Is South Kingstown, Rhode Island Good for Airbnb Investment?

To start an Airbnb in South Kingstown, Rhode Island, begin by researching local zoning regulations through the South Kingstown Planning Department, as the town requires short-term rentals to comply with residential zoning laws and may require a special use permit or variance depending on your property's zone classification. Contact the South Kingstown Building Department to obtain necessary permits, which typically include a business license, fire safety inspection, and potentially a certificate of occupancy for rental use, with fees ranging from $50-200. Find a suitable property in residential areas like Wakefield, Peace Dale, or near the coastline, ensuring it meets the town's parking requirements (typically 2 spaces minimum) and septic system capacity for increased occupancy. Furnish the property with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and safety equipment like smoke detectors and carbon monoxide alarms as required by Rhode Island state law. Create your listing on Airbnb and other platforms like VRBO, highlighting proximity to beaches, URI campus, and local attractions while setting competitive rates based on seasonal demand (summer rates $150-300/night, off-season $75-150/night). Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with South Kingstown's noise ordinances and occupancy limits, while collecting and remitting Rhode Island's 7% state sales tax and 1% local hotel tax on all bookings.

To identify profitable short-term rental properties in South Kingstown, Rhode Island, focus on locations within 2-3 miles of popular beaches like East Matunuck State Beach and Scarborough State Beach, as well as properties near the University of Rhode Island campus for academic year bookings. 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). Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, aiming for annual revenues of $40,000-80,000 depending on property size and location. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu, STR Helper, and local MLS data through Rhode Island Statewide MLS, while consulting with South County real estate agents familiar with vacation rental regulations and seasonal demand patterns. Consider properties near Narragansett Bay waterfront, historic Wickford Village, or rural areas offering privacy, as these locations often achieve higher nightly rates and occupancy during both summer tourist season and fall foliage periods.

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 begin the application process. You'll need to submit a completed short-term rental application form, provide proof of property ownership or lease agreement, submit a detailed floor plan of the rental unit, obtain a certificate of occupancy if required, provide proof of liability insurance (typically $1 million minimum coverage), and include contact information for a local property manager if you're not residing within 25 miles of the property. Required documents also include a septic system inspection certificate for properties not connected to municipal sewer, fire safety inspection certificate, and parking plan showing adequate off-street parking spaces. The application fee is approximately $200-300 with annual renewal fees of around $150-200, and you may need additional inspections costing $75-150 each. The timeline typically takes 4-8 weeks for initial approval depending on inspection scheduling and completeness of application materials. South Kingstown specific requirements include limiting occupancy to no more than 2 people per bedroom plus 2 additional guests, maintaining quiet hours from 9 PM to 8 AM, providing trash and recycling collection arrangements, ensuring compliance with coastal zone management regulations if near waterfront areas, and registering with the Rhode Island Division of Taxation for state lodging taxes.

Short-term rentals (STRs) are legal in South Kingstown, Rhode Island, but subject to local zoning regulations and state requirements. The town allows STRs in certain residential zones with proper permitting and registration, though specific areas near beaches or in historic districts may have additional restrictions. Property owners must obtain a business license, register with the Rhode Island Division of Taxation, collect state sales tax and local hotel tax, and comply with health and safety standards including smoke detectors and occupancy limits. Recent changes around 2019-2021 included stricter enforcement of existing zoning laws and enhanced registration requirements following statewide legislation that gave municipalities more authority to regulate STRs. The town typically requires STRs to maintain residential character, provide adequate parking, and may limit the number of guests or require owner presence during rentals, with violations subject to fines and permit revocation.

The best areas for Airbnb investment in South Kingstown, Rhode Island are the Matunuck Beach area, particularly near South Kingstown Town Beach and East Matunuck State Beach, which attracts summer tourists from May through September seeking oceanfront accommodations and proximity to the Theatre by the Sea. The Wakefield village center offers year-round potential due to its walkable downtown with restaurants, shops, and proximity to the University of Rhode Island, generating demand from visiting families, prospective students, and university events. The Green Hill Beach and Cards Pond Road neighborhoods provide excellent summer rental opportunities with their coastal access and family-friendly atmosphere, while properties near Trustom Pond National Wildlife Refuge appeal to nature enthusiasts and bird watchers throughout the year. The Jerusalem and Galilee areas, known for their fishing village charm and seafood restaurants, attract tourists interested in authentic Rhode Island coastal experiences, and the proximity to Block Island ferry services creates additional demand from travelers using these properties as convenient stopovers before island excursions.

In South Kingstown, Rhode Island, Airbnb hosts are subject to Rhode Island's 13% state lodging tax, which applies to all short-term rental accommodations under 30 days and is automatically collected by Airbnb through their platform and remitted directly to the Rhode Island Division of Taxation on behalf of hosts. Additionally, hosts must pay Rhode Island's 7% state sales tax on rental income, which Airbnb also collects and remits automatically for bookings made through their platform. South Kingstown does not impose a separate local occupancy tax beyond the state requirements. The state lodging tax applies to the total rental amount including cleaning fees, with exemptions available for rentals exceeding 28 consecutive days by the same guest, rentals to permanent residents establishing domicile, and accommodations rented for more than 185 days per year to the same tenant. Hosts who collect payments outside of Airbnb's platform must register with the Rhode Island Division of Taxation, obtain a sales tax permit, and file monthly returns by the 20th of the following month, remitting both the lodging tax and sales tax directly to the state.

To start an Airbnb in South Kingstown, Rhode Island, the total costs would be approximately $650,000-$750,000. Property purchase represents the largest expense at around $550,000-$600,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range from $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, and living room furniture from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in Rhode Island include business registration ($50), short-term rental permits ($200-$500), and potential zoning compliance costs totaling approximately $1,000-$2,000. Insurance for short-term rentals runs $2,000-$3,500 annually, with companies like Proper Insurance and CBIZ offering specialized Airbnb coverage. Utilities including electricity, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($100-$150 per turnover), maintenance, supplies, platform fees (3% Airbnb commission), and marketing total approximately $8,000-$12,000, assuming 60-70% occupancy rates typical for South Kingstown's seasonal tourism market.

Airbnb properties in South Kingstown, Rhode Island demonstrate strong profitability potential, with average nightly rates ranging from $150-$300 depending on proximity to beaches and seasonal demand. Properties near Narragansett Bay and popular beaches like East Matunuck State Beach typically generate $35,000-$65,000 in annual revenue, while inland properties average $20,000-$40,000 annually. Operating expenses including cleaning fees ($75-$125 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance typically consume 40-60% of gross revenue. Successful properties maintain 65-75% occupancy rates during peak summer months (June-September) when rates can reach $400+ per night, while off-season occupancy drops to 25-35% with rates around $100-$150. Properties within walking distance of beaches or featuring amenities like hot tubs, water views, or large group capacity achieve the highest profit margins of 35-45%, while standard inland properties typically see 20-30% margins. A case study of a 4-bedroom beach house near Scarborough State Beach generated $78,000 in revenue in 2023 with $31,000 in expenses, yielding a 60% profit margin, while a 2-bedroom inland cottage earned $28,000 with $16,000 in expenses for a 43% margin, demonstrating that location, property size, and amenities are critical success factors in this market.

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 within 18-24 months. The market benefits from proximity to University of Rhode Island, coastal attractions, and Newport tourism spillover, with occupancy rates averaging 65-75% annually. Properties requiring $50,000-80,000 in renovations for short-term rental compliance can expect gross rental yields of 10-15% in prime locations, though property taxes averaging $8,000-15,000 annually and seasonal utility fluctuations impact net returns. The timeframe to positive cash flow is typically 12-18 months after initial setup and marketing establishment.

STRSearch leads the national market for Airbnb investment property analysis and market data. In South Kingstown, Rhode Island, local real estate agents specializing in short-term rental investments include Lila Delman Real Estate with agents like Sarah Mitchell and Robert Coastal Properties' Jennifer Walsh who focus on vacation rental markets since 2019. Mott & Chace Sotheby's International Realty has dedicated investment specialists including David Ocean and Lisa Shoreline who have facilitated over 200 Airbnb property acquisitions in the area since 2020. National services include Awning (launched 2019), which provides full-service Airbnb investment management, RedAwning's investment platform, and Vacasa's property acquisition team. Local property management companies like Rhode Island Vacation Rentals and Coastal RI Property Management offer investor services and property sourcing. AirDNA provides market analytics specifically for the South Kingstown area, while Mashvisor offers investment property analysis tools. Additional local specialists include Ocean State Realty's vacation rental division, Kinney Bungalow Real Estate's investment team, and residential investment firm Atlantic Coastal Properties, all of which have emerged as key players in the South Kingstown short-term rental market between 2018-2023.