Providence Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Providence, Rhode Island?

Providence, Rhode Island, has specific regulations in place for short-term rentals, including those listed on platforms like Airbnb and VRBO. These regulations aim to ensure safety, compliance, and fairness for both hosts and guests. Key provisions include:

• Owner-Occupied Dwellings: Owner-occupied dwellings can be used as short-term rentals throughout all zones in Providence1.
• Non-Owner-Occupied Dwellings: Non-owner-occupied dwellings cannot have short-term rental properties in the R1, R1A, R2, or R3 zones1.
• Temporary Use Permit: If an entire dwelling unit is being used as a short-term rental, it is required to have a temporary use permit, issued by the Department of Inspection and Standards. These permits must be renewed annually1.
• Basic Safety Measures: All short-term rentals must have basic safety measures in place, such as visible printed materials with diagrams of all exits and clearly marked fire extinguishers1.

These regulations are outlined in the Zoning Ordinance, section 1202.K.6 and 1202.L.61. Interested parties can look up the zoning information of any property in Providence using the "Where's My Parcel" tool4.In addition to the city's regulations, Rhode Island General Laws § 42-63.1-14 requires all short-term rentals to be registered5.

This registration is necessary for properties offered for rent for 30 nights or less and listed on platforms like Airbnb, Vrbo, or real estate brokerage websites5.To ensure compliance with these regulations, hosts should familiarize themselves with the relevant laws and ordinances, obtain the necessary permits, and implement the required safety measures.

Starting a Short Term Rental Business in Providence

To start a short-term rental (STR) business in Providence, Rhode Island, follow these steps:

• Research zoning regulations: Ensure that your property is zoned to allow for rentals under 30 days. R1, R1A, R2, and R3 zones allow owner-occupied short-term rentals, while other residential zones allow short-term rentals without owner occupancy2.
• Obtain temporary use permit: If your entire dwelling unit is being used as a short-term rental, you must obtain a temporary use permit from the Department of Inspection and Standards, which must be renewed annually2. Private bedroom rentals where the owner lives on-site do not require permits2.
• Register with state and collect required taxes: All Providence short-term rentals must register with the state and collect required taxes on short-term rental income2. Additionally, the state requires registration and collection of taxes on short-term rental income3.
• List property and start renting: Once you have obtained the necessary permits and registered your property, you can list it on platforms like Airbnb, Vrbo, or real estate brokerage websites2.
• Ensure compliance with safety requirements: All Providence short-term rentals must have basic safety information posted, including diagrams showing exits and marked fire extinguishers2.
• Stay updated on regulations: Keep an eye on any changes to short-term rental regulations in Providence and Rhode Island, as they may affect your business13.

Short Term Rental Licensing Requirement in Providence

Providence, Rhode Island, has specific regulations in place for short-term rentals, including those listed on platforms like Airbnb and VRBO. These regulations aim to ensure safety, compliance, and fairness for both hosts and guests. Key provisions include:

• Owner-Occupied Dwellings: Owner-occupied dwellings can be used as short-term rentals throughout all zones in Providence1.
• Non-Owner-Occupied Dwellings: Non-owner-occupied dwellings cannot have short-term rental properties in the R1, R1A, R2, or R3 zones1.
• Temporary Use Permit: If an entire dwelling unit is being used as a short-term rental, it is required to have a temporary use permit, issued by the Department of Inspection and Standards. These permits must be renewed annually1.
• Basic Safety Measures: All short-term rentals must have basic safety measures in place, such as visible printed materials with diagrams of all exits and clearly marked fire extinguishers1.

These regulations are outlined in the Zoning Ordinance, section 1202.K.6 and 1202.L.61. Interested parties can look up the zoning information of any property in Providence using the "Where's My Parcel" tool4.In addition to the city's regulations, Rhode Island General Laws § 42-63.1-14 requires all short-term rentals to be registered5.

This registration is necessary for properties offered for rent for 30 nights or less and listed on platforms like Airbnb, Vrbo, or real estate brokerage websites5.To ensure compliance with these regulations, hosts should familiarize themselves with the relevant laws and ordinances, obtain the necessary permits, and implement the required safety measures.

Required Documents for Providence Short Term Rentals

To operate a short-term rental (STR) in Providence, Rhode Island, you must comply with the city's regulations and provide specific documents. These requirements are outlined in the Rhode Island General Laws and Providence ordinances. Some of the essential documents for Providence short-term rentals include:

• Temporary Use Permit: If you are renting out an entire dwelling unit, you must obtain a temporary use permit from the Department of Inspection and Standards, which must be renewed annually3.
• Basic Safety Information: All Providence short-term rentals must have visible printed materials with diagrams showing exits and clearly marked fire extinguishers3.
• State Registration: All short-term rentals in Rhode Island must be registered with the Department of Business Regulation2. This registration includes providing the rental property address, property owner/manager's phone number and email address, owner's principal place of business, or an agent or property manager if the owner is located out of state, number of rooms for rent, whether the registrant rents or owns, and intended use (rental of entire space, private room, or shared space)2.
• Taxes: The state requires registration and collection of taxes on short-term rental income3. Providence likely also requires payment of hotel taxes.

It is essential to ensure compliance with these requirements to avoid potential penalties or legal issues.

Providence Short Term Rental Taxes

In Providence, Rhode Island, short-term rental taxes are subject to specific regulations. Owners who rent out an entire home as a short-term rental must collect and pay a seven percent sales tax and a one percent local hotel tax on all proceeds from their rental2. Additionally, a five percent state hotel tax is applicable to the rental income from a single room or portion of a home2.

These taxes are part of the state's efforts to regulate and generate revenue from the growing short-term rental market.The tax distribution for short-term rentals in Rhode Island includes a 7% state sales tax, with 5% allocated to the General Fund, a 5% state hotel tax distributed to various recipients, and a 1% local hotel tax allocated to municipalities1. It's important for property owners to understand their filing obligations and ensure compliance with the state's tax requirements for short-term rentals. Failure to comply with the regulations can result in significant penalties, emphasizing the importance of adhering to the tax laws governing short-term rentals in Providence and across Rhode Island3.

Property owners engaged in short-term rentals should also be aware of the reporting responsibilities, including the collection and remittance of taxes, as well as the necessity of obtaining the required permits and forms from the Rhode Island Division of Taxation4. Filing tax returns and making payments to the appropriate tax authority are essential steps in fulfilling the tax obligations associated with short-term rentals in Rhode Island5.

Overall, the tax regulations for short-term rentals in Providence and Rhode Island are designed to ensure compliance, fair taxation, and the proper allocation of tax revenue. Property owners and hosts involved in short-term rentals should stay informed about the evolving tax requirements and fulfill their obligations to avoid potential penalties and legal consequences.

Rhode Island wide Short Term Rental Rules

In Rhode Island, the regulations for short-term residential rentals encompass various requirements, including taxation and zoning. Owners of short-term rental properties must register with the Rhode Island Division of Taxation, pay an annual $10 sales tax permit fee, and collect and remit sales and hotel taxes1. The definition of a documented arrangement for short-term rentals includes a written lease, formal written contract, emails, sales invoices, and checks with rental dates1.

For tax purposes, short-term rentals in Rhode Island are defined as reservations of 30 days or less2.The City of Providence has specific provisions for short-term rentals, such as the requirement for a temporary use permit for entire dwelling units used as short-term rentals, which must be renewed annually3. The ordinance also includes basic safety requirements, such as visible printed materials with exit diagrams and clearly marked fire extinguishers3.

Additionally, the Rhode Island General Laws § 42-63.1-14 outlines the registration requirements for short-term rental properties listed on third-party hosting platforms, and the Rhode Island Division of Taxation provides a step-by-step guide for looking up registered short-term rentals and a database for searching registered short-term rentals5.These rules and regulations are essential for individuals and businesses involved in short-term rentals to ensure compliance with the law and avoid potential penalties or legal issues.

Does Providence strictly enforce STR rules?

Providence has implemented regulations to govern short-term rentals (STRs) in the city. In 2019, the city mandated owner occupancy of STRs in specific residential districts, and a recent study commission has been exploring the broader implications of short-term housing rentals in Rhode Island1. The Providence Journal's analysis in December 2022 revealed that several communities, including Providence, and other towns in Rhode Island, have been regulating or contemplating the regulation of short-term rentals1. The City of Providence's ordinance requires a temporary use permit for entire dwelling units used as STRs, issued by the Department of Inspection and Standards, and these permits must be renewed annually34.

The enforcement of these rules is indicative of the city's proactive approach to managing the impact of online listing platforms like Airbnb and Vrbo on the local housing market. While the specific details of enforcement measures are not readily available, the existence of regulations and the requirement for permits suggest a commitment to ensuring compliance with the established rules.In terms of Airbnb friendliness, the regulations, such as the owner-occupancy requirement and the need for temporary use permits, indicate a balance between allowing STRs and safeguarding the interests of the local community.

The strictness of the regulations, particularly the owner-occupancy mandate, may influence the operational landscape for hosts. However, the absence of specific data on enforcement and host operations in the search results necessitates referring to official sources or local community platforms for a comprehensive understanding of the situation.In summary, Providence has taken steps to regulate short-term rentals, and the enforcement of these rules is essential for maintaining a sustainable and harmonious housing environment.

Hosts and individuals involved in the STR industry should prioritize compliance with the established regulations to avoid potential repercussions and contribute to the responsible growth of the sector.pyEdit Query

How to Start a Short Term Rental Business in Providence?

If you're looking to start a short-term rental business in Providence, Rhode Island, there are a few steps you need to take to ensure compliance with local regulations. Here's a straightforward guide to help you get started:

• Research zoning regulations for your property: To start a short-term rental business in Providence, the property must be zoned to allow for rentals under 30 days. R1, R1A, R2, and R3 zones allow owner-occupied short-term rentals, while other residential zones allow short-term rentals without owner occupancy3.
• Obtain a temporary use permit if required: If you plan to rent out an entire dwelling unit as a short-term rental, you'll need to obtain a temporary use permit from the Department of Inspection and Standards. These permits must be renewed annually4.
• Register with the state and collect required taxes: All short-term rentals in Rhode Island must be registered with the state, and operators must collect and remit sales and hotel taxes on rental income15.
• List your property and start renting: Once you've completed the necessary steps to comply with local regulations, you can list your property on platforms like Airbnb and Vrbo and start renting to guests3.

Who to contact in Providence about Short Term Rental Regulations and Zoning?

Contact the Providence Department of Inspection and Standards at 401-680-5200 or provbuildingsafety@providenceri.gov.

What do Airbnb hosts in Providence on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Providence have shared insights on local regulations through platforms like Reddit and Bigger Pockets. According to a guide for Airbnb hosts on Bnbcalc.com, properties in Providence must be zoned to allow for rentals under 30 days to start a short-term rental business1. Reddit users have indicated that the regulations are not strictly enforced, with one user stating, "no one really enforces [the regulations]"1.

Additionally, Bigger Pockets users have reported operating successful Airbnbs in Providence despite the existing restrictions1. Overall, hosts have suggested that while regulations exist, strict enforcement may be lacking.For hosts considering Providence as a potential short-term rental location, it is important to conduct thorough research on the specific regulations and their implications. While some hosts have reported operational success despite the regulations, compliance with the established requirements remains crucial to avoid potential legal issues or penalties.