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

Yes, short-term rentals are currently allowed in Portsmouth, RI under the town's Short-Term Rental of Residential Dwellings Ordinance (Ordinance No. 2018-04-09), adopted April 9, 2018. However, investors should note that the town is actively reviewing potential zoning restrictions, particularly in R-10 residential districts (common in Island Park and Common Fence Point areas).

As of December 31, 2023, Portsmouth had 137 registered STR properties, with 55 located in R-10 zoning districts that could face future restrictions. The town maintains a "business-friendly" enforcement approach, with only 48 total complaints received since implementing the Host Compliance monitoring system in 2019.

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Starting a Short-Term Rental Business in Portsmouth, RI

Step-by-Step Process

Step 1: Pre-Registration Requirements

• Confirm your property zoning allows STR use (critical given pending R-10 restrictions)
• Ensure your property can meet all safety and parking requirements
• Verify septic system capacity matches intended bedroom count

Step 2: Registration with Town Clerk

• Complete registration BEFORE any tenant occupies the premises
• Submit registration through the online portal: STR Registration (Viewpoint)
• Registration fee: $130 (includes inspection fee)
• Forms valid January 1 - December 31 regardless of registration date

Step 3: Safety Inspections

• Building Official inspection: Call (401) 683-3611 to schedule
• Fire Marshal inspection: Call (401) 683-1200 to schedule
• Must complete both inspections successfully before renting
• Inspections verify compliance with occupancy, safety, and code requirements

Step 4: Permit Issuance

• Building Official issues STR permit stating maximum occupancy
• Maximum occupancy: 2 persons per bedroom (all ages)
• Bedroom count limited by septic system capacity
• Permit must be displayed in rental unit

Step 5: Ongoing Compliance

• Post required ordinances and documents in unit
• Maintain parking and occupancy limits
• Collect and remit applicable taxes
• Respond to any complaints through Host Compliance system

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Required Documents, Permits, Licenses, and Guidelines

Essential Documents

1. STR Registration Form (submitted to Town Clerk)
2. STR Permit (issued after successful inspections)
3. Rental Agreement (must include specific required provisions)
4. Insurance Documentation (recommended minimum $1M liability)

Posting Requirements

In the Rental Unit (Conspicuous Location):

• Short-Term Rental of Residential Dwellings Ordinance (Chapter 314)
• Alcoholic Beverages Ordinance (Chapter 89)
• Animals/Dogs Ordinance (Chapter 101)
• Noise Ordinance (Chapter 257)
• Burning/Outdoor Fires Ordinance (Chapter 124)
• Parking Ordinance (Chapter 250)
• Trash Maintenance & Disposal Ordinances (Chapters 288 & 326)

On Primary Access Door:

• Current STR agreement with all renter names
• Owner's registration form
• Owner's permit

Key Compliance Guidelines

Parking Requirements:

• One off-street parking space per bedroom, OR
• Legal on-street parking (one space per 20' of frontage)
• If requirements cannot be met, reduce occupancy accordingly

Occupancy Limits:

• Maximum 2 persons per bedroom (all ages count)
• Bedroom count limited by septic system capacity
• Absolute compliance with posted occupancy limits

Rental Agreement Requirements: Must include:

• Copy of owner's registration form
• Copy of owner's permit
• Statement that renters may be held legally responsible for violations

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Specific Regulations for Portsmouth STRs

Municipal Regulations

Zoning Restrictions:

• STRs permitted in R-20, R-40, and R-60 zones
• STRs prohibited in commercial, industrial, waterfront, and Town Center districts
• PENDING: Proposed ban on new STRs in R-10 zones (under review)

Fire and Safety Requirements:

• Properties must meet applicable fire codes
• Some STRs may require sprinklers/alarms under "lodging house" definitions
• State fire codes currently being clarified for STR applications

Operational Requirements:

• Registration required before any occupancy
• Regular inspections and compliance monitoring
• Compliance with all posted ordinances

County/Regional Considerations

Washington County Context:

• Portsmouth operates under Washington County jurisdiction
• County-level STR regulations mirror state requirements
• Local enforcement through municipal authorities

Rhode Island State Regulations

State Law (RIGL § 42-63.1-14):

• Hosting platforms cannot be prohibited from offering STR units
• Platforms must collect and remit sales/hotel taxes
• Municipalities retain zoning regulation authority

Tax Requirements:

• 1% local tax collected at rental and remitted via Form RI-8478
• State sales and hotel tax compliance required
• Revenue received through RIPAY system

Key State Provisions:

• Municipalities cannot prohibit hosting platform operations
• State registration requirements for hosting platforms
• State supremacy in registration/regulation not exclusive

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Contact Information for Local STR Authorities

Primary STR Administration

Jennifer M. West, CMC
Town Clerk
📧 Email: clerkoffice@portsmouthri.gov
📞 Phone: (401) 683-2101
📠 Fax: (401) 683-0573

Portsmouth Town Hall
2200 E. Main Road
Portsmouth, RI 02871

Office Hours:

• Monday - Wednesday: 8:30 AM - 4:30 PM
• Thursday: 8:30 AM - 6:30 PM
• Friday: 8:30 AM - 2:30 PM

Inspection Authorities

Building Official
📞 (401) 683-3611

Fire Marshal
📞 (401) 683-1200

Complaint Reporting (Host Compliance)

24/7 Hotline: 📞 (401) 336-5552
Online Portal: Complaint Portal

Appeals and Enforcement

Zoning Enforcement Official
📞 Contact through Town Clerk's office

Portsmouth Municipal Court
Court Information

Zoning Board of Review
Board Information

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Source References

Primary Municipal Sources

• Portsmouth STR Information Portal
• STR Registration System
• Short-Term Rental Ordinance (Chapter 314)
• Portsmouth Municipal Ordinances
• STR FAQs and Statistics

Fire Code and Safety

• Updated STR Fire Code Information (10/16/24)

Current Developments

• Proposed Zoning Amendments - STR Restrictions
• Fire Safety Requirements for STRs
• Complete Proposed STR Ordinance

News Coverage

• East Bay RI: STR Owners Denounce Proposed Changes
• Newport Daily News: STR Regulations Under Review

State Resources

• RI Department of Business Regulation - STR Registry
• RI Division of Taxation - Sales and Hotel Tax Information

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Investment Considerations and Market Data

Current Market Statistics (2023):

• 137 registered STR properties in Portsmouth
• Average nightly rates: $163-$530
• 42% locally owned, 20% RI-owned, 37% out-of-state owned
• 55 units in potential R-10 restriction zones

Compliance and Enforcement:

• 70% registration compliance rate
• Only 48 complaints since 2019
• No fines issued to date (educational approach)
• 66% compliance after written notifications

Potential Impact of R-10 Restrictions:

• Could eliminate 40% of current STR inventory if enacted
• Would eliminate STRs entirely on Prudence Island (all R-10 zoning)
• Would particularly impact Island Park and Common Fence Point areas

Recommendation: Given the ongoing zoning review, potential investors should carefully consider property location and monitor proposed R-10 restrictions before making acquisition decisions.