S 2271Real Estate

Property - Residential Landlord and Tenant Act

This bill limits annual rent increases to four percent and establishes penalties for landlords who violate this cap.

Held for study

Population
Affected

Introduced Jan 23, 2026Committee Senate Housing & Municipal Government

Plain-English Summary

This legislation enacts the "Rent Stabilization Act," which prohibits landlords from increasing rent by more than four percent (4%) within a twelve-month period. It establishes requirements for written notice regarding rent increases. The bill also prevents landlords from resetting rent significantly higher for new tenants if the previous tenancy was terminated without cause or by refusing renewal. Exceptions are provided for voluntary vacancies, subsidized housing, or if the landlord proves significant cost increases due to taxes or necessary repairs. Violations can result in penalties equal to three months’ rent plus damages and legal fees.

For younger readers

This new rule creates a limit on how much the price of renting a home can go up. It says that the owner of the house, called the landlord, cannot raise the rent more than a small amount (four percent) each year. If the landlord makes a family move out for no reason, they cannot charge the next family a huge amount more. There are some exceptions, like if the landlord fixes up the house or if taxes go up. If a landlord breaks these rules, they have to pay money to the renter.

Who & Where It Applies

Impacted groups

LandlordsTenantsProperty ManagersReal Estate InvestorsSecretary of Housing

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects vulnerable tenants from price gouging and economic displacement by capping annual rent increases at four percent, ensuring housing remains more affordable for working families.
Prevents landlords from using "no-cause" lease terminations as a loophole to raise rents, as it restricts rent resets for the subsequent tenant if the previous tenant was forced out.
Empowers tenants with strong legal remedies, including the ability to recover three months' rent, attorneys' fees, and punitive damages if a landlord acts with malice or violates the cap.
Allows for "vacancy decontrol" when a tenant leaves voluntarily, which may incentivize unscrupulous landlords to harass tenants into leaving so they can raise rents to market rates for the next occupant.
Permits landlords to pass on the costs of "necessary repairs" and tax increases to tenants, which could be manipulated to justify rent hikes above the four percent cap.
The four percent cap may still be higher than the rate of inflation or wage growth in certain years, potentially continuing to strain the budgets of the lowest-income residents.

For Conservatives

Protects property owners' return on investment by allowing rent increases exceeding the cap if municipal taxes or insurance costs rise significantly.
Maintains a free market approach when tenants leave voluntarily, allowing landlords to reset rents to whatever the market will bear for a new tenant in those specific cases.
Exempts landlords participating in government subsidy programs, ensuring that state regulations do not conflict with or complicate federal housing contracts.
Infringes upon private property rights and the principles of a free market by dictating the maximum income a business owner can generate from their asset.
Imposes heavy punitive damages and legal fees on property owners, potentially weaponizing the legal system against small landlords for administrative errors or disputes.
Expands the size and power of the administrative state by granting the Secretary of Housing broad enforcement powers over private rental contracts.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 49 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 subsections (b)(3) and (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 is more than the amount allowed in subsection (a)(3) of this section; 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.

(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.

(e) A landlord is not subject to the provisions 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 has 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)(ii) of this section, any increase of rent by the landlord 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.