Removes the municipal preemption on prohibiting the offering of residential units for tourist or transient use through a hosting platform.
Impact
The implications of S2411 on state laws are significant as it delineates the responsibilities of both property owners and hosting platforms. By mandating registration with the Department of Business Regulation, the bill creates a framework for oversight that ensures the integrity of short-term rentals. The requirement for property owners to register their rentals means that there will be a centralized database that includes information vital for tracking and regulating these properties. Consequently, towns and cities are now limited in their ability to impose restrictions on such rentals unless they comply with state guidelines, potentially harmonizing regulations across local jurisdictions.
Summary
S2411 is a legislative act introduced in the Rhode Island General Assembly aimed at regulating short-term rentals through hosting platforms. The bill explicitly removes the municipal authority preventing the use of residential units for tourist or transient purposes via these platforms. It requires that any short-term rental property registered for rent on hosting platforms must comply with state regulations by collecting and remitting hotel taxes to ensure compliance. This change is designed to streamline the process by which property owners can offer their units for short-term rentals, thereby promoting tourism and economic development within the state.
Contention
Despite its goals, S2411 has led to some contention among various stakeholders. Proponents argue that the legislation is necessary for fostering a competitive tourism environment in Rhode Island, supporting small business owners who wish to benefit from short-term rental markets. However, there are concerns from local governments and community advocates regarding the potential impact on residential neighborhoods, the lack of local control, and the challenges of adequately regulating short-term rentals. Critics fear that the increase in transient rentals may disrupt local housing availability and alter the character of neighborhoods, highlighting the need for a balanced approach to short-term rental legislation.
Requires hosting platforms offering short-term rental of residential property for tourist or transient use to disclose on listings the current, valid registration number and its expiration date.
Requires hosting platforms offering short-term rental of residential property for tourist or transient use to disclose on listings the current, valid registration number and its expiration date.
Allows the owner of a residential unit to rent it for tourist or transient use. Prohibits a municipality any means to deny the owner from offering and renting the unit for tourist or transient use.