Rental properties in Narragansett

[Mitchell Berger]

Hi Everyone,

I'm looking to purchase my first rental property and was wondering if anyone has experience investing in the Narragansett area. I know a lot of URI students live there during the year (my sister goes there) and I feel like it would make a good vacation rental during the summer. I understand that there is the potential for long vacancies if I couldn't find students for a year but are there any other things I should be considering? I live on Long Island so it is out of my immediate area, but close enough that I can be there often. Thank you! 

[Colleen F.]

@Mitchell Berger as  @Anthony Thompson says there are special ordinances and an additional registration of rental properties with the town in addition to the state.  We have done rentals in that area for a number of years.    I would recommend that before you buy you follow the real estate  in the area closely for a few months.  

A couple of points. 

 Lease length: Unlike most other areas a 9 month lease is standard and a year lease hard to find. What that means is there is a higher supply of 9 month rentals then demand. Not a problem if you buy in the right location.

Location:  Students have historically rented in specific areas, which also rent well to summer renters.  Bonnet Shores is popular.  Eastward look area is too but it is associated  bigger  4 bed / 2-3 bath houses but with more partying.  There are also areas that students won't gravitate too and you have to be aware it could be more difficult to rent in those areas. 

Ordinances: There are ordinance for noise (ask your sister about the stickers) and there is an unrelated person ordinance that can impact your rental but it is currently in the courts.  The landlord group Narragansett 2100 follows that issue closely. 

Money: Property managers were charging 12% when I last used them.  I can tell you a PM to avoid.  You have to furnish so you will have increased cost (lots of consignment shops and habitat in the area)  At the prices in South County you have to rent summer and winter to make a profit.  Students look the fall before but also you get some looking at the end of the semester so you have to be on top of advertising etc. If timing is bad and filling is critical you have to have someone  available for showings. Aside from that you can use incentives like a bit lower rent if the timing of your purchase is off. 

There are lots of other things to keep in mind when renting to students not unique to URI, I think the biggest one to know is screening is not what it is with other tenants. I always screened on their major, undeclared majors= party, and also how far from home they were.  Hope that helps.   Good Luck with your plans.