Jersey City Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Jersey City

Jersey City has specific regulations for operating short-term rentals (STRs) like Airbnb and VRBO. Chapter 255 of the Jersey City Code of Ordinance imposes restrictions on STRs, including prohibiting rentals operated by tenants and in rent-controlled units2. Owners who live in the property can share their primary residence and up to two additional units they own in the same building2.

In 2019, Jersey City was one of the top short-term rental destinations in New Jersey, prompting the city to curtail the industry that officials said jeopardized housing stock, drove up rents, and negatively impacted residents' quality of life1. The amended ordinance aimed to tighten STR regulations even further.

While the new rules have reduced Jersey City's popularity as an STR destination, demand has risen sharply in neighboring cities like Hoboken and Weehawken that offer quick access to Manhattan1. This shift shows the complex impacts of local STR policies.

Short Term Rental Licensing Requirement in Jersey City

Anyone hosting STRs of less than 28 consecutive nights in Jersey City must register their property and obtain a permit2. A permit is required for each individual STR unit, even if owned by the same person13. Permit applications can be completed online through the Division of Housing Preservation213.

The permit process is designed to ensure STRs meet health and safety standards and preserve community character. Applicants must provide detailed information about the property, owner, local contacts, parking, and more2. Properties are subject to fire safety and maintenance code inspections prior to permit issuance213.

While these requirements create barriers for hosts, they aim to balance the rights of property owners with the wellbeing of long-term residents and neighborhoods. Clear guidelines help legitimize rule-abiding STRs while restricting unruly "party houses" that cause issues for neighbors.

Required Documents for Jersey City Short Term Rentals

To apply for a STR permit, hosts must provide extensive documentation, including213:

• Property address, block/lot, ward
• Owner contact information
• 24/7 contact info for property agent and responsible party
• Number of available parking spaces
• Proof of ownership, residency, insurance, condo bylaws
• Zoning compliance certificate, proof of no violations/taxes owed
• Completed owner affidavit and certifications

Gathering this paperwork can be time-consuming for hosts but helps the city verify important details before allowing an STR to operate. The $250 permit application fee, plus $200 annual renewal, also generates revenue to offset enforcement costs2.

Some critics argue the requirements are overly burdensome for small-time hosts. However, the city maintains they are necessary to preserve residential character and housing stock. Hosts should carefully review the documentation checklist and budget adequate time to complete the permit process.

Jersey City Short Term Rental Taxes

STRs in Jersey City are subject to several taxes collected by Airbnb16:

• 6.625% NJ sales tax
• 5% NJ occupancy fee
• 3% Meadowlands regional hotel use assessment
• 6% Jersey City hotel occupancy tax

These taxes can add a significant amount to the guest's bill, making Jersey City STRs less price competitive compared to other markets. However, the taxes generate important revenue for the state and city.

Hosts should be aware that they may have additional tax obligations beyond what Airbnb collects, such as income taxes on their rental earnings. Consulting a tax professional is advised to ensure full compliance with all applicable tax laws.

Jersey City wide Short Term Rental Rules

Key STR regulations in Jersey City include2413:

• Only property owners can operate STRs, not tenants
• No STRs allowed in rent-controlled units
• Unhosted stays limited to 60 nights per year
• Permit and annual renewal required for each STR
• 24/7 local contacts required
• Subject to inspections and maintenance standards

These rules restrict who can operate STRs and how often, aiming to curb the impact on housing affordability and quality of life for permanent residents. The 60-night cap on unhosted stays prevents units from being run like year-round hotels.

Some hosts object to the primary residence requirement, arguing it unfairly penalizes those with second homes or investment properties. However, supporters say it preserves housing stock and neighborhood character. The regulations attempt to strike a balance between competing priorities.

Does Jersey City strictly enforce STR rules?

Jersey City has tightened STR regulations in recent years to preserve housing stock and quality of life for residents119. The city does enforce the rules, with the ordinance upheld by the courts19.

However, with clear guidelines now in place, Jersey City is considered STR friendly compared to the very strict policies in neighboring New York City415. Many hosts continue to operate STRs in compliance with the city's requirements.

Enforcement typically relies on complaints from neighbors about noise, parking, trash or other nuisance issues15. The city has a 24/7 hotline to register complaints15. Hosts who repeatedly violate the rules can have their permit revoked2.

While Jersey City takes STR compliance seriously, the balanced approach has allowed the industry to continue under clearer oversight. This contrasts with markets like New York that have essentially banned non-owner occupied STRs under 30 days11.

How to Start a Short Term Rental Business in Jersey City

• Confirm your property is eligible under the STR ordinance2
• Obtain a zoning determination letter for STRs17
• Apply for a STR permit through the Division of Housing Preservation218
• Schedule fire and maintenance inspections13
• Provide all required documentation and pay permit fee2
• Ensure 24/7 local contacts are available2
• Collect and remit all applicable taxes16

Hosts should carefully review the STR ordinance and permit requirements before listing their property. Consulting with the Division of Housing Preservation and a qualified local attorney is advised.

Proper insurance is also critical. Jersey City requires a minimum of $500,000 in liability coverage for STRs9. Hosts should speak with their insurance agent to obtain appropriate coverage and avoid gaps.Investing in safety features like smoke detectors, fire extinguishers, and first-aid kits is important to protect guests and property. Providing house rules, local contacts, and emergency info helps ensure a smooth stay.

Who to contact in Jersey City about Short Term Rental Regulations and Zoning?

For questions about the STR ordinance and permits, contact:

Division of Housing Preservation
3 Jackson Square
Jersey City, NJ 07305
Phone: (201) 547-4821
housingpreservation@jcnj.org

For zoning determination letters, contact:

Division of Zoning
1 Jackson Square, 2nd Floor
Jersey City, NJ 07305
Phone: (201) 547-4832
zoning@jcnj.org

The Division of Housing Preservation oversees STR permits and compliance, while the Division of Zoning confirms a property's eligibility for STR use. Both departments can provide guidance on the STR rules and application process.

Other helpful resources include the Jersey City Code of Ordinances, available on the city website, and local host groups on platforms like Facebook and Airbnb. Networking with experienced hosts can provide valuable tips for navigating the regulations.

What do Airbnb hosts in Jersey City on Reddit and Bigger Pockets think about local regulations?

On the Jersey City subreddit, hosts note that legal Airbnbs will have a permit number listed and that the rules are enforced, though not as strictly as in NYC15.

BiggerPockets members discuss how Jersey City STRs can still be profitable investments when following the regulations. With high demand and reasonable policies compared to NYC, Jersey City is an appealing market for STR operators who go through the proper permitting process38.

However, some hosts express frustration with the primary residence requirement and 60-night cap on unhosted stays, feeling it limits their ability to maximize rental income3. Others argue the regulations are necessary to preserve community character and housing affordability.

Overall, the sentiment is that Jersey City has found a middle ground on STRs - allowing them to operate with clear oversight, unlike the outright bans or minimal enforcement seen in some other cities. Hosts who follow the rules can still run successful STRs, though the permit process and taxes add costs and complexity compared to an unregulated market.

In conclusion, Jersey City has developed a comprehensive framework for regulating short-term rentals aimed at balancing the rights of property owners with the need to preserve housing stock, quality of life, and community character. While the permit requirements and operational restrictions create barriers for hosts, the city's STR-friendly approach contrasts with the strict bans enacted in nearby markets like New York City.

Hosts looking to start or continue operating STRs in Jersey City must carefully review the regulations, gather required documentation, and apply for permits. Consulting with local officials, attorneys, and insurance agents is advised to ensure compliance. The rules are actively enforced, with consequences for repeat violators, but responsible hosts can still run successful STR businesses.

As the STR industry matures, Jersey City provides an example of how local governments can allow this new form of lodging to operate with reasonable oversight. While not perfect, the ordinance attempts to address key issues like housing affordability, community impact, and tax collection. The approach could provide a model for other cities grappling with how to regulate the growing short-term rental market.