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Westerly

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Westerly, RI

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STR Regulations for Westerly, Rhode Island

Overview: Are STRs Allowed in Westerly, RI?

Yes. Short-term rentals are allowed in Westerly, but they are regulated. STRs are explicitly defined as the rental of all or portions of a dwelling in a residential zone for fewer than 28 consecutive calendar days. Property owners must annually register with both the State of Rhode Island (Department of Business Regulation) and the Town of Westerly. In addition, Town ordinances governing noise, peace and good order, littering, solid waste, and off-street parking apply to STR operations and enforcement.

Top-line compliance checklist:

  • Register with the Rhode Island Department of Business Regulation (DBR) before listing.
  • Register annually with the Town of Westerly for each STR property (residential zones only).
  • Ensure local management is in place whenever the property is rented (owner-occupant, a property management company, or a town resident who is available locally).
  • Comply with Town ordinances (noise, litter, solid waste, parking, and related rules).

Sources: Town of Westerly STR Ordinance §145-25 and Related Ordinances; RI General Laws § 42-63.1-14, 42-63.1-14.1; 230-RICR-30-20-4.

What do Airbnb hosts actually earn in Westerly?

Westerly hosts earn a median $33,438/year with $351 ADR and 56% occupancy.

Top performers pull in $46,812+ per year.

See the full Westerly market breakdown

How to Start an STR in Westerly, RI

A practical step-by-step approach:

  1. Confirm zoning and readiness
    • Ensure the property is located in a residential zone and is suitable for short-term rental occupancy. Confirm septic capacity, parking availability, and trash storage for the expected occupancy. There are no municipal occupancy caps specified in the provided materials, but large occupancies should consider septic and infrastructure impacts.
  2. Arrange compliant management
    • STRs must be managed at all times by: the owner-occupant; a property management company; or a local town resident who is available whenever the rental is in use. This management requirement applies town-wide (per the current ordinance and subsequent guidance).
  3. Complete State of Rhode Island registration
    • Apply via the DBR eLicensing portal. Confirm the current state registration requirements and any applicable fees. Rhode Island statutes require that any STR listed on hosting platforms that do business in Rhode Island be registered with DBR, and platforms must report such listings to the state.
  4. Complete Westerly municipal registration
    • Register annually via the Town’s ViewPointCloud portal and pay the annual fee. Annual registration is required for each STR property in residential zones.
  5. Implement compliance measures
    • Provide guests with rules on noise, trash/recycling, parking, and quiet hours. Include rental terms and local contact information. Confirm that your listing reflects the permitted occupancy and parking limits.
  6. Operate and monitor
    • Maintain records of guest stays and ensure local management can respond within a reasonable time to guest needs and neighbor concerns. The Town plans to deploy tracking software to identify unregistered STRs and ensure compliance.

Sources: Westerly STR ordinance and registration portal; DBR platform reporting bulletin and registration portal; news coverage of ongoing Town policy review.

Required Documents, Permits, Licenses, and Guidelines

  • State-level

    • Rhode Island Short-Term Rental Registration via DBR’s eLicensing system.
    • Documentation to support registration (e.g., proof of control/ownership of the property, contact details, and compliance attestations).
    • Compliance with Rhode Island statutes on hosting platform reporting and registry requirements.

  • Municipal (Town of Westerly)

    • Annual STR registration for each residential-zone property under §145-25.
    • Use of the Town’s online registration portal for Westerly STR registration.
    • Adherence to related Town ordinances: Noise (Chapter 171), Peace and Good Order (Chapter 182), Littering (Chapter 162), Solid Waste (Chapter 217), Off-Street Parking (260-77).
    • Management requirement: owner-occupant, a property management company, or a town resident who is available locally whenever the rental is in use.
    • Note: Some councilmembers have proposed additional requirements (e.g., fire marshal sign-off; searchable online STR database; geographic limits or caps). These were under discussion as of July 2025 but may not yet be codified.

Sources: Town STR registration page and referenced ordinances; DBR page, FAQs, statutes, and regulation; Town news coverage of ongoing policy evaluations.

Specific Regulations: Westerly, County (Narragansett County), and Rhode Island State

  • Town of Westerly (local)

    • Definition and scope: Residential Zone STRs offer occupancy for fewer than 28 consecutive calendar days. Applies to all or portions of a dwelling unit located within residential zones.
    • Registration requirement: Annual registration is required for each property used as an STR in residential zones. Registration is processed through the Town’s ViewPointCloud portal.
    • Management requirement: STRs must be managed at all times by the owner-occupant, a property management company, or a town resident who is available locally whenever the rental is in use.
    • Annual fee: The Town increased the annual municipal STR registration fee from $50 to $500 to fund a tracking system and enforcement. Note: Some news accounts mention a separate state fee; confirm the current amount with DBR.
    • Related ordinances: Noise, Littering, Peace and Good Order, Solid Waste, and Off-Street Parking regulations apply to STR guests and operations.
    • Enforcement posture: The Town reported relatively few violations to date but is implementing software to identify unregistered STRs and ensure compliance. Ongoing council discussions include potential geographic limitations, caps, fire marshal sign-off, and an online STR database. None of these proposals were final as of mid-2025.

  • County level

    • There are no county-specific STR regulations provided. STRs in Westerly are governed by state statutes and Town ordinances. Investors should focus on Town and state compliance.

  • State of Rhode Island

    • Registration: STRs listed on hosting platforms that conduct business in Rhode Island must be registered with DBR. Hosting platforms must report listed properties to DBR.
    • Statutes:
      • R.I. Gen. Laws § 42-63.1-2 (Definitions)
      • R.I. Gen. Laws § 42-63.1-14 (Offering residential units through a hosting platform)
      • R.I. Gen. Laws § 42-63.1-14.1 (Properties listed on hosting platform websites)
    • Regulation: 230-RICR-30-20-4 (State-level STR regulation)
    • DBR guidance: STR FAQs and step-by-step lookup tools are available to confirm registrations. Confirm registration fees and renewal timing with DBR directly.

Sources: Town STR Ordinance and Related Ordinances; DBR statutes and regulation; DBR bulletins; Town news coverage (2024–2025).

Contact Information

  • Town of Westerly (municipal STR registration and general inquiries)

    • Address: Town Hall, 45 Broad Street, Westerly, RI 02891
    • Phone: 401-348-2500
    • Hours: Monday–Friday, 8:30 a.m. – 4:30 p.m.
    • Online STR Registration (Town): ViewPointCloud portal
    • STR Registration Page: westerlyri.gov/780/Short-term-Rental-Registration

  • Rhode Island Department of Business Regulation (DBR) (state STR registration, platform reporting, compliance)

    • Address: 1511 Pontiac Avenue, Cranston, RI 02920
    • Phone: 401-462-9500
    • Real Estate Section (STR inquiries): 401-408-1138 (Jorge Bannister)
    • Email: DBR.REInquiry@dbr.ri.gov
    • STR Registration (State): DBR eLicensing Portal
    • DBR STR Page: dbr.ri.gov/real-estate-and-commercial-licensing/short-term-rentals
    • STR FAQs: Provided on DBR site
    • Roster/Lookup Tools: How-to PDFs and online lookup links provided on DBR site

  • News and background (context)

    • The Westerly Sun articles on ongoing Council reviews of the Town’s STR rules and registration fee increase: 2024 and 2025 coverage included above.

Source Links

Practical notes for investors:

  • Confirm the current state registration fee and renewal cadence with DBR (the portal governs the exact amount and process).
  • If your property is not owner-occupied, ensure you have a local manager who can respond whenever guests are present.
  • Expect continued policy refinement in Westerly as the Council evaluates geographic limits, caps, fire marshal sign-off, and transparency tools. Always check the Town’s current ordinance page and DBR resources for the most up-to-date requirements.

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Westerly

Market Saturation Score

036912
Moderate Saturation
7/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Westerly Market Analysis

Photos of Westerly

Overview of Westerly

Westerly is a coastal town in Washington County, Rhode Island, sitting at the state's southwestern corner where Rhode Island meets the Connecticut border. With a population of approximately 18,000 residents, it carries the relaxed pace of a New England shore town paired with a walkable downtown and a long Atlantic coastline. The town is best known as the gateway to Watch Hill, a storied seaside village at its southern tip, and for its broad, family-friendly beaches. Westerly lies roughly 50 miles southwest of Providence and about 20 miles east of New London, Connecticut, making it an easy drive for weekenders from across southern New England and the New York metro area.

Watch Hill sits at the very end of a peninsula on Westerly's southern coast and is one of the most photographed villages in New England. Beyond its sandy shoreline and the landmark Ocean House hotel, the village is home to the Flying Horse Carousel, said to be one of the oldest operating carousels in the country, and to a working waterfront that doubles as a departure point for ferries to Block Island. The whole area carries the feel of a Gilded Age summer colony, with manicured lanes, boutique shops, and ocean views around nearly every corner. Watch Hill is just minutes from the center of Westerly and anchors much of the town's summer appeal.

A few miles east of Watch Hill, Misquamicut State Beach draws the bulk of Westerly's summer crowds. This roughly two-mile stretch of barrier beach offers calm surf, lifeguarded swimming areas, nearby restaurants, and evening entertainment at adjacent beach pavilions. It is a classic New England family beach, with the kind of warm sand and gentle waves that keep visitors coming back year after year. From downtown Westerly, the drive to Misquamicut is only about ten minutes, which makes it easy for vacation rental guests to come and go throughout the day.

Westerly's historic downtown offers a quieter counterpoint to the busy shoreline. Wilcox Park, a Victorian landscape at the heart of town, hosts summer concerts, a weekly farmers' market, and shaded walking paths, while the surrounding streets are lined with locally owned restaurants, antique shops, and a notable granite-trimmed public library. The downtown sits only a couple of miles from the ocean, giving visitors the rare convenience of strolling to dinner after a day at the beach. The town also preserves several 18th- and 19th-century houses that hint at its earlier history as a granite-quarrying and textile-mill center.

Together, these pieces make Westerly a natural fit for short-term rentals. The town delivers oceanfront scenery and a real summer resort atmosphere without the crowds of more famous Cape Cod or Hamptons destinations, and its compact layout means guests can walk or drive a few minutes from a quiet residential rental to a packed beach, a historic carousel, or a sunset concert in the park. With its blend of small-town New England character and shoreline amenities, Westerly appeals to summer families, off-season leaf-peepers, and coastal couples alike.

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