Property Management

A Rhode Island property manager collects a 'last month's rent' deposit in addition to a security deposit. Under Rhode Island law, prepaid last month's rent:

ACounts as part of the security deposit limit
BIs treated as additional rent that must be accounted for separately from the security deposit✓ Correct
CIs prohibited in Rhode Island
DMay be used by the landlord for any purpose

Explanation

In Rhode Island, last month's rent prepayment is treated as advance rent (not a security deposit) and must be accounted for separately. The security deposit limit (one month's rent) is separate from prepaid rent.

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