Ocean County, New Jersey Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Ocean County, New Jersey?

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Ocean County, New Jersey. However, it's important for property owners to understand the local regulations before starting a short-term rental business. While Airbnb is legal in New Jersey, each municipality has its own specific rules governing these rentals.

Starting a Short-Term Rental Business in Ocean County

To start a short-term rental in Ocean County, you'll need to meet certain requirements and obtain the proper permits. In general, you must:

• Register the property and pay any required fees
• Provide contact information for the owner and a local agent available 24/7
• Submit proof of ownership, residency, liability insurance, and recent utility bills
• Ensure the property passes any necessary inspections

For example, in Seaside Heights, rental properties must designate a responsible adult occupant at least 18 years old to supervise any groups with minors. Violating this rule can result in fines up to $1,000.

Atlantic City requires a seasonal certificate of occupancy, which serves as a license to operate a short-term rental after passing an inspection. Common violations include excessive noise, improper parking, and leaving trash in public view.

Some towns like Point Pleasant Beach have additional restrictions, such as prohibiting rentals less than 7 days from May 15 to September 30 unless the property is owner-occupied. This aims to cut down on disruptive "party houses."

It's crucial to check with your specific municipality in Ocean County for their latest short-term rental policies. Regulations can vary significantly between cities and change over time. Consulting with local officials or a lawyer can help ensure compliance.

With tourism driving the Ocean County economy, short-term rentals can be a lucrative investment. Beach towns like Seaside Heights, Point Pleasant Beach, and Beach Haven are especially popular with regional visitors. However, increased competition means hosts need to price competitively and provide a standout guest experience to succeed.

By thoroughly understanding and following all local short-term rental regulations, you can build a successful and compliant business in Ocean County. Proper permitting, insurance, and adherence to community rules will provide peace of mind and help maintain positive relationships with neighbors and officials.

Short-Term Rental Licensing Requirements in Ocean County

To legally operate a short-term rental property in Ocean County, owners must obtain the proper permits and licenses from their local municipality. Requirements vary by town, but generally include:

1. Registering the property and paying any associated fees
2. Providing contact information for the owner and a local agent available 24/7 to handle any issues
3. Submitting proof of ownership, residency, liability insurance, and recent utility bills
4. Passing any necessary inspections to ensure the property is safe and up to code

For example, in Seaside Heights, short-term rental permit applications must be submitted to the Zoning Office at Borough Hall. There is an annual fee of $250 per unit. The process typically takes 2-4 weeks for approval.

Required documents include:

1. Completed application form
2. Proof of ownership (deed)
3. Floor plan sketch showing room sizes and locations
4. Designated parking spaces
5. Trash removal contract
6. Liability insurance certificate ($500,000 minimum)
7. Property photos
8. Copy of owner's driver's license
9. Listing of all hosting platforms used to advertise the rental

Failure to obtain a short-term rental permit before advertising or renting the property is considered operating without a license. This is a violation of the municipal code and can result in fines up to $2,000 per day that the infraction continues. The property owner, rental agent, and responsible party may all be held liable.

In Atlantic City, seasonal certificates of occupancy are required, which serve as the short-term rental license. These involve an inspection to determine the legal occupancy limit. Properties found in violation are subject to $1,000 daily fines until they come into compliance. The city even has a 24/7 hotline for neighbors to report potential infractions like noise and parking issues.

It's critical for short-term rental owners in Ocean County to thoroughly research their town's specific licensing and permit policies. Consulting with local officials can help ensure all requirements are met before launching a rental business. With proper licensing and adherence to occupancy rules, noise limits, trash protocols, and parking restrictions, owners can avoid costly penalties and maintain positive community relationships.

Required Documents for Ocean County Short-Term Rentals

To register a short-term rental property in Ocean County, owners must submit several documents to their local municipality. While exact requirements vary by town, common documents include:

1. Completed Application Form: The short-term rental permit application, available from the local Zoning or Code Enforcement Office. Provides property details and owner contact information.
2. Proof of Ownership: A copy of the property deed proving the applicant is the legal owner. Available from the County Clerk's Office.
3. Driver's License: A copy of the property owner's valid driver's license or government-issued photo ID. Verifies the owner's identity matches the name on the deed.
4. Floor Plan Sketch: A drawing showing the layout and room sizes of the rental unit. Helps determine maximum occupancy limits. Can be hand-drawn by the owner or professionally prepared.
5. Parking Plan: Documentation of available on-site parking spaces for the rental unit. Ensures compliance with local parking ordinances. May require a site survey or photos.
6. Trash Removal Contract: Proof of garbage collection service for the rental property, such as a copy of the hauler contract or recent bill. Shows proper waste disposal to avoid trash buildup.
7. Liability Insurance Certificate: A document from the owner's insurance company showing active liability coverage on the rental property, typically with a minimum of $500,000. Protects the owner and municipality from potential lawsuits.
8. Property Photos: Pictures of the rental unit's exterior and interior. Provides a visual record of the property condition at the time of application.
9. Hosting Platform Listings: Website links or screenshots showing all online advertisements for the short-term rental property. Allows officials to ensure compliance with local regulations on rental terms and information provided to guests.

Some municipalities like Long Beach Township also require additional documents for certain applicants:

1. Property Owner Consent Form: If the applicant is not the property owner, a notarized authorization from the owner permitting the short-term rental use.
2. Business Registration: For LLCs or other business entities applying for a permit, proof of active registration with the State of New Jersey.

It's important to check with your specific town in Ocean County for their full list of required short-term rental documents. Providing thorough and accurate paperwork helps streamline the permitting process and avoid delays or denials. With proper registration and adherence to local regulations, short-term rental owners can operate successful and compliant businesses.

Ocean County Short-Term Rental Taxes

Short-term rental owners in Ocean County must collect and remit several types of taxes on their bookings. The exact taxes owed depend on the property's municipality, but generally include:

New Jersey Sales Tax: The statewide sales tax rate of 6.625% applies to all short-term rentals of less than 90 days. This tax is collected by the host and remitted to the New Jersey Division of Taxation.

State Occupancy Fee: An additional 5% tax on the rent charged for occupancies of less than 90 days. This fee is also paid to the state and is imposed on top of the sales tax, for a combined state tax rate of 11.625% on short-term rentals.

Municipal Occupancy Tax: Some cities in Ocean County charge their own occupancy taxes on short-term rentals. For example, Seaside Heights imposes a 3% tax, while Beach Haven has a 7% tax. These local taxes are collected along with the state taxes and remitted to the Division of Taxation, which then distributes the funds to the municipalities.

Tourism Taxes: Certain tourism-focused areas like Cape May County have additional taxes to fund tourism promotion and development. The Cape May County Tourism Tax and Assessment totals 5% and applies to short-term rentals. Similar taxes may be charged in other shore towns.

It's crucial for short-term rental owners to collect the proper taxes from guests and remit them to the appropriate authorities. Failure to comply can result in fines, penalties, and legal issues. Using a tax rate lookup tool can help determine the exact taxes owed for your rental's location.

Possible Write-Offs and Deductions

While short-term rental owners must pay various taxes, there are also several possible write-offs and deductions to help offset these costs. Some common tax deductions include:

Depreciation: Owners can write off the value of the rental property and assets over time using the Modified Accelerated Cost Recovery System (MACRS). A cost segregation study can help maximize deductions by depreciating property improvements separately.

Cleaning and Maintenance: Fees paid for cleaning services, repairs, and general upkeep of the rental are tax-deductible business expenses.

Marketing: Costs related to advertising and promoting the short-term rental, such as professional photography, website hosting, and online listing fees, can be written off.

Commissions and Fees: The service fees and commissions charged by platforms like Airbnb and Vrbo are tax-deductible. These are usually around 20% of the listing price.

Mortgage Interest and Insurance: Interest paid on a mortgage for the rental property is often deductible, as are premiums for private mortgage insurance in many cases.

Other potential write-offs include supplies, utilities, travel costs, and home office expenses. Thorough record-keeping and consultation with a tax professional are recommended to ensure all eligible deductions are claimed properly.

By understanding the applicable taxes and available deductions, Ocean County short-term rental owners can stay compliant and optimize their business finances. Proper planning and accounting can help hosts succeed in the competitive vacation rental market.

New Jersey Wide Short-Term Rental Rules

In addition to local regulations in Ocean County, short-term rental hosts must also comply with state-wide laws in New Jersey. Some key requirements include:

1. Transient Accommodation Tax: New Jersey imposes taxes on short-term rentals of less than 90 days. Hosts must collect and remit the 6.625% state sales tax plus a 5% state occupancy fee, for a combined tax rate of 11.625% on all short-term rental charges.
2. Mercantile License: Many municipalities in New Jersey, including some in Ocean County, require short-term rental operators to obtain a mercantile license to legally conduct business. This involves registering with the city, paying a fee, and renewing annually.
3. Property Maintenance Standards: The New Jersey Hotel and Multiple Dwelling Law sets minimum standards for building safety, sanitation, and upkeep that apply to short-term rentals. Properties must meet requirements for fire safety, lighting and ventilation, plumbing, heating, and more.
4. Liability Insurance: While not legally mandated state-wide, most cities require short-term rental permit applicants to provide proof of liability insurance, typically with a minimum coverage amount of $500,000. This protects both the host and guests.
5. Responsible Party: State law requires short-term rental owners to designate a responsible party who can be contacted at any time to address issues. This agent must be available 24/7 and able to respond on-site within a specified timeframe, usually 1-2 hours.
6. Occupancy Limits: Short-term rentals cannot exceed the maximum occupancy limits set by the state based on the property size, number of bedrooms/bathrooms, and septic capacity. Most cities also set a minimum renter age of 18 or 21.

It's important to note that state-wide rules are constantly evolving. In 2019, New Jersey enacted a law that prohibits property owners from evicting tenants in order to convert to short-term rentals. Legislation has also been proposed to create a state-wide short-term rental registry and further regulate the industry.

By staying informed of both state and local short-term rental regulations, Ocean County hosts can avoid penalties and help maintain positive relationships with officials and the community. Proper compliance allows vacation rental owners to optimize their property investments while minimizing legal and financial risks.

Does Ocean County Strictly Enforce STR Rules?

While Ocean County has implemented various regulations on short-term rentals, the level of enforcement and compliance appears to vary across municipalities. Some towns have taken a stricter approach, while others are more lenient or lack the resources for proactive enforcement.

According to discussions on real estate investing forums like BiggerPockets, there are active Airbnb hosts operating in parts of Ocean County like Brick, Beachwood, and Toms River. Investors have expressed interest in acquiring properties in these areas for use as short-term rentals, indicating a level of confidence in their ability to operate despite any restrictions.

However, certain localities within the county have cracked down more aggressively on illegal rentals. For example, a letter to the editor in a local paper argued that short-term rentals in single-family residential zones are clearly prohibited under the Ocean City zoning code. The writer criticized the mayor and council for not taking decisive action to halt such rentals in neighborhoods.

This suggests that while there are certainly STR hosts active in Ocean County, they may be operating in a legally gray area depending on the specific town and neighborhood. Enforcement seems to be complaint-driven in many cases rather than proactive.

Compared to major cities with more stringent regulations and active enforcement, Ocean County is likely more Airbnb-friendly overall. The presence of many shore towns that rely on seasonal tourism creates a more accepting environment for vacation rentals.

However, hosts should carefully research the specific rules in their municipality and be prepared for the possibility of stricter enforcement in the future as more towns grapple with the impacts of STRs on local communities. Operating under the radar despite clear prohibitions carries inherent risks.

In summary, while Ocean County has a significant number of active STR listings, the level of enforcement varies widely. Hosts do seem to be operating rentals throughout the county, but not always with explicit legal approval. As local governments refine their approach to regulating the industry, the risk of serious penalties for non-compliant hosts will likely increase. Responsible hosts should ensure they are adhering to all applicable rules and regulations.

How to Start a Short-Term Rental Business in Ocean County

If you're considering starting a short-term rental business in Ocean County, New Jersey, follow these key steps to ensure compliance and success:

1. Research Local Regulations: Thoroughly review the specific short-term rental ordinances, zoning restrictions, and permit requirements in your municipality. Rules can vary significantly between towns in Ocean County, so it's crucial to understand what's allowed in your specific location.
2. Register Your Business: Once you've confirmed your property is eligible for short-term rentals, register your business with the State of New Jersey and obtain a tax ID number. If operating as an LLC or other entity, you'll need to file formation documents with the state.
3. Obtain Required Permits: Apply for the necessary short-term rental permit or license with your local municipality. This typically involves submitting an application, proof of ownership and residency, property details, parking plans, and paying a fee. Some towns like Seaside Heights and Atlantic City also require passing an inspection.
4. Secure Insurance: Purchase an appropriate level of liability insurance, often with a minimum of $500,000 in coverage. This is frequently required for permit approval and essential for protecting yourself and your property. Consider additional coverage like property damage protection as well.
5. Prepare the Property: Ensure your rental is safe, clean, and well-maintained. Make any necessary repairs or upgrades, and fully outfit the space with furniture, linens, and amenities. Consider hiring a professional cleaning service between guests to maintain quality standards.
6. Establish House Rules: Create a clear set of house rules covering areas like occupancy limits, noise restrictions, parking, trash disposal, and pet policies. Communicate these to guests prior to arrival to set expectations and minimize issues. Posting rules prominently in the rental is also advisable.
7. Determine Pricing: Research rental rates for comparable properties in your area to determine competitive pricing. Factor in your costs, seasonality, special events, and demand fluctuations. Many hosts use dynamic pricing tools to automatically adjust rates based on market conditions.
8. Create a Listing: Once your property is ready, create an attractive listing on popular platforms like Airbnb and Vrbo. Use high-quality photos, detailed descriptions, and list all relevant amenities. Be transparent about any quirks or limitations to manage guest expectations.
9. Manage Bookings and Guests: Respond promptly to booking inquiries and guest questions. Use a reservation system to keep track of bookings and avoid double-bookings. Consider hiring a property manager if you don't live locally or want to be hands-off. Provide excellent customer service to encourage positive reviews and repeat stays.
10. Comply with Tax Obligations: Short-term rentals in New Jersey are subject to several taxes, including state sales tax (6.625%), state occupancy fee (5%), and sometimes local occupancy taxes. Familiarize yourself with the tax requirements in your area and register with the appropriate agencies. Set up processes to accurately collect and remit taxes on a regular basis.

By following these steps and remaining compliant with all local regulations, you'll be well on your way to launching a successful short-term rental business in Ocean County. Keep in mind that rules and requirements can change over time, so it's important to stay informed and adapt as needed. With diligent management and a commitment to providing exceptional guest experiences, you can thrive in the competitive vacation rental market.

Who to Contact in Ocean County about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental rules or need to apply for permits in Ocean County, contact your local municipality's zoning and planning offices. Some key contacts include:

Ocean Township Planning and Zoning:

1. Kate Maloney, Zoning Officer: (732) 531-5000 ext. 3357, kmaloney@oceantwp.org
2. Colleen Mayer, Planning Administrator: (732) 531-5000 ext. 3350, cmayer@oceantwp.org

Ocean County Planning Board:

1. Anthony M. Agliata, Planning Director: (732) 929-2054, planning@co.ocean.nj.us
2. 101 Hooper Avenue, Toms River, NJ 08753

Atlantic City Code Enforcement Office: (609) 347-6450

For questions about seasonal certificates of occupancy and short-term rental licenses

Seaside Heights Code Enforcement: (732) 793-9100

For questions about rental property inspections and certifications

Most towns in Ocean County have dedicated code enforcement officers or zoning officials who can assist with short-term rental inquiries. Check your municipality's website or call their main office for specific contact information.

In addition to official resources, connecting with other local hosts can provide valuable insights and support. Consider joining an online community like Airbnb's Local Host Clubs. These groups allow you to ask questions, exchange advice, and stay updated on the latest local hosting news.

The Jersey Shore Hosts Club on Facebook is a great resource for Ocean County hosts. With over 1,400 members, you can crowdsource answers from experienced hosts in your area. The group discusses a wide range of hosting topics, from regulations to pricing to guest issues.

By leveraging both official contacts and peer communities, you'll be well-equipped to navigate the evolving landscape of short-term rental regulations in Ocean County. Proactive communication and a commitment to compliance will help ensure the long-term success of your rental business.

What Do Airbnb Hosts in Ocean County on Reddit and Bigger Pockets Think about Local Regulations?

Discussions on real estate investing forums provide insights into how Airbnb hosts in Ocean County are navigating local short-term rental regulations. Here's what some hosts are saying:

On Reddit, u/Steve4394 asked for advice on purchasing a home in Ocean County to list on Airbnb. Commenters emphasized the importance of thoroughly researching regulations, with one noting "Always check city regulations before booking." They explained that while Airbnb doesn't verify compliance, cities with STR ordinances do, often using services that scrape listings. Hosts advised "open up Google and put 'city name' 'Airbnb regulations'" to quickly check the rules before investing.

In a BiggerPockets forum post titled "Ocean City, NJ - Rules/Regs for STR", a prospective host asked about regulations and taxes for short-term rentals in the Ocean City area. Respondents shared that Ocean City requires a mercantile license and charges a 2% tourism tax and 3% lodging tax on STRs, in addition to state taxes. One host mentioned that Ocean City is "not super friendly for Airbnb" and has been increasing restrictions.

Another BiggerPockets thread called "I host over 100 AirBnB Listings in CA and AZ - Ask Me Anything" featured advice from an experienced STR host. While not specific to Ocean County, they emphasized the importance of understanding local rules, getting proper licenses and permits, and working with officials. As regulations evolve, they recommended hosts stay informed and engaged with the community.

Overall, the sentiment among Ocean County hosts seems to be that regulations are tightening as the area grapples with the growth of STRs. While some investors still see opportunity, thorough due diligence on local ordinances is crucial. Hosts advise building positive relationships with officials and neighbors. As one Redditor put it, "These are just growing pains as cities figure out what works and what doesn't."

By learning from the experiences of other local hosts, Airbnb operators in Ocean County can be better prepared to navigate the regulatory landscape. Proactive compliance and community engagement can help hosts run successful rentals while minimizing issues. As with any real estate investment, understanding and adapting to local rules is key.

Disclaimer: While we here at BNBCalc strive to keep all of our regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.