Is Warwick, Rhode Island Good for Airbnb Investment?

To start an Airbnb in Warwick, Rhode Island, begin by researching local zoning laws and regulations through the Warwick 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 Rhode Island Department of Health for lodging establishment permits if renting for less than 30 days, and register with the Rhode Island Division of Taxation for sales tax collection on rental income. Find a suitable property in residential zones that allow short-term rentals, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers as mandated by state lodging regulations. Furnish the space with quality furniture, linens, kitchen essentials, and amenities while ensuring compliance with Americans with Disabilities Act requirements if applicable. Create your Airbnb listing with professional photos, competitive pricing based on Warwick's average nightly rates of $80-150, and detailed descriptions highlighting proximity to T.F. Green Airport, Warwick beaches, and Providence attractions. Obtain liability insurance coverage, as standard homeowner's policies typically exclude short-term rental activities, and consider platforms like Airbnb's Host Protection Insurance. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest communications, and keeping detailed records for tax purposes while collecting and remitting Rhode Island's 7% sales tax and Warwick's local occupancy taxes to remain compliant with all municipal and state requirements.

To identify profitable short-term rental properties in Warwick, Rhode Island, focus on locations within 2-3 miles of major attractions like Goddard Memorial State Park, Oakland Beach, and the T.F. Green Airport corridor, as these areas generate consistent demand from tourists and business travelers. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking, outdoor space, and water views when possible, as properties near Narragansett Bay command premium rates of $150-300 per night compared to inland properties at $100-180 per night. Analyze comparable properties using AirDNA and Mashvisor to identify neighborhoods with 65%+ occupancy rates and average daily rates above $175, while researching competition density to avoid oversaturated areas with more than 15 STRs per square mile. Key tools include the City of Warwick's zoning maps to ensure STR compliance, Rhode Island MLS data through local realtors like Residential Properties Ltd or Lila Delman Real Estate, and STR-specific analytics platforms like AllTheRooms and Rabbu for market penetration analysis. Properties within walking distance of Warwick Mall, the Warwick Musical Theatre, or waterfront dining districts typically achieve 15-25% higher revenue, with optimal investment targets being sub-$400,000 properties that can generate $35,000-55,000 annually after expenses.

To obtain an Airbnb/STR permit in Warwick, Rhode Island, you must first contact the Warwick Building Department at City Hall located at 3275 Post Road to inquire about short-term rental licensing requirements, as the city has implemented regulations for properties rented for less than 30 days. You'll need to submit a completed application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, floor plans, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate, and a site plan showing parking availability. The application fee is estimated at $200-400 annually, with additional inspection fees of approximately $100-150. You must ensure the property meets all zoning requirements (STRs are generally prohibited in residential zones but may be allowed in certain commercial or mixed-use areas), provide adequate off-street parking (typically one space per bedroom), install smoke and carbon monoxide detectors in all required areas, and maintain a 24-hour contact person for noise or emergency issues. The approval process typically takes 4-6 weeks after submission of complete documentation, and you may need to attend a Planning Board or Zoning Board hearing depending on your property's location. Once approved, you must display your permit number in all online listings and renew annually, with the city conducting periodic inspections to ensure ongoing compliance with safety and zoning requirements.

Short-term rentals (STRs) are legal in Warwick, Rhode Island, but operate under specific municipal regulations that require property owners to obtain proper licensing and permits before operating. The city requires STR operators to register their properties, pay applicable fees, and comply with zoning restrictions that typically limit STRs to certain residential districts while prohibiting them in some neighborhoods to preserve residential character. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators are subject to occupancy limits and parking requirements. Recent changes in 2022-2023 have included stricter enforcement mechanisms and increased penalties for non-compliance, with the city implementing a more robust inspection process. Warwick also requires STR operators to collect and remit local taxes, maintain liability insurance, and provide emergency contact information to neighbors and city officials, while some areas near the waterfront and historic districts may have additional restrictions or enhanced scrutiny during the permitting process.

The best areas for Airbnb investment in Warwick, Rhode Island include the Conimicut Point and Shawomet neighborhoods along the waterfront, which attract tourists seeking coastal experiences and proximity to Narragansett Bay activities. The Apponaug village area offers historic charm and walkability that appeals to visitors exploring Rhode Island's colonial heritage. Properties near Warwick City Park and Oakland Beach are highly desirable due to their beach access and summer tourism, particularly from May through September. The areas around Jefferson Boulevard and Post Road provide excellent access to T.F. Green Airport, making them attractive for business travelers and those using Warwick as a base for exploring Newport, Providence, and other Rhode Island destinations. Neighborhoods near Warwick Mall and the city center offer convenience for visitors attending events at venues like the Rhode Island Convention Center or exploring local dining and shopping, while properties close to Rocky Point State Park capitalize on the area's recreational appeal and scenic waterfront views.

In Warwick, Rhode Island, Airbnb hosts are subject to the state's 7% hotel tax on gross receipts from short-term rental accommodations, which applies to rentals of 30 days or less. The Rhode Island Division of Taxation requires hosts to register for a hotel tax permit and collect this tax directly from guests at the time of booking or payment. Additionally, hosts must collect the standard Rhode Island sales tax of 7% on the rental amount. Tax remittance is required monthly by the 20th of the following month through the Rhode Island Division of Taxation's online portal, with hosts needing to file Form T-204 for hotel tax reporting. The City of Warwick does not impose additional local lodging taxes beyond state requirements as of 2023. Exemptions include rentals to permanent residents (stays over 30 consecutive days) and certain government employees on official business, though documentation is required. Airbnb may collect and remit these taxes on behalf of hosts in Rhode Island through their automated tax collection service, but hosts remain ultimately responsible for compliance and should verify that taxes are being properly collected and remitted.

To start an Airbnb in Warwick, Rhode Island, expect total costs around $425,000-$475,000. Property purchase represents the largest expense at approximately $350,000-$400,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, bedding, kitchen essentials, and décor. 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 $1,000-$2,000. Insurance premiums for short-term rental coverage run $2,000-$3,500 annually, with six months costing $1,000-$1,750. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly, totaling $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, and platform fees (3% of bookings) typically range $4,000-$8,000 depending on occupancy rates. Additional considerations include property taxes, HOA fees if applicable, and marketing expenses that could add another $2,000-$5,000 to initial costs.

Airbnb properties in Warwick, Rhode Island typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $85-$150 depending on proximity to T.F. Green Airport and seasonal demand from summer tourists visiting nearby Newport and Providence. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management costs (15-25% if outsourced), utilities ($150-300 monthly), insurance premiums ($800-1,500 annually), and platform fees (3% Airbnb service fee plus 14-16% host fee). Properties within 2 miles of T.F. Green Airport consistently outperform the market with 70-80% occupancy rates and 25-35% profit margins due to business traveler demand, while waterfront properties near Warwick's beaches achieve premium pricing during June-September with margins reaching 40%. Success factors include professional photography, rapid guest communication response times under 1 hour, strategic pricing adjustments for airport events and summer peak season, and maintaining superhost status through consistent 4.8+ ratings, with the most profitable hosts typically managing 2-4 properties and leveraging automated pricing tools to optimize revenue per available night.

Airbnb investments in Warwick, Rhode Island typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near Warwick's waterfront areas and close to T.F. Green Airport tend to perform better, with average daily rates of $120-180 during peak summer months and $80-120 in off-season. Initial investment recovery and profitability usually occurs within 18-24 months for well-positioned properties, assuming 60-70% annual occupancy rates. The market benefits from proximity to Newport attractions, Providence business travelers, and seasonal tourism, with properties requiring initial investments of $300,000-500,000 for suitable rental units generating gross annual revenues of $35,000-55,000 after accounting for Airbnb fees, cleaning, maintenance, and local taxes.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations in Warwick, Rhode Island. Local real estate agents like Keller Williams Realty of Newport County and RE/MAX Newport County have agents experienced in investment properties and short-term rental markets in the Warwick area. Mashvisor provides national data analytics and investment property search tools specifically for Airbnb investors, while AirDNA offers market intelligence and performance data for short-term rentals in Rhode Island markets. Local companies such as Ocean State Real Estate Investment Group and Rhode Island Investment Properties focus on helping investors identify profitable rental opportunities throughout the state. National services like Awning, RedAwning, and Vacasa provide end-to-end investment property identification and management services that cover the Warwick market. Additionally, local agents from Coldwell Banker Residential Brokerage and Century 21 Commonwealth Real Estate have experience working with investors seeking vacation rental properties in coastal Rhode Island markets, while platforms like Roofstock and BiggerPockets connect investors with local market experts and investment-focused real estate professionals in the greater Providence and Warwick areas.