Understanding the laws, regulations, and taxes that govern short term rentals in your location is crucial to starting and running a successful Airbnb. Not having the necessary permits, breaking zoning laws, or missing out on an applicable tax can result in hefty fines or even your Airbnb closing down. Let’s explore what you need to know before renting your home on Airbnb in New Jersey.
##Why should you run an Airbnb in New Jersey? New Jersey is a northeastern U.S. state with some 130 miles of Atlantic coast. Jersey City, across the Hudson River from Lower Manhattan, is the site of Liberty State Park, where ferries embark for nearby Ellis Island, with its historic Immigration Museum, and the iconic Statue of Liberty. The Jersey Shore includes notable resort towns like historic Asbury Park and Cape May, with its preserved Victorian buildings.
Whether you want a blissfully relaxing beach vacation with your toes in the sand and ocean breezes rustling your hair or an outdoor adventure to deliver a pulse-pounding challenge, or a culinary exploration that will make all your foodie friends jealous or even an expedition to expand your mind, enrich your being and open your eyes with a focus on arts, culture, history, and heritage, a trip to New Jersey is basically your dream holiday destination.
With so much to see and do in New Jersey, having a property or renting a property to carry out Airbnb rental arbitrage in New Jersey might be a viable option if you are considering starting a vacation rental property management business.
##What are the Airbnb Laws, Taxes, and Regulations in New Jersey?
###Short-term rental regulations Chapter 255 of the Jersey City Code of Ordinance imposes restrictions on short-term rentals in Jersey City. This includes prohibiting short-term rentals operated by tenants and prohibiting short-term rentals in rent-controlled units. Owners who can share their primary residence—including up to two additional units in the building that they own and in which they live—but cannot share their home for more than 60 nights when they are not on site and must apply for a permit with the Division of Housing Preservation. The Division of Housing Preservation has published an FAQ with more information on these restrictions.
###Short-term rental permits Provided that your short-term rental is eligible under this ordinance, anyone who hosts short-term stays (fewer than 28 consecutive nights) in Jersey City is required to register their short-term rental with the City. The permit application can be completed online, and it must be completed for every short-term rental—even if the short-term rental is owned by the same owner and/or the short-term rentals are in the same dwelling.
Applicants will be required to provide specific information, including:
Applicants will also be required to provide specific documentation, including:
####Registration fee In addition to submitting the permit application, applicants must pay a permit application fee, which is $250 for the initial application and $200 annually to renew the permit.
####Inspections Short-term rentals will be subject to inspection before a permit will be issued. Once the permit application is reviewed and all the necessary documents are verified, inspections for compliance with the city’s fire safety regulations and Property Maintenance Code will be coordinated and scheduled by Housing Code Enforcement and the Fire Official.
The Property Maintenance Code, Chapter 254 of the Jersey City Municipal Code, establishes minimum standards for the maintenance, appearance, condition, utilities, facilities, and occupancy of dwellings. Short-term rentals must meet these standards.Upon satisfactory inspections, the permit will be issued within thirty (30) days.
####Exemptions for existing short-term rentals For a limited time, those who were operating a short-term rental prior to June 25, 2019 and are no longer eligible for a short-term rental permit under the ordinance will be able to maintain existing guest bookings until January 1, 2021—but will not be allowed to accept new bookings.
In the case of short-term rental operators who are tenants, they will be allowed to maintain existing bookings for the duration of their lease or until January 1, 2021, whichever occurs sooner.
Any short-term rental operator may be required to submit additional documentation if requested by the Division of Housing Preservation.
####Other contracts and rules As a host, you need to understand and abide by other contracts or rules that bind you, including leases, co-op rules, HOA rules, or other rules established by tenant organizations. You should be able to find out more by contacting your housing authority (such as a community council) or landlord. Your lease (or other contract) might also have specific details.