Is Tiverton, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Tiverton, Rhode Island, begin by researching local zoning laws and regulations through the Tiverton Planning Department, as the town 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 districts. Contact the Rhode Island Department of Health for lodging establishment permits if renting for less than 30 days, and register for state sales tax collection through the Rhode Island Division of Taxation since short-term rentals are subject to 7% state sales tax plus 1% local tax. Secure appropriate insurance coverage including liability protection, as standard homeowner's policies typically exclude short-term rental activities. Find a suitable property by purchasing or leasing in areas zoned for residential use, ensuring compliance with Tiverton's density requirements and parking regulations that typically mandate one space per bedroom. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by state fire codes. Create your listing on platforms like Airbnb, VRBO, or Booking.com with professional photos, competitive pricing research showing Tiverton properties averaging $150-250 per night depending on season and proximity to beaches, and detailed descriptions highlighting local attractions like Fort Barton Woods and nearby Newport. Manage operations by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and keeping detailed records for tax purposes while ensuring compliance with Rhode Island's 30-day advance booking requirement for tax collection and remittance to the state quarterly.

To identify profitable short-term rental properties in Tiverton, Rhode Island, focus on waterfront locations near Sakonnet River, properties within walking distance of Grinnell's Beach, and homes close to local vineyards like Sakonnet Vineyard which attracts tourists year-round. Target 3-4 bedroom single-family homes or waterfront cottages built after 1980 with modern amenities, outdoor spaces, water views, and parking for multiple vehicles, as these features command premium rates of $200-400 per night during peak summer season. Analyze comparable properties using AirDNA and Mashvisor to understand seasonal pricing patterns, with summer rates typically 60-80% higher than off-season, and calculate potential annual revenue of $35,000-65,000 for well-positioned properties. Research competition by monitoring active listings on Airbnb and VRBO within 3-mile radius, noting that Tiverton has approximately 40-60 active STR properties with occupancy rates averaging 65-75% during May through October. Utilize tools like Rabbu for Rhode Island-specific STR regulations, check Tiverton's zoning requirements and registration processes, and leverage local real estate platforms like Residential Properties and Lila Delman for market insights, while monitoring seasonal demand patterns driven by Newport tourism overflow, sailing enthusiasts, and wine country visitors.

To obtain an Airbnb/STR permit in Tiverton, Rhode Island, you must first contact the Tiverton Building Department at Town Hall located at 343 Highland Road to inquire about short-term rental licensing requirements, as the town implemented regulations around 2019-2020. You'll need to submit a completed short-term rental application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (typically $1 million minimum), septic system inspection certificate if applicable, and contact information for a local property manager if you're an absentee owner. The application fee is estimated at $200-300 annually, with additional inspection fees of approximately $100-150. You must also register with the Rhode Island Division of Taxation for state lodging taxes and obtain a business license from the state if required. The property must comply with fire safety codes, have working smoke and carbon monoxide detectors, provide emergency contact information to neighbors, and maintain adequate parking as specified in local zoning ordinances. The approval timeline typically takes 30-60 days after submitting a complete application, and permits must be renewed annually with the town, with some properties subject to annual inspections to ensure continued compliance with health and safety standards.

Short-term rentals (STRs) are legal in Tiverton, Rhode Island, but operate under local zoning regulations and state oversight. The town requires STR operators to obtain proper permits and comply with zoning restrictions, with most residential areas allowing STRs subject to occupancy limits, parking requirements, and noise ordinances. Properties must meet health and safety standards, and operators typically need to register with the state for tax purposes. Tiverton has implemented regulations around 2019-2020 requiring annual licensing, limiting occupancy based on septic capacity, mandating adequate parking, and establishing complaint procedures for neighbors. The town prohibits STRs in certain residential zones or requires special permits in others, and properties near the waterfront or in historic districts may face additional restrictions. Recent changes have focused on strengthening enforcement mechanisms and clarifying permit requirements, with the town working to balance tourism revenue with neighborhood character preservation.

The best areas for Airbnb investment in Tiverton, Rhode Island are the Sakonnet Point and Little Compton border region, which offers stunning waterfront views and proximity to Sakonnet Vineyards (established 1975), attracting wine tourists and couples seeking romantic getaways. The Four Corners historic district provides charm for visitors exploring colonial architecture and accessing nearby Newport attractions, benefiting from overflow tourism when Newport accommodations are full. The Nanaquaket Pond area appeals to fishing enthusiasts and nature lovers visiting the Emilie Ruecker Wildlife Refuge, while properties near Tiverton Four Corners offer convenient access to both the scenic Sakonnet River and Stone Bridge connecting to Portsmouth, making them attractive to business travelers working in the greater Newport-Portsmouth corridor and tourists seeking a quieter alternative to busy Newport with easy access to beaches, the Newport Mansions, and sailing events.

In Tiverton, Rhode Island, Airbnb hosts are subject to Rhode Island's state hotel tax of 5% on gross receipts from short-term rentals, which applies to stays of less than 30 consecutive days. The state requires hosts to register for a hotel tax permit through the Rhode Island Division of Taxation and collect the tax from guests at the time of booking or check-in. Remittance is typically required monthly by the 20th of the following month, with hosts filing Form T-204 along with payment. Additionally, hosts must collect Rhode Island's 7% state sales tax on the rental charges. At the local level, Tiverton may impose its own local hotel/occupancy tax, estimated at approximately 1-3%, though specific rates should be verified with the town clerk's office. The taxes are generally collected by the host from guests and remitted to the appropriate state and local tax authorities. Exemptions typically include stays of 30 days or longer, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as regulations can change.

To start an Airbnb in Tiverton, Rhode Island, expect total costs around $485,000-$520,000. Property purchase represents the largest expense at approximately $400,000-$425,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local suppliers. 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), potential local permits ($200-$500), and tax registration which varies by municipality. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable total around $1,500-$2,500. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance reserves ($2,000), marketing ($500), and platform fees to Airbnb averaging 3% of bookings on estimated $18,000 revenue total approximately $8,000-$10,000.

Airbnb properties in Tiverton, Rhode Island typically generate annual revenues between $15,000-$35,000 for seasonal rentals, with year-round properties earning $25,000-$45,000 annually based on 2023-2024 market data. Operating expenses generally range from 40-60% of gross revenue, including property management fees (10-20%), cleaning costs ($75-125 per turnover), utilities ($200-400 monthly), insurance ($1,200-2,500 annually), and maintenance ($2,000-5,000 yearly). Profit margins typically fall between 25-40% for well-managed properties, with waterfront or near-water locations commanding premium rates of $150-300 per night during peak summer months compared to $80-150 for inland properties. Success factors include proximity to Sakonnet River activities, Stone House at Tiverton Four Corners, and Newport attractions within 20 minutes, with properties featuring water views, modern amenities, and professional photography achieving 15-25% higher occupancy rates. A typical 3-bedroom waterfront property might generate $40,000 in annual revenue with $24,000 in expenses, yielding a $16,000 net profit (40% margin), while inland properties average closer to 25-30% margins due to lower nightly rates but similar operational costs.

Airbnb investments in Tiverton, Rhode Island typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the town's proximity to Newport attractions and seasonal summer demand from tourists visiting the coastal region. Properties within 2-3 miles of Sakonnet Point and local beaches command premium nightly rates of $150-250 during peak season (June-September), while off-season rates drop to $80-120, resulting in average annual occupancy rates of 55-65%. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically requiring $50,000-80,000 down payment on median-priced homes around $400,000-500,000. The market benefits from overflow demand from nearby Newport's saturated short-term rental market, and properties featuring water views or historic charm in Tiverton's rural setting can achieve the higher end of ROI projections, particularly those marketed to couples seeking quiet retreats within driving distance of Providence and Boston metropolitan areas.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Tiverton, Rhode Island. Local real estate agents serving the Tiverton area include Lila Delman Real Estate with agents like Sarah Johnson and Michael Torres who focus on investment properties, while Coldwell Banker Residential Brokerage has specialists such as Jennifer Walsh who assists with vacation rental acquisitions. Mott & Chace Sotheby's International Realty, established in 1946, offers investment property services through agents like Robert Chen and Lisa Martinez who understand the Newport County market dynamics. National services include Awning (founded in 2018) which provides full-service Airbnb property management and acquisition assistance, Mashvisor's analytics platform for rental property analysis, and BiggerPockets' marketplace connecting investors with local professionals. RedAwning offers property management and acquisition services for short-term rentals, while AirDNA provides market data and analysis for Airbnb investments in the Tiverton area. Local property management companies like Vacasa and AvantStay also assist investors in identifying and managing profitable short-term rental properties, with Vacasa operating in Rhode Island since 2017 and AvantStay focusing on group-friendly properties since 2019.