Eighteen homeowners were charged with violations for allegedly offering their properties for short-term rental without city government approval.

City Manager Ed Mello informed city councilors about the illegally operating businesses at their meeting Monday night. It turns out that the 18 properties had been offered as rentals for less than 30 consecutive days through online sources such as Airbnb and Vrbo.

In addition, twenty other licensed establishments operate “outside the limits of their license”.

“In most cases,” says Mello, “they exceed the number of bedrooms allowed.”

The ordinance states that for short-term rentals, the maximum occupancy is two people per bedroom. Children under 12 are exempt. For properties with septic systems, the maximum occupancy “must not exceed the number of bedrooms supported by the design load of the system.”

Properties without information on their septic systems are considered two-bedroom units.

The penalty for conducting an unlicensed short-term rental is $250 for the first offense and $500 for subsequent violations. Since each day is considered a “distinct and separate violation,” a homeowner who illegally rents out their property for seven days would receive a $3,250 fine.

Mello said he is “working on a method for us to track complaints,” and he is also working with Police Chief Jamie Campbell to examine how complaints might overlap.

For example, if there is a noise complaint, Mello wants the police to be able to recognize that the property is being used for short-term rentals at the time.

Mello also urged city councilors to consider the “few improvements” he presented to them in July.

“From what I understand, staff have found out a number of things throughout the process,” he said, “and I think the council has heard some concerns throughout the process.”

Possible changes to the ordinance include the introduction of a $30 fee for follow-up inspections. Every short-term rental must be inspected by both the fire marshal and the building inspector every two years, and each inspection costs $30.

However, the regulation does not allow the applicant to be charged again if they fail an inspection and a re-inspector is required. According to Mello, this happens “in a significant number of cases.”

Mello also asked the council whether it wanted to limit the number of properties that could receive a short-term rental license in a single year.

“Some municipalities set a cap on the number of permits for various reasons,” he wrote in a July 10 memo. “Is there a desire on the part of the City Council to set a maximum number of permits to be issued? If so, what process would we use to review new applications?”

Mello also asked if councillors wanted to limit the number of short-term rentals that could be allowed on a property. He is concerned about investors buying two-family homes, for example, with no intention of living in either house.

Mello also wants the council to revise the wording on septic tanks, a request that was contested in January after a neighbor claimed the system was inadequate.

Civil engineer Jean Lambert said there is no valid permit for the property’s wastewater treatment plant on file with the Rhode Island Department of Environmental Management. If there is no permit and the maintenance inspection is current, Lambert said the ordinance allows the application to be “approved for a maximum of two bedrooms.”

She recommends that every short-term rental company should get state approval for their system. Without that, she said, there is no way to know if the system is the right size.

Because changes to the ordinance would require a public hearing, any changes would not take effect until 2026. October 1 is the deadline for new applications and extensions if homeowners intend to rent their properties in 2025.

There are currently 141 licensed short-term rentals in Jamestown after council approved an application for 20 Brook St. on Monday.

Although councillors have yet to reject an application, they do have discretion. The ordinance states they “reserve the right to limit the total number of short-term rentals permitted.” Councillors can also “use their discretion and upon demonstration that doing so is necessary where the quiet use of a residential area will be disrupted, there will be a negative impact on the seasonal or affordable housing rental market, or the integrity of the residential character of certain areas will be compromised.”

A public hearing is open to “any person wishing to comment or challenge a short-term rental,” according to the ordinance. However, if no objection is raised, city councilors “may approve a motion on their consent agenda without public hearing or deliberation.”