Location Advantage Adds 50 Percent Premium Over Hotels in Short-Term Rentals

Written by:

Rudi Davis

Date:

17 Sep 2025

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The short-term rental market in Connecticut and Rhode Island offers significant opportunities for investors who carefully navigate local regulations, according to Robert Marucci, Owner of Better Living Realty LLC. However, success requires understanding complex town-by-town variations in rules and market dynamics.

Regulatory Landscape Demands Local Knowledge

“You definitely have to be working with an experienced agent that knows what’s going on with the towns, or you have to be willing to do your due diligence, because there are a lot of towns that don’t allow short-term rentals,” Marucci warns. He points to his own town’s 30-day minimum stay requirement as an example of restrictions that could derail an investor’s strategy.

Revenue Potential Varies by Location

For properties in permitted areas with strong demand drivers, Marucci sees compelling economics. “If you get it rented during the summer, you’re about one and a half times what you’re getting for a hotel room down there,” he says, describing returns in coastal Rhode Island markets.

The key, according to Marucci, lies in identifying properties with clear demand drivers. “If you can find a property that has a draw, like an ocean or a lake, or maybe casino or ski resort, you’re gonna have a very high probability of being able to rent that weekly,” he explains.

Market Reach and Demographics

While platforms like Airbnb and VRBO provide global reach, Marucci notes most renters come from within a specific radius. “A lot of them are within two hours, driving from Connecticut, or all the surrounding towns. Some from New York, Connecticut, maybe a little Massachusetts,” he explains.

This regional draw creates opportunities for investors to target specific demographics and seasonal patterns. In some markets, Marucci notes the potential to combine different rental strategies: “You can rent it to college students during the school year and then still have the summer available for regular Airbnb.”

Looking Forward

Through his firm Better Living Realty LLC, Marucci continues to help investors identify and evaluate short-term rental opportunities across Connecticut and Rhode Island. While emphasizing the importance of thorough due diligence regarding local regulations, he sees continued opportunity for investors who carefully select locations and understand their target market.