Westerly Debates Future of Short-Term Rentals Amid Housing Concerns
Short-Term Rental Regulations Evolve in Westerly
This summer marks the first season since Westerly implemented a significant change to its short-term rental ordinance, raising the annual registration fee for landlords from $50 to $500. The substantial increase, approved by the previous town council in September, was designed to fund a new tracking system for monitoring rental properties throughout the community.
Nestled along Rhode Island’s picturesque coastline, Westerly has long been a popular destination for seasonal visitors. However, the proliferation of Airbnb-style accommodations has begun reshaping the local housing landscape, creating both opportunities and challenges for this coastal community.
“We beat it up pretty good with the last council,” Town Manager Shawn Lacey explained. “There were a lot of proposed changes.”
Now, the newly elected town council is revisiting the ordinance with fresh perspectives, though some officials are advocating for a measured approach to any modifications.
Impact on Local Housing Market
The growing presence of online short-term rentals has created ripple effects throughout Westerly’s housing ecosystem. Officials note these properties are increasingly common not just in beach areas but throughout town, potentially squeezing the local rental market by reducing inventory and driving up prices for year-round residents.
“When you look at this, there’s no perfect answer,” Lacey acknowledged. “You’re not going to make everyone happy, but it does change the dynamics of a town.”
The town is now preparing to launch a software program, funded by the registration fee increase, to monitor all rental properties. This system will help identify unregistered rentals operating on popular booking platforms.
“It’s going online,” Lacey said. “We’ll figure out which rentals in town aren’t registered and are using these sites.”
According to Lacey’s estimates, Westerly likely has between 400 and 500 short-term rental properties, with only about 300 currently registered with the town. The new monitoring system would enable officials to track unregistered rentals and require property owners to comply with registration requirements.
Management Requirements and Potential Restrictions
One of the challenges the town previously faced was contacting property owners or determining who was responsible for a rental property. The 2021 ordinance addressed this by requiring every short-term rental to have designated management, whether by an owner-occupant, a property management company, or a local resident who remains available whenever the rental is in use.
Among proposals that didn’t make the cut in the last round of revisions was a provision that would restrict short-term rentals to areas south of Shore Road, where most seasonal beach rentals are traditionally located. This provision, introduced by Council member Dylan LaPietra, would permit either a property management company or a full-time local resident to manage the rental.
“Maybe this council will have a different taste, maybe like it with some changes,” LaPietra suggested. He emphasized that at some point, the town needs to establish boundaries.
“Otherwise, in 20 or 30 years, it’s going to be nothing but short-term rentals,” he cautioned.
Diverse Council Perspectives
Council members bring varying viewpoints to the discussion. Councilor Alexandra Healy doesn’t support geographical restrictions but advocates for fire marshal approval before registration or renewal. She also wants the town to create a searchable online database of all short-term rentals and believes the council should consider implementing a cap on the total number of short-term rentals, though she hasn’t proposed a specific limit.
“There are other incentives we could look at,” Healy suggested. “We could perhaps offer fast-tracking a permit process for any property owners that want to convert their short-term rental to year-round.”
Healy and other council members want clarity on how the town would enforce provisions in the ordinance.
Lacey noted that thus far, the town hasn’t received many complaints or violations related to the ordinance.
“People are doing the right thing,” he said. The issues that do arise, he explained, tend to be unanticipated, such as when successive weekly renters bring pets to a neighborhood.
“In a regular residential neighborhood, you now have three new dogs in a rental. All the neighbors’ dogs are going bananas because there are three new dogs, and in another week there might be three more new dogs.”
Looking for Balanced Solutions
Councilor William Aiello raised the possibility of “grandfathering” short-term rental units north of Shore Road until a property changes ownership.
“Something to think about. Or if not, can we sunset, and say 10 years from now is the final date for short-term rentals,” he suggested.
Council President Christopher Duhamel requested additional data, including maps showing the location of short-term rentals and “where the problems are, so we can identify particular neighborhoods that aren’t compatible perhaps to short-term rentals.”
Councilor Mary Scialabba emphasized the need to gather more detailed information about how other municipalities are managing short-term rentals.
“We don’t need to have the same problems here in Westerly,” she stated.
The council is considering having both the Economic Development Commission and the newly formed five-member Housing Committee produce independent reports about short-term rentals, with potential action scheduled for July 21.
As Westerly navigates these complex housing dynamics, town leaders face the delicate task of balancing tourism economy benefits with the needs of year-round residents and neighborhood character. The ongoing dialogue reflects broader challenges many coastal communities encounter as they adapt to the changing landscape of vacation rentals in the digital age.