Jamestown, Rhode Island Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Jamestown, Rhode Island?

Jamestown, Rhode Island has recently implemented new regulations for short-term rentals like Airbnb and VRBO. Property owners looking to rent out their homes for less than 30 consecutive days must now register with the town and comply with specific rules.

Starting a Short-Term Rental Business in Jamestown

As of August 7, 2023, Jamestown requires all short-term rental properties to be registered with the town clerk in order to legally operate. The registration process will be available online in the fall of 2023.

The ordinance defines a short-term rental as leasing "a dwelling unit" for fewer than 30 consecutive days, excluding licensed lodging businesses. It's estimated there are roughly 125-175 short-term rentals in Jamestown being advertised online.

To register, owners must pay a $350 annual fee and have their property inspected by the building official and fire marshal. Inspections are then required every three years by the building official and every two years by the fire marshal after the initial assessments.

Occupancy is limited to two people per bedroom, plus two additional people, with children under 12 not counting towards the cap. One off-street parking space is required for each bedroom, plus one additional space. If off-street parking is insufficient, occupancy must be reduced to conform to available parking.

Owners must use a rental agreement that lists local ordinances related to noise, conduct, parking, trash, and occupancy. This information must also be posted conspicuously inside the rental unit.

A local representative residing in Rhode Island must be designated as the initial point of contact for any issues, responding within two hours to avoid violating the ordinance. Three or more violations in a 12-month period can result in the short-term rental permit being revoked.

As of December 2023, eleven properties were the first to be approved as legal short-term rentals for 2024. By February 2024, a total of 64 short-term rentals were operating legally in Jamestown after six more gained approval.

Some Jamestown officials have expressed concern about the growing number of properties being purchased exclusively as short-term rental businesses, fearing it could negatively impact the character of residential neighborhoods. However, the town aimed to balance regulating the industry while still allowing property owners flexibility in how they use their homes.

Rhode Island also implemented a statewide short-term rental registry in 2024. Owners must register their properties through an online state portal if renting for 30 nights or less, in addition to local requirements.

In summary, Jamestown now requires short-term rentals to be registered, inspected, and operated under specific guidelines. This aligns with a broader statewide effort in Rhode Island to monitor and regulate the growing short-term rental industry. Property owners should carefully review all state and local requirements before listing their homes on sites like Airbnb and VRBO.

Short-Term Rental Licensing Requirements in Jamestown

As of August 7, 2023, all short-term rental properties in Jamestown, Rhode Island must be registered with the town clerk and licensed in order to legally operate. Here are the detailed requirements based on the official Jamestown website:

Registration and Licensing Process:

• Online registration will be available starting in the fall of 2023 through the town's website portal at jamestownri.gov/str
• All short-term rental properties must also be registered with the Rhode Island Department of Business Regulation state registry
• Properties are subject to inspections by the town building official and fire marshal
• Initial inspections are required to obtain a license, with follow-up inspections every 3 years by the building official and every 2 years by the fire marshal
• Completed registrations are reviewed and approved by the town council

Fees:

1. Annual license fee: $125
2. Per bedroom fees (capped at 4 bedrooms):
   - Owner-occupied units: $50 per bedroom
   - Resident owners not occupying rental unit: $100 per bedroom
   - Non-resident owners: $200 per bedroom
3. No additional per-bedroom fees for units in commercial districts

Occupancy Limits:

1. Maximum of 2 people per bedroom, plus 2 additional people
2. Children under 12 do not count towards occupancy limits

Parking Requirements:

1. 1 off-street parking space required per bedroom, plus 1 additional space
2. If insufficient parking, max occupancy must be reduced to conform to available spaces

Other Requirements:

1. Rental agreement must list all relevant local ordinances (noise, parking, trash, occupancy limits)
2. This information must also be prominently posted inside the rental unit
3. A local contact person residing in RI must be designated to respond to any issues within 4 hours

Penalties:

1. Operating an unlicensed short-term rental is a violation subject to fines after May 15, 2024
2. Three or more violations of the ordinance within a 12-month period can result in the rental permit being revoked

The typical processing time is not specified, but the first properties were approved for 2024 licenses starting in December 2023. As of February 2024, 64 short-term rentals had been licensed.

In summary, Jamestown has implemented a detailed registration and licensing process for short-term rentals, including fees based on occupancy and residency status, along with occupancy limits, parking requirements, and penalties for violations. All applications and materials are submitted through the town's online portal, with final approval determined by the town council.

Required Documents for Jamestown, Rhode Island Short-Term Rentals

To legally launch and operate a short-term rental in Jamestown, Rhode Island, property owners must provide the following documents:

1. State Registration: Proof of registration with the Rhode Island Department of Business Regulation's short-term rental registry. This statewide requirement applies to rentals of 30 nights or less listed on third-party booking sites like Airbnb or Vrbo.
2. Local Registration: Completed registration through the Jamestown online portal, accessible on the town's website. The registration fee includes an annual license cost plus a per-bedroom rate that varies based on owner occupancy and residency status.
3. Inspection Reports: Passing inspection reports from the Jamestown fire marshal and building official. These inspections verify the rental property meets safety codes and regulations. Schedule inspections through the online registration portal.
4. Proof of Residency (if applicable): Documentation showing the property owner physically resides in Jamestown for at least 183 days per year and has designated a town property as their legal residence for identification purposes. This allows for a reduced per-bedroom fee.
5. Rental Agreement: A rental agreement that includes the required list of local ordinances related to noise, parking, trash, occupancy limits, etc. This ensures renters are informed of local rules and their responsibilities.
6. Occupancy Posting: A notice posted conspicuously within the rental unit that contains general information about local ordinances, maximum occupancy, and parking. This serves as an on-site reminder for renters.

Once all required documents are submitted and the registration process is complete, the Jamestown Town Council will review and approve the short-term rental application. Detailed information and forms can be obtained from the Jamestown town website's short-term rental section.

Jamestown Short-Term Rental Taxes

Short-term rental owners in Jamestown should be aware of the following taxes that may apply to their business:

1. State Sales Tax: Rhode Island charges a 7% sales tax on short-term rentals less than 30 consecutive days. This tax is collected by the host and remitted to the state.
2. State Hotel Tax: An additional 5% state hotel tax applies to rentals less than 30 consecutive days. Like the sales tax, hosts are responsible for collecting and remitting this tax.
3. Local Hotel Tax: Jamestown may charge a local hotel tax on top of the state taxes. The rate varies by municipality but is typically around 1-2%. Check with the Jamestown tax assessor for the current local tax rate.
4. Occupancy Tax: Some cities charge an occupancy tax per night, often only on rentals over a certain number of nights. Information on a specific occupancy tax for Jamestown rentals could not be found.

It's important for hosts to collect the proper taxes from guests and remit them to the appropriate state and local agencies, usually on a monthly or quarterly basis. Failure to comply with tax laws can result in penalties and interest.

Hosts may be able to deduct certain expenses to reduce their rental income tax liability. Potential deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning and maintenance costs
6. Supplies
7. Platform service fees
8. Depreciation

Consult with a tax professional to determine which deductions apply to your short-term rental business. Detailed records and receipts should be kept to substantiate any deductions claimed on your tax return.

Rhode Island Wide Short-Term Rental Rules

In addition to any local ordinances in Jamestown, short-term rental hosts must comply with the following state-wide requirements in Rhode Island:

• State Registration: All short-term rentals must be registered with the Rhode Island Department of Business Regulation (DBR). This applies to rentals of 30 nights or less that are listed on third-party hosting platforms like Airbnb or Vrbo. Hosts can register through the DBR's online portal.
• Occupancy Taxes: Rhode Island charges a 7% sales tax and 5% hotel tax on short-term rentals less than 30 consecutive days. Hosts are responsible for collecting these taxes from guests and remitting them to the state.
• Zoning Compliance: While state law prevents municipalities from outright banning short-term rentals, properties must still comply with local zoning regulations. Hosts in Jamestown should verify their property is zoned for short-term rental use.
• Building & Fire Safety: Rentals must meet all applicable building and fire safety codes. Hosts should ensure their property has working smoke detectors, carbon monoxide alarms, fire extinguishers, and clearly marked exits.
• Insurance: Although not legally required, hosts are strongly encouraged to obtain appropriate insurance coverage for their short-term rental. Homeowners or landlord policies often do not cover commercial rental activity.
• Rental Agreements: Having a written rental agreement is considered a best practice. Agreements should outline house rules, maximum occupancy, parking instructions, and other important guest information.

Failure to comply with state or local short-term rental regulations can result in fines, penalties, and potentially being banned from listing on hosting platforms. Jamestown hosts should stay informed of any changes to Rhode Island's laws and consult with local officials if they have questions about operating a short-term rental.

Does Jamestown Strictly Enforce STR Rules?

Based on discussions among Rhode Island residents on Reddit, Jamestown appears to have a relatively strict approach to enforcing short-term rental regulations compared to other cities in the state.

One user noted that Jamestown officials have been cracking down on illegal short-term rentals, with the town council recently proposing a ban on all non-owner occupied Airbnbs. This suggests Jamestown is less Airbnb-friendly than other nearby destinations.

Another thread revealed that Jamestown has taken steps to preserve its "town character" by limiting the spread of duplexes and multi-family housing often used for vacation rentals. Residents seem supportive of these measures to prevent neighborhoods from being overrun by transient guests.

While some hosts may still attempt to operate under the radar, the consensus is that Jamestown's enforcement efforts make it riskier and less profitable compared to other Rhode Island cities with more relaxed rules. The town's smaller size also makes it easier for officials to identify and penalize non-compliant rentals.

In summary, Jamestown takes a harder line on short-term rentals than many other vacation spots. Hosts should carefully weigh the potential consequences before attempting to skirt the town's regulations, as the chances of getting caught appear higher than in more lenient cities. Those looking for an Airbnb-friendly environment may have better luck in other parts of Rhode Island.

How to Start a Short-Term Rental Business in Jamestown

Follow these steps to legally establish a short-term rental business in Jamestown, Rhode Island:

• Register with the State: Register your property with the Rhode Island Department of Business Regulation's short-term rental registry. This is required for rentals of 30 nights or less listed on sites like Airbnb or Vrbo. Complete the online registration process through the state's portal.
• Register with the Town: Create an account on the Jamestown short-term rental portal at jamestownri.gov/str. Submit your local registration application and pay the annual license fee, which includes a base cost plus a per-bedroom rate that varies based on owner occupancy and residency status. Refer to the town's website for current fees.
• Schedule Inspections: Book required inspections with the Jamestown fire marshal and building official through the online registration system. These inspections verify your rental meets all safety codes and regulations. Make any necessary repairs or upgrades to ensure you pass.
• Prepare Required Documents: Gather all documents needed for your local registration, which may include proof of residency (for reduced bedroom fees), a rental agreement with required ordinance information for guests, and an occupancy limit posting for inside the unit. Have these ready to upload or submit.
• Complete Registration: Once your inspections are passed and all required documents are submitted, the Jamestown Town Council will review your short-term rental application for approval. If approved, you'll receive your license to legally operate.
• Understand Tax Obligations: Be aware of all state and local taxes that apply to your rental, including Rhode Island's 7% sales tax, 5% state hotel tax, and any additional local hotel or occupancy taxes. Set up processes to collect these from guests and remit them to the proper agencies.
• Optimize Your Listing: Create an attractive, well-written listing on your chosen rental platform(s). Use high-quality photos, an accurate description, and competitive nightly rates. Highlight your property's best features and amenities.
• Establish House Rules: Develop clear, reasonable house rules and include them in your rental agreement and listing. Cover important topics like noise, parking, occupancy limits, pet policies, etc. Communicate these rules to guests before and during their stay.
• Manage Bookings and Guests: Be responsive to booking inquiries and guest communications. Use a system to efficiently manage reservations, check-ins, check-outs, and cleaning between stays. Consider hiring a co-host or property manager if you need help.
• Maintain the Property: Keep your rental in top condition with regular cleaning, maintenance, and repairs as needed. Budget for occasional larger upgrades to stay competitive. Well-maintained properties tend to earn better reviews and more bookings.

By following Jamestown's registration process, complying with local regulations, and implementing smart business practices, you'll be well on your way to running a successful short-term rental. Remember to stay informed of any changes to local ordinances and adjust your operations accordingly.

Who to Contact in Jamestown about Short-Term Rental Regulations and Zoning?

For questions about Jamestown's short-term rental regulations, registration process, inspections, or zoning, contact:

Peter Medeiros, Building & Zoning Official

• Phone: (401) 423-9803
• Email: pmedeiros@jamestownri.net

Pat Westall, Building & Zoning Clerk

• Phone: (401) 423-7221
• Email: pwestall@jamestownri.net

You can also reach out to the Jamestown Town Hall:

• Address: 93 Narragansett Avenue, Jamestown, RI 02835
• Phone: (401) 423-7200
• Fax: (401) 423-7229
• Website: https://www.jamestownri.gov/

For general questions, email pwestall@jamestownri.net.

Jamestown short-term rental hosts may find it helpful to connect with others in online forums and communities. While no Jamestown-specific groups could be found, here are a couple relevant threads:

Airbnb Community Center, Hosting Forum: https://community.withairbnb.com/t5/Hosting/bd-p/listing-and-reservations

Hosts share experiences and advice on a wide range of topics.

Reddit /r/RhodeIsland Subreddit:

"Is outlawing all short-term rentals in Newport's residential areas the answer?": https://www.reddit.com/r/RhodeIsland/comments/qdspr6/is_outlawing_all_shortterm_rentals_in_newports/

Discussion on Newport's proposed short-term rental ban, with comments touching on regulations in other RI towns like Jamestown.

Staying engaged with local officials and host communities can help you navigate Jamestown's evolving short-term rental landscape. Don't hesitate to reach out with any questions about compliance.

What Do Airbnb Hosts in Jamestown on Reddit and Bigger Pockets Think about Local Regulations?

While no Jamestown-specific discussions could be found, here are some relevant insights from Rhode Island short-term rental hosts on Reddit and Bigger Pockets:

Reddit /r/RhodeIsland Thread on Newport's Proposed STR Ban:

• In a discussion about Newport considering banning non-owner occupied short-term rentals, some users mentioned Jamestown has also passed strict regulations recently.
• One commenter noted that Jamestown residents seem supportive of measures to limit short-term rentals and preserve the town's character.
• The thread suggests there is growing concern in Rhode Island coastal towns about the impact of STRs on housing and quality of life.

Bigger Pockets Forum on Rhode Island Move-In Costs:

• A landlord asked about typical move-in costs charged to tenants in Rhode Island compared to Massachusetts.
• While not directly about short-term rentals, the discussion highlights differences in rental regulations between the two states.
• Understanding the legal landscape for long-term rentals can provide useful context for STR hosts.

Bigger Pockets Thread on Airbnb Potential in Providence:

• A prospective investor asked about the viability of Airbnb rentals in Providence, RI.
• Respondents noted that while Providence is a popular area, regulations and costs should be carefully considered.
• The discussion emphasizes the importance of understanding local market conditions and rules before starting an STR business.

Bigger Pockets Post on Airbnb Rental Arbitrage in Rhode Island:

• An aspiring host asked for advice on pursuing an Airbnb rental arbitrage strategy in Middletown, RI.
• They noted that purchasing property in the area was out of reach, so renting and subletting could be an alternative.
• This highlights the creative strategies some hosts are considering to break into competitive short-term rental markets like those in Rhode Island's coastal towns.

Overall, these online discussions suggest that Rhode Island's short-term rental landscape is complex, with growing regulation in popular destinations like Jamestown. Hosts are grappling with how to navigate these changes and voicing concerns about the impact on their businesses. At the same time, some residents support measures to preserve housing stock and limit STRs. Aspiring hosts should carefully research local regulations and market conditions before starting a short-term rental in Jamestown or surrounding areas.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.