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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Monmouth County, New Jersey. However, regulations vary by municipality. Here's an overview of some key rules and considerations for operating short-term rentals in the county.

Starting a Short-Term Rental Business in Monmouth County

Before listing your property on Airbnb or VRBO in Monmouth County, it's important to understand the specific regulations in your municipality:

• Many towns require obtaining a short-term rental permit. For example, in Neptune Township, owners must submit an application to the Fire Marshall's Office along with a $500 annual fee. Permits are valid for one year.
• Some municipalities limit short-term rentals to certain zones. Red Bank previously restricted them to mixed-use zones, but a proposed 2024 ordinance would allow them in residential areas if the owner lives on-site.
• Marlboro prohibits short-term rentals under 30 days in all residential properties. Hotels, motels, and licensed bed and breakfasts are exempt.
• Asbury Park has an extensive ordinance regulating short-term rentals, including occupancy limits, parking requirements, and designating a responsible party to respond to issues.
• Eatontown defines a short-term rental as any residential occupancy under 90 days. Their regulations aim to minimize negative impacts on surrounding neighborhoods.

It's critical for owners to review their town's current zoning laws and ordinances carefully. Fines and penalties can apply for operating without proper permitting.

Other general requirements often include:

1. Obtaining a Certificate of Occupancy or passing a rental inspection
2. Being up to date on property taxes and utility payments
3. Having working smoke and carbon monoxide detectors
4. Providing sufficient parking and trash disposal for guests

Many Monmouth County towns have been refining their short-term rental rules in recent years as the industry has grown. While some have embraced Airbnb and VRBO, others are more restrictive due to concerns about protecting community character, housing stock, and quality of life for residents.

Ultimately, each municipality sets its own regulations, so doing your due diligence based on the property address is essential. Consulting with a local lawyer well-versed in land use and zoning regulations can also help navigate the process of starting a short-term rental business in Monmouth County compliantly.

Short-Term Rental Licensing Requirements in Monmouth County

Most municipalities in Monmouth County require property owners to obtain a short-term rental permit or license before listing their property on platforms like Airbnb or VRBO. The specific requirements vary by town, but generally include:

1. Submitting an application to the town's Zoning, Code Enforcement, or Fire Marshall's Office
2. Paying an annual permit fee, often around $500
3. Passing a rental inspection to ensure compliance with fire safety, building codes, and property maintenance standards
4. Providing proof that all property taxes, utilities, and other municipal charges are paid and up-to-date
5. Designating a local contact person to respond to any issues, if the owner lives out of town
6. Obtaining a Certificate of Occupancy or Habitability

For example, in Red Bank, short-term rental permit applications must be submitted to the Fire Marshall's Office along with a $500 annual fee. The permit is valid for one year from the date of issuance. Neptune Township has a similar process through their Fire Marshall's Office.

It's important to note that simply applying does not guarantee approval. Many towns have additional restrictions on the number of permits issued, types of properties eligible, and areas where short-term rentals are allowed.

The permit process typically takes several weeks to a couple months, depending on the municipality's workload and inspection scheduling. It's critical to begin the process well in advance of planning to start rentals.

Failure to obtain the required short-term rental permit can result in significant fines and penalties:

1. In Jersey City, operating an unregistered short-term rental can incur fines up to $2,000 per day
2. Howell Township imposes a fine of $1,000 for the first offense and $2,000 for the second, with each unregistered unit counting as a separate violation
3. Red Bank's ordinance allows for fines and enforcement actions against the property owner, short-term rental agent, and/or responsible party for violations

Fines for non-compliance are steep, so it's essential for Monmouth County property owners to carefully research their town's short-term rental regulations and follow the permitting process before listing on Airbnb, VRBO or other rental platforms. Consulting with a local land use attorney can also help navigate the specific legal requirements for a given municipality.

Required Documents for Monmouth County Short-Term Rentals

To obtain a short-term rental permit in Monmouth County, property owners must submit the following documents to their municipality's Zoning, Code Enforcement, or Fire Marshall's Office:

1. Short-Term Rental Permit Application: The official form to register your property as a short-term rental. Obtain from the relevant municipal office, often available online.
2. Proof of Ownership: Documentation confirming current ownership of the rental unit, such as a tax bill or deed. Establishes applicant's legal right to rent out the property.
3. Government-Issued ID: Copy of a valid driver's license or state identification card to prove the rental is the owner's primary residence. Some towns require additional proof of primary residence, like recent utility bills.
4. Site Plan: Detailed diagram of the property showing all structures, parking spaces, and other relevant features. Helps verify compliance with local zoning and occupancy regulations.
5. Parking Plan: Description of available on-site and adjacent street parking for guests. Demonstrates efforts to minimize neighborhood parking issues. Some municipalities limit guest vehicles based on occupancy.
6. Responsible Party Designation: Contact information for a designated individual, available 24/7, to address any issues that arise. Must often reside within a certain distance to respond promptly.
7. General Liability Insurance: Proof of a policy covering at least $500,000 in damages. Protects both the owner and municipality from potential liability claims.
8. Fire Safety Inspection: Certification that the property meets all fire safety requirements, often requiring an inspection by the Fire Marshall. Ensures minimum standards for guest safety.
9. Condominium/Townhouse Association Approval: If applicable, a letter confirming the association allows short-term rentals. HOA rules may restrict rental activity even if permitted by municipal zoning.
10. Rental Certificate of Code Compliance: Documentation that the property has passed a rental inspection and meets all building and maintenance codes. Separate from the fire safety inspection and usually valid for a set period.

Other documents may be required based on the specific municipality. Fees for the permit application, inspection, and certificate of compliance vary but are typically several hundred dollars, due at the time of submission.

It's critical to provide all necessary documentation and meet all conditions before advertising or operating a short-term rental in Monmouth County. Failure to do so can result in significant fines and penalties.

Monmouth County Short-Term Rental Taxes

Short-term rentals in Monmouth County, New Jersey are subject to several state and local taxes that owners must collect from guests and remit to the proper authorities. Here's a breakdown of the key taxes that apply:

State Sales Tax: New Jersey imposes a statewide sales tax of 6.625% on charges for transient accommodations, which includes short-term rentals of less than 90 days. This tax applies to the total booking amount, including any cleaning fees.

State Occupancy Fee: In addition to sales tax, a state occupancy fee of 5% applies to short-term rentals. However, in certain municipalities with existing local occupancy taxes, the state fee is reduced. For example, in Atlantic City and Newark, it's only 1%.

Municipal Occupancy Tax: Any New Jersey municipality (other than Newark, Jersey City, Atlantic City, Wildwood, Wildwood Crest, and North Wildwood) can impose a local occupancy tax of up to 3% on short-term rentals. Owners should check their specific town's ordinances.

Meadowlands Regional Hotel Use Assessment: For rentals located in the Meadowlands district (parts of Bergen and Hudson Counties), an additional 3% hotel use assessment applies on top of the other taxes.

So in most of Monmouth County, the total tax rate for short-term rentals will be 11.625% (6.625% sales tax + 5% occupancy fee). But if your town has enacted the municipal occupancy tax, it could be as high as 14.625%. These taxes are the responsibility of the guest, but the owner must collect and remit them to the state.

It's important to note that these taxes apply whether you rent through a platform like Airbnb or VRBO or directly to guests. Even if a hosting platform collects the taxes for you, owners are still ultimately liable for compliance.

Possible Write-Offs and Deductions

Owners of short-term rental properties in Monmouth County may be able to deduct certain expenses to offset their rental income for tax purposes:

1. Mortgage interest
2. Property taxes
3. Rental unit utilities
4. Cleaning and maintenance costs
5. Repairs (not improvements)
6. Supplies for guests
7. Insurance
8. Property management fees
9. Advertising and platform fees
10. Depreciation

Keeping detailed records is essential to support any deductions taken on your tax return. Many owners find it helpful to work with an accountant experienced in short-term rental taxation to ensure proper compliance and to maximize their tax benefits.

While the added taxes can seem daunting for owners, they level the playing field with hotels and ensure that short-term rentals are contributing to state and local revenues. With diligent recordkeeping and professional advice, owners can build these costs into their pricing and still operate a profitable rental business.

New Jersey Wide Short-Term Rental Rules

In addition to municipal regulations, short-term rental owners in Monmouth County must also comply with statewide laws governing the industry:

Taxes: New Jersey imposes three key taxes on short-term rentals:

1. State Sales Tax of 6.625% on charges for transient accommodations under 90 days
2. State Occupancy Fee of 5% (reduced to 1% in some cities with local taxes)
3. Municipal Occupancy Tax of up to 3% if enacted by the local jurisdiction

Owners are responsible for collecting these taxes from guests and remitting them to the state, even if a hosting platform like Airbnb handles the collection process.

Fire Safety: The New Jersey Uniform Fire Code requires all hotels, multiple dwellings, rooming and boarding houses to obtain a Certificate of Inspection from the Department of Community Affairs. This likely applies to many short-term rentals, which must pass an inspection of smoke alarms, carbon monoxide alarms, fire extinguishers, and other safety equipment.

Multiple Dwelling Reporting Rule: Properties with 3+ units for rent for 30+ days must file a certificate of registration and submit to inspection every 5 years under the Hotel and Multiple Dwelling Law. There is an exemption for owner-occupied 2 family homes.

Liability Insurance: While not legally mandated statewide, many municipalities require short-term rental owners to maintain general liability insurance, often with a minimum coverage amount of $500,000.

Sanitation and Cleaning: The New Jersey Public Health Sanitation Code sets standards for cleanliness, bedding, ventilation, and safety that apply to many transient accommodations.

Discrimination: Short-term rental owners are subject to the New Jersey Law Against Discrimination, which prohibits discrimination in places of public accommodation. Owners cannot refuse to rent to guests based on race, nationality, gender, sexual orientation or other protected characteristics.

It's important for Monmouth County short-term rental owners to understand both state and local requirements to operate legally. Consulting with a lawyer well-versed in New Jersey land use and municipal law can help navigate this complex regulatory landscape.

Does Monmouth County Strictly Enforce STR Rules?

While Monmouth County has enacted strict regulations on short-term rentals like Airbnb and VRBO, the actual enforcement of these rules varies significantly by municipality. Some towns, like Red Bank, are beginning to show more flexibility and openness to allowing STRs in residential zones, not just mixed-use areas. A proposed ordinance set for introduction in May 2024 would expand where STRs are permitted, as long as the property is the host's primary residence.

However, other municipalities in the county remain staunchly opposed to STRs in residential neighborhoods. Towns like Middletown have passed ordinances outright prohibiting rentals under 175 days, citing concerns about noise, parking, and community character. Neptune Township also has an extensive permitting and inspection process for STRs, with strict requirements around occupancy limits, designated local contacts, and more.

Despite these regulations, many hosts continue to operate STRs in Monmouth County, sometimes flying under the radar of local authorities. In forums on BiggerPockets and Reddit, some hosts have reported a lack of proactive enforcement by towns, with officials only responding to complaints rather than actively seeking out non-compliant listings. Others have expressed frustration with the patchwork of rules that can vary significantly from one town to the next.

Compared to major cities with a high volume of Airbnb activity, Monmouth County is generally less friendly to STRs, especially in its suburban residential communities. While urban hubs like Jersey City and Newark have embraced STRs (albeit with their own sets of regulations), many Monmouth County towns see them as a threat to neighborhood character and quality of life.

So in summary, while the regulatory climate for STRs in Monmouth County is quite restrictive, the actual level of enforcement seems to be inconsistent and complaint-driven. This creates a somewhat contentious environment where hosts are often operating in a legal gray area, with the potential for fines or crackdowns if they run afoul of local ordinances or neighbors. Prospective hosts should carefully research the specific rules in their municipality before listing on Airbnb or other STR platforms.

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

Starting a short-term rental business in Monmouth County, New Jersey can be a lucrative venture, but it's important to follow the proper steps to ensure compliance with local regulations. Here's a comprehensive guide:

1. Research local zoning laws and ordinances: Carefully review your municipality's zoning code to confirm STRs are permitted. Some Monmouth County towns, like Marlboro, prohibit rentals under 30 days in residential areas. Others, like Asbury Park, allow them but have extensive permit requirements. Consulting with a local land use attorney can help navigate the regulatory landscape.
2. Register for state and local taxes: STRs are subject to New Jersey's 6.625% sales tax, 5% occupancy fee, and potentially a 3% municipal occupancy tax, if enacted by your town. You'll need to register with the NJ Division of Revenue and remit these taxes either directly or through your booking platform. Proper recordkeeping is essential for compliance.
3. Obtain required permits and licenses: Most Monmouth County towns require a STR permit, which may involve an application, fee (often around $500), property inspection, and demonstrating compliance with building codes, occupancy limits, parking rules, etc. You'll also likely need a general business license. Start this process early, as approvals can take weeks to months.
4. Designate a local contact person: Many municipalities require a 24/7 local contact who can quickly respond to any issues with your STR. This can be the owner if they live nearby or a designated agent. Provide their information on your permit application and to guests.
5. Ensure compliance with safety regulations: STRs must meet fire safety, building, and sanitation codes. Common requirements include working smoke and carbon monoxide detectors, fire extinguishers, and adequate means of egress. Your property may need to pass an inspection before permits are issued.
6. Secure proper insurance coverage: Consider a commercial liability policy specifically for STRs, often with a minimum $500,000 in coverage. Some towns require proof of insurance for permitting. Specialized STR policies can provide greater protection than standard homeowners insurance.
7. Create a detailed listing and set competitive rates: Craft an attractive listing with professional photos, amenities, and a compelling description. Research similar rentals in your area to determine competitive nightly rates. Factor in your costs, seasonality, and occupancy goals. Automating your pricing can help optimize revenue.
8. Develop a strong marketing strategy: List your property on popular platforms like Airbnb and VRBO, but don't neglect other channels. Maintain an active social media presence, use targeted online ads, and encourage satisfied guests to leave reviews. Collaborate with local businesses to offer special packages.
9. Automate and streamline your operations: Utilize vacation rental software to manage reservations, guest communication, cleaning, and financial reporting. This can save significant time and effort as you grow your business. Providing self-check-in, digital welcome guides, and other conveniences can boost your ratings and reviews.
10. Stay up to date and adapt as needed: Regularly review your municipality's and NJ's STR regulations for any changes. Join local host groups and industry associations to stay informed. Be prepared to adapt your business model if needed. With the STR industry rapidly evolving, flexibility is key to long-term success.

By following these steps and prioritizing compliance, Monmouth County STR operators can build successful and sustainable businesses while being good neighbors in their communities. Careful planning, attention to detail, and a commitment to providing exceptional guest experiences are essential in this competitive but rewarding industry.

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

When starting a short-term rental business in Monmouth County, it's essential to contact the right local officials to ensure compliance with all zoning laws and permitting requirements. Here are some key contacts and resources:

Municipal Zoning Offices:

Many towns in Monmouth County handle short-term rental regulations through their zoning or code enforcement departments. For example:

1. Monmouth Beach: Contact Zoning Officer David Olsen at 732-229-2204 ext. 1009
2. Red Bank: Reach out to the Zoning Department at 732-530-2748 or zoning@redbanknj.org
3. Neptune Township: Call the Zoning Officer at 732-988-5200 ext. 238

Check your municipality's website or call the main office to get in touch with the right person to discuss short-term rental zoning and permits.

Monmouth County Division of Planning:

For county-level questions, try the Division of Planning at 732-431-7460 or visit their office at:

1 East Main Street
Freehold, NJ 07728

While they don't directly handle short-term rental permits, they can provide guidance on countywide land use policies and direct you to the appropriate municipal contacts.

Online Communities for Hosts:

Consider joining online forums and social media groups where Monmouth County short-term rental operators connect to share experiences and advice:

• Reddit's Airbnb Hosts subreddit (r/airbnb_hosts) has over 62,000 members discussing challenges and best practices for short-term rentals
• The "NJ Shore Rentals" Facebook group has nearly 5,000 members, many of whom are owners and managers of vacation properties in Monmouth County and nearby shore towns
• BiggerPockets' "Short-Term and Vacation Rental Discussions" forum features posts from investors and operators in the NJ area

While these communities are not official sources for regulatory info, they can provide valuable insights from experienced hosts on navigating local zoning and growing a successful short-term rental business in Monmouth County.

The key is to start with your town's zoning office to understand the specific short-term rental ordinances and permit requirements. They can walk you through the process and direct you to any other municipal departments you may need to contact. With some upfront research and relationship-building, you'll be well on your way to launching your Monmouth County Airbnb business in compliance with all local regulations.

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

Monmouth County short-term rental hosts have shared their experiences and opinions on various online forums. Here's a snapshot of what they're saying:

On BiggerPockets, a post from a real estate broker in Monmouth/Ocean County asked about investing in short-term summer rentals. Several commenters noted the challenges of navigating local regulations. One host said, "Every town seems to have their own rules around short-term rentals, and they can change frequently. It's hard to keep up." Another advised, "Make sure you really understand the local ordinances before buying a property for Airbnb. Some towns are much stricter than others."

In the Jersey City subreddit, a post about Airbnb regulations sparked debate. While Jersey City is in Hudson County, the thread reveals the confusion many hosts face. One commenter asked, "If Sherry goes to Europe for 3 months will she be able to airbnb her units out for the duration?" Another replied, "Under this ordinance, she could not AirBNB that unit for any day." The original poster noted, "I like the idea of keeping people from renting out AirBNB's as a sole use of the property, but this is draconian and an effective ban."

Other Monmouth County-specific threads show mixed opinions on enforcement:

In a different BiggerPockets thread, a host looking to acquire investment properties in the county was advised to grow their network and learn the local landscape, suggesting that regulations can be complex.

On a Facebook group for NJ Shore rentals (not specific to Monmouth), several hosts discussed the "patchwork" of local rules. One warned, "Some towns barely enforce, but others are really cracking down. You don't want to get caught and fined."

Overall, the sentiment seems to be that Monmouth County's short-term rental regulations are confusing and inconsistently enforced. Hosts crave clearer guidance and worry about running afoul of local ordinances. Many seem to operate in a "gray area," hoping to avoid complaints while still capitalizing on the demand for shore rentals.

The key takeaway is that aspiring Airbnb hosts in Monmouth County must do their due diligence on local laws before listing a property. Engaging with municipal officials, consulting legal experts, and connecting with experienced hosts can help navigate this tricky regulatory landscape.

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.