Short-Term Rental Investor's Guide: Bristol, Rhode Island

Overview: Are Short-Term Rentals Allowed in Bristol, RI?

Yes, short-term rentals are allowed in Bristol, Rhode Island. However, the regulatory landscape is evolving, and investors should be aware of both current requirements and potential future restrictions.

How to Start a Short-Term Rental Business in Bristol, RI

Starting an STR business in Bristol follows a two-step process based on Rhode Island's regulatory framework:

Step 1: State-Level Registration (Required for All)

All short-term rental properties in Rhode Island that are listed on third-party platforms (such as Airbnb or VRBO) must be registered with the Rhode Island Department of Business Regulation (DBR). This requirement applies to properties rented for 30 days or less at a time.

Step 2: Municipal Compliance (On a Case-by-Case Basis)

According to the Bristol Housing Actions Memo, the town is exploring options for local STR regulation. The memo specifically states the town is considering "requiring a more robust local registration process for short term rentals so that the Town can track their locations and better understand their impacts."

Required Documents, Permits, Licenses, and Guidelines

State-Level Requirements

Rhode Island Department of Business Regulation Registration:

• Cost: $25 annually
• Valid for: 1 year
• Application required information:
  • Principal place of business of the owner (or property manager if out-of-state)
  • Phone number of owner and/or property manager
  • Email address of owner and/or property manager
  • Address of rental property
  • Number of rooms for rent
  • Whether registrant rents or owns
  • Intended rental use (entire space, private room, or shared space)

Rhode Island Department of Health Lead Safe Certification:

• Registration required for all rental properties
• Deadline currently October 1, 2024 (subject to extension)
• Not all properties require Lead Safe Certificate (exemptions available)
• Out-of-state owners must list a local manager

Municipal Requirements

Currently, Bristol does not have established local STR permitting processes. The town is in the development phase of creating local regulations.

Specific Regulations for Short-Term Rentals

State-Level Regulations (Rhode Island)

Definition and Scope:

• Short-term rentals are defined as properties rented for 30 days or less
• Properties listed on third-party hosting platforms must be registered with DBR
• Statutory authority: R.I. Gen. Laws § 42-63.1-14 ("Offering residential units through a hosting platform")

Tax Obligations:

• State lodging tax: 5%
• State sales tax: 7%
• Combined rate: approximately 12%
• Additional local taxes may apply

Bristol-Specific Regulations

Current Status: No specific local ordinances for short-term rentals are currently in place. However, the Bristol Housing Actions Memo indicates several future policy considerations:

Planned Actions:

1. Implementation of local registration process
2. Tracking STR permits separately from year-round rentals
3. Potential restrictions or limitations based on registration data analysis
4. Differential taxation rates to incentivize year-round rentals over short-term rentals

Zoning Considerations: The memo references that multi-family housing is allowed by right in several zoning districts, which may affect future STR regulations in these areas.

Planning Phase: The town is actively evaluating STR impacts on housing availability and neighborhood character as part of comprehensive housing planning.

Contact Information

Primary State Contacts

Rhode Island Department of Business Regulation

• Real Estate Section Contact:
  • Online Inquiry System: Available through DBR website
  • Email: DBR.REInquiry@dbr.ri.gov
  • Phone: Jorge Bannister at 401-408-1138
  • General Phone: (401) 462-9500

Rhode Island Department of Health Rental Registry

• Website: www.rentalregistry.ri.gov
• Lead Safe Certification inquiries through this portal

Municipal Contacts

Town of Bristol Planning Department

• Website: www.bristolri.gov/195/Zoning
• For questions about potential local STR regulations

Bristol Housing Authority

• Contact through Town Hall for Section 8 and housing-related inquiries

Links to Source Pages

State-Level Resources:

• Rhode Island Department of Business Regulation - Short-Term Rentals
• Rhode Island Short-Term Rental Registration Portal
• Rhode Island Statewide Rental Registry
• R.I. Gen. Laws § 42-63.1-14 - Offering residential units through a hosting platform
• 230-RICR-30-20-4 (State Regulations)

Municipal Resources:

• Bristol Zoning Department
• Town of Bristol Official Website

Additional Information:

• Rhode Island Short-Term Rental FAQs
• Bristol Housing Actions Memo - May 7, 2024

Important Considerations for Investors

1. Regulatory Environment: While STRs are currently allowed, Bristol is actively developing local regulations. Investors should monitor town council meetings and planning department updates.

2. Compliance Timeline: State registration must be completed before listing on platforms. Municipal requirements may be implemented in the near future.

3. Housing Policy Context: The town's comprehensive plan identifies STRs as a potential tool for maintaining year-round rental housing supply, suggesting future regulations may focus on balancing tourism with residential needs.

4. Economic Incentives: The town is considering differential taxation to incentivize year-round rentals, which could affect STR profitability in the future.

This regulatory framework presents both opportunities and considerations for STR investors in Bristol, requiring proactive compliance with state requirements while monitoring for developing local ordinances.