Warwick officials consider restrictions on short-term home rentals

WARWICK – Following the lead of elected officials in Newport, the Warwick Planning Board recently voted to make a recommendation to the City Council to pass an ordinance that would put heavy restrictions on short-term home rentals, such as those offered through Airbnb and Vrbo.

The Planning Board recently held a meeting to approve final modifications to a proposed city ordinance restricting short-term rentals to only owner-occupied properties located within four residential zones in the community, along with another area known as the “village district.”

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The regulations are intended to combat neighborhood disturbances that can occur at short-term rental sites when the property owner isn’t around, according to the language of the proposal.

“Residential rentals in Warwick, including short-term rentals in residential neighborhoods, have been the source of noise, congestion, pollution and disorderly conduct involving tenants and other persons on and near the premises,” the proposed regulation states. “The city of Warwick finds that, by application of the regulatory framework contained herein, the short-term rental of owner-occupied dwelling units can have a positive effect on the health, safety and welfare of the community, by providing flexible housing stock that allows travelers safe accommodations while contributing to the local economy.”

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Warwick’s proposal establishes a short-term rental permit registration process, with a $250 permit registration fee annually for each dwelling unit.

And the proposal also prohibits certain dwelling units from being used at all for short-term rentals, including “accessory structures,” properties where weddings take place, and housing that is subject to rental assistance, deemed “affordable” or is otherwise below market rate.

It’s not yet clear when the City Council will vote on the proposed regulations. The council is scheduled to meet next on Oct. 3 at 5 p.m. However, no agenda for the meeting was available as of deadline for this story.

The proposed regulations would establish fines of up to $100 per day for a first violation, $250 per day for a second violation, $500 per day for a third and each subsequent violation, according to a copy of the ordinance, which has been sponsored by Warwick City Councilors Ed Ladouceur and Donna Travis.

The ordinance states that it would be enforceable by “any zoning enforcement official” who works for the city. Those who exceed three violations are also subject to having their short-term rental permit revoked for at least 12 months, with permit holders given the opportunity to appeal before the Zoning Board of Review, according to the proposal.

This comes after the Newport City Council enacted a ban on short-term home rentals in homes that are not occupied by the owner in the city’s designated residential zones, while also prohibiting short-term rentals in the city’s “limited business zones” unless the property owner obtains a special permit.

Airbnb has spoken out against the regulations on whole-home short-term rentals. The company said the restrictions in Newport will hurt taxpaying property owners, who often depend on short-term rentals to make ends meet.

“These regulations will have a devastating effect on their ability to earn income that helps pay their mortgages and contribute to the Newport tourism economy overall,” said Manny Capellan, public policy manager for Airbnb, in an email earlier this year to Providence Business News.

And the new proposal in Warwick is on the table as the state is implementing a new short-term rental registry established through a bill passed in 2021 by the R.I. General Assembly, which was then subject to a veto by Gov. Daniel J. McKee, which was overturned by state lawmakers earlier this year.

Starting on Oct. 1, according to the new law, short-term rental property owners will be required to pay a $50 fee to register their short-term rental units with the R.I. Department of Business Regulation.

Marc Larocque is a PBN contributing writer.