional Due Process requirements regarding confiscatory rates.

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects low-income tenants and working families from predatory rent hikes and economic displacement, thereby reducing the risk of homelessness and housing instability.
Provides significant financial recourse for tenants by mandating that landlords who violate the act pay three months' rent plus damages, empowering renters to hold property owners accountable.
Prevents landlords from evicting tenants without cause simply to reset the rent at a higher market rate, closing a common loophole used to bypass stability measures.
The four percent cap is a flat rate rather than being tied to the Consumer Price Index (CPI), potentially allowing rent to rise faster than inflation or wages in years of low economic growth.
Allows for "vacancy decontrol" if a tenant leaves on their own volition, which could incentivize unscrupulous landlords to harass tenants into "voluntarily" leaving so they can raise rents for new tenants.
Permits landlords to pass on the full cost of tax and insurance increases to tenants, which could still result in unaffordable housing costs in areas with rapidly appreciating property values.

For Conservatives

Includes specific provisions allowing landlords to pass on the costs of increased municipal taxes and insurance to tenants, ensuring property owners are not forced to operate at a loss due to government levies.
Maintains a free-market approach for new tenancies where the previous tenant left voluntarily, allowing landlords to reset rents to market rates in those specific scenarios.
Strictly limits damages to actual damages plus three months' rent unless malice is proven, potentially protecting landlords from excessive frivolous lawsuits seeking unlimited payouts.
Imposes strict government price controls on private property, violating fundamental property rights and preventing owners from managing their assets according to free-market principles.
Disincentivizes investment in housing maintenance and new construction by capping returns, which will likely lead to a deterioration of housing quality and a reduction in available supply.
Expands government bureaucracy and oversight by granting the Secretary of Housing the power to police private contracts and adjudicate operational costs of private businesses.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 58 additions

SECTION 1. Chapter 34-18 of the General Laws entitled "Residential Landlord and Tenant Act" is hereby amended by adding thereto the following section: 34-18-63. Rent stabilization act.

(a) During any private rental tenancy, the landlord shall not increase the rent:

(1) During the first year after the tenancy begins;

(2) At any time after the first year of the tenancy without giving the tenant written notice in accordance with § 34-18-16.1; and

(3) Except as provided in subsection (e) of this section, during any twelve (12) month period, in an amount greater than four percent (4%).

(b) The written notice required under this section shall specify:

(1) The amount of the rent increase;

(2) The amount of the new rent;

(3) Facts supporting the exemption, if the increase includes amounts authorized under subsection (e) of this section in addition to the four percent (4%) permitted under subsection (a)(3); and

(4) The date on which the increase becomes effective.

(c) A landlord terminating a tenancy with a thirty (30) day notice without cause as authorized by § 34-18-37, shall not reset the rent for the next tenancy in an amount greater than four percent (4%) above the previous rent, except as provided in subsection (e) of this section.

(d) A landlord refusing to extend the tenancy at the request of the tenant, shall not reset the rent for the next tenancy in an amount greater than four percent (4%) above the previous rent, except as provided in subsection (e) of this section.

(e) A landlord is not subject to the provisions of subsection (a)(3), subsection (c), or subsection (d) of this section when:

(1) The tenant leaves on their own volition and the landlord rents to a new tenant;

(2) The landlord is providing reduced rent to the tenant as part of a federal, state or local program or subsidy; or

(3) The landlord is granted an exemption by the secretary of housing. A landlord may be granted an exemption if they are able to demonstrate through sufficient evidence that:

(i) There have been necessary repairs and improvements made to the dwelling unit directly related to maintaining or improving the health and/or safety conditions of the unit and to ensure the unit is in compliance with § 34-18-22; or

(ii) There has been an increase in the municipal taxes and/or insurance of the dwelling in an amount greater than four percent (4%) of the annual rent.

(4) If the landlord is granted an exemption pursuant to subsection (e)(3) of this section, the landlord may increase the rent by:

(i) An amount not to exceed four percent (4%) pursuant to subsection (a)(3); and

(ii) An additional amount equal to the documented and approved costs forming the basis of the exemption.

(5) If the landlord is granted an exemption pursuant to subsection (e)(3)(ii) of this section, any portion of the rent increase attributable to municipal taxes and/or insurance shall not exceed the amount of the increase in the municipal taxes and/or insurance, divided by the number of dwelling units of the property. (f)(1) A landlord that increases rent in violation of this section or a landlord which wrongfully evicts a tenant shall be liable to the tenant in an amount equal to three (3) months’ rent in addition to actual damages sustained by the tenant as a result of the tenancy termination.

(2) In addition to the remedies provided in subsections (f)(1) and (f)(3) of this section, if the tenant prevails after a hearing or trial on the merits, the tenant may be awarded attorneys' fees, if appropriate.

(3) In addition to the remedies provided in subsections (f)(1) and (f)(2) of this section, if the landlord's conduct is shown to be motivated by malice or ill will, or when the landlord's actions are reckless or callous indifference to the requirements of this section, the court may award punitive damage.

(g) A tenant is entitled to recovery under this section if the tenant commences an action asserting the claim within one year after the tenant knew or should have known the landlord terminated the tenancy in violation of this section.

(h) This section does not create a right to increase rent that does not otherwise exist.

(i) This section does not require a landlord to compromise, justify or reduce a rent increase that the landlord otherwise is entitled to impose.

(j) The secretary of housing shall enforce the provisions of this section.

SECTION 2. This act shall take effect upon passage.