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

Short-term rentals are explicitly allowed in Providence, Rhode Island. The city has established a comprehensive regulatory framework that permits STR operations under specific conditions. Providence defines a short-term rental as the occupancy or use, for a fee, of all or portions of a dwelling unit by anyone other than the owner for a period of fewer than 28 consecutive calendar days.

Key allowance structure:

• Owner-occupied dwellings can be used as short-term rentals throughout ALL zones in Providence where residences are permitted
• Non owner-occupied dwellings are prohibited from operating as short-term rentals in R1, R1A, R2, and R3 zones, but allowed in all other residential zones
• Private bedroom rentals (where the owner resides in the dwelling during the rental period) do not require city permits but must comply with state registration requirements

Starting a Short-Term Rental Business in Providence

Step 1: Property Zoning Verification

Before proceeding, verify your property's zoning using the city's "Where's My Parcel and What's My Zone" GIS application:

• Website: providence-gis-hub-pvdgis.hub.arcgis.com/
• This step is critical as zoning determines whether your STR operation will be permitted

Step 2: State Registration (Required for All Third-Party Platform Listings)

All short-term rentals listed on third-party hosting platforms (Airbnb, Vrbo, etc.) must be registered with the Rhode Island Department of Business Regulation, regardless of whether they are owner-occupied or not.

Registration requirements:

• Registration cost: $25
• Validity: 1 calendar year
• Application process: Electronic application through the DBR licensing portal
• Registration number: Required for platform listings

Application requirements include:

1. Principal place of business of the owner (or agent for service of process if out-of-state)
2. Phone number of owner and/or property manager
3. Email address of owner and/or property manager
4. Address of the rental property
5. Number of rooms for rent
6. Whether registrant rents or owns
7. Intended use (entire space, private room, or shared space)

Step 3: Municipal Permits (For Entire Dwelling Units)

If renting an entire dwelling unit (rather than individual rooms), you must obtain a Temporary Use Permit from the Department of Inspection and Standards:

• Annual renewal required
• Not required for private bedroom rentals where owner resides on premises

Step 4: Tax Registration

Register with the Rhode Island Division of Taxation if your hosting platform does not collect and remit taxes on your behalf:

• State lodging tax: 5%
• State sales tax: 7%
• Combined rate: Approximately 13%
• Additional local taxes: Providence may impose additional local hotel taxes

Step 5: Safety Compliance

Implement basic safety measures:

• Visible printed materials with diagrams of all exits
• Clearly marked fire extinguishers
• Compliance with local fire safety codes (contact Providence Fire Department for specific requirements)

Required Documents, Permits, Licenses, and Guidelines

Municipal Level (City of Providence)

1. Temporary Use Permit (for entire dwelling units only)

   • Issued by Department of Inspection and Standards
   • Annual renewal required
   • Application process through city licensing portal

2. Proof of zoning compliance

   • Property must be in appropriate zone for intended STR use
   • Verify through GIS application

3. Safety compliance documentation

   • Exit diagrams
   • Fire extinguisher documentation

State Level (Rhode Island)

1. State STR Registration

   • $25 fee
   • Valid for 1 calendar year
   • Required for all listings on third-party platforms
   • Registration number must be displayed on listings

2. Tax registration (if platform doesn't collect taxes)

   • Rhode Island Division of Taxation registration
   • Sales tax and lodging tax collection/remittance

Prohibited Property Types

• Accessory Dwelling Units (ADUs): Cannot be offered for tourist or transient use as of June 25, 2024, under R.I. Gen. Laws § 42-24-73

Specific Regulations by Jurisdiction

City of Providence Regulations

Zoning Restrictions:

• Owner-occupied STRs: Permitted in all residential zones where dwellings are allowed
• Non owner-occupied STRs: Prohibited in R1, R1A, R2, R3 zones; permitted in all other residential zones

Operational Requirements:

• 28-day minimum stay definition
• Owner presence requirement for permit exemption on bedroom rentals
• Annual permit renewal for entire dwelling units
• Basic safety measures mandatory

Safety Standards:

• Exit diagrams required
• Fire extinguishers must be clearly marked
• Compliance with local fire codes

County Level

Providence operates as both a city and county. There are no additional county-specific regulations beyond city and state requirements.

State of Rhode Island Regulations

Registration Requirements:

• Mandatory registration for all STRs listed on third-party platforms
• 30-night threshold: Properties rented for 30 nights or less require registration
• No exemptions: Even owner-occupied properties must register if listed on platforms

Penalties for Non-Compliance:

• First 30 days: $250 civil penalty
• 31-60 days: $500 civil penalty
• More than 60 days: $1,000 civil penalty

Insurance Requirements:

• No state-mandated insurance requirements for STRs

Timeshare and Special Properties:

• Timeshares must be registered if listed on platforms
• Houseboats must be registered if listed on platforms

Municipal Coordination:

• State registration is independent of municipal requirements
• Property owners must comply with both state and local regulations

Contact Information for Local Authorities

City of Providence - Department of Inspection and Standards

For Temporary Use Permits and municipal compliance:

• Phone: 401-680-5000 (City Hall main number)
• Address: Providence City Hall, 25 Dorrance Street, Providence, RI 02903
• Website: www.providenceri.gov/inspection-standards/
• Office Hours: Monday-Friday, 8:30 AM - 4:00 PM

City of Providence - Main Contact

General city services and information:

• Phone: 401-680-5000
• Address: 25 Dorrance Street, Providence, RI 02903
• Website: www.providenceri.gov
• PVD 311 (Non-emergency): 3-1-1 or 401-421-2489

State of Rhode Island - Department of Business Regulation

For state STR registration and compliance:

• Phone: 401-462-9500
• Email: DBR.REInquiry@dbr.ri.gov
• Real Estate Section Contact: Jorge Bannister, 401-408-1138
• Address: 1511 Pontiac Avenue, Cranston, RI 02920
• Website: dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals
• Office Hours: Monday-Friday, 8:30 AM - 4:00 PM

Rhode Island Division of Taxation

For tax registration and compliance:

• Website: tax.ri.gov
• Phone: Contact through main DBR number for referrals

Providence Fire Department

For fire safety requirements and inspections:

• Contact: Through City Hall main number
• Website: www.providenceri.gov

Links to Source Pages

1. Providence STR Regulations: www.providenceri.gov/planning/short-term-rentals/
2. Providence STR Ordinance News: www.providenceri.gov/new-short-term-rental-ordinance-go-effect-november-30/
3. Rhode Island State STR Registration: dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals/
4. Rhode Island STR FAQs: dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals/short-term-rentals-FAQs
5. Providence Zoning GIS: providence-gis-hub-pvdgis.hub.arcgis.com/
6. STR Registration Database: elicensing.ri.gov/Lookup/OnlineReportExecute.aspx?queryIdnt=1298
7. Apply for State STR Registration: elicensing.ri.gov
8. Providence Code of Ordinances: library.municode.com/ri/providence/codes/code_of_ordinances

Note: Regulations are subject to change. Investors should verify current requirements with local authorities before proceeding with any STR operation. The complexity of overlapping state and local requirements necessitates careful compliance planning and potentially legal consultation for complex situations.