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

Starting a Short-Term Rental Business in Montclair

As of 2024, Montclair does not have specific regulations or licensing requirements for short-term rentals like Airbnb. The township's zoning and property maintenance codes do not explicitly address short-term rentals.

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

• The annual rent roll filing must include:
• A list of all rental units and current rents
• A sworn affidavit attesting to the accuracy of the information
• 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 Montclair at this time.

However, operating a short-term rental may be considered a change of use under the township's zoning code. Section 347 of the Montclair 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 Montclair should consult with the township's zoning office to confirm whether it is allowed for their specific property. A zoning permit or variance may be required to legally operate.

As of August 2022, there were approximately 200 active Airbnb listings in Montclair, with an average nightly rate of $150. The township has been considering potential regulations on short-term rentals to address quality of life concerns and impacts on housing affordability.

In August 2023, the Montclair Planning Board approved a proposal to allow short-term rentals of up to 30 days in a new 40-unit building called MC Residences that was originally planned as apartments. The rentals would be subject to a 3% hotel occupancy tax. Some board members called for the township to develop broader short-term rental regulations in light of this decision.

As Montclair continues to grapple with the growth of short-term rentals, it's possible that more specific rules and permit requirements may be implemented in the future. Hosts should monitor any regulatory changes and ensure compliance with all applicable local, state, and federal laws.

Short-Term Rental Licensing Requirements in Montclair

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

However, all residential rental properties in Montclair, regardless of the length of the rental term, are subject to the township's rent control ordinance and registration requirements. Landlords must file an annual rent roll registration with the Department of Property Maintenance by September 1st of 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 Montclair at this time.

However, it's important to note that operating a short-term rental may be considered a change of use under the township's zoning code. Section 347 of the Montclair 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 Montclair should consult with the township's zoning office to confirm whether it is allowed 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 Montclair 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 Montclair Short-Term Rentals

While Montclair 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 township'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 township'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 township's existing rental regulations and general best practices. As short-term rentals continue to grow in Montclair, it's possible that the township 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.

Montclair Short-Term Rental Taxes

Short-term rental operators in Montclair are subject to various tax obligations at the state and local levels.

At the state level, short-term rentals are subject to New Jersey's sales and use tax of 6.625% on charges for accommodations 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.

Montclair does not currently impose a local occupancy tax on short-term rentals. However, in August 2023, the township Planning Board approved a proposal to allow short-term rentals of up to 30 days in a new 40-unit building called MC Residences that was originally planned as apartments. These rentals would be subject to a 3% hotel occupancy tax.

It's possible that Montclair may consider implementing a broader occupancy tax on all short-term rentals in the future, as nearby cities like Jersey City and Newark have done, with rates ranging from 6-14%. Hosts should monitor any potential changes to local tax laws.

In addition to sales and occupancy taxes, short-term rental income is generally subject to federal and state income taxes. Hosts must report all rental income on their annual tax returns 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 Montclair 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 Montclair 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 Montclair 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 Montclair Strictly Enforce STR Rules?

Based on discussions in real estate forums like Bigger Pockets and Reddit, Montclair appears to be relatively lenient in enforcing short-term rental regulations compared to other New Jersey cities. As of 2023, the township does not have specific rules or permit requirements for short-term rentals, although all rental properties are subject to rent control and registration requirements.

Several hosts have reported operating short-term rentals in Montclair without facing any enforcement issues or neighbor complaints. One Airbnb host on Reddit shared, "I've been renting my place on Airbnb for a few years now with no problems. Montclair seems pretty chill about it."

Compared to nearby cities like Jersey City and Newark, which have implemented strict short-term rental ordinances with licensing requirements and occupancy taxes, Montclair is considered more friendly to Airbnb hosts. The township has approximately 200 active Airbnb listings as of August 2022.

However, this may change in the future as Montclair grapples with the impacts of short-term rentals on housing affordability and quality of life. In August 2023, the township Planning Board approved a proposal to allow short-term rentals of up to 30 days in a new 40-unit building, subject to a 3% hotel occupancy tax. Some board members called for the township to develop broader regulations in light of this decision.

The general consensus among hosts is that while Montclair may not actively enforce short-term rental rules at present, the regulatory landscape is likely to evolve. As one Bigger Pockets user put it, "Montclair is pretty lax right now, but I wouldn't count on that lasting forever. It's always a good idea to stay on top of any new ordinances or permit requirements."

In conclusion, Montclair is currently more Airbnb-friendly than many other New Jersey cities, with little evidence of strict enforcement against short-term rentals. However, hosts should be prepared for potential changes in the future as the township considers implementing more specific regulations and taxes, as seen in the recent Planning Board decision. Monitoring local developments and ensuring compliance with any new rules will be key to minimizing risk and maintaining successful short-term rental operations in Montclair.

How to Start a Short-Term Rental Business in Montclair

While Montclair does not currently have specific regulations for short-term rentals, here are the general steps to start a short-term rental business in the township:

1. Research local zoning laws and confirm that short-term rentals are permitted in your property's zone. Consult with the Montclair Zoning Office if needed.
2. Register your rental property with the Montclair Department of Property Maintenance by filing an annual rent roll registration by September 1st. Include all required information and pay the $100 filing fee.
3. Obtain a New Jersey sales tax permit from the Division of Revenue and Enterprise Services. You will need to collect and remit the 6.625% state sales tax on all short-term rental transactions.
4. Secure liability insurance coverage for your short-term rental property. While not currently required by Montclair, it is strongly 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. Include provisions for noise, parking, occupancy limits, and any other specific conditions to ensure compliance with local regulations and minimize disturbances to neighbors.
6. Invest in any necessary property upgrades or amenities to make your short-term rental competitive and attractive to guests. Consider factors like furnishings, kitchen equipment, linens, wifi, and parking.
7. Create a listing for your short-term rental on popular platforms like Airbnb and VRBO. Use high-quality photos, detailed descriptions, and competitive pricing to stand out in the Montclair market.
8. Implement a guest screening and communication process to ensure smooth bookings and prevent potential issues. Promptly respond to any inquiries or concerns from guests or neighbors.
9. Arrange for regular cleaning, maintenance, and restocking of your short-term rental between guest stays. Consider hiring a professional cleaning service or property manager to assist.
10. Keep accurate records of all rental transactions, including dates, guest information, rental amounts, and any taxes collected. Maintain copies of lease agreements and rental receipts as required by Montclair's rent control ordinance.
11. Stay informed of any changes to local short-term rental regulations or tax requirements. Montclair is considering implementing more specific rules and taxes in the future, so it's important to monitor developments and ensure ongoing compliance.

By following these steps and prioritizing compliance with applicable laws and best practices, you can establish a successful short-term rental business in Montclair.

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

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

Montclair Department of Planning and Community Development

205 Claremont Avenue
Montclair, NJ 07042
Phone: (973) 509-4954
Email: planning@montclairnjusa.org

The Department of Planning and Community Development oversees zoning and land use regulations in Montclair. They can provide guidance on whether short-term rentals are permitted in your property's zone and any applicable requirements or restrictions.

2. Montclair Department of Housing and Community Development

205 Claremont Avenue
Montclair, NJ 07042
Phone: (973) 509-4928
Email: housing@montclairnjusa.org

The Department of Housing and Community Development administers Montclair's rent control ordinance and rental property registration requirements. They can assist with filing the annual rent roll registration and answer questions about compliance with rent control regulations.

3. Montclair Department of Code Enforcement

205 Claremont Avenue
Montclair, NJ 07042
Phone: (973) 509-5688
Email: codeenforcement@montclairnjusa.org

The Department of Code Enforcement is responsible for enforcing Montclair's property maintenance and building codes. They can provide information on any required inspections or permits for short-term rental properties.

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

4. 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.

5. New Jersey Division of Consumer Affairs

124 Halsey Street
Newark, NJ 07102
Phone: (973) 504-6200
Website: https://www.njconsumeraffairs.gov/

The NJ Division of Consumer Affairs regulates the hotel and motel industry, including short-term rentals. They can provide information on any state-level requirements or consumer protections that may apply.

By contacting these key departments and agencies, short-term rental operators in Montclair 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 Montclair Think About the Regulations?

Based on posts in forums like Airbnb Community Center and Reddit, Montclair hosts have mixed views on the current lack of specific short-term rental regulations:

"I've been hosting on Airbnb in Montclair for a few years now without any issues. It's nice not having to deal with a bunch of red tape." (Airbnb host)

"I'm a bit worried about the recent Planning Board decision to allow short-term rentals in that new building with a 3% tax. I hope that doesn't lead to more restrictions and taxes for all of us." (Reddit)

"Montclair has been pretty hands-off with Airbnb so far, but I wouldn't be surprised if they start cracking down soon. It seems like only a matter of time." (Airbnb host)

"I make sure to follow all the rules for regular rentals, like registering with the town and keeping up with maintenance. Better safe than sorry, even if there aren't Airbnb-specific regulations yet." (Reddit)

"As long as you're a responsible host and don't cause problems for your neighbors, I think Montclair will continue to be Airbnb-friendly. But we need to police ourselves and not abuse the lack of oversight." (Airbnb host)

The general consensus seems to be that while hosts appreciate the current lack of red tape, they are also aware that the regulatory landscape may change in the future. Many are taking proactive steps to ensure compliance with existing rental rules and be good neighbors.

Some hosts expressed concerns about the potential for increased restrictions and taxes, as seen in the recent Planning Board decision for a specific building. They worry that this could be a sign of broader crackdowns to come.

However, others remain optimistic that Montclair will continue to be relatively friendly to short-term rentals, as long as hosts act responsibly and don't generate too many complaints. They emphasize the importance of self-policing and maintaining positive relationships with neighbors and town officials.

Overall, Montclair Airbnb hosts seem to recognize the need to stay informed and adapt to any future regulatory changes. While they enjoy the current flexibility, most acknowledge that it may not last forever and are prepared to comply with any new rules that may be implemented.

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.