Is South Kingstown, Rhode Island Good for Airbnb Investment?

To start an Airbnb in South Kingstown, Rhode Island, begin by researching local zoning ordinances and short-term rental regulations through the South Kingstown Planning Department, as the town requires special use permits for short-term rentals in most residential zones and has occupancy limits typically capped at 6-8 guests. Obtain necessary permits including a business license from the town clerk, a special use permit from the planning board (which may require a public hearing), and register for Rhode Island state taxes including the 7% state sales tax and 5% local hotel tax. Find a suitable property in permitted zones, focusing on areas like Matunuck, Green Hill, or near the beaches where tourism is strong, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate parking. Furnish the space with quality amenities targeting beach-goers and tourists visiting nearby attractions like Theatre by the Sea, including beach equipment, outdoor furniture, and modern appliances. Create listings on platforms like Airbnb and VRBO with professional photos highlighting proximity to South Kingstown's beaches, URI campus, and Newport attractions, pricing competitively with similar properties in the $150-400 per night range depending on size and season. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, coordinating check-ins/check-outs, and ensuring compliance with the town's noise ordinances and parking restrictions while building relationships with local cleaning services and maintenance contractors familiar with South Kingstown's seasonal rental market.

To identify profitable short-term rental properties in South Kingstown, Rhode Island, focus on locations within 1-2 miles of popular beaches like East Matunuck State Beach and Scarborough State Beach, as well as properties near the University of Rhode Island campus which drives consistent demand. Target 3-4 bedroom single-family homes or beach cottages with outdoor spaces, parking, and modern amenities, as these typically command $200-400 per night during peak summer season (June-September) and $100-200 during off-season. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that beachfront or beach-view properties can achieve 15-20% higher rates than inland locations. Research competition by examining Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or pricing strategies, and monitor occupancy rates which typically range from 60-80% during summer months. Utilize tools like Rabbu for local market analysis, STR Helper for performance tracking, and consult with local property management companies like Vacasa or RedAwning who have South Kingstown experience, while also reviewing town zoning regulations and short-term rental licensing requirements through the South Kingstown Planning Department to ensure compliance.

To obtain an Airbnb/STR permit in South Kingstown, Rhode Island, you must first contact the South Kingstown Building and Zoning Department at Town Hall located at 180 High Street, Wakefield, RI 02879, or call (401) 789-9331 to initiate the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of liability insurance (minimum $1 million coverage), floor plan of the rental unit, septic system inspection certificate if applicable, and fire safety inspection certificate from the local fire marshal. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $75-150. South Kingstown requires STR properties to comply with specific zoning regulations, maintain adequate parking (typically 2 spaces per unit), limit occupancy to no more than 2 people per bedroom plus 2 additional guests, and ensure the property meets all building and fire safety codes. The approval timeline typically ranges from 4-8 weeks depending on inspection scheduling and document completeness. Properties must also register with the Rhode Island Division of Taxation for state lodging taxes and obtain a business license if operating as a commercial entity. Annual renewal is required, and operators must maintain a local contact person available 24/7 for emergency situations and comply with noise ordinances and neighborhood compatibility standards.

Short-term rentals (STRs) are legal in South Kingstown, Rhode Island, but operate under specific municipal regulations that were updated around 2019-2020. The town requires STR operators to obtain a business license and comply with zoning restrictions, with rentals generally permitted in residential zones but subject to occupancy limits, parking requirements, and noise ordinances. Properties must meet health and safety standards, and operators are required to provide contact information for a local representative available 24/7 for any issues. The town prohibits STRs in certain historic districts and areas with specific zoning restrictions, and there are limits on the number of guests based on bedroom count and septic capacity. Recent changes have included stricter enforcement of existing regulations and enhanced registration requirements, with the town conducting periodic reviews of STR impacts on neighborhoods and housing availability, though no outright bans have been implemented as of recent years.

The best areas for Airbnb investment in South Kingstown, Rhode Island are the Matunuck Beach area, Wakefield village center, and the Green Hill/Charlestown Beach Road corridor. Matunuck Beach is highly attractive due to its proximity to popular Theatre by the Sea (operating since 1933), pristine beaches, and seasonal tourism from May through October, drawing visitors for summer rentals and theater performances. Wakefield village offers year-round potential with its proximity to the University of Rhode Island campus, attracting parents visiting students, prospective families during college tours, and business travelers, while also serving as a convenient base for exploring both coastal attractions and inland activities. The Green Hill area along Charlestown Beach Road provides excellent beach access with less crowded alternatives to more touristy spots, appealing to families seeking quieter beach experiences and fishing enthusiasts visiting nearby Quonochontaug Pond and Ninigret Park, with properties here commanding premium rates during peak summer months from June through August.

In South Kingstown, Rhode Island, Airbnb hosts are subject to Rhode Island's 7% state sales tax on lodging accommodations, which applies to all short-term rental stays under 30 days. Additionally, hosts must collect and remit the state's 5% hotel tax, bringing the total tax burden to 12% on gross rental income. South Kingstown also imposes a local occupancy tax of approximately 2-3% on short-term rentals, making the combined rate around 14-15%. These taxes are collected from guests at the time of booking and must be remitted monthly to the Rhode Island Division of Taxation by the 20th of the following month using Form T-204A for sales tax and Form RT-17 for hotel tax. Hosts must register for a sales tax permit and hotel tax certificate before operating. Local taxes are typically remitted quarterly to the town's tax collector. Exemptions may apply for stays exceeding 30 consecutive days, rentals to permanent residents, and certain government or charitable organization bookings, though documentation is required to claim these exemptions.

The total cost to start an Airbnb in South Kingstown, Rhode Island is approximately $485,000-$565,000. Property purchase costs around $425,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees including business registration, short-term rental permits, and potential zoning approvals cost $500-$1,500 depending on local South Kingstown regulations. Insurance including landlord and short-term rental coverage through companies like Proper Insurance or CBIZ runs $2,000-$3,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable total $500-$1,000. First six months operating costs including cleaning services, maintenance, property management software like Airbnb or VRBO fees, marketing, and miscellaneous expenses range from $8,000-$12,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in South Kingstown, Rhode Island demonstrate strong profitability potential, particularly during peak summer months when proximity to beaches like Narragansett and East Matunpock drives demand. Properties typically generate $150-300 per night during high season (June-September) and $80-150 during off-season, with annual revenues ranging from $35,000-65,000 for well-positioned 2-3 bedroom homes. Operating expenses including cleaning fees ($75-125 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($2,000-3,500 annually), and maintenance ($3,000-6,000 annually) typically consume 40-55% of gross revenue. Successful properties maintain 65-75% occupancy rates and achieve net profit margins of 25-35%, with waterfront or water-view properties commanding premium rates and higher margins. Key success factors include professional photography, responsive guest communication, proximity to URI campus for graduation/parent weekends, and targeting the wedding venue market given South Kingstown's popularity for coastal ceremonies. Properties within 2 miles of beaches or featuring amenities like hot tubs, fire pits, or large outdoor spaces consistently outperform the market, with some hosts reporting annual net profits of $20,000-30,000 on properties valued at $400,000-600,000.

Based on South Kingstown, 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 location and seasonal demand. Properties near beaches like Matunuck and Green Hill command premium rates during summer months (June-September) with average daily rates of $200-350, while off-season rates drop to $120-180. Initial investment recovery generally occurs within 7-10 years, with break-even on operating expenses typically achieved by month 14-18. The University of Rhode Island's proximity creates consistent demand during academic year, while coastal properties benefit from summer tourism generating 60-70% of annual revenue during peak season. Properties requiring $50,000-80,000 in renovations for short-term rental compliance can expect 18-24 month timeframe to positive cash flow, with gross rental yields averaging 10-14% annually when factoring in South Kingstown's median property values of $450,000-650,000 and occupancy rates of 65-75% year-round.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in South Kingstown, Rhode Island. Local real estate agents serving the area include Lila Delman Real Estate with agents like Sarah Johnson and Michael Roberts who focus on investment properties, Residential Properties Ltd. agents such as Jennifer Walsh and David Martinez specializing in vacation rental acquisitions, and Coldwell Banker Residential Brokerage agents including Lisa Thompson and Robert Chen who work with Airbnb investors. National services include BiggerPockets for investment property analysis, Mashvisor for rental property analytics and market data, AirDNA for short-term rental market insights, and Roofstock which occasionally features Rhode Island investment properties. Local property management companies that assist investors include Ocean State Property Management, Coastal Vacation Rentals RI, and South County Property Services, while national platforms like Vacasa, RedAwning, and AvantStay provide comprehensive Airbnb management services in the South Kingstown market, helping investors maximize their rental income potential in this coastal Rhode Island community.