Short-Term Rental Industry Creates Coalition to Fight Legislative Efforts

Short-Term Rental Industry Creates Coalition to Fight Legislative Efforts

A group of landlords in Rhode Island who rent out their properties for short-term rental has formed a new organization to fight off efforts to limit their industry.

The Rhode Island Short Term Rental Association was launched with "a broad-based coalition of supporters to serve as an advocacy organization at the Rhode Island General Assembly for issues pertaining to the industry.”

According to Greer Gagnier, Executive Director of the newly created group, the purpose of the coalition is “to ensure our collective voices are heard on issues that pertain to our livelihood at the State House.  Regrettably, several onerous pieces of legislation have been introduced which have the potential to severely impact our industry and in turn, our way of life. We hope to expand the Association over time to also weigh in on municipal matters, town council ordinances, etc. that too seek to negatively impact the short-term rental community.”

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She said, “It’s our hope we can be a part of the important conversations occurring at the State House and in cities and towns throughout Rhode Island about the important role short-term rentals (STR’s) play in the fabric of the community and work collaboratively with all sides to seek resolutions that inure to the benefit of all. To that end,

it’s vitally important for decision makers to understand the value we bring to this state, our deep roots in Rhode Island, the unique mix of short-term rental homeowners and the vital role we play in the state’s tourism economy.”

 

Legislators Pushing for Restrictions

This session, State Representative Lauren Carson and Rhode Island State Senator Victoria Gu have introduced legislation that would allow municipalities to regulate short-term rentals within their borders.

“Short-term rentals impact different communities around the state in very different ways,” said Carson (D-Dist. 75, Newport). “Right now, cities and towns have no ability to regulate this market despite the disproportionate costs coastal communities have seen.”

“In our coastal communities, people may be able to find a rental in the off-season from September to April, but then they’re forced to stay with family, couch surf or stay at a motel during the summer because the house is being rented out to tourists for one to two thousand dollars a week,” said Gu (D-Dist. 38, Charlestown, Westerly, South Kingstown). “As I was talking to residents, some pointed out the houses in their neighborhood that were getting converted to short-term rentals, which drives up rent and housing prices for long-term residents.”

According to the group, approximately 80%  of short-term rental owners in Rhode Island own 1 – 2 properties, several of which are also owner-occupied. STR’s represent 1% of the available housing stock in the state with STR owners paying a variety of taxes, including hotel tax, occupancy tax, sales tax, real estate taxes, and rental income taxes.

The Rhode Island Short Term Rental Association is a 501 c4 organization whose members include single mothers seeking a reliable revenue stream, seniors and veterans looking for ways to remain in their homes, minorities hoping to create generational wealth and homeowners with deep roots in their community who had literally owned the rental property for decades and decades, well before it was defined as a short term rental property.