Most Newport residents understand the city benefits from its international reputation as a tourist attraction.
But an increase in unregistered, short-term rental properties cropping up on third-party hosting platforms such as Airbnb and VRBO is causing some headaches in the City by the Sea.
In addition to possible zoning, building safety and tax violations, complaints about boisterous groups disturbing once-quiet residential neighborhoods are growing.
“Homes are being rented in residential neighborhoods and they’re turning into commercial neighborhoods,” said Rep. Lauren H. Carson, D-Newport.
Hoping to get a handle on the problem, Mayor Henry F. Winthrop last summer hired San Francisco-based software firm Host Compliance for $19,652 for one year. The company was asked to cross-reference previously registered Newport-based, short-term rental properties with all Newport-based properties listed on third-party hosting platforms.
In November, 237 letters were sent to Newport property owners violating city regulations. They were given 30 days to register with the city or face a $200-per-day fine. This resulted in 54 new registrations and 94 recipients reporting withdrawal of their property from third-party hosting platforms.
Laura Sitrin, Newport’s director of finance, said the main goal is to achieve city ordinance “compliance” and allow residents to “live in comfort … and not be subject to disturbances from other properties.”
The city also hopes to better track what it is paid in taxes by third-party hosting platforms. Currently, they are not required under state law to submit a detailed outline of expenses with each check, she said. “We have to assume they are collecting and paying properly. Once we get the law changed, we will be able to evaluate” if that’s true.
Carson, who also heads the House Tourism Study Commission, said she’s not ready to commit to seeking a change in state law but is curious about the “applicability statewide” of Host Compliance’s services.
Bob Billington, Blackstone Valley Tourism Council president, said third-party hosting is less of an issue in the nine towns he represents than in Newport.
Neither is Martha Sheridan, Providence Warwick Convention and Visitors Bureau president and CEO, overly concerned about Providence properties listed on third-party hosting platforms. The city does not require registration, she said, and visitors to the capital are more often business travelers or those attending academic events.
“In Newport, that’s not the case,” she said, adding she’s still curious about Host Compliance’s research.
“Anything that can help us track the number visiting [Providence] who aren’t using traditional hotels would be very helpful,” she said.
Carson said Newport representatives will discuss the registration results at the next Tourism Study Commission meeting, expected to be held April 13.
