OUT OF STATE LANDLORD REGISTRATION RULES? by Paul Kuhn, Esq.

If you own investment property in a different state than you reside, you may have some extra requirements regarding notifying municipal and state authorities as to your ownership of these properties.  Below is a quick review of the requirements found in Rhode Island and Connecticut.  Be aware that these rules apply regardless of the number of rental units owned and also would apply to vacation rentals, in our opinion.

RHODE ISLAND

Although some Rhode Island municipalities require non-resident landlords to register with the municipality by providing their out of state addresses. The main purpose of this requirement is to hold the landlord responsible for its tenant’s actions, and also, for notification of housing code violations. However, one should also be aware that according to the state landlord/tenant act [R.I.G.L. 34-18-22.3] there is a requirement that all nonresident landlords must register with the Secretary of State’s office AND the city or town clerk’s office where the property is located. The law also requires that the nonresident landlord provide an in-state agent and in-state address for service of process and notice.

Failure to comply can be a costly proposition to the landlord.  If a landlord does not file, the tenant’s obligation to pay rent STOPS until the form is filed. The tenant could raise the landlord’s non filing as a defense in an eviction action for nonpayment of rent. In addition, the statute imposes a $500.00 fine per violation which is paid to the municipality.

The R.I. Secretary of State’s office has a form entitled, “Designation of Agent For Nonresident Landlord.” You can download this form by clicking here.  As you can see the nonresident landlord must list its name, out of state address, the in-state agent’s name and address, and list all the properties in Rhode Island for which the agent is responsible. If the landlord has properties in different municipalities, or more than one agent, it must file separate agent designation forms. If the landlord has only one agent, but more than one property in different municipalities, it has to file the form with the secretary of state, and with each municipality. There is a note on the bottom of the form advising the landlord to file the form with the municipality and to check with the municipality for additional filing requirements, if any. The secretary of state’s office does not charge a filing fee. The landlord should check with the municipality to determine if it charges a filing fee.

CONNECTICUT

Any municipality in Connecticut may require the nonresident owner of occupied or vacant rental real property to maintain on file in the office of the tax assessor or other municipal office designated by the municipality, the current residential address of the nonresident owner of such property, if the owner is an individual, or the current residential address of the agent in charge of the building, if the nonresident owner is a corporation, partnership, trust or other legally recognized entity owning rental real property in the state. If such residential address changes, notice of the new residential address shall be provided by such nonresident owner or agent in charge of the building to the office of the tax assessor or other designated municipal office not more than twenty-one days after the date that the address change occurred. If the nonresident owner or agent fails to file an address under this section, the address to which the municipality mails property tax bills for the rental real property shall be deemed to be the nonresident owner or agent’s current address. Such address may be used for compliance with the provisions of subsection (c) of this section.

Although Rhode Island has a form to be used for this purpose, it is up to each nonresident owner to check with their particular town to determine registration procedure and the availability of a form.  Various cities and town have differing rules, procedures and fines.  So, if one has properties in different cities or towns it is important to check with each of them individually since each will have differing procedures.  As an example, click here to see the form that is currently in use in the town of Waterbury, Ct.

GENERAL

Clearly, it is in the best interests of the real estate agents and property managers to advise their out of state landlord clients to comply with the law and file the form with the state and municipality, in RI and municipality in CT. If a landlord is fined or loses rent as a result of its noncompliance, it will most likely look to its real estate agent or property manager for potential liability.

If you have any questions, please do not hesitate to call our office.

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