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

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

Short-term rental regulations in Hudson County, New Jersey vary by municipality, with some cities banning them outright while others allow them with restrictions. Jersey City, the most populous city in the county, passed an ordinance in 2019 that requires short-term rental hosts to obtain permits and limits rentals in properties where the owner is not present to 60 days per year. The law also prohibits short-term rentals in rent-controlled units.

Other Hudson County municipalities have taken an even stricter stance. Weehawken enacted a ban on rentals of less than 30 consecutive days in December 2021. The mayor cited concerns about short-term rentals taking affordable housing units off the market and making residents uncomfortable with "strangers coming and going". East Rutherford, Edgewater, Hoboken, Union City, and West New York have also made short-term rentals illegal.

A few towns, like Hoboken, previously allowed short-term rentals with a permit that had to be renewed annually. But many have moved to ban them outright due to issues with absentee landlords, crime, and the impact on housing affordability. Fines for violating these bans can be steep, starting at $1000 per infraction in Weehawken.

Despite the crackdown, short-term rentals remain a big business in Hudson County. Airbnb hosts in the county earned a whopping $75 million in 2019, nearly half the total for the entire state of New Jersey. Jersey City alone accounted for $47.2 million of that haul. It remains to be seen how much the new regulations will impact those eye-popping figures going forward.

Starting a Short-Term Rental Business in Hudson County

Given the strict and variable regulations around short-term rentals in Hudson County, aspiring hosts need to do their homework before launching an Airbnb business. The first step is thoroughly researching the specific rules in your municipality. Some key questions to investigate:

• Are short-term rentals allowed at all? If so, for how many days per year?
• Do you need to obtain a permit or license? What are the requirements and fees?
• Are there zoning restrictions on where short-term rentals can operate?
• Do you need to be present on-site or are off-site rentals permitted?
• Are there any additional local taxes or fees that apply?

Consulting with local real estate experts and short-term rental property managers can help you navigate the complex regulatory landscape. Organizations like the Hudson County Board of Realtors and NJ Realtors Association may also have helpful resources.

If short-term rentals are permitted where you live, your property will likely need to pass inspections and meet building code requirements around things like smoke and carbon monoxide detectors. You'll also want to secure appropriate insurance coverage.

Financially, short-term rentals have the potential to be quite lucrative in the Hudson County market, given the proximity to New York City. One investor on the Bigger Pockets forums said he would need to clear $6-7k per month on a Jersey City property to make it worthwhile. Of course, that was before the 60-day annual cap went into effect.

As with any real estate investment, it's critical to run the numbers carefully, factoring in your expenses, mortgage, and the realistic amount of bookings you can expect under the new regulations. While tougher rules may scare off some would-be hosts, they could also thin out the competition for those who remain in the game. As the short-term rental landscape continues to evolve in Hudson County, adaptability will be key to running a successful Airbnb business for the long haul.

Short-Term Rental Licensing Requirements in Hudson County

To legally operate a short-term rental in Hudson County, particularly in Jersey City, property owners must obtain a permit from the Division of Housing Preservation. The specific requirements and process are as follows:

Required Documentation:

1. Proof of current ownership of the STR unit (e.g. tax bill)
2. Proof of principal residence (driver's license or state ID)
3. Two recent utility bills (less than 30 days old)
4. Proof of $500,000 minimum liability insurance
5. Bylaws, Master Deed or other governing documents for condos/associations
6. Zoning Compliance Certificate
7. Proof of no outstanding fines, penalties, taxes or utility charges
8. Completed Affidavit of Owner, Certification of STRP Agent, Certification of Responsible Party, and Notice to Transient Occupants forms

Application Details:

1. A separate permit application is required for each individual STR unit, even if owned by the same person or in the same building
2. Applications must include 24/7 contact information for the designated STR Agent and Responsible Party
3. The number and location of all available parking spaces for the STR must be provided

Fees:

1. Initial permit application fee: $250
2. Annual permit renewal fee: $200

Inspections:

1. All STRs are subject to fire safety and property maintenance inspections prior to permit issuance
2. Properties must meet minimum standards established in the Jersey City Property Maintenance Code
3. Permits are typically issued within 30 days of passing all required inspections

Submitting Applications:

Completed applications with all necessary documentation and fees can be submitted online through the Jersey City permit portal.

Fines and Penalties:

Operating an STR without a valid permit in Jersey City can result in steep fines:

1. Up to $2,000 per day for each unregistered unit
2. Additional fines up to $1,000 plus potential jail time or community service for maintaining a nuisance property

It's critical for Hudson County STR hosts to thoroughly review and comply with all local licensing and registration requirements. Failure to do so can lead to costly penalties that may jeopardize the viability of the business. By carefully following the outlined process and maintaining all necessary documentation, STR operators can ensure they are legally registered and avoid punitive enforcement actions.

Required Documents for Hudson County Short-Term Rentals

To successfully apply for a short-term rental permit in Hudson County the following documents must be submitted:

1. Proof of Ownership: This document, such as a tax bill or deed, shows that the applicant is the legal owner of the property being rented short-term. It can be obtained from the county clerk's office.
2. Proof of Principal Residence: A driver's license or state ID card confirming that the rental property is the applicant's primary residence.
3. Utility Bills: Two recent utility bills (less than 30 days old) providing additional proof of residency. Duplicates can be requested from utility companies.
4. Liability Insurance Proof: A policy statement evidencing a minimum of $500,000 in liability coverage to protect against potential claims. This is available from the applicant's insurance provider.
5. Bylaws or Governing Documents: For properties located in a condominium, homeowners association, or cooperative, these documents confirm compliance with the association's regulations on short-term rentals. They can be obtained from the association or through legal filings.
6. Zoning Compliance Certificate: This certificate, requested through the Jersey City Division of Zoning Enforcement, affirms that the property meets all zoning requirements for short-term rentals.
7. Affidavit and Certification Forms: Various forms, such as the Affidavit of Owner, Certification of Short-Term Rental Agent, Certification of Responsible Party, and Notice to Transient Occupants, attest to the owner's agreement and understanding of the regulations. These are available for download on the Jersey City Division of Housing Preservation website.
8. Proof of No Outstanding Payments: Applicants must provide confirmation of no outstanding fines, penalties, taxes, or utility charges from the relevant municipal offices, as detailed on the city's website.

By compiling this thorough documentation and submitting it along with their permit application and fee, prospective short-term rental hosts can demonstrate their eligibility and adherence to Hudson County's stringent regulations. The county's rigorous requirements aim to ensure responsible short-term rental operations that benefit hosts, guests, and the surrounding community alike.

Hudson County, New Jersey Short-Term Rental Taxes

Short-term rental operators in Hudson County, New Jersey are subject to several state and local taxes that can significantly impact their bottom line. It's crucial for hosts to understand these taxes and factor them into their pricing and financial planning. The primary taxes applicable to short-term rentals in Hudson County are:

New Jersey State Sales Tax: The state levies a 6.625% sales tax on all short-term rentals of less than 90 days. This tax applies to the listing price, including any cleaning fees.

New Jersey State Occupancy Fee: In addition to the sales tax, the state charges a 5% occupancy fee on short-term rentals under 90 days. Like the sales tax, this fee is based on the total listing price with cleaning fees included.

Meadowlands Regional Hotel Use Assessment: Specific to rentals in Bergen and Hudson Counties, this 3% assessment applies to stays of 89 nights or less. It is calculated on the listing price plus cleaning fees.

Municipal Occupancy Tax: Some cities in Hudson County, like Jersey City, charge an additional occupancy tax ranging from 2-3% of the listing price and cleaning fees for rentals under 90 days.

In total, short-term rental hosts in Hudson County can expect to pay 11.625% to 14.625% in combined state and local taxes on their rental income, depending on their specific municipality. Airbnb collects and remits these taxes on behalf of hosts for bookings made through their platform.

Possible Deductions and Write-Offs

To offset some of these taxes and other expenses, short-term rental hosts may be able to claim certain deductions on their income tax returns. Allowable write-offs will depend on factors like whether the property is a full-time rental or occasionally shared space, but common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Rental commissions and host service fees
4. Cleaning and maintenance costs
5. Utility bills
6. Insurance premiums
7. Repairs and necessary improvements

Hosts should keep detailed records of all rental-related income and expenses, and consult with a qualified tax professional to ensure they are managing their tax obligations correctly. By understanding the applicable taxes and taking advantage of available deductions, Hudson County short-term rental operators can optimize their earnings in this competitive market.

New Jersey Wide Short-Term Rental Rules

In addition to the specific regulations in Hudson County and its municipalities, short-term rental hosts must also comply with state-wide laws in New Jersey. These rules provide a baseline for the operation of vacation rentals across the Garden State.

One key state-wide requirement is the need for hosts to register with the Division of Taxation and obtain a Transient Accommodations Tax Certificate. This registration is mandatory for anyone renting out a property for less than 90 consecutive days. Hosts are also responsible for collecting and remitting the New Jersey Sales and Use Tax (6.625%) as well as the State Occupancy Fee (5%) on their bookings.

In 2019, New Jersey enacted a law (A4814/4520) regulating the use of property as a transient accommodation. This legislation prohibits any property from being used as a transient accommodation unless the owner or operator is present during the rental period. However, the law was later amended to limit its scope, applying only to "rentals of professionally managed units and rentals obtained through a transient space marketplace or travel agency." This means that transactions made directly between property owners and renters are generally exempt.

The state also requires short-term rental hosts to maintain liability insurance coverage of at least $500,000. This insurance helps protect both hosts and guests in case of accidents or injuries that may occur on the property.

It's important to note that state-wide regulations are constantly evolving, and many New Jersey municipalities have introduced their own additional rules. In Jersey City, for example, only property owners are allowed to operate short-term rentals, and unhosted stays are limited to 60 nights per year. Newark also requires hosts to obtain a permit from the Department of Engineering before listing their property.

Hudson County hosts must stay informed about both state-wide and local regulations to ensure they are operating legally. Failure to comply with these laws can result in significant fines and penalties. By understanding and following all applicable rules, hosts can provide a safe and enjoyable experience for their guests while contributing positively to their communities.

Does Hudson County Strictly Enforce STR Rules?

Based on discussions among hosts and residents on platforms like Reddit and BiggerPockets, it appears that Hudson County does indeed strictly enforce its short-term rental regulations, particularly in Jersey City. The general consensus is that Hudson County and its municipalities are not very Airbnb-friendly compared to other major cities.

Jersey City's ordinance, passed in 2019, prohibits rentals in buildings with more than 4 units unless the owner lives on-site. It also caps rentals in owner-occupied buildings to 60 days per year if the owner is not present. Hosts are required to register with the city and obtain permits, with steep fines for violations.

According to posts on the Jersey City subreddit, the city has contracted with a compliance monitoring company to identify and investigate illegal listings. Condo associations have also cracked down, with many buildings banning short-term rentals entirely in their bylaws.

That said, some hosts admit to continuing to operate under the radar, especially in private homes or smaller buildings. But they do so at risk of hefty penalties if caught. One host on BiggerPockets noted that even with a multi-bedroom house, it would be tough to clear the $6-7K per month needed to make a short-term rental worthwhile given the 60-day annual cap.

Other Hudson County cities like Hoboken, Union City, and Weehawken have followed Jersey City's lead in restricting short-term rentals. Weehawken enacted an outright ban in 2021. So while the demand for Airbnbs in this popular area just outside NYC remains high, supply is constrained by some of the tightest regulations in the country.

In summary, while there may still be some rogue short-term rental activity happening, Hudson County is overall one of the least hospitable places for Airbnb hosts to operate. The county appears fully committed to enforcing its strict rules in an effort to preserve housing stock and quality of life for permanent residents. Aspiring hosts should carefully weigh the risks and challenges of running short-term rentals here.

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

Starting a short-term rental business in Hudson County, New Jersey requires careful planning and execution. Follow these steps to set yourself up for success:

• Conduct Market Research: Begin by analyzing the local short-term rental market. Identify popular areas, assess demand, and evaluate your competition. Tools like BNBCalc provide valuable data on occupancy rates, average daily rates, and revenue potential. Understanding the market helps you make informed decisions about property location and pricing.
• Develop a Business Plan: Create a comprehensive business plan that outlines your goals, target audience, unique selling points, and financial projections. This document will serve as a roadmap for your business decisions. Include a detailed budget that accounts for startup costs, ongoing expenses (e.g., utilities, supplies, cleaning), and expected income. Regularly review and update your plan as the market evolves.
• Choose the Right Property: Based on your market research, select a property that aligns with your business goals and target audience. Consider factors like location, size, amenities, and local regulations. If purchasing a property, work with a real estate agent familiar with short-term rentals. If opting for rental arbitrage or property management, carefully review lease agreements and ensure you have permission to sublet.
• Comply with Local Regulations: Hudson County has strict short-term rental regulations, particularly in Jersey City. Familiarize yourself with the specific rules in your municipality, such as permit requirements, zoning restrictions, and occupancy limits. Consult with local authorities and legal professionals to ensure compliance. Failure to adhere to these regulations can result in substantial fines.
• Obtain Necessary Permits and Insurance: Apply for and obtain any required permits from your local government. In Jersey City, this includes a short-term rental permit from the Division of Housing Preservation. Additionally, secure appropriate insurance coverage, including a minimum of $500,000 in liability protection. Proper licensing and insurance safeguard your business and demonstrate your commitment to responsible hosting.
• Prepare and Furnish Your Property: Create a welcoming and well-equipped space for your guests. Invest in quality furnishings, linens, and amenities that cater to your target audience. Refer to popular listings in your area for inspiration. Prioritize cleanliness, comfort, and functionality. Consider hiring professional cleaners and maintenance staff to ensure a consistent, high-quality experience for your guests.
• List Your Property on Booking Platforms: Create attractive listings on popular short-term rental platforms like Airbnb and VRBO. Craft compelling descriptions that highlight your property's unique features and selling points. Use high-quality photos that showcase your space in the best light. Set competitive rates based on your market research and adjust them regularly to optimize occupancy and revenue.
• Streamline Your Operations: As your business grows, consider investing in short-term rental software to manage listings, reservations, guest communication, and cleaning schedules. Automate processes where possible to save time and ensure a seamless experience for your guests. Establish clear check-in and check-out procedures, and provide detailed house rules to set expectations and minimize potential issues.
• Build Community Relationships: Foster positive relationships with your neighbors and the local community. Attend neighborhood meetings, join local associations, and communicate openly with nearby residents. Share your contact information and be responsive to any concerns. Encourage your guests to respect noise levels, parking restrictions, and other community norms. Building goodwill can help create a supportive environment for your business.
• Continuously Improve and Adapt: Monitor your performance metrics, guest reviews, and market trends regularly. Use this feedback to identify areas for improvement and make necessary adjustments to your property, pricing, or operations. Stay informed about changes in local regulations and industry best practices. Continuously adapt and innovate to stay competitive and provide an exceptional guest experience.

By following these steps and implementing the tips provided, you'll be well on your way to launching a successful short-term rental business in Hudson County. Remember, starting any business requires hard work, dedication, and a willingness to learn and adapt. With careful planning and execution, your short-term rental venture can thrive in this dynamic market.

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

If you have questions or need assistance regarding short-term rental regulations and zoning in Hudson County, here are some key contacts and resources:

Hudson County Division of Planning

The Division of Planning provides information and recommendations for the orderly development of the county. Contact their staff for questions about zoning and land use.

• Samuel Schroeder, PP, AICP, Supervising Planner: sschroeder@hcnj.us
• Mario Tridente, Building and Zoning Inspector: mtridente@hcnj.us
• Division of Planning Main Office: 201-217-5137

Jersey City Division of Housing Preservation

For those operating short-term rentals in Jersey City, the Division of Housing Preservation handles the permitting process and enforcement of the city's ordinances. Reach out to them for questions about registering your property and obtaining the necessary permits.

• Email: HousingPreservation@jcnj.org
• Phone: 201-547-4821

Municipal Zoning and Planning Offices

Each municipality in Hudson County has its own zoning and planning department that oversees local land use regulations. Check your city's website for specific contact information. For example:

• Hoboken Zoning Office: 201-420-2000 ext. 3100
• Union City Zoning Board: 201-348-5731
• West New York Building and Zoning Division: 201-295-5289

Community Forums and Groups

Connecting with other local short-term rental hosts can be a great way to get advice, learn from experienced operators, and stay up-to-date on regulatory changes. Check out these online communities:

• Airbnb Community Center, Hudson County Forum: https://community.withairbnb.com/t5/New-Jersey/Hudson-county/m-p/1747512
• BiggerPockets Hudson County Real Estate Discussions: https://www.biggerpockets.com/forums/311/topics/321558-hudson-county-questions
• NJ Short-Term Rental Alliance, Hudson County Chapter: http://www.njstra.org/hudson-county/

By utilizing these contacts and resources, short-term rental hosts in Hudson County can ensure they are operating in compliance with all applicable regulations. Building relationships with local officials and fellow hosts is key to navigating the complex and evolving landscape of short-term rentals in the region.

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

Airbnb hosts in Hudson County have been actively discussing the impact of local regulations on online forums like Reddit and BiggerPockets. Here are some key takeaways from these conversations:

Rent Control Concerns

On BiggerPockets, one host looking to invest in a 2-family home in Hudson County expressed concerns about rent control laws preventing them from raising rents to market rates for existing tenants. They asked about options like owner-occupying or issuing new leases to get around these restrictions. This highlights the challenges investors face with properties subject to rent control.

Another BiggerPockets thread featured a host trying to understand if they could increase rents to market rate on all units in a triplex if they owner-occupied one of the units. They noted that many deals in the area would not cash flow unless rents could be raised to market levels. Navigating rent control laws is clearly a major concern for Hudson County hosts.

Regulatory Impact on Investments

In a Reddit thread discussing a potential country-wide ban on Airbnb and VRBO, one commenter noted that some towns in the Hudson Valley have already banned short-term rentals outright, though it hasn't significantly impacted prices yet. Others argued that a widespread ban could lead to more properties being converted to long-term rentals, putting downward pressure on rental prices.

However, some hosts believe that the impact of regulations on the overall housing market would be limited, given that short-term rentals represent a relatively small percentage of total housing stock. As one Redditor put it, "outlawing non-owner occupied [Airbnbs] won't solve the [housing] problems" and suggested that allowing more dense housing development would be more effective.

Enforcement Concerns

A post on the Hudson Valley subreddit expressed frustration with lax enforcement of short-term rental rules in Saugerties, NY. The original poster claimed that an enforcement officer was "gaslighting local leaders" by stating there had been zero complaints about Airbnbs, despite many issues being reported by residents.

This sentiment reflects a desire among some residents for stricter crackdowns on Airbnb operators perceived to be breaking the rules or negatively impacting neighborhoods. However, hosts facing enforcement have also turned to forums for support.

Legal Advice Sought

Given the complexity of local regulations, some Hudson County hosts have used BiggerPockets to seek referrals for real estate attorneys well-versed in navigating relevant laws and ordinances. Having proper legal guidance is seen as crucial for hosts looking to steer clear of compliance issues.

Overall, these forum discussions paint a picture of Airbnb hosts in Hudson County grappling with a challenging regulatory landscape. While opinions vary on the effectiveness and impacts of local rules, it's clear that staying compliant and profitable requires carefully strategizing around ordinances related to factors like rent control, zoning, and permitting.

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.