Rhode Island House Bill H5833

Rhode Island 2023 Regular Session

• Introduced: 3/1/23
• Refer: 3/1/23
• Report Pass: 6/8/23
• Engrossed: 6/12/23
• Refer: 6/12/23

Caption

Tourism And Development

Impact

The bill significantly impacts existing state laws on tourism and short-term rentals by requiring property owners to register their rentals with the Department of Business Regulation. Failure to register or maintain proper registration will subject property owners to escalating fines, with the first offense costing $250 for the first 30 days of non-compliance and reaching up to $1,000 for more prolonged violations. This structured approach aims to regulate the growing short-term rental market and enhance compliance among property owners offering transient accommodations.

Summary

House Bill H5833, titled 'An Act Relating to State Affairs and Government – Tourism and Development,' seeks to enhance the regulation of short-term rentals within Rhode Island. The legislation mandates that any hosting platforms—such as online marketplaces for short-term rentals—must display the property's current registration number and its expiration date prominently in their listings. This act aims to create a more structured environment for the short-term rental market while ensuring that property owners comply with state regulations regarding transient lodging accommodations.

Sentiment

The sentiment toward H5833 is primarily positive among supporters who view it as a necessary step toward effective management of the state’s tourism market. Proponents argue that the bill will safeguard residential spaces for long-term residents while ensuring that short-term rentals are properly regulated. However, there are concerns from some stakeholders about the potential burden the registration process may impose on smaller property owners and the fines associated with non-compliance, which could deter business activity in the hospitality sector.

Contention

Notable points of contention include the balance between facilitating a thriving short-term rental market and protecting the residential character of neighborhoods. Critics argue that stringent regulations may stifle owners' ability to utilize their properties as short-term rentals, potentially harming the local economy. Furthermore, the requirement for detailed reporting to the Department of Business Regulation may raise concerns about privacy and the feasibility of compliance for smaller hosts who rely on rental income.