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

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

Short-term rentals, such as those listed on Airbnb and VRBO, have become increasingly popular in recent years. However, many cities and towns, including Tiverton, Rhode Island, have implemented regulations to address concerns about the impact of these rentals on neighborhoods and housing availability. Here's what you need to know about short-term rental regulations in Tiverton.

Starting a Short-Term Rental Business in Tiverton

To operate a short-term rental in Tiverton, property owners must obtain a special use permit from the town council. This requirement applies to all dwelling units being offered as short-term rentals. The draft ordinance defines a short-term rental as "a dwelling unit that is rented in whole or in part for a period of less than 30 consecutive days".

The special use permit process involves an application and annual inspection of the property. Tiverton has chosen to regulate short-term rentals through its zoning code rather than a licensing process, as there is some ambiguity in state law regarding the authority of cities and towns to issue licenses for short-term rentals.

While the ordinance is still being drafted, it aims to address concerns about the impact of short-term rentals on neighborhoods. Anecdotally, residents have reported issues with parking, noise, and the character of their neighborhoods being threatened by an influx of short-term renters.

However, quantifying the severity of these problems has proven difficult. When the Rhode Island Short-Term Rental Association inquired with Tiverton's police, building, and zoning departments, they found no record of violations among short-term rentals. The town administrator, Chris Cotta, stated that complaints are being directed to his office and the town council instead.

As of October 2021, there was no ordinance in place, meaning short-term rentals were not officially zoned within city limits. However, the draft ordinance is expected to be finalized and implemented in the near future.

Property owners interested in starting a short-term rental business in Tiverton should stay informed about the status of the ordinance and be prepared to apply for a special use permit once it is required. It's also important to note that short-term rentals may be subject to state and local taxes, such as the hotel tax.

While short-term rental regulations can be a contentious issue, balancing the needs of property owners, residents, and tourists is crucial for maintaining the character and livability of Tiverton's neighborhoods. By implementing clear guidelines and oversight, the town aims to ensure that short-term rentals can coexist harmoniously with the community.

Short-Term Rental Licensing Requirement in Tiverton

To legally operate a short-term rental (STR) in Tiverton, property owners must obtain a special use permit from the town council. This requirement applies to all dwelling units being offered as short-term rentals, defined as rentals for periods of less than 30 consecutive days.

The licensing process involves the following steps:

• Application: Property owners must fill out a rental application and submit it to the Zoning Officer by December 31 each year, once a special use permit is granted. The registration is valid for one year, from January 1 to December 31 of the following year.
• Fees: There is an annual registration fee of $100 per dwelling unit, inclusive of the initial registration.
• Local Representative: The owner must designate a local representative who will be responsible for responding to any issues or emergencies that may arise during the rental period.
• Listing Requirements: All listings offering the short-term rental must include a statement that the rental has been approved by the Town of Tiverton and that guests are required to comply with all requirements of the Town's Code of Ordinances.
• Inspections: The Zoning Official will coordinate with the Tiverton Police and Fire Departments, and any other necessary Town Officials, to conduct an inspection of the premises. The inspection verifies the information provided in the application and determines any special conditions for the permit, such as maximum occupancy and sufficiency of smoke and CO2 detectors. The Zoning Official will indicate the maximum occupancy for the dwelling unit on the special use permit.

The timeline for the licensing process is not explicitly stated, but it is recommended to submit the application well in advance of the intended rental period to allow for processing and inspections.

Enforcement and Penalties

The Zoning Official has the power to enforce compliance with the short-term rental ordinance and may take the following actions:

1. Non-Compliance with Conditions: For non-compliance with any condition of the special use permit, the Zoning Official shall issue a Notice of Non-Compliance and impose a fine of up to $100 per day for each condition not complied with. The fine may be abated by the Zoning Official for the first instance of non-compliance.
2. Approval of Use and Advertisements: The Zoning Official shall impose a fine of up to $500 per day for each date of advertisement in violation of the ordinance, including advertising short-term rentals without a special use permit. The fine may be abated if the owner acquires a special use permit and/or amends the advertisement to state such approval within seven calendar days of any written notice provided by the Town of Tiverton.
3. Citations and Police Reports: Citations issued and/or reports generated by the Tiverton Police Department in responding to a property for disturbances, resulting in a finding of management or maintenance in a manner that is not comparable or consistent with the residential character of the neighborhood, may result in the revocation of the special use permit.

It is crucial for property owners to comply with the licensing requirements and maintain their short-term rentals in a manner consistent with the residential character of the neighborhood to avoid fines and potential revocation of their special use permit.

Required Documents for Tiverton Short-Term Rentals

To apply for a special use permit for a short-term rental in Tiverton, property owners must submit the following documents:

1. Rental Application: The rental application must be filled out and submitted to the Zoning Officer by December 31 each year, once a special use permit is granted. The application provides essential information about the property, owner, and local representative.
2. Proof of Insurance: Property owners must provide proof of liability insurance coverage for the short-term rental property. This insurance protects both the owner and guests in case of accidents or damages.
3. Floor Plan: A floor plan of the dwelling unit must be submitted, indicating the location of all bedrooms, smoke and CO2 detectors, and fire extinguishers. This helps the Zoning Official and Fire Department assess the property's safety and determine the maximum occupancy.
4. Parking Plan: If off-street parking is proposed, a plan must be submitted showing the location and dimensions of all parking spaces. This ensures that the short-term rental has adequate parking and does not create congestion in the neighborhood.
5. Local Representative Designation: The owner must designate a local representative who resides or operates within 25 miles of the short-term rental. The local representative's contact information must be provided, and they must be available 24/7 to respond to any issues or emergencies.
6. Acknowledgement of Compliance: The owner must sign an acknowledgement that they have read and understand the short-term rental ordinance and agree to comply with all requirements, including the prohibition on events, parties, and large gatherings.

These documents can be obtained from the Tiverton Town Hall or downloaded from the town's website. The Zoning Officer will review the application and supporting documents to ensure completeness and compliance with the short-term rental ordinance.

It is important to note that additional documents may be required depending on the specific circumstances of the property, such as a septic system certification for properties not connected to the public sewer system. Property owners should consult with the Zoning Officer to determine any additional requirements.

By submitting these required documents and obtaining a special use permit, property owners can legally operate a short-term rental in Tiverton while ensuring the safety and well-being of guests and the surrounding community.

Tiverton Short-Term Rental Taxes

When operating a short-term rental in Tiverton, Rhode Island, it's essential to understand the various taxes that apply to your business. Properly collecting and remitting these taxes is crucial for compliance with state and local regulations.

Sales Tax and Hotel Taxes

In Rhode Island, short-term rentals are subject to both sales tax and hotel taxes. The breakdown of these taxes is as follows:

1. Sales Tax: 7% on the rental amount
2. State Hotel Tax: 5% on the rental amount (for rentals of rooms or portions of a home)
3. Local Hotel Tax: 1% on the rental amount

Owners who rent out an entire home as a short-term rental must collect and pay the 7% sales tax and the 1% local hotel tax on any income from the rental. Those who rent out a single room or portion of a home must collect and pay the 7% sales tax, 1% local hotel tax, and an additional 5% state hotel tax on all proceeds from their rental.

It's important to note that if you use a short-term rental marketplace like Airbnb or Vrbo, the platform is responsible for collecting and remitting these taxes on your behalf. However, if you independently advertise and rent out your property, you must collect and remit the taxes yourself.

Potential Tax Deductions and Write-Offs

As a short-term rental operator, you may be eligible for various tax deductions that can help offset your tax liability. Some potential deductions include:

1. Property Depreciation: You can deduct a portion of your property's value each year to account for wear and tear.
2. Cleaning Fees: Expenses related to cleaning and maintaining your rental property between guests are generally deductible.
3. Maintenance and Repairs: Costs associated with maintaining and repairing your rental property, such as painting, plumbing, or electrical work, can be deducted.
4. Utilities: A portion of your utility expenses, such as electricity, water, and internet, may be deductible if they are used for your rental business.
5. Insurance: Insurance premiums for your short-term rental property can be deducted as a business expense.
6. Advertising: Expenses related to marketing and advertising your short-term rental, such as listing fees or promotional materials, are typically deductible.

It's essential to keep accurate records of all your rental income and expenses to support your tax deductions. Consult with a tax professional to ensure you are taking advantage of all available deductions and complying with tax regulations.

By understanding the applicable taxes and potential deductions for your short-term rental in Tiverton, you can better manage your business finances and maintain compliance with state and local laws. Staying informed about tax obligations and seeking professional advice when needed can help ensure the success and longevity of your short-term rental venture.

Rhode Island Wide Short-Term Rental Rules

1. In addition to any local regulations in Tiverton, short-term rental hosts must also comply with state-wide laws in Rhode Island. Here are the key requirements:
2. Registration: As of January 1, 2023, all short-term rental properties in Rhode Island must be registered with the Department of Business Regulation (DBR). This applies to rentals offered for 30 nights or less on platforms like Airbnb and Vrbo. The registration fee is $50 and must be renewed every two years. Failure to register can result in fines of $250-$1,000.
3. Taxes: Short-term rentals are subject to the 7% state sales tax and 1% local hotel tax, for a total of 8% on the rental amount. If renting out a room, an additional 5% state hotel tax applies, for a total of 13%. Hosts are responsible for collecting and remitting these taxes unless using a platform like Airbnb that collects on their behalf.
4. Exemptions: Stays over 30 days with a signed lease are exempt from the sales and hotel taxes. Hotels, motels, and certain other commercial lodgings are also exempt from registering as short-term rentals.
5. Safety: Basic safety measures like fire extinguishers, smoke alarms, and clearly marked exits are required in short-term rentals.
6. Zoning: Cities and towns have authority over zoning for short-term rentals. State law prohibits banning them outright if listed on a hosting platform, but municipalities can restrict them in certain residential zones.

Tiverton hosts should be aware that there is some ambiguity in whether cities and towns have clear legal authority to license short-term rentals, as state law does not explicitly grant this power. Tiverton has chosen to regulate them through zoning and special use permits instead of a licensing process to avoid potential challenges.

Overall, Rhode Island has established a state-wide framework for registering and taxing short-term rentals, while giving municipalities flexibility to set zoning restrictions. Tiverton hosts must ensure they are properly registered with the DBR, collecting required taxes, and complying with any local zoning rules in order to operate legally in the state.

Does Tiverton Strictly Enforce STR Rules?

Based on discussions in online forums and recent news reports, Tiverton appears to be relatively Airbnb-friendly compared to other cities in Rhode Island. While short-term rentals technically violate the town's current zoning, operating an STR is not illegal as there is no ordinance in place yet.

The town has received few complaints about short-term rentals to date. When STR owners showed up to a public meeting to explain the benefits their guests bring to the local economy, town officials seemed receptive. Tiverton is trying to work with STR owners to craft reasonable regulations, not shut them down entirely.

Town Administrator Chris Cotta acknowledged that most STRs are well-run with minimal issues. He said the town council was "pretty well enamored with the fact that they run very good businesses, and we don't really want to be in the business of shutting them down."

The draft ordinance is still in its early stages and nowhere close to being implemented. The town wants to keep fees low for STR owners and avoid hiring additional staff for enforcement. Their main goals are to bring STRs into zoning compliance and have a way to contact owners if needed.

So in summary, while Tiverton is exploring STR regulations, the town has a cooperative rather than combative stance toward Airbnb and VRBO hosts. Many STRs currently operate without major problems despite the zoning technicality. Strict enforcement seems unlikely in the near-term as Tiverton works on crafting balanced rules. The town appears more Airbnb-friendly than other cities that have implemented stringent regulations and crackdowns on STR owners.

How to Start a Short-Term Rental Business in Tiverton

Starting a short-term rental business in Tiverton can be a rewarding venture, but it's essential to follow the proper steps to ensure compliance with local regulations and set yourself up for success. Here's a step-by-step guide to getting started:

1. Research Tiverton's Short-Term Rental Regulations: Familiarize yourself with Tiverton's draft ordinance on short-term rentals, which is expected to be finalized soon. Currently, operating an STR is not illegal, but it technically violates zoning. The new rules will likely require a special use permit from the town council. Stay informed about the status of the ordinance and be prepared to apply for a permit once it's required. Attend town council meetings or reach out to officials for updates.
2. Choose a Suitable Property: Select a property that meets the criteria for a successful short-term rental. Consider factors like location, amenities, and potential rental income. Ensure the property complies with any zoning restrictions and safety requirements. Look for properties with features that appeal to travelers, such as proximity to attractions, ample parking, and outdoor spaces. Analyze the local STR market to determine competitive rates.
3. Obtain Necessary Permits and Licenses: Once the ordinance is in place, apply for a special use permit from the Tiverton Town Council. This will likely involve an application, fees, and an inspection to verify safety and occupancy standards. Begin gathering required documents early, such as proof of insurance, floor plans, and parking details. Establish a good relationship with the Zoning Officer to ensure a smooth process.
4. Register with the State: Register your short-term rental with the Rhode Island Department of Business Regulation (DBR). As of January 1, 2023, all STRs in the state must be registered, with a $50 fee due every two years. Keep accurate records of your registration and renewal dates to avoid fines for non-compliance.
5. Set Up Your Rental Listing: Create an attractive listing on popular platforms like Airbnb and Vrbo. Include high-quality photos, detailed descriptions, and information about the property's unique features and amenities. Highlight Tiverton's local attractions and include recommendations for dining, shopping, and activities. Emphasize your commitment to cleanliness and guest safety.
6. Establish Cleaning and Maintenance Protocols: Develop a thorough cleaning checklist and hire reliable cleaners to ensure the property is spotless between guests. Create a maintenance schedule to keep the rental in top condition. Consider using a digital guidebook or welcome book to provide guests with important information about the property and local area.
7. Comply with Tax Requirements: Collect and remit the required state and local taxes, including the 8% sales and hotel tax (13% if renting a room). If not using a platform that collects taxes for you, register with the state tax division. Consult with a tax professional to ensure you are properly tracking income and expenses and taking advantage of any available deductions.
8. Provide Excellent Customer Service: Respond promptly to guest inquiries, provide clear check-in instructions, and be available to address any concerns during their stay. Encourage guests to leave reviews and maintain a high rating on rental platforms. Go above and beyond by providing thoughtful amenities like local snacks or toiletries. A positive guest experience can lead to repeat bookings and referrals.

By following these steps and staying informed about Tiverton's evolving short-term rental landscape, you can launch a successful STR business while being a responsible and compliant host. Remember to prioritize guest satisfaction and maintain open communication with town officials to ensure the long-term viability of your rental venture.

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

If you have questions about short-term rental regulations or zoning in Tiverton, here are the key contacts and resources:

Building/Zoning Department: The Building/Zoning Department handles permits, inspections, and zoning matters related to short-term rentals.

1. John M. Hoyle, Jr. - Building/Zoning Official: buildingofficial@tiverton.ri.gov
2. Joseph Kaufman, Zoning Enforcement Officer: zoning@tiverton.ri.gov
3. Office Phone: 401-625-6715

Town Administrator: The Town Administrator's office has been receiving many complaints and inquiries about short-term rentals. Contact them for general questions or to provide input on the draft ordinance.

1. Chris Cotta, Town Administrator
2. Phone: 401-625-6710

Town Council: The Town Council is responsible for enacting the short-term rental ordinance. Reach out to council members to share your perspective or get updates on the ordinance's status.

• Denise M. deMedeiros, Town Council President: ddemedeiros@tiverton.ri.gov
• Michael S. Burk, Town Council Vice-President: mburk@tiverton.ri.gov
• Full Town Council contact list: https://www.tiverton.ri.gov/towncouncil/index.php

Online Resources:

• Tiverton Zoning Ordinance: https://library.municode.com/ri/tiverton
• Building/Zoning Department Website: https://www.tiverton.ri.gov/departments/codeenforcement/index.php

Community Groups and Forums:

Connect with other STR hosts in Tiverton and surrounding areas through these online communities:

• Bigger Pockets Rhode Island Real Estate Forum: https://www.biggerpockets.com/forums/581/topics/1009117-short-term-rental-in-coastal-rhode-island
• Airbnb Community Center > Hosting > Regulations and Taxes > Rhode Island: https://community.withairbnb.com/t5/Hosting/ct-p/hosting
• Facebook Groups: Search "Rhode Island Airbnb Hosts" or "Tiverton Short-Term Rentals" to find relevant local host communities on Facebook

By contacting town officials, staying informed through online resources, and connecting with fellow hosts, you can navigate Tiverton's evolving short-term rental landscape successfully. Remember to be proactive, professional, and cooperative in your interactions with the town as they work to establish balanced and effective regulations.

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

Discussions on Reddit and Bigger Pockets provide insight into how short-term rental hosts in Tiverton and surrounding areas view the evolving regulatory landscape:

Bigger Pockets Forum: "Short Term Rental in Coastal Rhode Island"

An aspiring STR investor expressed interest in buying a property in the Portsmouth/Middletown/Bristol area near Tiverton. They noted the area's growing popularity and sought to network with other local investors to learn about STR-friendly legislation in different towns.

Bigger Pockets Forum: "Airbnb Rental Arbitrage in Rhode Island"

A Middletown resident near Newport shared their interest in pursuing an Airbnb rental arbitrage strategy, as property prices were out of reach. They acknowledged the area's appeal to tourists and abundance of investment properties. Commenters mentioned new STR regulations being implemented in Newport.

Reddit Thread: "Newport identifies the properties cited for acting as unregistered short-term rentals"

Redditors discussed Newport's crackdown on unregistered STRs, with 211 violations heard in municipal court. The city revised ordinances to make simply listing an unregistered property a fineable offense. Some commented on the high number of Airbnb listings (800+) compared to registered units (300-400), attributing the discrepancy partly to hotels advertising on the platform.

Bigger Pockets Forum: "Vacation Rentals in Rhode Island"

An investor shared their friend's interest in buying a summer home/vacation rental in Little Compton or Tiverton, noting attractive summer rental rates around $3,500/week. They sought insights on winter rental potential and comparable properties.

These discussions highlight the growing interest in short-term rentals in Tiverton and nearby coastal towns, driven by strong summer tourism. Hosts and investors are navigating an evolving regulatory environment, with some expressing concerns about the impact of stricter ordinances on their businesses. Many are seeking to connect with other local hosts to share experiences and stay informed about STR-friendly areas. The high number of Airbnb listings relative to registered units in Newport suggests some hosts may be operating without proper permits, prompting enforcement efforts by the city.

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.