Property Management
Under Rhode Island law, what must a landlord do with the security deposit funds collected from a tenant?
ADeposit them in any bank account and use them for property maintenance
BHold them in a separate escrow account and return them within 20 days after the tenant vacates, minus lawful deductions✓ Correct
CInvest them in the landlord's retirement account
DTransfer them immediately to the property owner
Explanation
Rhode Island law requires security deposits to be held separately (not commingled) and returned to the tenant within 20 days after they vacate, along with an itemized statement of any lawful deductions.
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