2024 Year In Review: Trends and Insights for Property Owners

As we reflect on the past year, it's clear that 2024 has brought significant changes to the rental landscape in Rhode Island. In this newsletter, we aim to provide you with a comprehensive overview of the current rental market trends. We will also touch onto key legislative updates that impact property management and tenant rights, particularly concerning lead laws. We are always committed to adapting our strategies to meet these evolving challenges. Our focus remains on optimizing property performance while ensuring compliance with new regulations, ultimately enhancing the value of clients investments as we move into 2025. Thank you for being part of our community!

What Happened To The Rhode Island Market in 2024

In 2024, the Rhode Island rental market has experienced notable developments, characterized by rising rental prices and a competitive landscape. As of December 2024, the median rent stands at $2,200, reflecting a slight decrease of $10 compared to the previous year. Despite this minor dip, the overall trend indicates a year-over-year increase in rental costs, with average rents for one-bedroom apartments around $1,755 and two-bedroom units at approximately $2,197.The market remains tight, with 1,723 available rentals across the state, leading to heightened competition among renters.

Demand continues to outpace supply, particularly in urban centers like Providence and Newport, where median rents are significantly higher—Providence averaging $2,179 and Newport reaching around $4,358.

Legislative changes regarding tenant rights and lead laws are also influencing the market dynamics. Property managers must navigate these regulations while addressing the needs of tenants seeking safe and affordable housing. Overall, while rental prices may stabilize slightly in 2025, the ongoing demand and evolving legislative landscape suggest that landlords and property managers will need to remain adaptable to effectively respond to market conditions.

Stonelink Property Management Year End Statistics:

• Achieve a 4.6/5 star satisfaction rating on all work orders

• Maintain 4.5/5 star review on Google

• Completed 1369 Lead Certificates

It’s been a great year at Stonelink and we are so grateful for our clients and residents support!

Lead Laws Update in Rhode Island

2024 was the year of Lead Laws - Here are the most important lead laws in Rhode Island that every landlords should be aware of:

1. Lead Hazard Mitigation Requirements: Landlords of properties built before 1978 must obtain a Lead Conformance Certificate, indicating compliance with safety standards. This requirement is crucial for protecting tenants from lead exposure and is enforced by the Rhode Island Department of Health.

2. Escrow Account for Non-Compliance: Tenants have the right to pay rent into a district court-managed escrow account if landlords fail to obtain a current lead certificate. This law protects tenants from eviction for non-payment if their landlord is non-compliant with lead regulations.

3. Increased Penalties: The penalties for violating lead laws have significantly increased, with landlords facing double or treble damages plus attorney’s fees for non-compliance. This includes monthly fines of $125 for failing to obtain a lead certificate by the October 1, 2024 deadline.

4. Elimination of Exemptions: Starting January 1, 2024, the exemption for owner-occupied two- and three-unit dwellings will be eliminated, requiring these property owners to obtain lead certificates if their properties were built before 1978.

5. Mandatory Registration: All landlords must register their properties and current lead certificates with the Rhode Island Department of Health on the Rental Registry Database. Failure to register can result in fines of $50 per month.

6. Inspection Rights for Buyers: Purchase and sales agreements must now provide buyers a ten-day period to inspect for lead hazards in properties built before 2011, enhancing transparency and safety during real estate transactions.

7. Disclosure Requirements: Landlords must disclose known and potential lead hazards to tenants before leasing properties built prior to 1978, ensuring that renters are informed about any risks associated with lead exposure.

These laws represent significant changes in how landlords must manage their properties and ensure tenant safety in Rhode Island. Compliance is critical not only for legal reasons but also for maintaining tenant trust and safety.

| Related: How To Navigate The Lead Certification Process in Rhode Island?

Our Strategy To Protect Landlords’ Investment

As the legal landscape started to shift, our team jumped into action to ensure our clients aligned with the new lead laws. We created our own lead remediation team to handle lead repairs and renovations. Our maintenance team is RRP Certified, in compliance with EPA requirements to be lead safe renovator.

More Vertical Integration For Better Results, Better ROI

We understand that real estate investors need reliable solutions that keep properties performing and costs under control. That’s why, in addition to our in-house maintenance team, landscaping crew, plumbers, and cleaning team, we added pest control services in 2024. By bringing pest control under our roof, we ensure faster response times, better quality control, and one less vendor for property owners to manage. This move allows us to reduce unexpected expenses for investors while maintaining the integrity and appeal of their properties. With every service aligned under one team, our vertically integrated approach gives investors the results they need and the ROI they expect—without the headaches of coordinating multiple contractors.

| RBP & STONELINK + To Help Our Residents

We believe that happy residents lead to successful investments. That’s why we’ve introduced Resident Benefit Package (RBP) and Stonelink+—two services designed to make life easier for our residents while adding value for landlords. RBP provides residents with perks like credit reporting, renters insurance, and 24/7 maintenance support, helping them feel secure and cared for in their homes. Meanwhile, Stonelink+ offers additional conveniences like handyman services and enhanced property care. These programs not only improve residents' experience but also contribute to longer tenancies, reduced turnover, and better-performing properties—benefitting everyone involved

Looking Forward To 2025

As we look ahead to 2025, the Rhode Island rental market presents both challenges and opportunities. While rising costs for insurance, property taxes, and maintenance continue to affect landlords, the steady increase in rental income and property values offers a silver lining. The demand for rental properties remains robust, driven by a growing population and limited inventory, particularly in urban areas. At Stonelink Property Management, we are committed to adapting our strategies to navigate these changes effectively. Our focus will remain on ensuring compliance with evolving lead laws and tenant regulations while enhancing the value of your investments. Together, we will continue to thrive in this dynamic market and work towards a successful 2025!

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