Asbury Park, NJ Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Short-term rentals (STRs) like Airbnb and VRBO have become increasingly popular in Asbury Park in recent years. However, the city has implemented regulations to manage the growth of STRs and address concerns about their impact on neighborhoods. Here's what you need to know about the current rules for operating a short-term rental in Asbury Park.

Starting a Short-Term Rental Business in Asbury Park

To legally operate a short-term rental in Asbury Park, property owners must obtain a Short-Term Rental Permit from the city's Department of Property Improvement and Neighborhood Preservation. The permit is valid for one year from the date of issuance.

Under Asbury Park's STR ordinance, only certain types of properties are eligible for short-term rentals:

• A dwelling unit that is the primary residence of the owner
• A condominium unit that is the primary residence of the owner
• A two-unit property where the owner resides in one unit as their primary residence
• A three-unit property where the owner resides in one unit as their primary residence
• A four-unit property where the owner resides in one unit as their primary residence

This means that investment properties and second homes cannot be used as short-term rentals in Asbury Park. The owner must live on-site and use the property as their primary residence.

To prove primary residency, applicants must submit a copy of their driver's license, voter registration card, or state identification card showing the address of the STR property. They must also provide the front page of their most recent federal 1040 tax return and a bank statement from the past three months, both showing the STR property address.

The initial permit application fee is $500, with a $100 renewal fee each year thereafter. Failing to obtain a permit before advertising or renting out a property on a short-term basis can result in fines of up to $2,000 per violation.

Asbury Park uses enforcement software to track and identify permitted and unpermitted STRs. In October 2023, there were 226 Airbnb listings in the city, but only 23 had registered for the required business license.

The regulations aim to prevent the proliferation of "pseudo-hotels" operated by outside investors and preserve the character of residential neighborhoods. Some property owners argue the rules are too restrictive, but supporters say they are necessary to prioritize housing availability for long-term residents amidst a shortage of affordable units.

Short-Term Rental Licensing Requirement in Asbury Park, New Jersey

To legally operate a short-term rental (STR) in Asbury Park, property owners must obtain a Short-Term Rental Permit and Certificate of Inspection from the city's Department of Property Improvement and Neighborhood Preservation. The permit is valid for one year from the date of issuance.

According to the City of Asbury Park's website and STR ordinance, applicants must submit the following to obtain a Short-Term Rental Permit:

1. Completed Short-Term Rental Permit and Certificate of Inspection Application
2. $500 initial application fee ($100 for annual renewal)
3. Proof of primary residency (driver's license, voter registration card, or state ID; federal 1040 tax return; bank statement)
4. Zoning Compliance Confirmation from the Department of Planning & Redevelopment ($20 fee)
5. Confirmation from the Tax Collector that all tax and sewer charges are current
6. Confirmation from the Construction Department that there are no open building permits on the property
7. If a condominium, a letter from the Condominium Association approving the short-term rental
8. Floor plan of the STR property
9. Parking plan showing available on-site parking
10. 24/7 emergency contact information for a designated agent
11. Proof of liability insurance

Applications can be submitted in person to the Department of Property Improvement and Neighborhood Preservation. Processing times vary depending on whether approvals from other departments are needed, but applicants should allow a few weeks to 2-3 months for the permit to be issued.

Operating an STR without a valid permit can result in significant fines and penalties. According to Asbury Park's STR ordinance, violations are subject to fines of up to $2,000 per day, with each day constituting a separate violation. The city actively monitors STR listings and employs enforcement software to identify non-compliant properties.

As of October 2023, there were 226 Airbnb listings in Asbury Park, but only 23 had registered for the required STR permit. This suggests that many hosts are currently operating outside of local regulations and could face substantial financial consequences if caught.

To avoid costly fines and ensure compliance with Asbury Park's short-term rental rules, property owners should carefully review the licensing requirements and submit a complete application with all necessary documentation to the Department of Property Improvement and Neighborhood Preservation.

Required Documents for Asbury Park, New Jersey Short-Term Rentals

To obtain a Short-Term Rental Permit in Asbury Park, property owners must submit the following documents, according to the City of Asbury Park's website and STR ordinance:

Completed Short-Term Rental Permit and Certificate of Inspection Application: This form provides essential information about the property, owner, and designated agent responsible for the STR. It can be downloaded from the City of Asbury Park's website.

Proof of Primary Residency: Applicants must submit a copy of their driver's license, voter registration card, or state identification card showing the STR property address. They must also provide the front page of their most recent federal 1040 tax return and a bank statement from the past three months, both showing the STR property address. These documents prove that the owner uses the property as their primary residence, which is a requirement for STR eligibility.

Zoning Compliance Confirmation: A Zoning Compliance form must be obtained from the Department of Planning & Redevelopment for a $20 fee. This confirms that the property is located in a zone that allows short-term rentals.

Confirmation of Tax and Sewer Charge Payment: The Tax Collector must confirm that all property tax and sewer charges are current.

Confirmation of No Open Building Permits: The Construction Department must confirm that there are no open building permits on the property.

Condominium Association Approval Letter (if applicable): If the STR property is a condominium unit, a letter from the Condominium Association approving the short-term rental must be provided.

Floor Plan: A detailed floor plan of the STR property must be submitted, clearly indicating the areas to be used for the short-term rental.

Parking Plan: A parking plan showing the number and location of available on-site parking spaces for STR guests must be provided.

Emergency Contact Information: The name and contact information of a designated agent who can be reached 24/7 in case of emergencies must be submitted.

Proof of Liability Insurance: Applicants must provide proof of liability insurance coverage for their short-term rental property.

These documents, along with the initial $500 application fee ($100 for annual renewal), must be submitted to the Department of Property Improvement and Neighborhood Preservation for review and approval. By providing all required documentation and ensuring compliance with local regulations, property owners in Asbury Park can legally operate short-term rentals.

Asbury Park, New Jersey Short-Term Rental Taxes

Short-term rental owners in Asbury Park, New Jersey must collect and remit various taxes on their rental income. These taxes include state sales tax, state occupancy fee, and potentially local occupancy taxes. Understanding these tax obligations is crucial for hosts to remain compliant and avoid penalties.

New Jersey State Sales Tax: The state sales tax rate in New Jersey is 6.625%. This tax applies to short-term rentals of less than 90 days. Hosts must collect this tax from guests and remit it to the New Jersey Division of Taxation.

New Jersey State Occupancy Fee: In addition to the state sales tax, a 5% state occupancy fee applies to short-term rentals of less than 90 days. This fee is also collected by hosts and remitted to the New Jersey Division of Taxation.

Municipal Occupancy Tax: Some municipalities in New Jersey, including Asbury Park, may impose a local occupancy tax of up to 3% on short-term rentals. Hosts should check with the City of Asbury Park to determine if this tax applies and the current rate.

For example, if a guest books a short-term rental in Asbury Park for $200 per night, the taxes would be:

1. State Sales Tax (6.625% of $200): $13.25
2. State Occupancy Fee (5% of $200): $10.00
3. Municipal Occupancy Tax (assuming 3% of $200): $6.00
4. Total Taxes: $29.25

Hosts can deduct certain expenses related to their short-term rental business on their tax returns, which can help offset their tax liability. Some potential write-offs or deductions include:

1. Mortgage interest
2. Property taxes
3. Insurance premiums
4. Utilities
5. Repairs and maintenance
6. Cleaning fees
7. Advertising costs
8. Supplies

It's essential for hosts to keep accurate records of their rental income and expenses to properly claim deductions and prepare their tax returns. Consulting with a tax professional can help ensure compliance with all applicable tax laws and maximize allowable deductions.

By understanding and complying with Asbury Park's short-term rental tax requirements, hosts can avoid costly penalties and maintain a successful rental business in this popular Jersey Shore destination.

New Jersey Wide Short-Term Rental Rules

In addition to local regulations in Asbury Park, short-term rental hosts must also comply with state-level laws and requirements. New Jersey imposes several taxes on short-term rentals and has recently proposed legislation to create a statewide registration system for STRs.

Taxes: Short-term rentals in New Jersey are subject to the state sales tax (6.625%) and the state occupancy fee (5%), for a combined tax rate of 11.625%. Some municipalities, like Asbury Park, may also charge additional local taxes. Hosts are responsible for collecting these taxes from guests and remitting them to the appropriate authorities.

Proposed Statewide Registration: In September 2022, New Jersey lawmakers introduced bills A4814 and S3158, which would create a statewide registration system for short-term rentals. If passed, the legislation would require STR operators to register with the state Division of Travel and Tourism and obtain a registration number to include in all advertisements. Platforms like Airbnb and Vrbo would be prohibited from listing any unregistered properties.

The proposed bills aim to gather more data on the growing short-term rental industry and crack down on "party houses" that have become a nuisance in some shore towns. However, the legislation has faced opposition from some STR operators who argue it would be overly burdensome, especially for those who only rent out their properties occasionally.

Potential Statewide Regulations: While no comprehensive statewide regulations are currently in place, the New Jersey legislature has considered various bills in recent years to impose more oversight on short-term rentals. These proposals have included occupancy limits, parking requirements, insurance mandates, and restrictions on the number of days a property can be rented per year.

As the STR industry continues to grow in New Jersey, hosts should stay informed about any new state-level laws or regulations that may impact their businesses. It's essential to comply with all applicable rules at both the local and state level to avoid fines and maintain good standing as a short-term rental operator.

Does Asbury Park, New Jersey Strictly Enforce STR Rules?

Based on discussions in real estate forums like BiggerPockets and Reddit, the general consensus is that Asbury Park does enforce its short-term rental regulations fairly strictly compared to some other cities in New Jersey. The city has taken a proactive approach to managing the growth of STRs and addressing concerns about their impact on neighborhoods.

As of October 2023, there were 226 Airbnb listings in Asbury Park, but only 23 had registered for the required Short-Term Rental Permit. This suggests that many hosts are currently operating outside of local regulations, and the city is actively monitoring listings to identify non-compliant properties.

Asbury Park uses enforcement software to track and identify permitted and unpermitted STRs. Fines for operating without a permit can be as high as $2,000 per violation, with each day's rental constituting a new and separate violation. These steep penalties indicate that the city is serious about cracking down on illegal short-term rentals.

Compared to some other Jersey Shore towns like Point Pleasant Beach, which has banned rentals of less than 30 days in most cases, Asbury Park's regulations are somewhat less restrictive. The city allows STRs in owner-occupied primary residences and certain multi-unit properties where the owner lives on-site. However, the permit requirements, fees, and occupancy restrictions still make Asbury Park less Airbnb-friendly than cities with more lenient rules.

While some hosts may continue to operate STRs in Asbury Park despite the regulations, the risk of significant fines and the city's active enforcement efforts likely deter many from doing so. In a Reddit thread discussing short-term winter rentals, one user noted that Asbury Park is "a bit stricter on STR laws" compared to other nearby towns.

Overall, based on the available information from real estate forums and local news sources, Asbury Park appears to be fairly strict in enforcing its short-term rental rules and less Airbnb-friendly than some other cities. The regulations aim to balance the interests of STR operators with the need to preserve neighborhood character and housing availability for long-term residents.

How to Start a Short-Term Rental Business in Asbury Park, New Jersey

Starting a short-term rental (STR) business in Asbury Park requires careful planning and compliance with local regulations. Follow these steps to launch your STR venture:

Determine if your property is eligible for short-term rentals: Consult the City of Asbury Park's STR ordinance to confirm your property falls under one of the five permitted classifications:

1. Condominium units where the owner legally identifies the address as their principal residence
2. Single-family residences where an owner legally identifies the address as their principal residence
3. Up to two units in a two-family dwelling where the owner occupies one unit as their principal residence
4. Up to two units in a multi-family dwelling where the owner occupies one unit as their principal residence
5. Up to two bedrooms in a single-family dwelling where the owner occupies the remainder as their principal residence

If you own a condominium, ensure the association's by-laws or master deed permit short-term rentals.

Obtain Zoning Compliance: Submit a Zoning Compliance form and $20 fee to the Department of Planning & Redevelopment to confirm your property is not in violation of the city's land use and zoning regulations. Resolve any outstanding zoning issues before proceeding with your STR application.

Complete the STR Permit and Certificate of Inspection Application: Fill out the required application, including all necessary documentation and the $500 initial fee ($100 for renewals). Provide proof of principal residence, such as a driver's license, voter registration card, recent tax return, and bank statement showing the property address. Carefully review the application checklist to ensure you submit all required information and avoid delays.

Pass City Inspections: Schedule and pass inspections from the Department of Property Improvement and Neighborhood Preservation to ensure your property meets all safety and code requirements. Address any identified issues promptly. Maintain your property in top condition to ensure successful inspections and guest satisfaction.

Obtain STR Permit and Certificate of Occupancy: Upon approval, the city will issue your STR permit and rental Certificate of Occupancy within 10 business days. These are valid for one year from the issue date. Prominently display your permit number in all STR listings and advertisements.

Prepare your property: Ensure your rental space is clean, well-maintained, and equipped with necessary amenities. Take high-quality photos and write an engaging listing description highlighting unique features and local attractions. Provide thoughtful touches like local guidebooks or welcome baskets to enhance the guest experience.

List your property: Create listings on popular STR platforms like Airbnb and Vrbo. Set competitive rates, establish house rules, and develop a system for managing bookings, communication, and reviews. Use dynamic pricing tools to optimize your rates based on demand and seasonality.

Comply with ongoing requirements: Collect and remit all applicable taxes, including state sales tax (6.625%), state occupancy fee (5%), and any local taxes. Submit a Tenant-Occupant Change Form to the city for each new rental. Renew your STR permit and Certificate of Occupancy annually. Use automation tools to streamline tax collection, reporting, and guest communication.

By following these steps and staying informed about local regulations, you can successfully launch and operate a compliant short-term rental business in Asbury Park. Prioritize guest satisfaction, maintain open communication with city officials, and adapt to any changes in the regulatory landscape to ensure the long-term success of your venture.

Who to Contact in Asbury Park, New Jersey about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations and zoning in Asbury Park, New Jersey, there are several key contacts and resources available:

Department of Planning and Redevelopment: For inquiries about whether your property is zoned for short-term rentals, contact Michele Alonso, AICP, PP, Director of Planning and Redevelopment, at 732-502-5711 or email malonso@cityofasburypark.com.

Department of Property Improvement and Neighborhood Preservation: For questions about the Short-Term Rental Permit application process, required documents, fees, and inspections, contact the Department of Property Improvement and Neighborhood Preservation at 732-502-5742 or email Tamica Smith at tsmith@cityofasburypark.com.

City of Asbury Park Website: The official City of Asbury Park website provides a wealth of information about short-term rental regulations, including frequently asked questions, the STR ordinance, and application forms. Visit www.cityofasburypark.com and navigate to the "Short-Term Rentals" section under the "Government" tab.

In addition to these official contacts, there are several online communities and forums where Asbury Park short-term rental hosts can connect, share experiences, and seek advice:

BiggerPockets Forums: The BiggerPockets website has a dedicated forum for short-term and vacation rental discussions. While there are limited threads specifically about Asbury Park, hosts can find general advice and connect with other investors in the area.

GlobalHosting Forum & Blogs: This online community for short-term rental hosts has a thread discussing Asbury Park's STR rules, providing a platform for hosts to share insights and stay updated on local regulations.

Reddit - r/AsburyPark and r/newjersey: The Asbury Park and New Jersey subreddits occasionally feature discussions related to short-term rentals and real estate investing in the area. These communities can be a useful resource for hosts seeking local perspectives and advice.

By reaching out to the appropriate city officials and engaging with online host communities, Asbury Park short-term rental owners can stay informed about regulations, zoning, and best practices to ensure the success of their businesses.

What Do Airbnb Hosts in Asbury Park, New Jersey on Reddit and Bigger Pockets Think about Local Regulations?

After searching through various online forums and communities, including Reddit and BiggerPockets, there are a few relevant threads that provide insight into the experiences and opinions of Airbnb hosts in Asbury Park regarding local short-term rental regulations:

Reddit - r/AsburyPark - "Summertime over night parking": In this 2024 thread, a user planning a bachelorette weekend in Asbury Park inquires about overnight parking options. Commenters note that while street parking is free from 2am-9am, it can be challenging to find spots during peak summer months. They suggest either paying for hotel valet parking or trying to find free parking in nearby Ocean Grove and walking to Asbury Park. This highlights the parking challenges STR guests may face in the busy season.

Reddit - r/AirBnB - "Thoughts on AirBnB allowing illegal hosting?": While not specific to Asbury Park, this 2022 thread discusses the issue of Airbnb allowing listings that violate local regulations, such as New York City's ban on rentals under 30 days. Some users argue that Airbnb should take more responsibility for enforcing local laws, while others note that the onus is on municipal governments to crack down on non-compliant listings. This debate suggests that some hosts may continue operating STRs despite regulations, unless actively enforced.

BiggerPockets Forum - "100k to use in real estate for out of state rental airbnb or primary home that wont cash flow?": In this 2022 post, a North New Jersey investor considers purchasing a short-term rental property out of state. One commenter advises focusing on NNJ instead, noting that "Asbury Park is a bit stricter on STR laws where they require the owner to occupy as a primary in order to qualify." This indicates that Asbury Park's owner-occupancy requirement for STRs does limit investment opportunities for non-resident hosts.

While there are limited direct accounts from Asbury Park Airbnb hosts, these discussions touch on some of the challenges they may face, such as parking limitations, the potential for operating illegally, and owner-occupancy restrictions. As the city and state continue to grapple with the growth of short-term rentals, hosts will need to stay informed about evolving regulations and their enforcement to ensure compliance and maintain successful STR businesses.

Disclaimer: While we here at BNBCalc strive to keep all of our city 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 city 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.