Narragansett RI Short Term Rental Regulations: Complete Compliance Roadmap for Airbnb Hosts

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Disclaimer: This article is for informational purposes only and not legal advice. Regulations may have changed since publication date (October 30, 2025). Always check with local authorities and consult a legal professional before making investment decisions.

Introduction to Short-Term Rentals in Narragansett

Narragansett, Rhode Island, is one of New England’s most beloved beach destinations, drawing visitors year-round to its pristine coastline, historic pier, and charming seaside atmosphere. With its proximity to Providence (just 30 minutes), stunning ocean views, and vibrant summer tourism scene, Narragansett has become an increasingly popular market for short-term rental (STR) investors.

However, Narragansett’s STR market has undergone significant regulatory changes in recent years. In May 2024, the town council approved a comprehensive short-term rental ordinance that fundamentally reshaped how vacation rentals operate in this coastal community. These regulations were designed to address housing affordability concerns and maintain the town’s residential character while still allowing property owners to benefit from the robust tourism economy.

Unlike many beach destinations that simply require a permit, Narragansett has implemented some of the strictest STR regulations in Rhode Island, including a controversial seven-night minimum stay requirement and a cap on the total number of permits available. The ordinance has faced legal challenges, with implementation currently delayed pending litigation, creating uncertainty for both current and prospective STR operators.

This comprehensive guide breaks down everything you need to know about operating a legal and compliant short-term rental in Narragansett in 2025, including the current regulatory landscape, permit requirements, tax obligations, and what to expect as the legal situation evolves.

Current Short-Term Rental Permit Requirements in Narragansett

Narragansett’s short-term rental regulations exist in a state of transition. While a comprehensive ordinance was passed in May 2024, a temporary restraining order has delayed its full implementation pending litigation. Currently, property owners must comply with the town’s existing rental registration requirements while the new STR-specific rules remain on hold.

Current Registration Requirements (Under Existing Ordinance)

Until the litigation is resolved, all rental properties in Narragansett must register under the existing ordinance (Section 14-518 to 14-520):

Rental Registration Permit:

• Required for all rental properties, including those intended for short-term use
• Registration fee: $120 per unit
• Extended deadline for registration: February 24, 2025 (for properties not yet registered)
• Available through the Building Inspection Department
• Must be renewed annually

Required Steps:

1. Complete the Rental Registration Application form
2. Pay the $120 registration fee per unit
3. Submit proof of ownership
4. Pass a rental housing inspection
5. Provide a completed RI Residential Lease Agreement
6. Comply with the “Three Student” rule (no more than 3 college students per single-family dwelling)

Proposed STR Permit Requirements (Pending Court Resolution)

Once the litigation is resolved and the new ordinance takes effect, additional requirements will apply:

Short-Term Rental Permit:

• Application fee: $425 for Narragansett residents / $850 for non-residents
• Initial application fee: $200 (referenced in some documentation)
• Annual renewal required
• Permit caps: Limited to 1,100 permits (2024), decreasing to 1,000 (2025) and 900 (2026)
• Waitlist system if applications exceed permit limits

State Registration: All STR operators must register with the Rhode Island Department of Business Regulation, regardless of local permit status.

• Registration fee: $25 (reduced from $50 as of January 2025)
• Annual renewal (changed from biennial in 2024)
• Registration number must be displayed on all online listings
• Fines for operating without state registration: $250 (first 30 days), $500 (31-60 days), $1,000 (60+ days)

The permit application process typically takes 2-3 weeks from submission to approval, assuming all requirements are met and the property passes inspection. Given the current legal uncertainty, prospective STR investors should contact the Building Inspection Department for the most current information before proceeding.

Zoning Regulations for STRs in Narragansett

Narragansett’s zoning approach to short-term rentals remains subject to the outcome of ongoing litigation. However, the town’s general rental regulations and the proposed STR ordinance provide guidance on where vacation rentals may be permitted.

Current Zoning Status

Under existing regulations, rental properties are permitted throughout most of Narragansett, subject to proper registration and compliance with building codes. The town has not historically restricted rentals based on zoning districts for traditional rental properties.

Proposed STR-Specific Zoning (Under New Ordinance)

Once the new ordinance takes effect, STRs will be defined as dwelling units rented for less than 30 consecutive nights, with specific restrictions:

Property Type Restrictions:

• Must be residential dwelling units
• Non-building structures (garages, trailers, sheds) are prohibited from STR use
• Hotels and similar commercial establishments are exempt from STR regulations

Operational Restrictions:

• Seven-night minimum stay requirement (no stays shorter than 7 consecutive nights)
• Maximum occupancy based on square footage and bedroom count
• Adequate parking spaces required
• No large events (weddings, bachelor/bachelorette parties) permitted

HOA and Private Restrictions

Many Narragansett properties, particularly near the beach, are subject to homeowners association rules or private covenant restrictions that may:

• Prohibit short-term rentals entirely
• Require additional HOA approval and fees
• Impose stricter limitations than town regulations
• Set minimum rental periods longer than town requirements

Always verify both municipal zoning AND private restrictions before purchasing a property for STR use. The town’s permit approval doesn’t override private covenant restrictions.

Required Documentation for Narragansett Short-Term Rentals

To operate a legal STR in Narragansett, you’ll need to maintain comprehensive documentation:

Current Requirements (All Rental Properties)

1. Rental Registration Permit: Valid permit from Building Inspection Department
2. Proof of Ownership: Deed or property tax documentation
3. Rhode Island Residential Lease Agreement: Complying with town ordinances
4. Rental Housing Inspection Certificate: Proof of passing inspection
5. Insurance Documentation: Liability insurance recommended (minimum $1,000,000 coverage)

Additional Requirements Under New STR Ordinance (When Implemented)

6. STR Permit Certificate: Town-issued short-term rental permit
7. State Registration Number: Rhode Island DBR registration confirmation
8. Floor Plan: Detailed layout showing room dimensions, egress windows, and detector locations
9. Local Contact Information: Designated representative able to respond to complaints
10. Guest Records: Detailed records of all renters (names, dates, contact information)
11. Parking Plan: Documentation of available off-street parking
12. Maximum Occupancy Certificate: Proof of legal occupancy limits
13. Safety Equipment Documentation: Records of smoke detectors, CO detectors, fire extinguishers

Ongoing Record-Keeping Requirements

• Maintain all rental agreements and guest records
• Keep tax collection and remittance records for at least 3 years
• Document all property maintenance and safety inspections
• Retain copies of all correspondence with the town

Well-organized documentation is essential not only for compliance but also for defending against potential complaints or violations. Many successful operators maintain both physical files and cloud-based digital backups.

Narragansett Short-Term Rental Taxes

Rhode Island has a complex, multi-layered tax structure for short-term rentals that underwent significant changes in 2025. Narragansett STR operators must understand and comply with both state and potential local tax obligations.

State Taxes (Effective January 1, 2026)

Rhode Island Sales Tax:

• 7% on gross rental receipts for stays of 30 nights or less
• Applies to listing price plus cleaning fees

New Whole Home Short-Term Rental Tax (Starting January 1, 2026):

• 5% on rental of entire residential dwellings for stays of 30 nights or less
• This is distinct from the hotel tax on individual rooms
• No single stay is subject to both the 5% state hotel tax AND the 5% whole home tax

Local Hotel Tax:

• Increased from 1% to 2% effective January 1, 2026
• Applies to all short-term lodging rentals

Total Tax Rate for Whole-Home Rentals (as of January 1, 2026):

• 7% state sales tax
• 5% whole home short-term rental tax
• 2% local hotel tax
• Total: 14% on gross rental receipts

Tax Collection Methods

Through Hosting Platforms: Platforms like Airbnb and Vrbo are required to collect and remit Rhode Island sales tax and hotel taxes on behalf of hosts. However, you should verify that all required taxes are being collected and remain ultimately responsible for tax compliance.

Direct Bookings: If you collect payments directly from guests (not through a platform), you are personally responsible for:

• Registering with the Rhode Island Division of Taxation
• Obtaining a sales tax permit
• Collecting all applicable taxes from guests
• Filing monthly tax returns
• Remitting taxes by the 20th of the following month

Tax Filing Requirements

Sales and Hotel Tax Returns:

• File using Form RI-8478 (Residential Dwelling/Room Rental Tax Return)
• Monthly filing required for most operators
• Returns and payments due by the 20th of the following month
• Quarterly filing may be permitted for smaller operations under certain thresholds

Registration Process:

1. Register with the Rhode Island Division of Taxation
2. Obtain a sales tax permit (valid July 1 – June 30)
3. Register for hotel tax collection
4. Set up account for online filing and payment

Tax Deductions and Record-Keeping

STR operators may deduct various expenses to reduce taxable rental income, including:

• Mortgage interest (if applicable)
• Property taxes
• Insurance premiums
• Utilities
• Maintenance and repairs
• Cleaning services
• Property management fees
• Supplies and amenities
• Marketing and platform fees
• Depreciation

Keep detailed records of all income and expenses. The complexity of Rhode Island’s tax structure makes working with a tax professional experienced in vacation rentals highly advisable.

Safety Requirements and Inspections

Narragansett takes guest safety seriously, with inspection requirements for all rental properties and additional standards proposed for short-term rentals.

Current Safety Requirements (All Rental Properties)

Required Safety Equipment:

• Smoke detectors on each level and in each bedroom
• Carbon monoxide detectors on each level and near fuel-burning appliances
• Fire extinguishers (recommended on each level)
• Clearly marked emergency exits
• Adequate egress windows in bedrooms
• Working locks on all exterior doors and windows

Initial Inspection: All rental properties must pass an inspection by the Building Inspection Department before a rental registration permit is issued. Inspections verify:

• Building code compliance
• Safety equipment installation and functionality
• Structural integrity
• Electrical and plumbing systems
• Adequate ventilation

Reinspection Schedule:

• Periodic reinspections as determined by the Building Inspector
• Inspection may be triggered by complaints
• Inspection required for permit renewal (under new STR ordinance)

Additional STR Safety Standards (Under New Ordinance)

Enhanced Safety Requirements:

• Building code and fire code compliance certification
• Minimum square footage requirements per occupant
• Maximum occupancy limits based on bedroom count and square footage
• Detailed floor plans showing safety equipment locations
• Emergency evacuation plans (coastal area consideration)

Coastal-Specific Safety Considerations: Given Narragansett’s oceanfront location, additional safety measures are advisable:

• Hurricane preparedness information for guests
• Beach safety guidelines
• Information about rip currents and ocean conditions
• Emergency contact numbers prominently displayed
• First aid kit availability

Violation Consequences:

Under the proposed ordinance:

• Minor violations: Fines starting at $250
• Major violations: $1,000 fine plus permit revocation
• Operating without a permit: $1,000 fine (major violation)
• Refusing required inspection: Permit revocation
• Making false claims on permit application: Permit revocation

Maintaining rigorous safety standards protects both your guests and your investment while ensuring continued permit eligibility.

Narragansett vs. Surrounding Rhode Island Communities: Regulation Comparison

Understanding how Narragansett’s regulations compare to other Rhode Island coastal towns helps contextualize the local regulatory environment:

Newport

• Banned STRs in residential zones (2022)
• Resident owners may rent up to 2 rooms (maximum 4 guests) in their primary residence
• Among the strictest regulations in Rhode Island
• Strong focus on preserving residential neighborhoods

South Kingstown

• Less restrictive than Narragansett
• Standard rental registration required
• No seven-night minimum stay requirement (as of current regulations)
• Popular alternative for STR investors

Westerly

• Implemented STR regulations in recent years
• Permit system with annual fees
• Less restrictive than Narragansett’s proposed ordinance
• Strong beach rental market

Providence

• STR regulations focused on owner-occupied properties
• Registration and permitting required
• Urban market with different dynamics than coastal towns
• More enforcement resources than smaller communities

Cumberland, Warwick, East Providence

• Various levels of STR regulation
• Generally less restrictive than coastal communities
• Different target markets (not primarily beach destinations)

Narragansett’s proposed regulations represent some of the most comprehensive STR restrictions in Rhode Island, particularly with the seven-night minimum stay requirement and declining permit caps. This reflects the town’s specific concerns about housing affordability and community character in a highly desirable beach destination.

Many investors considering the Rhode Island coast evaluate multiple towns to find the regulatory environment that best fits their investment strategy and risk tolerance.

Enforcement of STR Rules in Narragansett

Understanding Narragansett’s enforcement approach is crucial for compliance and risk assessment:

Current Enforcement Status

Due to ongoing litigation over the new STR ordinance, enforcement currently focuses on:

• Basic rental registration compliance
• Building and safety code violations
• Response to neighbor complaints
• Health and safety hazards

The town has stated it will continue notifying property owners about registration requirements and compliance obligations during the litigation period.

Proposed Enforcement Mechanisms (Under New Ordinance)

Once the new ordinance takes effect, Narragansett plans to implement enhanced enforcement:

Monitoring and Tracking:

• Private vendor contract for STR listing tracking and identification
• Regular monitoring of Airbnb, Vrbo, and other platforms
• Cross-referencing with permit database
• Automated compliance checks

Complaint Response System:

• Dedicated process for neighbor and guest complaints
• Required local contact person must respond to issues
• Documentation of all complaints and responses
• Progressive enforcement for repeat violations

Violation Categories:

Minor Violations (Smaller fines):

• First-time paperwork issues
• Minor occupancy violations
• Correctable deficiencies

Major Violations ($1,000 fine + permit revocation):

• Operating without required permit
• Refusing mandatory inspections
• Making false statements on permit applications
• Repeated minor violations
• Serious safety hazards

Common Violation Areas

Based on enforcement patterns in similar communities, the most frequent issues include:

• Operating without proper state registration or local permits
• Exceeding maximum occupancy limits
• Inadequate parking
• Noise complaints from neighbors
• Garbage management problems
• Failure to maintain local contact availability
• Seven-night minimum violations (once enforced)

State-Level Enforcement

Rhode Island’s Department of Business Regulation also enforces STR compliance:

• Monitors platform listings for registration numbers
• Imposes fines for unregistered properties
• Can fine platforms (Airbnb, Vrbo) for listing unregistered properties
• Coordinates with local authorities on enforcement actions

The combination of state and local enforcement creates multiple compliance checkpoints that make operating an unpermitted STR increasingly risky.

How to Start a Short-Term Rental Business in Narragansett

Given the current regulatory uncertainty, here’s a roadmap for navigating the STR landscape in Narragansett:

Step 1: Assess Current Legal Status

• Monitor the ongoing litigation regarding the STR ordinance
• Contact the Building Inspection Department for current status updates
• Consult with a local real estate attorney familiar with the situation
• Join local STR operator groups to stay informed

Step 2: Market Research & Property Selection

Market Analysis:

• Research seasonal demand patterns (summer peak, shoulder seasons)
• Analyze comparable properties and rental rates
• Consider year-round vs. seasonal rental potential
• Evaluate impact of seven-night minimum (if enforced)

Property Selection Criteria:

• Proximity to beach and attractions
• Parking availability (critical in beach areas)
• Property condition and renovation needs
• Compliance with square footage and occupancy requirements
• HOA restrictions (if applicable)

Step 3: Verify Eligibility and Restrictions

• Confirm property zoning allows rentals
• Review HOA documents and private covenants
• Check permit availability (given the declining cap)
• Verify you can meet minimum stay requirements
• Assess local contact requirement feasibility

Step 4: Property Preparation

Physical Preparations:

• Install all required safety equipment
• Ensure building code compliance
• Create adequate off-street parking
• Address any deferred maintenance
• Design for guest comfort and coastal appeal

Coastal Considerations:

• Weather-resistant furnishings
• Beach gear storage
• Outdoor shower for sand removal
• Adequate HVAC for humid conditions

Step 5: Permitting and Registration

Immediate Steps (Current Requirements):

1. Register property with Building Inspection Department
2. Pay $120 rental registration fee per unit
3. Submit required documentation
4. Schedule and pass rental housing inspection
5. Register with Rhode Island Department of Business Regulation
6. Obtain state STR registration number

Future Steps (When New Ordinance Takes Effect): 7. Apply for town STR permit (resident or non-resident rate) 8. Provide additional documentation (floor plans, parking, etc.) 9. Pass STR-specific inspection 10. Designate local contact representative 11. Display permit and registration numbers as required

Step 6: Tax and Insurance Setup

• Register with Rhode Island Division of Taxation
• Obtain sales tax permit
• Set up hotel tax collection
• Purchase comprehensive liability insurance ($1,000,000 minimum)
• Consider additional coverage for coastal property risks

Step 7: Operations Launch

Listing Creation:

• Include state registration number (required by January 30, 2025)
• Highlight coastal location and beach access
• Emphasize compliance with all regulations
• Set pricing to reflect seven-night minimums (if applicable)

Guest Management:

• Create comprehensive house rules
• Provide detailed arrival information
• Include emergency contacts and procedures
• Offer local recommendations and beach safety information
• Maintain guest records as required

Property Management:

• Establish reliable cleaning protocols
• Create maintenance schedule
• Prepare for seasonal challenges (winter storms, summer crowds)
• Maintain local contact availability

Step 8: Ongoing Compliance

• Monitor legal developments regarding the STR ordinance
• Renew all permits and registrations timely
• File monthly tax returns by the 20th
• Keep detailed records of all income, expenses, and guests
• Respond promptly to any complaints or inspection requests
• Stay informed about regulatory changes

Advice from Narragansett Area STR Operators

Insights from property owners navigating the Narragansett market:

“The seven-night minimum requirement, if enforced, fundamentally changes the business model. I’ve shifted my marketing to target families planning full-week vacations rather than weekend getaways. It’s actually improved occupancy quality even if it limits flexibility.” – Patricia M., Narragansett STR owner

“Get ahead of the regulations rather than playing catch-up. When the new ordinance finally takes effect, there will be a rush for the limited permits. Having everything ready to go will be crucial.” – David L., property manager

“Building good relationships with neighbors has been essential. I proactively shared my contact information and respond immediately to any concerns. No complaints means no enforcement attention.” – Jennifer R., 3-year STR operator

“The beach location commands premium rates that justify the higher permit costs for non-residents. But make sure your financial model accounts for the 14% tax burden starting in 2026.” – Michael T., real estate investor

“Consider whether you can profitably operate under the seven-night minimum before investing. Some properties work better as traditional long-term rentals if the STR restrictions are too limiting.” – Sarah K., portfolio investor

The consensus among operators is that Narragansett remains a viable market for well-capitalized investors who can navigate complex regulations and potentially reduced booking flexibility.

Who to Contact About Narragansett STR Regulations

For official information and guidance:

Town of Narragansett Building Inspection Department

• Address: 25 Fifth Avenue, Narragansett, RI 02882
• Phone: (401) 782-0613
• Fax: (401) 782-0620
• Email: Via Rental Registration page
• Hours: Monday-Friday, 8:30 AM – 4:30 PM

Rental Registration Clerk

• Email: Available through town website
• For rental registration questions and application assistance

Rhode Island Department of Business Regulation

• Real Estate Section: (401) 408-1138
• Email: DBR.REInquiry@dbr.ri.gov
• Website: dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals
• For state STR registration

Rhode Island Division of Taxation

• Phone: (401) 574-8484
• Website: tax.ri.gov
• For sales tax, hotel tax, and tax compliance questions

Additional Resources:

• Short-Term Rental Ordinance
• Short-Term Rental Q&A
• Rental Properties by Street Address (town registry)

Future Outlook for Narragansett STR Regulations

The future of short-term rentals in Narragansett hinges on several key factors:

Litigation Resolution

The most immediate factor affecting the market is the outcome of the legal challenge to the STR ordinance:

• If ordinance is upheld: Full implementation of seven-night minimum, permit caps, and enhanced enforcement
• If ordinance is struck down: Possible return to drawing board for revised regulations
• If ordinance is modified: Compromise solution that may adjust minimum stays or permit numbers

Potential Regulatory Evolution

Regardless of litigation outcome, expect continued regulatory attention:

Permit Cap Adjustments:

• The declining cap (from 1,100 to 900 permits) may be revisited
• Waitlist management and permit allocation criteria may be refined
• Grandfathering provisions for existing operators under discussion

Minimum Stay Requirements:

• Seven-night minimum is highly controversial
• May be adjusted seasonally (longer in summer, shorter in off-season)
• Could be modified based on property type or location

Tax Structure:

• New state taxes taking effect January 1, 2026 are now law
• Local tax adjustments possible to fund enforcement
• Potential for STR-specific local fees

Enforcement Enhancement:

• Investment in monitoring technology
• Dedicated STR compliance staff
• Coordination with state authorities
• Platform data sharing agreements

Housing Market Considerations

The ordinance was partially motivated by housing affordability concerns:

• Continued pressure to limit STR impact on long-term housing stock
• Possible incentives for converting STRs to long-term rentals
• Affordable housing initiatives that may affect STR policy
• Community character preservation efforts

Market Adaptation

The STR market in Narragansett will likely evolve toward:

• Longer-stay vacation rentals (full-week bookings)
• Higher-end properties that can command premium rates
• Professional management to ensure compliance
• Strong neighbor relations to prevent complaints
• Properties specifically designed for the seven-night minimum model

Regional Competition

Narragansett’s strict regulations may drive some investment to surrounding communities with more favorable rules, potentially affecting:

• Property values
• Rental rate competitiveness
• Market share of coastal tourism
• Regulatory pressure on neighboring towns

Technology and Compliance

Expect increased use of technology for:

• Automated compliance monitoring
• Digital permitting and renewals
• Real-time occupancy tracking
• Tax collection and remittance systems

Ready to Invest in Narragansett Short-Term Rentals?

Narragansett presents a unique opportunity for STR investors willing to navigate a complex and evolving regulatory environment. The town’s stunning beaches, strong tourism demand, and proximity to Providence create solid fundamentals for vacation rental success—but only for operators who prioritize compliance and adapt to the changing rules.

The combination of legal uncertainty, comprehensive regulations, and declining permit caps makes Narragansett a market best suited for:

• Well-capitalized investors who can weather regulatory changes
• Operators comfortable with longer minimum stays
• Professional property managers with compliance expertise
• Long-term investors focused on property appreciation alongside rental income

Before investing, carefully consider:

• The impact of a seven-night minimum on your target market
• Your ability to secure one of the limited permits
• The higher permit costs for non-residents
• The 14% tax burden on gross rental receipts (as of 2026)
• Your tolerance for regulatory uncertainty

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Remember: Always consult with local legal and tax professionals before making investment decisions, especially in markets with pending litigation.

Last Updated: October 30, 2025

Important Note: The short-term rental ordinance passed in May 2024 is currently subject to ongoing litigation. The implementation of key provisions, including the seven-night minimum stay requirement and permit caps, has been delayed by court order. The information in this guide reflects both current requirements and proposed regulations that may take effect once the legal issues are resolved. Always verify the current status with the Town of Narragansett Building Inspection Department before making investment decisions.