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

Short-term rentals are allowed in Newport, RI but with significant restrictions. Property owners in Newport's residential zones are prohibited from renting properties for less than 30 days unless the home serves as a primary residence. Short-term rentals remain permissible in the City's General Business, Waterfront Business, and Commercial Industrial zones. Properties in the Limited Business Zone require a Special Use Permit from the Zoning Board of Review.

For owner-occupied properties, homeowners may continue to rent up to 2 rooms to no more than four people by right, provided the homeowner resides within the rental unit/home for the duration of the rental period.

Key Point: Any property engaging in short-term rentals (rental duration of 30 days or less) must register as a Transient Guest Facility with both the State of Rhode Island and the City of Newport.

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How to Start a Short-Term Rental Business in Newport

Step 1: Confirm Your Zoning (Critical First Step)

Use the City's GIS portal to determine your property's zone. Hover over your street location to obtain your Zoning ID.

Permitted STR Zones:

• General Business (GB) - Permitted by right
• Waterfront Business (WB) - Permitted by right
• Commercial Industrial (CI) - Permitted by right

Restricted STR Zones:

• Residential Zones (R3-R160) - NOT permitted unless primary residence
• Limited Business (LB) - Requires Special Use Permit

Primary Residence Exception:

• Owner-occupied properties may rent up to 2 rooms to no more than 4 people by right
• Owner must reside within the rental unit/home for the duration of the rental period

Step 2: Check Fire Code Requirements

All STR applications must be reviewed by the Fire Marshal's Office:

• Properties rented to more than 5 individuals require fire protection systems
• Properties hosting 6-16 guests are classified as Lodging and Rooming establishments under the Rhode Island State Fire Code and require fire alarm systems and sprinklers
• Contact the Newport Fire Prevention Office at fdguesthouse@cityofnewport.com for specific requirements

Step 3: Parking Compliance

Properties may need to meet off-street parking requirements of one space per bedroom. Contact str@cityofnewport.com for specific requirements.

Step 4: Register with Both State and City

State Registration (Required First):

• Register with the State of Rhode Island Department of Business Regulation
• Registration required for each unit rented
• Valid for one calendar year
• State registration number and expiration date required for city application

City Registration:

• Apply through the Short-Term Rental Portal
• New applications require account number and verification code
• Submit floor plan and dimensional parking plan
• Applications with parking lease requirements require annual parking lease agreement upload

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Required Documents, Permits, Licenses, and Guidelines

Required Documentation:

• State of Rhode Island STR registration (per unit)
• City of Newport Transient Guest Facility application
• Floor plan of rental unit
• Dimensional parking plan
• Annual parking lease agreement (if applicable)
• Property deed or ownership documentation
• Business registration (if required)

Required Permits and Licenses:

1. Rhode Island State Short-Term Rental Registration (from Department of Business Regulation)
2. City of Newport Transient Guest Facility Certificate
3. Special Use Permit (required for Limited Business Zone properties)
4. Fire Marshal Approval (based on occupancy capacity)
5. Building Permits (if renovations required for compliance)

Annual Fees:

• $15 Filing Fee (collected upon initial application receipt)
• $500 Annual Fee (Home Occupation property - upon approval)
• $1,000 Annual Fee (Non-Home Occupation property - per unit, upon approval)
• All fees are non-refundable

Compliance Requirements:

• All taxes and utility charges must be current
• Room taxes must be paid monthly to maintain valid registration
• Annual renewal required (certificates valid June 1 - May 31)
• Properties must pass inspections by Zoning, Building, Collections, and Fire departments

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Specific Regulations by Zone and Authority

City of Newport Zoning Regulations:

Residential Zones (R3-R160):

• Short-term rentals prohibited unless primary residence
• Owner-occupied: maximum 2 bedrooms, 4 guests total
• No more than one such use permitted per lot

Limited Business Zone (LB):

• Short-term rentals prohibited without Special Use Permit
• Requires onsite manager
• Application through Zoning Board of Review

General Business, Waterfront Business, Commercial Industrial Zones:

• Permitted by right as Transient Guest Facilities
• No owner/manager residency requirement
• Standard fire safety and parking requirements apply

Rhode Island State Regulations:

Fire Safety Requirements:

• 1-5 guests: Standard residential fire code
• 6-16 guests: Lodging and Rooming establishment classification
• Requires fire alarm system and sprinklers for 6-16 guest properties

Tax Requirements:

• Monthly room tax remittance required
• State sales tax may apply
• Municipal tax obligations

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Contact Information for Local Authorities

Primary STR Contact:

Short-Term Rental Supervisor

• Email: str@cityofnewport.com
• Phone: (401) 845-5451 or (401) 845-5466

Fire Marshal's Office:

Newport Fire Prevention Office

• Email: fdguesthouse@cityofnewport.com
• Include property address, contact information, year of construction, and number of units

Zoning and Inspections Department:

• Phone: (401) 845-5471
• Email: dpsullivan@cityofnewport.com (Deputy Zoning Officer)

State Registration:

Rhode Island Department of Business Regulation

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

Online Portal Support:

GovOS Support

• Phone: 888-751-1911

City Hall:

Address: 43 Broadway, Newport, RI 02840

• Phone: (401) 845-5300
• Hours: Monday-Friday, 8:30 AM - 4:30 PM

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Enforcement and Compliance

Enforcement Actions:

• Failure to register can result in substantial civic fines
• Violations may lead to court proceedings
• Properties operating without proper permits face immediate compliance requirements

Ongoing Compliance:

• Monthly room tax payments required
• Annual certificate renewal mandatory
• Property must pass all departmental reviews
• Maintain current contact information in portal
• Keep all permits and certificates posted as required

Complaint Reporting:

• Residents can report violations through "Report it! Newport"
• Online complaint system available
• Violations investigated by appropriate city departments

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Source Links

1. Main City STR Regulations Page: www.cityofnewport.com/City-Hall/Departments/Zoning-Inspections/Zoning-(1/Short-Term-Rental-Regulations
2. City STR Registration Portal: newportri.munirevs.com/
3. Rhode Island State STR Registration: dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals
4. Newport GIS Zoning Portal: newportri.mapgeo.io/datasets/property
5. City Ordinances (Municode): library.municode.com/ri/newport/codes/code_of_ordinances
6. Report Complaints: www.cityofnewport.com/Report-It-Newport
7. STR Policy Changes Article: www.newportrhodeislandrealestate.com/the-newest-in-extraordinary-real-estate/changes-to-short-term-rentals-in-newport

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Important Notes for Investors:

• Complete state registration before applying to the city
• Plan for 4-6 weeks processing time for new applications
• Consider fire safety upgrade costs for properties over 5 guests
• Factor annual renewal requirements into business planning
• Properties in residential zones may require conversion to commercial zones for viable STR operations
• Consult with local real estate professionals familiar with Newport's zoning map before purchasing investment properties