Is Wakefield, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Wakefield, Rhode Island, begin by researching local zoning laws and regulations through the Town of South Kingstown (which encompasses Wakefield) planning department, as short-term rentals may require special permits or have restrictions in certain residential zones. Contact the South Kingstown Building Department at 401-789-9331 to obtain necessary permits, which typically include a business license, occupancy permit, and potentially a special use permit for short-term rentals. Find a suitable property by searching real estate listings in Wakefield's desirable areas near the beaches or downtown, ensuring the property meets local fire safety codes and has adequate parking as required by town ordinances. Furnish the space with quality furniture, linens, and amenities while ensuring compliance with Rhode Island's smoke detector and carbon monoxide detector requirements, plus provide essential items like first aid kits and emergency contact information as mandated by state hospitality regulations. List your property on Airbnb and other platforms with professional photos and detailed descriptions highlighting Wakefield's proximity to Narragansett Bay beaches and URI campus. For ongoing management, establish a system for guest communication, cleaning between stays (potentially hiring local cleaning services), and maintain compliance with Rhode Island's 8.5% state sales tax and 5% local occupancy tax collection requirements, while keeping detailed records for tax purposes and ensuring you have appropriate short-term rental insurance coverage.

To identify profitable short-term rental properties in Wakefield, Rhode Island, focus on locations within walking distance of Narragansett Bay waterfront, Salt Ponds, and downtown Peace Dale, as proximity to beaches like Salty Brine and Scarborough typically commands premium rates of $200-400 per night during summer months. Target 2-4 bedroom properties built after 1980 with modern amenities, outdoor spaces, parking, and water views, as these features can increase occupancy rates by 15-25% compared to basic properties. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties in nearby Narragansett and South Kingstown, aiming for properties that can achieve 65-75% occupancy rates with average daily rates of $150-300 depending on season and proximity to water. Research competition by analyzing existing STR listings within a 2-mile radius, identifying gaps in amenities or property types, and studying seasonal demand patterns that peak from May through September when tourism to Rhode Island's coastal areas is highest. Utilize tools like Rabbu, STR Helper, and local MLS data through Rhode Island Statewide MLS, while consulting with local property managers familiar with South County regulations and connecting with Wakefield-specific Facebook groups and the South Kingstown Chamber of Commerce for market insights and regulatory updates.

To obtain an Airbnb/STR permit in Wakefield, Rhode Island, you must apply through the South Kingstown Building Department since Wakefield is part of South Kingstown, located at 180 High Street, Wakefield, RI 02879. Required documents include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance (minimum $1 million), contact information for a local representative within 30 minutes of the property, and septic system inspection if applicable. The application fee is approximately $200-300 with an annual renewal fee of $150-200. You must also obtain a business license from the Rhode Island Division of Taxation and register for state sales tax collection. The property must comply with fire safety codes including smoke and carbon monoxide detectors in all bedrooms and common areas, emergency egress windows, and fire extinguishers. Maximum occupancy is typically limited to 2 people per bedroom plus 2 additional guests, with parking requirements of one space per bedroom. The approval timeline is generally 4-6 weeks after submitting a complete application, and permits must be renewed annually. Properties must maintain quiet hours from 10 PM to 8 AM, provide trash and recycling information to guests, and display the permit number in all advertising.

Short-term rentals (STRs) are legal in Wakefield, Rhode Island, but operate under state regulations established in 2019 when Rhode Island became one of the first states to comprehensively regulate STRs at the state level. The Rhode Island Short-Term Rental Act requires all STR operators to register with the state, obtain a license, collect and remit state sales tax and local hotel tax, maintain liability insurance, and comply with safety requirements including smoke and carbon monoxide detectors. In Wakefield, which is part of South Kingstown, operators must also comply with local zoning ordinances and may need additional local permits. The state law caps the number of STR licenses in certain coastal communities, though this primarily affects more densely populated areas rather than Wakefield specifically. Recent changes include stricter enforcement mechanisms implemented in 2021-2022, with platforms like Airbnb and VRBO required to verify host registration numbers. Properties must be owner-occupied or have specific approval for non-owner-occupied rentals, and there are restrictions on the total number of rental days per year in some cases, though enforcement varies by municipality.

The best areas for Airbnb investment in Wakefield, Rhode Island are the Narragansett Bay waterfront district, particularly around Salt Pond and Potter Pond, which attracts summer tourists seeking coastal experiences and water activities from May through September. The historic village center of Peace Dale offers charm for visitors interested in Rhode Island's textile mill history and provides easy access to nearby beaches and the University of Rhode Island, generating consistent demand from visiting families and university-related travelers. The Matunuck Beach Road corridor is highly attractive due to its proximity to popular Theatre by the Sea (operating since 1933), which draws theater enthusiasts from across New England during summer seasons, plus beach access for recreational visitors. The area near Trustom Pond National Wildlife Refuge appeals to eco-tourists and bird watchers year-round, while properties within walking distance of local farms and the South County Trail attract agritourism visitors and outdoor recreation enthusiasts. These locations benefit from Wakefield's position as a gateway to South County beaches while maintaining lower property costs compared to more established coastal resort towns like Newport or Westerly.

Airbnb properties in Wakefield, Rhode Island are subject to the state's 7% hotel tax on gross receipts from short-term rentals under 30 days, which is automatically collected by Airbnb and remitted to the Rhode Island Division of Taxation on behalf of hosts. Additionally, properties may be subject to South Kingstown's local hotel tax of 3% (as Wakefield is located within South Kingstown), bringing the total occupancy tax to approximately 10%. The state hotel tax applies to all short-term rental accommodations with no minimum threshold exemptions, while stays of 30 days or longer are typically exempt from these occupancy taxes. Hosts must register with the Rhode Island Division of Taxation if they collect taxes independently, though most rely on Airbnb's automatic collection system which files quarterly returns and remits payments directly to state and local authorities. The local portion is collected alongside the state tax and distributed to the appropriate municipality by the state tax division.

Starting an Airbnb in Wakefield, Rhode Island requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $425,000 for a median 3-bedroom home suitable for short-term rental. Furnishing expenses typically run $15,000-$25,000 including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive guest experience. Initial setup costs of $3,000-$5,000 cover professional photography, listing creation, welcome materials, and basic amenities. Permits and fees total approximately $500-$1,500 including business registration, short-term rental permits from South Kingstown (which governs Wakefield), and potential HOA approvals. Insurance costs $2,000-$3,500 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $500-$1,000 for electricity, water, gas, internet, and cable services. First six months of operating costs average $8,000-$12,000 covering utilities ($200-300/month), cleaning services ($75-100 per turnover), maintenance supplies, property management software subscriptions, and marketing expenses, assuming 60-70% occupancy rates typical for the Wakefield market near beaches and University of Rhode Island.

Airbnb properties in Wakefield, Rhode Island typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with average daily rates ranging from $120-$200 depending on proximity to Narragansett Bay and seasonal demand. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($75-$100 per turnover), property management (15-25% of revenue), utilities ($200-$300 monthly), insurance ($1,500-$2,500 annually), and maintenance costs averaging $3,000-$5,000 yearly. Properties within walking distance of beaches or the village center achieve occupancy rates of 65-75% during peak season (June-September) but drop to 25-35% in winter months, resulting in net profit margins of 15-25% for successful operators. Success factors include professional photography, responsive guest communication, proximity to popular attractions like Narragansett Beach and Newport mansions, and competitive pricing strategies that adjust for local events and seasonal patterns. A typical 3-bedroom cottage near Saugatucket River reported $38,000 in gross revenue in 2023 with $19,000 in expenses, yielding a 50% profit margin, while properties further inland or lacking waterfront access struggle to maintain profitability due to lower occupancy rates and pricing power.

Airbnb investments in Wakefield, Rhode Island typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to beaches and seasonal tourism patterns. Properties within 2-3 miles of Wakefield's coastal areas, particularly near Narragansett Bay and Salt Ponds, command premium nightly rates of $150-250 during peak summer months (June-September) and $80-120 during off-season periods. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors typically requiring $40,000-60,000 down payment on median-priced homes around $400,000-500,000. The market benefits from University of Rhode Island proximity, seasonal beach tourism, and year-round fishing activities, with occupancy rates averaging 65-75% annually. Properties featuring waterfront access or historic charm in Wakefield's village center achieve the highest returns, while those requiring significant renovations may extend profitability timelines to 30-36 months but can ultimately achieve 10-14% annual ROI once fully optimized for short-term rental operations.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Wakefield, Rhode Island, using data analytics and market insights. Local real estate agents specializing in investment properties include Mott & Chace Sotheby's International Realty, Residential Properties Ltd., and RE/MAX Newport County, with agents like those at Lila Delman Real Estate who understand the South County vacation rental market. National services include Awning (formerly RedAwning) which provides end-to-end Airbnb investment services, AirDNA for market analysis and revenue projections, Mashvisor for investment property analysis, and BiggerPockets for networking and deal sourcing. Local property management companies that also help with acquisitions include Ocean State Property Management and Narragansett Bay Property Services, while vacation rental specialists like VTrips and Vacasa can provide market insights for the Wakefield area. Additional resources include local investment groups through the Rhode Island Real Estate Investors Association and platforms like Roofstock and Fundrise that occasionally feature properties in the greater South Kingstown area where Wakefield is located.