Is North Providence, Rhode Island Good for Airbnb Investment?

To start an Airbnb in North Providence, Rhode Island, begin by researching local zoning laws and regulations through the North Providence Planning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to owner-occupied properties or specific zones. Contact the North Providence Building Department to secure necessary permits including a Certificate of Occupancy for rental use, fire safety inspections, and ensure compliance with Rhode Island state lodging regulations which require registration with the Rhode Island Department of Health for properties renting less than 30 days. Find a suitable property in residential zones that allow short-term rentals, focusing on areas near major attractions like downtown Providence (15 minutes away) or near Route 95 for easy access, with typical property costs ranging $200,000-$400,000 for single-family homes as of 2023. Furnish the property with essential amenities including quality bedding, kitchen supplies, WiFi, cable TV, and safety equipment like smoke detectors and carbon monoxide alarms as required by Rhode Island fire codes. Create your Airbnb listing with professional photos, competitive pricing around $80-150 per night based on local market rates, and highlight proximity to Providence attractions, T.F. Green Airport, and local amenities. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, collecting and remitting Rhode Island's 7% state sales tax plus 1% local occupancy tax to the Rhode Island Division of Taxation, and consider hiring local cleaning services or property management companies if needed for ongoing operations.

To identify profitable short-term rental properties in North Providence, Rhode Island, focus on locations within 15-20 minutes of downtown Providence, near major employers like Hasbro or Johnson & Wales University, and close to attractions such as Federal Hill or the Providence River waterfront. Target 2-4 bedroom single-family homes or condos built after 1950 with parking, updated kitchens and bathrooms, and reliable WiFi capability, as these appeal to business travelers and families visiting the area. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties in Providence and surrounding towns like Cranston and Warwick, aiming for properties that can generate $100-150 per night with 60-70% occupancy rates. Research competition by analyzing existing Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or pricing, and monitor seasonal demand patterns tied to Brown University events, convention center bookings, and summer tourism. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Rhode Island Statewide MLS, while consulting with North Providence planning department regarding zoning regulations and short-term rental ordinances, and consider partnering with local property management companies like Ocean State Property Management for market insights and operational support.

To obtain an Airbnb/STR permit in North Providence, Rhode Island, you must first contact the North Providence Building Department at Town Hall located at 2000 Smith Street to inquire about short-term rental licensing requirements, as the town likely requires a business license and zoning compliance verification. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the North Providence Fire Department, proof of liability insurance (typically $1 million minimum), floor plans of the rental unit, and a completed life safety inspection. The application fee is estimated at $150-300 with additional inspection fees of approximately $75-150, and you may need to pay annual renewal fees of around $100-200. The process typically takes 4-8 weeks from submission to approval, during which time the Building Department will review your application, schedule required inspections for fire safety and building code compliance, and verify zoning compliance since some residential areas may restrict short-term rentals. North Providence specific requirements likely include maintaining a local contact person available 24/7, providing adequate parking spaces, ensuring the property meets all building and fire codes, limiting occupancy based on bedroom count and square footage, and potentially requiring neighbor notification within a certain radius of the property.

Short-term rentals (STRs) in North Providence, Rhode Island operate in a legal gray area as the city has not enacted comprehensive STR-specific regulations as of 2024. While not explicitly prohibited, STRs must comply with existing zoning ordinances, building codes, and safety requirements, with most residential properties zoned for single-family use potentially restricting commercial rental activities. Property owners typically need to obtain proper permits and licenses, ensure compliance with fire safety codes, and may face restrictions in certain residential neighborhoods where commercial activities are limited. The city has been considering more formal STR regulations similar to other Rhode Island municipalities like Providence and Newport, which have implemented registration requirements, occupancy limits, and safety standards. Recent discussions at the city council level suggest potential future regulations may include registration systems, tax collection mechanisms, and specific zoning restrictions, particularly in densely populated residential areas. Currently, enforcement appears to be complaint-driven, with violations typically addressed through existing nuisance and zoning violation procedures rather than STR-specific penalties.

The best areas for Airbnb investment in North Providence, Rhode Island include the Mineral Spring Avenue corridor near the Pawtucket border, which benefits from proximity to downtown Providence (15 minutes) and attracts business travelers visiting nearby industrial facilities and healthcare workers from nearby hospitals. The Centredale area offers excellent value with its historic charm and easy highway access via Route 44, appealing to tourists exploring Rhode Island's mill town heritage and families visiting local attractions. The neighborhoods near Woonasquatucket River provide scenic waterfront appeal for leisure travelers seeking authentic New England experiences while remaining affordable compared to downtown Providence. The areas around Smithfield Avenue benefit from proximity to Bryant University and other educational institutions, creating demand from visiting academics, prospective students, and conference attendees. Properties near the North Providence Town Center and along Douglas Avenue attract extended-stay business travelers working with local manufacturing companies and healthcare professionals, as the area offers suburban comfort with urban accessibility to Providence's business district, hospitals, and cultural attractions.

In North Providence, Rhode Island, Airbnb hosts are subject to Rhode Island's state hotel tax of 5% on gross receipts from short-term rentals under 30 days, which applies to all lodging accommodations including vacation rentals and is collected by the state Department of Revenue. Additionally, hosts must pay the standard Rhode Island sales tax of 7% on rental income, bringing the total tax burden to 12% on short-term rental bookings. North Providence itself does not impose a separate local occupancy tax beyond the state requirements. Airbnb typically collects and remits these taxes automatically for hosts through their platform as of 2019, though individual hosts remain responsible for ensuring compliance and may need to register with the Rhode Island Division of Taxation if collecting taxes independently. The taxes are remitted monthly to the state, and there are generally no exemptions for small operators or occasional rentals, with all short-term rental income subject to these occupancy and sales tax obligations regardless of the frequency of rental activity.

The total cost to start an Airbnb in North Providence, Rhode Island is approximately $385,000-$425,000. Property purchase costs around $320,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total $2,000-$3,000. Permits and fees in Rhode Island include business registration ($50), short-term rental permits ($200-$500), and potential local licensing fees totaling $500-$1,000. Insurance for short-term rentals costs $2,000-$3,500 annually, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, gas, water, internet, and cable average $300-$400 monthly. First six months of operating costs including utilities ($2,400), cleaning services ($1,800), maintenance reserves ($1,500), property management software ($300), and marketing ($500) total approximately $6,500. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add $10,000-$15,000 to initial capital requirements.

Airbnb properties in North Providence, Rhode Island typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs ($2,000-4,000 yearly). Profit margins typically range from 15-35% after all expenses, with successful properties averaging 60-75% occupancy rates throughout the year. Properties within 15 minutes of Providence downtown or near major employers like Hasbro and CVS Health tend to perform better, while those offering unique amenities like hot tubs or proximity to Federal Hill's restaurant scene command premium rates. A typical 3-bedroom home purchased for $280,000 in 2022 might generate $28,000 in annual Airbnb revenue with $18,000 in total expenses, yielding a 3.6% cash-on-cash return, though this improves significantly for properties owned outright or with substantial equity positions.

Based on North Providence, Rhode Island market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the city. Single-family homes near major attractions like Federal Hill or downtown Providence command higher nightly rates of $80-120, while smaller units average $60-90 per night with occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by North Providence's proximity to Providence's business district and tourist destinations. Properties requiring significant renovations may see extended timeframes of 30-36 months to reach positive cash flow, while turnkey investments in desirable neighborhoods near Route 95 or local amenities can achieve profitability within 12-18 months, particularly when targeting business travelers and weekend tourists visiting the greater Providence metropolitan area.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in North Providence, Rhode Island. Local real estate agents who focus on investment properties in the North Providence area include agents from RE/MAX Properties, Coldwell Banker Residential Brokerage, and Century 21 Commonwealth, many of whom have experience with Airbnb investment properties. National services that help investors find profitable short-term rental properties include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights and revenue projections, and BiggerPockets for networking and deal sourcing. Local property management companies like Ocean State Property Management and Rhode Island Property Solutions often assist investors with identifying and managing Airbnb properties. Additional national platforms include Roofstock for turnkey rental properties, Awning for short-term rental investment analysis, and RedfinNow for quick property acquisitions, while local mortgage brokers and real estate investment groups in the Providence metropolitan area can provide financing and deal flow for Airbnb investment opportunities.