East Orange Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in East Orange

To legally operate a short-term rental in East Orange, you must:

• Obtain a short-term rental license from the City of East Orange Division of Code Enforcement. This involves submitting an application, paying a fee, and passing an inspection.
• Ensure your property is located in a zone that allows short-term rentals. As of 2023, East Orange only permits short-term rentals in certain non-residential zones like business and mixed-use districts.
• Limit rentals to a maximum of 180 days per year.
• Designate a local contact person, such as a co-host or property manager, who can respond to any issues within 2 hours.
• Provide guests with a copy of the short-term rental license and house rules.
• Comply with all building, fire, health, and safety codes.

As of 2022, there were only 12 active Airbnb listings in East Orange, with an average nightly rate of $97. The city has taken a restrictive approach to short-term rentals to preserve housing for long-term residents and limit quality of life impacts.

Short-Term Rental Licensing Requirement in East Orange

Currently, East Orange does not have specific licensing requirements for short-term rentals like Airbnb. The city's zoning and property maintenance codes do not explicitly address short-term rentals.

However, all residential rental properties in East Orange, regardless of the length of the rental term, are subject to the city's rent control ordinance and registration requirements. Landlords must file an annual rent roll registration with the Department of Property Maintenance by September 1st each year.

The annual rent roll filing must include:

1. A list of all rental units and current rents
2. A sworn affidavit attesting to the accuracy of the information
3. A $100 filing fee, with late penalties ranging from $300-$1000 for submissions after September 1st

Landlords are also required to notify the Department of Property Maintenance within 30 days of any changes to the rent roll throughout the year.

While these registration requirements apply to all rentals, including short-term ones, there is no specific short-term rental permit or license required in East Orange at this time.

However, it's important to note that operating a short-term rental may be considered a change of use under the city's zoning code. Section 50-7 of the East Orange zoning ordinance lists permitted and prohibited uses for each zoning district. Short-term rentals are not explicitly listed as permitted for use in residential zones.

Therefore, property owners interested in operating short-term rentals in East Orange should consult with the city's zoning office to confirm whether it is an allowed use for their specific property. A zoning permit or variance may be required to legally operate.

As short-term rentals continue to grow in popularity, it's possible that East Orange may enact more specific regulations and licensing requirements in the future, as other New Jersey cities like Jersey City and Newark have done. Hosts should monitor any regulatory changes and ensure compliance with all applicable local, state, and federal laws.

Required Documents for East Orange Short-Term Rentals

While East Orange does not currently have specific licensing requirements for short-term rentals, property owners who wish to operate short-term rentals should be prepared to provide the following documents:

1. Proof of ownership, such as a deed or property tax bill, demonstrating that you are the legal owner of the property.
2. A completed rent roll registration form, which must be filed annually with the Department of Property Maintenance by September 1st. This form includes information about all rental units in the property, current rents, and a sworn affidavit attesting to the accuracy of the information.
3. A spreadsheet showing how each rent was calculated in compliance with the city's rent control regulations. This must be provided along with the annual rent roll registration.
4. Proof of liability insurance covering the rental property. While not specifically required for short-term rentals, it is strongly recommended to protect against potential guest injuries or property damage.
5. A written lease agreement for each short-term rental transaction. Even though short-term rentals are typically booked through online platforms, it is advisable to have a separate lease agreement outlining the terms of the rental, including duration, payment, house rules, and any other specific conditions.
6. Rental receipts provided to tenants reflecting rent paid. Landlords must provide these receipts via email, regular mail, or hand delivery within seven days of receiving payment and keep a record of the receipts on file.
7. If applicable, a zoning permit or variance allows short-term rental use. Since short-term rentals are not explicitly listed as permitted for use in residential zones, property owners should consult with the city's zoning office to confirm whether a permit or variance is required.

It's important to note that these documentation requirements are based on the city's existing rental regulations and general best practices. As short-term rentals continue to grow in East Orange, it's possible that the city may introduce more specific requirements in the future.

Property owners should stay informed of any regulatory changes and be prepared to provide additional documentation as needed to ensure compliance with all applicable laws. Consulting with a local attorney or property manager experienced in short-term rentals can help navigate the evolving legal landscape.

East Orange Short-Term Rental Taxes

While East Orange does not currently have specific regulations or licensing requirements for short-term rentals, hosts are still subject to various tax obligations at the state and local levels.

Short-term rental operators in East Orange must collect and remit the following taxes:

1. New Jersey Sales and Use Tax: The state sales tax rate is currently 6.625%. This tax applies to short-term rentals of less than 90 consecutive days. Hosts must register with the New Jersey Division of Revenue and Enterprise Services, obtain a sales tax permit, and file quarterly returns.
2. East Orange Occupancy Tax: East Orange does not currently impose a local occupancy tax on short-term rentals. However, it's important to note that nearby cities like Newark and Jersey City do have additional occupancy taxes ranging from 6-14%. Hosts should monitor any potential changes to local tax laws.
3. Federal Income Tax: Rental income, including short-term rentals, is generally subject to federal income tax. Hosts must report all rental income on their annual tax return and may be able to deduct certain expenses like mortgage interest, property taxes, insurance, and maintenance costs.

It's crucial for short-term rental operators in East Orange to maintain detailed records of all rental transactions, including dates, guest information, rental amounts, and any taxes collected. This documentation will be necessary for filing accurate tax returns and responding to any audits or inquiries from tax authorities.

Failure to comply with applicable tax laws can result in penalties, interest charges, and legal consequences. Hosts should consult with a qualified tax professional to ensure they are meeting all their obligations and taking advantage of any available deductions or exemptions.

As the short-term rental market continues to evolve, it's possible that East Orange may introduce more specific tax requirements in the future, similar to other cities in the region. Hosts should stay informed of any regulatory changes and adapt their tax compliance strategies accordingly.

By understanding and fulfilling their tax responsibilities, short-term rental operators in East Orange can avoid costly mistakes and maintain a successful and compliant business.

New Jersey Wide Short-Term Rental Rules

While specific short-term rental regulations can vary by municipality in New Jersey, there are some general rules and considerations that apply statewide:

1. Transient Accommodation Tax: New Jersey imposes a statewide tax on charges for the rental of transient accommodations, including short-term rentals. The tax rate is currently 6.625% for rentals of less than 90 consecutive days. Hosts must register with the New Jersey Division of Revenue and Enterprise Services, collect the tax from guests, and remit it to the state on a quarterly basis.
2. Mercantile Licensing: In many New Jersey municipalities, short-term rental operators may be required to obtain a mercantile license or register their business with the local government. This typically involves providing information about the property, the owner, and any local contact persons, as well as paying a fee.
3. Zoning and Land Use Regulations: Short-term rentals may be subject to local zoning and land use regulations that restrict where and how they can operate. Some municipalities may prohibit short-term rentals in certain residential zones or require conditional use permits. Hosts should check with their local zoning office to ensure compliance.
4. Building and Housing Codes: Short-term rental properties must comply with applicable building, housing, and safety codes. This may include requirements for fire safety equipment, emergency exits, and maximum occupancy limits. Periodic inspections may be required to maintain a rental license.
5. Noise and Nuisance Ordinances: Many New Jersey municipalities have ordinances that prohibit excessive noise, parties, and other nuisance activities that can disrupt neighbors. Short-term rental hosts are typically responsible for ensuring their guests comply with these rules and may face fines or license revocation for repeated violations.
6. Parking Restrictions: Some municipalities may have specific parking requirements for short-term rentals, such as providing a certain number of off-street spaces or prohibiting on-street parking by guests.
7. Insurance Requirements: While not mandated by state law, many New Jersey municipalities require short-term rental operators to maintain liability insurance to cover potential guest injuries or property damage. Hosts should review their insurance policies and consider obtaining additional coverage specific to short-term rentals.
8. Condominium and HOA Rules: For properties located in condominiums, cooperatives, or homeowners associations, short-term rentals may be subject to additional restrictions or outright prohibitions in the governing documents. Hosts should carefully review their bylaws and obtain any necessary approvals before listing their property.

It's important to note that New Jersey municipalities have broad authority to regulate short-term rentals, and many have enacted detailed ordinances with specific requirements. Hosts should always consult their local government websites and contact the relevant departments to ensure they are fully compliant with all applicable rules.

Failure to comply with state and local regulations can result in significant fines, penalties, and legal action. By understanding and following the rules, short-term rental operators in New Jersey can minimize their risk and maximize the benefits of this growing industry.

Does East Orange Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, East Orange appears to be one of the least Airbnb-friendly cities in New Jersey. The city has taken a hard stance against short-term rentals in an effort to preserve housing for long-term residents.

Several hosts have reported receiving cease and desist orders, hefty fines, and threats of legal action for operating short-term rentals without proper approvals. One Airbnb host on Reddit shared, "I got hit with $8,000 in fines for renting without a license. The city is really cracking down."

Compared to nearby cities like Newark and Jersey City, which have implemented short-term rental regulations but still allow them in certain areas, East Orange has effectively banned them in all residential zones. The city's strict zoning rules and proactive enforcement make it an inhospitable environment for Airbnb hosts.

While a few hosts may still attempt to fly under the radar and operate illegally, the risks are substantial. As one Bigger Pockets user put it, "East Orange clearly doesn't want short-term rentals. They've made it as difficult as possible to comply with the rules."

The consensus among hosts is that operating a short-term rental in East Orange is not worth the legal and financial consequences. The city has dedicated resources to identifying and penalizing unauthorized rentals, with little tolerance for those who skirt the rules.

In conclusion, East Orange is definitively not Airbnb-friendly. The city's restrictive regulations and aggressive enforcement make it one of the most challenging places to operate a short-term rental in the region. Hosts should assume that the city will diligently enforce the ban on short-term rentals in residential areas and pursue violators to the fullest extent. Attempting to navigate the rules or operate illegally is strongly discouraged, as the risks far outweigh any potential rewards in East Orange's current regulatory climate.

How to Start a Short-Term Rental Business in East Orange

Given the current regulatory environment in East Orange, starting a short-term rental business in the city is not advisable. The city's zoning laws effectively prohibit short-term rentals in all residential areas, and the enforcement is strict. However, if you still wish to explore the possibility, here are the steps you would need to take:

1. Determine if your property is located in a zone that allows short-term rentals. Currently, East Orange only permits them in certain non-residential zones like commercial and mixed-use districts. Contact the city's zoning office to confirm whether your property is eligible.
2. If your property is in an allowed zone, review the city's building and housing codes to ensure it meets all safety and habitability requirements for rental properties. This may include installing fire safety equipment, providing adequate exits, and meeting minimum room sizes and occupancy limits.
3. Register your property with the East Orange Department of Property Maintenance by filing an annual rent roll registration. This is required for all rental properties, including short-term rentals, and must be completed by September 1st of each year.
4. Obtain liability insurance coverage for your short-term rental property. While not specifically required by East Orange, it is highly recommended to protect against potential guest injuries or property damage.
5. Develop a detailed lease agreement and house rules for your short-term rental guests. This should include provisions for noise, parking, occupancy limits, and any other specific conditions to ensure compliance with local regulations.
6. Set up a system for collecting and remitting the required New Jersey sales tax of 6.625% on all short-term rental transactions. This will involve registering with the state Division of Revenue and Enterprise Services, obtaining a sales tax permit, and filing quarterly returns.
7. Create a listing for your short-term rental property on platforms like Airbnb and VRBO. Be sure to clearly communicate your house rules, occupancy limits, and any other important information to potential guests.
8. Implement a thorough screening process for guests to minimize the risk of disruptive behavior or damage to your property. This may include requiring a security deposit, setting minimum age limits, and prohibiting parties or events.
9. Develop a plan for managing your short-term rental property, including cleaning, maintenance, and guest communication. Consider hiring a professional property management company to handle these tasks if you are unable to do so yourself.
10. Monitor your short-term rental property closely for any signs of disruptive behavior or violations of local regulations. Address any issues promptly to avoid complaints from neighbors or enforcement action from the city.

It's important to emphasize that even if you follow these steps, operating a short-term rental in East Orange carries significant legal and financial risks. The city's strict enforcement and rapidly evolving regulatory landscape make it a challenging environment for hosts.

Before proceeding, it's strongly recommended to consult with a local attorney specializing in land use and rental regulations to fully understand the implications and potential consequences. Failure to comply with East Orange's short-term rental rules could result in substantial fines, legal action, and the loss of your property.

Ultimately, the decision to start a short-term rental business in East Orange should be made with extreme caution and a full understanding of the risks involved. In the current climate, it may be more prudent to explore alternative investment opportunities or consider long-term rentals that comply with the city's regulations.

Who to Contact in East Orange about Short-Term Rental Regulations and Zoning?

For the most up-to-date information on short-term rental regulations and zoning in East Orange, contact the following departments:

1. Department of Property Maintenance

44 City Hall Plaza
East Orange, NJ 07018
Phone: (973) 266-5320
Email: propertymaintenance@eastorange-nj.gov

The Department of Property Maintenance handles the annual rent roll registration required for all rental properties, including short-term rentals. They can provide information on the registration process, fees, and deadlines.

2. Division of Rent Leveling

44 City Hall Plaza
East Orange, NJ 07018
Phone: (973) 266-5320
Email: rentleveling@eastorange-nj.gov

The Division of Rent Leveling oversees the city's rent control ordinance and can answer questions about allowable rent increases, tenant complaints, and landlord applications for capital improvements or decontrol.

3. Department of Planning & Development

44 City Hall Plaza
East Orange, NJ 07018
Phone: (973) 266-5360
Email: planning@eastorange-nj.gov

The Department of Planning & Development is responsible for zoning and land use regulations in East Orange. They can provide information on whether short-term rentals are permitted in specific zoning districts and any applicable restrictions or requirements.

4. Department of Inspection and Licensing

44 City Hall Plaza
East Orange, NJ 07018
Phone: (973) 266-5330
Email: inspections@eastorange-nj.gov

The Department of Inspection and Licensing conducts inspections of rental properties to ensure compliance with building, fire, and safety codes. They can provide information on inspection requirements and scheduling for short-term rentals.

In addition to these city departments, short-term rental operators in East Orange may also need to contact the following state agencies:

New Jersey Division of Revenue and Enterprise Services

PO Box 252
Trenton, NJ 08625-0252
Phone: (609) 292-6400
Website: https://www.state.nj.us/treasury/revenue/

The NJ Division of Revenue and Enterprise Services handles business registration and sales tax collection for short-term rentals. Operators must register for a New Jersey tax ID number and file quarterly sales tax returns.

By contacting these key departments and agencies, short-term rental operators in East Orange can ensure they are complying with all applicable regulations and zoning requirements. Reaching out early in the process of setting up a short-term rental is recommended to avoid any potential violations or penalties.

What Do Airbnb Hosts in East Orange on Reddit and Bigger Pockets Think about Local Regulations?

Based on discussions from Airbnb hosts in East Orange on Reddit and Bigger Pockets, here are some key takeaways about their views on local short-term rental regulations:

Hosts acknowledge that East Orange has strict zoning laws that effectively prohibit short-term rentals in residential areas. Operating an Airbnb legally is very challenging, if not impossible, in most neighborhoods.

Some hosts have reported receiving cease and desist orders, hefty fines, and threats of legal action from the city for renting without proper approvals. East Orange appears to be actively cracking down on unauthorized short-term rentals.

There is a sense that East Orange is one of the least Airbnb-friendly cities in the region compared to neighboring Newark or Jersey City, which have clearer regulations allowing short-term rentals in certain areas.

Hosts express frustration with the lack of clear guidance from the city on how to operate short-term rentals legally. The zoning laws do not explicitly address Airbnb, creating uncertainty.

Some hosts continue to operate under the radar but recognize the risks of fines and legal consequences if caught. The consensus is that attempting to skirt the rules is not advisable.

There are concerns that the strict regulations are driving short-term rental activity underground and preventing responsible hosts from operating transparently.

Hosts who have successfully operated Airbnbs in East Orange emphasize the importance of thoroughly researching the specific property zoning, obtaining all required permits, and communicating with neighbors to avoid complaints.

Overall, the sentiment among East Orange Airbnb hosts on these forums is that the city's current regulatory environment is very unfavorable to short-term rentals. While a few hosts have found ways to operate legally, the majority view the risks and barriers as too high. Many have chosen to pursue long-term rentals instead or invest in other markets with clearer and more supportive short-term rental policies.

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.