On November 17th, RIAR hosted a webinar with key Rhode Island Department of Business Regulation staff, Don DeFedele, Associate Director / Chief Securities Examiner; Amy C. Stewart, Esq., Deputy Chief of Legal Services; and Jorge Bannister, Implementation Aide, who explained the new regulation. Here are some takeaways:
- Registration - Register each unit that will be rented for 30 nights or less on the DBR web site under “Short-Term Rental Registration.” Welcome | Dept. of Business Regulation (ri.gov)
The cost to register is $50 and is good for two years.
- Hosting platform - A hosting platform includes third-party web sites like VRBO, Airbnb, real estate brokerage sites, and more. Some hosting platforms will require rental listings to include the DBR registration number.
- State vs. local registration - The state requirement is in additional to local requirements. Property owners may need to register with Narragansett, Newport or other municipalities with registration requirements. The state requirement applies to 30 nights or less. Other laws and ordinances may apply to 30 days or a different period of time.
- REALTOR® Liability - While it is possible for a real estate licensee to register for a landlord client, you are not required to do so. If you do register, you will need to know whether the landlord is current on taxes. Also, if your relationship with the landlord ends in the future, keep in mind that your login and password will be tied to the registration. Finally, if you are not a principal broker, make sure that your brokerage is willing to allow you to register for a landlord and that your errors and omissions insurance covers.
- Subletting/Short-Term Rentals - Tenants who want to sublet a room or rental unit as a short-term rental must also register DBR. Make sure that the lease or rental agreement prohibits subletting of any type if the landlord does not want a tenant to do this.
- Enforcement - DBR will enforce the law starting on January 1, 2023. Fines for failing to register range from $250 - $1,000 per offense, depending on how long the property is advertised without being registered.
- Resources - For more information, check out the DBR Frequently Asked Questions. Short-Term Rentals | Dept. of Business Regulation (ri.gov)
You can also email DBR at [email protected] or contact the RIAR Legal Department at 401-432-6945 or email [email protected].