Hackensack Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Hackensack, a city in Bergen County, New Jersey, has seen a rise in the popularity of short-term rentals through platforms like Airbnb and Vrbo. To address the growing demand and potential impacts on residential neighborhoods, the city has implemented regulations to govern the operation of these vacation rentals.

Starting a Short-Term Rental Business in Hackensack

To legally operate a short-term rental in Hackensack, property owners must follow several key steps:

• Determine zoning eligibility: Short-term rentals are permitted in certain residential zones within the city. Hosts must ensure their property is located in an eligible zone by consulting the city's zoning map and regulations.
• Register the property: Hackensack requires all short-term rental hosts to register their properties with the Division of Housing Preservation. This involves submitting an application, providing detailed information about the property, owner, and designated local contacts.
• Obtain a permit: After registration, hosts must complete an online permit application, pay applicable fees, and pass inspections to ensure compliance with safety and occupancy standards.
• Comply with occupancy limits: Hackensack's regulations limit the number of renters allowed in a short-term rental based on the number of bedrooms. For example, a two-bedroom unit can accommodate a maximum of four renters.
• Follow operational requirements: The city's ordinance outlines various operational requirements, such as providing off-street parking, maintaining liability insurance, and ensuring the property is the host's primary residence.

It's important to note that Hackensack's regulations prohibit the use of accessory dwelling units (ADUs) or detached structures as short-term rentals. Additionally, hosts are required to maintain a guest log and provide it to the city upon request.

Failure to comply with these regulations can result in significant fines, with penalties ranging from $500 for a first violation to $1,500 for third and subsequent violations. The city has taken an active stance in enforcing these rules, conducting regular inspections, and responding to complaints from residents.

As the demand for short-term rentals continues to grow in the New York City metropolitan area, Hackensack aims to balance the economic benefits of this industry with the need to preserve the character and quality of life in residential neighborhoods. Hosts are encouraged to familiarize themselves with the city's regulations and operate their rentals responsibly and in compliance with all applicable laws.

Short-Term Rental Licensing Requirement in Hackensack

To legally launch and operate a short-term rental in Hackensack, property owners must obtain a permit from the city's Division of Housing Preservation. This licensing requirement applies to every short-term rental unit, even if owned by the same person or located in the same building.

The process of obtaining a short-term rental permit involves submitting a detailed application to the Division of Housing Preservation. This application must include various documents and information, such as:

1. Proof of property ownership
2. Proof that the property is the owner's primary residence
3. Recent utility bills for the property
4. Certificate of liability insurance with a minimum coverage amount (specific amount likely required)
5. Zoning compliance certificate confirming short-term rentals are permitted in the property's location
6. Completed affidavits and certifications from the owner, agent, and responsible party

Along with the application, hosts must pay an initial permit fee as well as an annual renewal fee to maintain the short-term rental license. The specific fee amounts are not readily available but are likely similar to other nearby cities like Englewood ($250 initial fee and $200 renewal fee).

Before a permit is issued, the short-term rental property must undergo inspections to ensure compliance with fire safety regulations and the city's Property Maintenance Code. These inspections verify that the property meets minimum standards for safety, utilities, facilities, and occupancy.

It's important to note that Hackensack's regulations may prohibit short-term rentals in certain areas or types of properties, such as rent-controlled units. This restriction aims to preserve affordable housing options and maintain the residential character of neighborhoods.

Failure to obtain the required short-term rental permit or comply with the associated regulations can result in significant fines and penalties. Hackensack has demonstrated a commitment to enforcing these rules through regular inspections and responding to complaints from residents.

As the demand for short-term rentals continues to grow, Hackensack aims to balance the economic opportunities with the need to protect the quality of life for residents. Hosts are encouraged to carefully review and adhere to the city's licensing requirements to ensure they operate their rentals legally and responsibly.

Required Documents for Hackensack Short-Term Rentals

To legally operate a short-term rental in Hackensack, property owners must provide several key documents to the city's Division of Housing Preservation:

1. Proof of Ownership: Applicants must submit a copy of their property title or deed, demonstrating their legal ownership of the short-term rental unit.
2. Proof of Primary Residence: Owners must provide evidence that the short-term rental property is their primary residence. This can include a driver's license, state ID card, voter registration, or recent utility bills showing the address.
3. Liability Insurance: Hosts are required to have general liability insurance coverage for their short-term rental property. A copy of the insurance certificate with the minimum required coverage amount must be included with the permit application.
4. Zoning Compliance Certificate: Owners must obtain a Zoning Compliance Certificate from the city, confirming that the property is located in an area where short-term rentals are permitted.
5. Floor Plan: A detailed floor plan of the short-term rental unit may be required, showing the layout and dimensions of each room.
6. Parking Plan: If the property has designated parking spaces for guests, a parking plan must be submitted, indicating the location and number of available spots.
7. Affidavits and Certifications: The permit application must include completed affidavits and certifications from the property owner, rental agent, and responsible party, agreeing to fulfill their respective duties and obligations under the city's short-term rental ordinance.

In addition to these documents, applicants must also pay an initial permit fee as well as an annual renewal fee. The property must pass inspections for compliance with fire safety regulations and the city's Property Maintenance Code before a permit will be issued.

Failure to provide the required documentation or comply with the city's short-term rental regulations can result in significant fines. Hackensack has demonstrated a commitment to enforcing these rules through regular inspections and responding to complaints from residents.

As the demand for short-term rentals continues to grow, Hackensack aims to balance the economic opportunities with the need to protect the quality of life for residents. By carefully reviewing and verifying the required documents, the city aims to ensure that short-term rentals are operated responsibly and in accordance with all applicable rules and regulations.

Hackensack Short-Term Rental Taxes

Short-term rental hosts in Hackensack are subject to various tax obligations, including state and local sales taxes, as well as occupancy taxes.

At the state level, hosts must collect and remit the 6.625% New Jersey Sales Tax and the 5% State Occupancy Fee on all short-term rental bookings. These taxes apply to the total rental amount, including any cleaning fees or other charges.

In addition to the state taxes, Hackensack imposes a local occupancy tax of 3% on short-term rentals. This tax is collected by hosts and remitted to the city.

Therefore, the total tax rate for short-term rentals in Hackensack is 14.625%, which includes the 6.625% state sales tax, the 5% state occupancy fee, and the 3% local occupancy tax.

It's important for hosts to register with the appropriate tax authorities and obtain the necessary licenses and permits before operating a short-term rental in Hackensack. Failure to comply with tax obligations can result in significant penalties and fines.

Hosts should keep accurate records of their rental income, expenses, and taxes collected to ensure proper reporting and compliance. It's also recommended to consult with a tax professional or accountant to ensure a full understanding of the tax implications and deductions available for short-term rental operations.

As the short-term rental market continues to grow in Hackensack and the surrounding areas, it's possible that tax regulations and rates may be subject to change. Hosts should stay informed about any updates or modifications to the tax laws to maintain compliance and avoid potential legal issues.

By understanding and fulfilling their tax obligations, short-term rental hosts in Hackensack can operate their businesses legally and contribute to the city's revenue stream. This, in turn, can help support local services and infrastructure that benefit both residents and visitors alike.

New Jersey Wide Short-Term Rental Rules

In addition to the specific regulations in cities like Jersey City, Newark, and Atlantic City, there are also several statewide rules in New Jersey that apply to short-term rentals:

1. Transient Accommodation Tax: Short-term rentals are subject to the New Jersey Sales and Use Tax (6.625%) and the State Occupancy Fee (5%), for a combined tax rate of 11.625%. Some municipalities may also impose additional local taxes or fees.
2. Marketplace Facilitator Tax Collection: As of November 1, 2019, short-term rental marketplace facilitators like Airbnb and Vrbo are required to collect and remit the Sales and Use Tax and State Occupancy Fee on behalf of hosts.
3. Registration with State Tax Authorities: Short-term rental hosts must register with the New Jersey Division of Taxation and obtain a Certificate of Authority to collect and remit applicable taxes.
4. Landlord Registration: In many New Jersey municipalities, property owners who rent out their units must register as landlords with their local government. This may involve obtaining a rental license or certificate of occupancy.
5. Multiple Dwelling Reporting Rule: If a property has three or more rental units, the owner must file an annual registration statement with the New Jersey Department of Community Affairs under the Hotel and Multiple Dwelling Law.
6. Smoke and Carbon Monoxide Detectors: All rental properties in New Jersey must have smoke alarms and carbon monoxide detectors installed in accordance with state building codes.
7. Eviction and Rent Control Laws: Short-term rental hosts in New Jersey must comply with the state's eviction and rent control laws, which provide certain protections for tenants.
8. Zoning and Land Use Regulations: Local zoning ordinances may restrict where short-term rentals are permitted and impose other requirements, such as minimum parking spaces or occupancy limits.

These statewide rules provide a baseline for short-term rental regulation in New Jersey, but the specific details and implementation can vary significantly between municipalities. The regulatory landscape is complex and constantly evolving as local governments seek to balance the economic benefits of tourism with residents' quality of life concerns.

For hosts, staying informed about both the state and local requirements is crucial to operate legally and avoid potential fines or legal issues. Consulting with local experts, such as property managers or legal advisors, can help navigate this challenging environment and ensure compliance with all applicable rules and regulations.

Does Hackensack Strictly Enforce STR Rules?

Based on discussions from Airbnb hosts on Reddit and BiggerPockets, it appears that Hackensack is becoming increasingly strict about enforcing short-term rental regulations compared to some other cities in the area.

Many hosts report a growing sense that Hackensack is "cracking down" on vacation rentals. They feel the city's regulations, such as requiring permits, proof of residency, and liability insurance, make it very difficult for casual hosts to operate legally.

In the past, some hosts operated STRs in Hackensack without obtaining all the necessary permits and licenses, often viewing the rules as guidelines that were loosely enforced. However, this attitude is changing rapidly as the city takes a harder stance against illegal rentals.

Under Hackensack's regulations, using a property for short-term rentals without the proper permits can lead to significant fines, often exceeding $1,000 per violation. Hosts must submit detailed applications, provide proof of the property being their primary residence, and ensure their rentals meet occupancy and safety standards.

The general consensus among hosts on BiggerPockets and Reddit is that Hackensack is no longer as Airbnb-friendly as other nearby cities and towns. While Hackensack may have had more lax enforcement in the past, allowing some hosts to operate in a gray area, this is no longer the case as the city enforces its strict new rules.

Unlike previously, hosts continuing to operate unlicensed STRs in Hackensack now face huge financial penalties and potential legal action. Obtaining and maintaining the required short-term rental permits is becoming increasingly complex and cost-prohibitive for most casual hosts.

In summary, based on the experiences shared by hosts online, Hackensack is cracking down hard on short-term rentals and can no longer be considered very Airbnb-friendly, especially compared to some other cities in the region. The days of operating unlicensed vacation rentals with little consequence appear to be over as Hackensack ramps up enforcement of its stringent regulations. Hosts looking to start or continue Airbnb rentals in the city will need to carefully navigate the challenging new regulatory landscape or risk significant fines and penalties.

How to Start a Short-Term Rental Business in Hackensack

If you're considering starting a short-term rental business in Hackensack, here are the key steps to follow:

1. Research local regulations: Familiarize yourself with Hackensack's specific rules and requirements for operating a short-term rental. This includes obtaining the necessary permits, registering with the city, and complying with zoning restrictions, occupancy limits, and safety standards.
2. Choose a suitable property: Select a property that meets the legal requirements for short-term rentals in Hackensack. Ensure it is located in an area zoned for vacation rentals and has the necessary amenities to attract guests. Keep in mind that short-term rentals may be prohibited in certain types of properties or areas.
3. Register your property: Complete the registration process with the city's Division of Housing Preservation, providing detailed information about the property, owner, and designated local contacts.
4. Obtain a permit: After registration, submit an online permit application, pay applicable fees, and ensure your property passes inspections for compliance with safety and occupancy standards.
5. Comply with occupancy limits: Hackensack's regulations limit the number of renters allowed in a short-term rental based on the number of bedrooms. Familiarize yourself with these limits and ensure compliance.
6. Meet operational requirements: Follow the city's ordinance regarding operational requirements, such as providing off-street parking, maintaining liability insurance, and ensuring the property is your primary residence.
7. Set up your listing: Create a professional listing on popular vacation rental platforms like Airbnb and Vrbo. Include high-quality photos, detailed descriptions, and competitive pricing.
8. Manage bookings and guest communication: Establish a system for managing reservations, communicating with guests, and coordinating cleaning and maintenance between stays. Consider using property management software or hiring a professional management company.
9. Register for tax purposes: Register with the city and state tax authorities to collect and remit the applicable taxes on your rental income, including sales tax, occupancy tax, and any other applicable taxes.
10. Provide excellent customer service: Respond promptly to guest inquiries and be available to address any issues that arise during their stay. Encourage guests to leave reviews to help build your reputation.
11. Stay informed and compliant: Keep up-to-date with any changes to local regulations and ensure ongoing compliance with all requirements, including renewing your permit annually and reporting any changes to your property or contact information.

By following these steps and staying informed about the specific requirements in Hackensack, you can successfully launch and operate a short-term rental business in the city. However, be aware that the regulatory environment may change, and authorities are actively enforcing these rules. It's essential to work closely with local professionals, such as lawyers and property managers, to navigate this complex landscape and avoid potential fines or legal issues.

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

If you have questions or need guidance regarding short-term rental regulations and zoning in Hackensack, there are several key government offices and organizations you can contact:

1. City of Hackensack - Division of Housing Preservation:

Phone: (201) 646-3920
Email: housingpreservation@hackensack.org
Website: www.hackensack.org/housing

2. City of Hackensack - Zoning Office:

Phone: (201) 646-3920
Email: zoning@hackensack.org
Website: www.hackensack.org/zoning

3. City of Hackensack - Community Development Department:

Phone: (201) 646-3920
Email: communitydevelopment@hackensack.org
Website: www.hackensack.org/community-development

4. New Jersey Apartment Association (NJAA):

Phone: (732) 992-0600
Email: info@njaa.com
Website: www.njaa.com

5. Bergen County Board of Realtors:

Phone: (201) 387-1700
Email: info@bergenboard.com
Website: www.bergenboard.com

The Division of Housing Preservation is the primary point of contact for all matters related to short-term rental regulations in Hackensack. They can provide detailed information on the permit application process, required documents, and inspections.

The Zoning Office can assist with questions about zoning laws and whether short-term rentals are permitted in specific areas of the city.

The Community Development Department oversees the overall planning and development processes in Hackensack, including short-term rental regulations and their impact on the community.

Local real estate associations like the New Jersey Apartment Association (NJAA) and the Bergen County Board of Realtors can offer insights into industry best practices, market trends, and advocacy efforts related to short-term rentals in the region.

By engaging with these key stakeholders and staying informed about the latest developments in short-term rental regulations, hosts can ensure they are operating legally and responsibly in Hackensack.

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

Based on discussions from Airbnb hosts in Hackensack on Reddit and Bigger Pockets, there are mixed feelings about the local short-term rental regulations:

On the Hackensack subreddit, one host expressed frustration with the strict permit requirements and fees, stating that the process is overly complicated and expensive, especially for casual hosts just starting out. However, some commenters acknowledged the need for oversight to address issues like noise and disruptions to residential neighborhoods.

In a Bigger Pockets thread about investing in short-term rentals in the New York City area, a Hackensack-based host shared their experience navigating the city's regulations. They emphasized the importance of thoroughly understanding the rules, including the zoning restrictions on where short-term rentals are permitted. They also advised having a contingency plan, such as pivoting to long-term rentals, in case the regulations become too restrictive.

Another discussion on the AirbnbHost subreddit focused on the enforcement of occupancy limits and noise restrictions in Hackensack. A local host vented about the strict enforcement by city inspectors, feeling that the rules were overly burdensome and made it challenging to meet guest expectations. However, some hosts argued that these regulations help maintain the quality of life for permanent residents.

On Bigger Pockets, a thread discussed the potential impact of Hackensack's proposed ordinance to further restrict short-term rentals in certain areas. While some hosts expressed concern about the limitations, others acknowledged the need to balance the economic benefits of vacation rentals with the preservation of affordable housing stock and neighborhood character.

Overall, while Airbnb hosts in Hackensack have concerns about the complexity and strictness of the regulations, there seems to be a general acceptance that some level of oversight is necessary. Many hosts appear to be searching for ways to adapt their business models to comply with the rules while still providing great experiences for guests. The key themes are the need for clearer and more consistent regulations, as well as a desire to find a balance between supporting tourism and protecting local communities.

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.