Executive Overview

Short-term rentals ARE ALLOWED in Narragansett, RI, but they are subject to some of the most comprehensive and restrictive regulations in Rhode Island. The town has implemented a detailed regulatory framework that took effect on September 1, 2024, with strict permit limits, minimum stay requirements, and extensive operational standards designed to balance economic benefits with community housing needs.

Key highlights:

• Definition: STRs are rentals of dwelling units for less than 30 consecutive nights
• Minimum stay: 7 consecutive nights (rentals under 7 nights are prohibited)
• Permit limits: Decreasing from 1,100 permits (2024-25) to 900 permits (2026-27)
• Owner preference: 14-day exclusive application period for Narragansett residents
• Comprehensive compliance: Building/fire inspections, parking requirements, and ongoing operational obligations

Starting Your Short-Term Rental Business in Narragansett

Step-by-Step Process

1. Pre-Application Assessment

• Verify property meets minimum requirements (legal bedrooms, parking, sewer/septic capacity)
• Confirm you meet "Narragansett Resident" criteria if seeking resident preference
• Review zoning compliance and any private covenants/restrictions

2. Application Process (Opens August 1 Annually)

• First 14 days: Exclusive to Narragansett residents who live in the property and are registered voters at that address
• Remaining applications open to all applicants on August 15
• Submit online application to Building Official with required documentation
• Pay application fees ($50 resident/$100 non-resident)

3. Required Documentation

• Host identification and contact information
• Property address and detailed information
• Bedroom count and parking space verification
• Local Representative designation with 24/7 availability
• Proof of general liability insurance ($1,000,000 minimum)
• Acknowledgment of compliance requirements

4. Inspection and Permitting

• Schedule simultaneous Building Official and Fire Marshal inspections
• Address all deficiencies before permit issuance
• Pay permit fees ($375 resident/$750 non-resident) upon approval
• Receive STR permit stating maximum occupancy

5. State Registration (Required)

• Register with Rhode Island Department of Business Regulation
• Obtain state registration number
• Comply with state lodging tax requirements

6. Operational Setup

• Designate Local Representative if not self-managing
• Post required information in unit
• Prepare compliant lease agreements
• Establish recordkeeping systems

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements (Town of Narragansett)

1. Short-Term Rental Permit

• Application fee: $50 (resident) / $100 (non-resident)
• Permit fee: $375 (resident) / $750 (non-resident)
• Re-inspection fee: $375
• Re-schedule inspection fee: $100
• Valid September 1 - August 31 annually
• Non-transferable and expires upon property sale

2. Required Insurance

• General liability insurance: $1,000,000 minimum combined single limit
• Must cover Short-term Rental use specifically
• Acknowledgment required during application (physical proof not required to be uploaded)

3. Inspection Requirements

• Annual building and fire code inspections mandatory
• Smoke and carbon monoxide detector compliance based on construction date
• Bedroom egress window requirements based on construction date
• On-site wastewater treatment system (OWTS) compliance verification
• Parking space measurement and compliance verification

4. State Requirements (Rhode Island)

• State registration with Department of Business Regulation
• Registration number must be displayed
• Compliance with state lodging tax requirements
• Marketplaces must also be registered and compliant

Specific Regulations: Town, County, and State

Narragansett Municipal Regulations

Permit Limits and Allocation

• 2024-25 permit year: 1,100 total permits
• 2025-26 permit year: 1,000 total permits
• 2026-27 permit year: 900 total permits
• First-come, first-serve waiting list when applications exceed limits
• Resident preference: 14-day exclusive application period

Occupancy and Parking Requirements

• Maximum occupancy: 2 persons per legal bedroom
• Minimum bedroom size: 70 sq ft (1 person) / 120 sq ft (2 persons)
• Parking: 1 space per bedroom, minimum 2 spaces total
• Parking spaces: 10' x 20' minimum for 2-4 bedroom dwellings
• 300 sq ft per bedroom for 5+ bedroom dwellings
• All parking must be on-site, paved surfaces only (no lawn areas)
• Occupancy limited by available parking if requirements cannot be met

Operational Requirements

• Minimum stay: 7 consecutive nights
• Maximum stay: 29 consecutive nights
• One booking per property per day allowed (checkout/checkin same day)
• Local Representative required with 24/7 availability and 4-hour response commitment
• Maximum 4-hour response time for noise/complaint resolution

Prohibited Activities

• Events: Weddings, banquets, bachelor/bachelorette parties, corporate events
• Non-residential structures: Garages, trailers, boats, storage sheds, tents, tree houses
• Advertising violations: Misrepresenting capacity, features, or regulatory compliance
• Operating without valid permit or with outstanding violations

Recordkeeping Requirements

• Guest information: Names, addresses, phone numbers, rental dates
• Maintain all lease/rental agreements
• Retain records through rental period plus one additional year
• Make available to law enforcement investigating potential violations

State of Rhode Island Regulations

Registration Requirements

• All STRs listed on hosting platforms must register with state
• Registration through Rhode Island Department of Business Regulation
• Marketplace operators must also register
• Fines for non-registration: $250 (first 30 days), $500 (31-60 days), $1,000 (60+ days)

Lodging Tax Requirements

• Collect and remit state lodging taxes
• File regular tax returns with Division of Taxation
• Marketplaces may collect taxes on behalf of hosts
• Direct booking hosts responsible for their own compliance

County-Level Regulations

Washington County Context

• No specific Washington County STR regulations identified in provided materials
• State regulations provide the primary framework beyond municipal requirements
• County-level fire and building codes may apply through state enforcement

Local Authority Contact Information

Town of Narragansett - Primary Contacts

Building Department (STR Permit Authority)

• Physical Address: Town Hall, 25 5th Avenue, Narragansett, RI 02882
• Phone: (401) 789-1044 ext. 2211
• Email: building@narragansettri.gov
• Office Hours: Monday-Friday, 8:30 AM - 4:30 PM
• Contact: Building Official (enforcement authority for STR ordinance)

Town Hall Main Number

• Phone: (401) 789-1044
• Address: 25 5th Avenue, Narragansett, RI 02882

Fire Department

• Emergency: 911
• Non-Emergency: (401) 789-9239
• Fire Marshal: Conducts STR inspections and enforcement

Police Department

• Emergency: 911
• Non-Emergency: (401) 789-9222
• Address: 40 Caswell Street, Narragansett, RI 02882

State of Rhode Island Contacts

Department of Business Regulation - Real Estate Section

• Phone: (401) 462-9500
• Contact Person: Jorge Bannister at (401) 408-1138
• Email: DBR.REInquiry@dbr.ri.gov
• Address: 1511 Pontiac Avenue, Cranston, RI 02920
• Office Hours: Monday-Friday, 8:30 AM - 4:00 PM
• Online Registration: elicensing.ri.gov

Rhode Island Division of Taxation (Lodging Tax)

• Phone: (401) 574-8829
• Address: One Capitol Hill, Providence, RI 02908
• Website: tax.ri.gov/

Source Links

1. Narragansett Short-Term Rental Ordinance (Official Text)

   • narragansettri.gov/DocumentCenter/View/18133/Chapter-1123-Short-term-Rental-Ordinance-562024

2. Narragansett STR & Regular Rental Q&A Document

   • narragansettri.gov/DocumentCenter/View/18185/Short-Term-and-regular-Rental-Questions-and-Answers

3. Avalara Analysis of New Narragansett STR Ordinance

   • www.avalara.com/mylodgetax/en/blog/2024/06/new-narragansett-str-ordinance-goes-into-effect-september-1.html

4. Rhode Island Department of Business Regulation - Short-Term Rentals

   • dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals

5. Legal Challenge News Coverage

   • www.golocalprov.com/news/victory-for-narragansett-landlords-short-term-rental-ordinance-dealt-legal

Important Note: On October 3, 2024, Rhode Island Superior Court granted a temporary restraining order and preliminary injunction against enforcement of the Narragansett STR ordinance. The legal challenge, brought by "Narragansett 2100" and individual property owners, argues the ordinance conflicts with state law and exceeds municipal authority. Property owners should monitor ongoing litigation status before making investment decisions, as enforcement of the ordinance is currently suspended pending court resolution.