In the dynamic world of property management, staying ahead of legislative changes is a cornerstone of success. With this in mind, Stonelink Property Management brings you a comprehensive update on the new enacted Rhode Island lead laws. These laws present a pivotal shift, introducing stricter penalties and robust enforcement mechanisms that directly impact landlords and real estate investors alike.
As a landlord or an investor, understanding these changes is crucial to the success of your real estate investment. Non-compliance may result in substantial fines, penalties and potential legal disputes and costs that could reach into the tens of thousands of dollars. Obviously, this would impact your financial health and the safety of your tenants. Importantly, the lead laws align with our shared goal of ensuring the safety of our community, particularly the youngest members who are most vulnerable to lead poisoning as well as ensuring the properties we manage are compliant with all local, state and federal laws.
List of News Laws in Rhode Island Impacting Landlords and Their Effective Date:
In this article, we will break down the new lead laws, as well as others effecting the successful management of your property. We will be offering a detailed analysis of what has changed, what it means for you as a landlord or investor, and how you can best navigate these changes. We will provide practical advice for compliance, ensuring you're well-equipped to meet these new standards. Your success and peace of mind is our top priorities.
So, whether you are a seasoned investor or a first-time landlord, join us as we explore the vital changes in Rhode Island's lead laws and their potential impact on your investment strategy.
Escrow Account Bill - What does the bill say?
See R.I.G.L 34-18-48
Having gone into effect January 1, 2024, this new law provides residents occupying properties built before 1978 that do not have a lead certificate to place their rent in an Escrow account established within the Rhode Island courts. While a hearing must be held and a judge may ultimately award a landlord one hundred (100) percent of the rent placed in escrow, rent due and owing to you may be reduced by costs incurred by the tenant to force landlord compliance. These costs may include but are not limited to: filing the petition to establish the escrow account, repairs to the premises, attorney’s fees, and other related costs or penalties (i.e. landlord retaliation for tenant’s actions ensuring lead compliance).
If a tenant successfully petitions the court to deposit rent(s) in the registry of the court, they do not lose the right to pursue any other right or remedy available to the tenant at law or equity.
When filing an eviction, a lead certificate must be filed as an attachment to the 5 Day Demand Notice.
What does this mean for me as a landlord? Will I still collect rent?
It underscores the need to ensure that your property and all units therein need to have a valid lead conformance certificate and that risk mitigation efforts are taken to effectively deal with any lead hazards.
By not acting immediately to successfully obtain a lead conformance certificate, you are putting yourself in violation of the law, putting residents at risk and undermining your ability to collect rent and ensure tenant compliance with normal landlord/tenant procedures.
What can Stonelink do to help?
Once we became aware of the new Rhode Island Lead Laws months ago, our team started working to overcome this challenge and has made great progress for our clients. At the time of this writing, we have already built relationships with municipalities to lay out a course of action to get all buildings we manage compliant. To date, Stonelink has successfully have certified more than 400 apartments across more than 50 buildings. Stonelink is ahead of the state’s required schedule and expanding our efforts and impact every day.
For your benefit, Stonelink has four (4) teams of lead certified remediation specialists, along with additional certified specialists who provide the scope and outline of work to comply with the new Rhode Island lead laws. This team, which comprises more than 25 total members, has a systematic process to create a scope with pricing, develop a timetable, execute and then get the testing done by a licensed 3rd party. Once completed we can then submit for a Lead Conformance Certificate.
All Rental Properties Must Comply With The New Lead Laws In Rhode Island.
See R.I.G.K 42-128-1.8
This new law removes the Exemption from Lead Laws for Owner Occupied Homes.
R.I.G.K 42-128-1.8 removes Lead Compliance Exemption for Owner Occupied 2-3 Family Homes. ALL rental properties must now comply with lead laws.
Previously an owner occupied two or three family home was exempt from the lead laws. This exclusion HAS been removed. Do not assume your property is an exemption.
Statewide Mandatory Rental Registry
- The legislatures has created a mandatory requirement that all Rhode Island Landlords register each rental UNIT individually in a newly created database.
- June 20, 2024 is the deadline for the database to be created.
- Database shall be created only upon funding being provided.
- Rhode Island shall fine Landlords for failure to register each rented unit.
- Registration requires providing a lead conformance certificate for each registered unit.
- Fines and penalties increase for failure to register AND / OR obtain a lead conformance certificate.
- Prohibits eviction when not in compliance with the new lead laws in Rhode Island.
Owners / Landlords must register the following information within the registry:
- All responsible for leasing to a tenant under RI Landlord Tenant Act
- Active business address, PO Box or Home Address (whichever applicable)
- Active email address
- Active phone number for communication
- Any agent for the property (agent for service, PM…)
All contact information (phone #, email, valid address)
- Information to identify each dwelling unit
The Department of Health is tasked with creating the online database which, as stated, is contingent upon available funding.
What Is The Deadline For The New Mandatory Rental Registry?
The deadline to submit all the information is: September 1, 2024
What Is The Deadline For Lead Certificates?
To be compliant with the new lead laws in Rhode Islands, lead paint certificates must be submitted by October 1, 2024
What are the penalties for non-compliance with the rental registry and new lead laws in RI?
If an owner of an investment property fails to provide the information to register by the September 1, 2024, deadline, there is a $50.00 fine per month.
If an owner fails to obtain a lead certificate by the October 1, 2024, deadline, there is a minimum $125.00 fine per month.
The Attorney General may file for injunctive relief for anyone who fails to register properties, the penalty for which is $50.00 per unit failure. If the AG determines that this is a repeated failure by a landlord/owner to obtain a lead certificate, they can issue a $1000.00 fine per violation.
What Should Landlord Do To Be Compliant With The Rental Registry and New Lead Laws in Rhode Island?
The priority is to get your lead certificates for all your properties, including the individual dwelling units. Once this is completed, you can file your Lead Conformance certificate with the state, register with the Statewide Rental Registry and comply with the law. You will also then be able to file for eviction for non-payment of rent should the need arise.
Stonelink's Proactive Approach to Lead Compliance With Lead Certified Maintenance Technicians
In response to the recent developments in lead certificate enforcement, Stonelink Property Management has taken a proactive approach to ensure our clients' properties comply with Rhode Island's lead laws. Six of our experienced maintenance technicians, each with over a decade of painting expertise, has transitioned into lead compliance specialists.
Our extensive portfolio in the city of Central Falls now complies with local requirements, with approximately 50 buildings achieving lead compliance. We've also extended our services to several other cities, including North Providence, Woonsocket, Warwick, Cranston, and Fall River. Our cost-effective approach has not only saved our clients thousands of dollars compared to hiring separate painting companies or lead specialists but has also ensured safer homes for our residents while aligning with state and federal lead safety guidelines. Our commitment to this journey remains unwavering, as we strive to assist our clients and residents in maintaining lead-safe environments within their homes.
Banning of Application Fees in Rhode Island
See H6087/S0311
- The landlord or property manager cannot collect an application fee any longer for the processing of an application. The Landlord/PM is still allowed to require a background/credit check and charge only the out-of-pocket costs back to the applicant.
- If the applicant provides a credit check that is within ninety (90) days of the date of application, the landlord cannot charge to run a new credit check.
- If the applicant does not provide a credit check the landlord/PM can charge the actual cost
,they incurred and must provide a copy of the report to the applicant.
What does this mean for me as a landlord?
Find qualified applicants that will become good residents who will stay, pay the rent on time and not harm the property has always been and will continue to be one of our most important responsibilities. There is a cost to do this, and we have a rock-solid process that we have honed, refined and improved over the last several years. This will not change; in fact it will only get better.
Moving forward Stonelink will continue to follow our process, which includes not only a credit check, background check, criminal history check but all the additional steps we take to ensure our Screening Process is second to none. We will make the adjustments necessary to ensure our valued client continue to get the best resident placement service we can provide.
Sealing of Evictions in Rhode Island
An eviction for Non-payment, Non-Compliance, Holdover/Termination “may be sealed upon motion by any party…at least 30 days after the expiration of the appeal period.” The court considers whether the eviction was dismissed by motion, resolved by a stipulation and the terms have been satisfied and monies paid, or if there was no prosecution of the case. The new law applies to the following Evictions:
- § 34-18-35. Eviction for nonpayment of rent.
- § 34-18-36. Eviction for noncompliance with rental agreement.
- § 34-18-38. Eviction for unlawfully holding over after termination or expiration of
Important Note: Termination of Tenancy does not apply in this case.
Actions arising under the above may be sealed by the court upon motion by any party or parties filed at least thirty (30) days after the expiration of the appeal period following the conclusion of the underlying civil action.
Court may seal only if:
- Underlying action dismissed because of motion to dismiss
- Action resolved by stipulation and defendant has complied with all terms
- Action dismissed for lack of prosecution after five (5) year period
- All parties must be notified
- Party may only have one (1) matter sealed within a five (5) year period
- No clarification if ability to seal is retroactive
What impact will the sealings of evictions have?
At the time of this writing, no precedent has been set because no petitions have been filed by any party to seal their case. Also, a person must file this motion to seal the records; and we don’t know how diligent or relevant this will be for individuals. While Eviction history is a key component in reviewing any application for tenancy, there are several factors we consider. Stonelink has already reviewed this law, compared it to our process, and is adjusting to ensure we continue to have a best-in-class Screening process for our clients.
New Law Increasing Amount a Tenant Can Do for Self-Help Repairs
This law increases the amount of money a tenant can spend for self-help repairs from $125.00 to $500.00 per year.
What does this mean for landlords?
When looking at RIGL-34-18-30, one of the key stipulations to allow for self-help repairs states:
“The landlord fails to comply within twenty (20) days, or fails to demonstrate ongoing, good faith efforts to comply, after being notified by the tenant in writing; or, in the case of emergency, the landlord either cannot be reached by the tenant, or the landlord fails to comply as promptly as conditions require;...”
At Stonelink we pride ourselves on having our approximately thirty (30)-person Maintenance department. They respond to over 1200 Maintenance requests per month, producing some of the best statistics for response in the industry. For you reference some numbers we track internally:
- Median speed of repairs: 2.2 days
- Stale work orders- those taking longer than 14 days to complete: 12.6 % (12.33% Benchmark)
- Time to assign- 1 hour (>23 hours Is the Benchmark)
- Average resident satisfaction- 4.4
- Scheduling efficiencies: 87.4% (71.4% is the benchmark)
The bottom line is our residents do not need self-repair because we are handling all requests in a timely manner. By providing great customer service, protecting the assets and ensuring our clients have nothing to worry about.
Consumer Guide for Landlords/Tenants to Be Written
See H5204/S0305
A guide for consumers is to be written for Landlords and Tenants which will be updated every two years. It will be created by the Secretary of Housing and provided in both English and Spanish.
What Impact Will This New Consumer Guide For Landlords/Tenants Have?
As the guide has not yet been created, we are actively monitoring the new law for developments and will immediately update our clients on any status changes. Once the guide is created, it will offer direction and guidance for both tenants and landlords.
Need a Property Management To Help You Navigate With The New Rhode Island Lead Laws?
Seeking guidance with the Rhode Island new lead laws? Whether you are an investment property owner or a valued client of Stonelink Property Management, we can help. At Stonelink, we specialize in ensuring that your properties are compliant, provide a safe living environment, while maximizing your returns.
Managing over 1700 apartments and single-family homes across Rhode Island and Southeast Massachusetts, our expertise is your asset. Contact us today for a consultation . Discover how we can enhance your investment property ownership experience with our professional and tailored services.
Stay compliant, grow your portfolio, and increase your returns with Stonelink Property Management.
