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

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

Short-term rental regulations vary by municipality in Passaic County, New Jersey. Some towns have passed ordinances specifically regulating short-term rentals like Airbnb and VRBO, while others rely on existing zoning and housing codes that may restrict such rentals. It's important for hosts to carefully review the rules in their specific town.

Starting a Short-Term Rental Business in Passaic County

The Township of West Milford in Passaic County passed an ordinance in 2018 regulating short-term rentals. Property owners must obtain a Short-Term Rental Permit from the Township Clerk's Office, which costs $500 annually. The ordinance requires fire and health inspections, as well as designating a local contact person who can respond to any issues within 24 hours. STRs are limited to a maximum of 180 rental days per year.

However, not all Passaic County towns explicitly allow short-term rentals. The City of Passaic's zoning code does not list STRs as a permitted use in any district. Renting for less than 30 days may be considered a hotel/transient use rather than a permitted residential use, effectively prohibiting STRs in residential zones. Passaic's restrictive rent control ordinance also complicates STRs by capping rent increases and requiring detailed rental logs.

Real estate investors on the BiggerPockets forums report mixed experiences operating STRs in Passaic County. Some have successfully run Airbnb rentals without facing enforcement issues so far. However, the lack of clear, affirmative STR regulations in many municipalities means hosts are in a legal gray area and could face fines or challenges.

Nearby towns like Jersey City and Newark have passed ordinances explicitly allowing and licensing short-term rentals. These provide a clearer regulatory framework for hosts. However, a growing number of North Jersey towns are moving to prohibit STRs under 30 days, citing quality of life concerns.

The regulatory landscape for short-term rentals remains in flux across Passaic County and New Jersey as a whole. Hosts should carefully review their town's specific zoning code, housing regulations, and any STR-specific ordinances. Consulting with local officials and an attorney experienced in land use law is advisable before starting an STR business. Towns with a strong tourism economy may be more favorable to allowing STRs.

In summary, short-term rental regulations are complex and evolving in Passaic County. A few towns like West Milford have STR licensing requirements in place, while others restrict such rentals through zoning. Prospective hosts must do their due diligence on local rules before listing on Airbnb or VRBO. Looking to nearby cities with clearer STR ordinances may provide an easier path to compliance.

Short-Term Rental Licensing Requirement in Passaic County

Short-term rental regulations vary by municipality in Passaic County, as there is no county-wide ordinance. Some towns like West Milford have passed specific rules for short-term rentals, while others rely on existing zoning codes that may restrict such rentals.

The Township of West Milford requires property owners to obtain a Short-Term Rental Permit from the Township Clerk's Office to operate rentals of 30 days or less. The annual permit fee is $500 and is non-refundable if the application is denied. Applicants must submit:

• A completed Short-Term Rental Permit Application
• Proof of property ownership
• Zoning permit and fire alarm certification
• Floor plan sketch of the rental unit
• Parking plan
• Trash and recycling collection schedule
• Septic or sewer certification
• Condominium association approval (if applicable)

The Township Clerk's Office reviews applications for compliance with the short-term rental ordinance. If approved, the permit is valid for one year. If denied, a written explanation is provided.

West Milford's ordinance also requires:

1. Fire and health inspections of the rental property
2. Designating a local contact person or property manager who can respond to any issues within 24 hours
3. Notifying lake associations of the short-term rental permit application
4. Limiting rentals to a maximum of 180 days per calendar year

Violations of the ordinance can result in fines and revocation of the short-term rental permit by the Zoning Officer after repeated offenses.

However, not all Passaic County towns explicitly allow or license short-term rentals. The City of Passaic's zoning code does not list them as a permitted use in any district. Renting for less than 30 days may be considered a hotel/transient use rather than a permitted residential use, effectively prohibiting short-term rentals in residential zones. Passaic's restrictive rent control ordinance also complicates short-term rentals by capping rent increases and requiring detailed rental logs.

Property owners should carefully review their specific town's zoning regulations and any short-term rental ordinances before listing on sites like Airbnb or VRBO. Consulting with local officials and an attorney experienced in land use law is advisable. Failure to comply with municipal rules could result in significant fines, legal challenges, and shutdown of the rental operation.

The regulatory landscape for short-term rentals remains in flux across Passaic County and New Jersey. More towns are adopting ordinances to either formally allow or prohibit rentals under 30 days. Hosts must stay informed of evolving regulations that could impact their ability to operate short-term rentals.

Required Documents for Passaic County Short-Term Rentals

Short-term rental regulations vary by municipality in Passaic County, as there is no county-wide ordinance. Some towns like West Milford have passed specific rules requiring permits and documentation for short-term rentals, while others rely on existing zoning and housing codes that may restrict such rentals.

The Township of West Milford requires the following documents to obtain a Short-Term Rental Permit from the Township Clerk's Office:

Completed Short-Term Rental Permit Application

1. Provides property and owner/agent information
2. Obtained from Township Clerk's Office or website

Proof of property ownership

1. Deed or tax record demonstrating ownership
2. Available from County Clerk's Office

Zoning Permit

1. Confirms property is eligible for short-term rental use
2. Requires submitting Zoning Permit Application to Zoning Officer

Fire Alarm Certification

1. Verifies required smoke and carbon monoxide detectors are installed
2. Inspection scheduled with Fire Prevention Bureau

Floor plan sketch of the rental unit

1. Shows layout and room descriptions
2. Hand-drawn or computer-generated plans accepted

Parking plan

1. Indicates location and number of on-site parking spaces
2. Spaces must comply with zoning requirements

Trash and recycling collection schedule

1. Documents pickup days and container storage
2. Hauler contact information if private carter used

Septic system or sewer connection certification

• Confirms sewage disposal system is code compliant and properly maintained
• Inspection report from licensed septic contractor or municipal sewer connection verification

Condominium association approval (if applicable)

• Written permission for rental use if property is part of condominium or homeowners association
• Obtained from association board or management

The annual permit fee of $500 must be submitted with the completed application and required documents. If approved, the Short-Term Rental Permit is valid for one year. Failure to obtain a permit before advertising or renting the property is a violation subject to fines.

However, not all Passaic County towns have STR permit requirements. In municipalities without specific short-term rental regulations, owners should still ensure their property complies with all building codes, occupancy limits, and safety standards. Consulting with local zoning and construction officials is advisable.

Hosts should also maintain records such as proof of ownership, tenant information, rental agreements, and income/occupancy logs. While not always required, thorough documentation can help demonstrate compliance with applicable housing laws.

As short-term rental regulations continue to evolve in Passaic County, property owners must stay informed of their town's specific requirements. Careful attention to permitting, registration, and recordkeeping can help avoid potential penalties and ensure a successful rental operation.

Passaic County Short-Term Rental Taxes

Short-term rental operators in Passaic County must collect and remit various taxes on their rental income. The specific tax obligations depend on the municipality, as there is no county-wide short-term rental tax. However, all rentals are subject to New Jersey state taxes.

New Jersey Sales and Use Tax

Short-term rentals in New Jersey are subject to the state Sales and Use Tax of 6.625%. This tax applies to rentals of 90 days or less, including those booked through online platforms like Airbnb and VRBO. The rental operator is responsible for collecting the tax from guests and remitting it to the state.

New Jersey Occupancy Fee

In addition to the Sales and Use Tax, a 5% state Occupancy Fee applies to short-term rentals. This fee is also collected by the operator and remitted to the state. Combined with the Sales and Use Tax, the total state tax rate on short-term rentals is 11.625%.

Municipal Occupancy Taxes

Some municipalities in Passaic County may impose their own occupancy taxes on short-term rentals. For example, a proposed state bill would allow towns to charge an additional occupancy tax of up to 6%, depending on population size. Operators should check with their local tax authority for any municipal occupancy taxes that apply.

Income Taxes

Short-term rental income is subject to federal and state income taxes. Operators must report their rental income on their tax returns and pay the applicable tax rates. The federal tax rate depends on the operator's total taxable income and filing status, while the New Jersey income tax rates range from 1.4% to 10.75%.

Possible Deductions and Write-Offs

Short-term rental operators may be able to deduct certain expenses from their rental income to reduce their tax liability. Potential deductions include:

• Mortgage interest
• Property taxes
• Rental insurance
• Utilities
• Cleaning and maintenance costs
• Repairs and replacements
• Depreciation of rental property and furnishings
• Advertising and booking fees
• Supplies and amenities provided to guests

Operators should keep detailed records of their rental expenses and consult with a tax professional to ensure they are claiming all eligible deductions.

It's important for short-term rental hosts in Passaic County to understand and comply with all applicable tax laws. Failure to properly collect and remit taxes can result in penalties and legal issues. Staying informed of evolving regulations, maintaining good records, and seeking professional tax advice can help ensure a successful and compliant rental operation.

New Jersey Wide Short-Term Rental Rules

While many short-term rental regulations are set at the municipal level in New Jersey, there are some state-wide laws and tax rules that apply to all hosts, including those in Passaic County.

Taxes

The State of New Jersey imposes several taxes on short-term rentals that all hosts must collect and remit:

• SalesTax: 6.625% on rentals of 90 days or less
• Occupancy Fee: 5% on rentals of 90 days or less (reduced to 1% in certain cities like Newark)
• Meadowlands Regional Hotel Use Assessment: 3% on rentals of 90 days or less in parts of Bergen and Hudson Counties

Airbnb collects and remits these state taxes on behalf of hosts in New Jersey. However, hosts are still responsible for assessing any other tax obligations, such as local occupancy taxes imposed by their municipality.

Statewide Short-Term Rental Regulations

New Jersey does not have a comprehensive statewide law regulating short-term rentals. A bill called the "Short-Term Rental Integrity Act" was proposed in 2022 but did not pass the state legislature. It would have required STRs to register with the state, obtain liability insurance, and restricted how many properties an individual could operate as STRs.

In the absence of a statewide regulatory framework, rules for short-term rentals are primarily set by municipal ordinances that vary widely. Some towns have passed detailed regulations and permit requirements for STRs, while others have zoning codes that may restrict short-term rentals in residential areas.

The New Jersey Division of Consumer Affairs issued a warning to short-term rental owners and tenants, advising them to check local municipal ordinances before listing a property on sites like Airbnb. They note that some municipalities prohibit or limit short-term rentals, while others require permits and inspections.

In summary, while New Jersey does not have statewide regulations specifically for short-term rentals, there are state tax collection requirements that apply to all hosts. Passaic County hosts must also carefully review their local municipal ordinances to ensure compliance with any permitting, zoning, or operational rules for short-term rentals. Consulting with local officials and a qualified attorney is advisable.

Does Passaic County Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on forums like BiggerPockets and Reddit, it appears that Passaic County does not consistently enforce short-term rental regulations across all municipalities. The level of enforcement varies significantly from town to town.

The City of Passaic, for example, does not have a specific ordinance regulating short-term rentals. Its zoning code also does not explicitly permit them in residential areas. This means operating an Airbnb could be considered a prohibited hotel/transient use, putting hosts at risk of violating zoning laws. However, some Passaic hosts on BiggerPockets report running STRs without facing enforcement issues so far, suggesting the city is not proactively cracking down.

In contrast, several other Passaic County towns like West Milford have passed detailed ordinances regulating short-term rentals. West Milford requires hosts to obtain an annual permit, pay a $500 fee, undergo inspections, and meet various other requirements. The town's detailed STR application and strict rules indicate it takes enforcement more seriously.

So while some Passaic County hosts are operating under the radar without major problems, others face much clearer restrictions and oversight. The consensus on forums is that countywide enforcement is inconsistent and that the risk of operating an unauthorized STR varies a lot based on the specific town.

Compared to Airbnb-friendly cities like Jersey City and Newark that have passed ordinances explicitly allowing STRs, much of Passaic County seems to be a regulatory gray area at best. While some hosts are getting away with STRs for now, the lack of clear, affirmative county rules leaves them vulnerable to potential crackdowns as more towns move to restrict short-term rentals.

Overall, BiggerPockets and Reddit users portray Passaic County as a patchwork of STR rules that are enforced more strictly in some towns than others. Operating an Airbnb outside of the county's few towns with permissive policies is a legal gamble. Hosts are advised to carefully review their specific municipality's zoning code and STR ordinances to assess the risks. Passaic County as a whole is not particularly Airbnb-friendly compared to areas with clear, consistent countywide policies.

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

Starting a short-term rental business in Passaic County requires careful planning and compliance with local regulations. The specific steps and requirements vary by municipality, as there is no countywide ordinance. Here is a general guide:

Research local regulations

• Review your municipality's zoning code and any short-term rental ordinances
• Determine if short-term rentals are permitted in your property's zoning district
• Identify any permit, licensing, or registration requirements
• Consult with local zoning and building officials for guidance
• Consider legal counsel to ensure compliance with all applicable laws

Prepare your property

• Ensure your rental unit meets all building, fire, and safety codes
• Make any necessary repairs or upgrades to meet short-term rental standards
• Furnish and equip the unit with amenities and supplies for guests
• Consider hiring a professional photographer to showcase your property
• Tip: Focus on cleanliness, comfort, and convenience to attract positive reviews

Obtain necessary permits and licenses

• Apply for any required short-term rental permits or licenses from your municipality
• Complete application forms and submit all required documents, such as proof of ownership, floor plans, parking plans, and inspection certifications
• Pay any application and permit fees (e.g. $500 annually in West Milford)
• Schedule any mandatory inspections, such as fire and health inspections
• Tip: Start the permitting process early, as approvals can take several weeks

Register with tax authorities

• Register your short-term rental business with the New Jersey Division of Revenue and IRS
• Obtain a New Jersey tax ID number and federal EIN
• Determine which state and local taxes apply to your rental, such as sales tax, occupancy fees, and income taxes
• Set up processes to collect and remit all applicable taxes
• Tip: Consider using a tax professional or service experienced with short-term rental regulations

Create a listing on short-term rental platforms

• Choose which platforms to list on, such as Airbnb, VRBO, or Booking.com
• Craft an appealing listing title and description highlighting your property's best features
• Upload high-quality photos showcasing your rental
• Set your pricing based on market research, seasonality, and events
• Establish house rules and a rental agreement outlining guest policies
• Tip: Regularly monitor and adjust pricing to maximize occupancy and revenue

Implement a management system

• Decide if you will self-manage or hire a property manager
• Establish processes for cleaning, maintenance, and restocking between guests
• Coordinate key exchanges or install a keyless entry system
• Create a welcome book with check-in instructions, house rules, and local recommendations
• Maintain detailed records of reservations, revenues, and expenses
• Tip: Use property management software to automate tasks and streamline operations

Provide excellent guest service

1. Communicate promptly and professionally with guests before, during and after their stay
2. Provide clear check-in and check-out instructions
3. Be available to answer questions and address any issues that arise during the stay
4. Respond quickly to any maintenance or repair needs
5. Encourage satisfied guests to leave positive reviews
6. Tip: Small touches like local treats or personalized recommendations can enhance the guest experience

Starting a short-term rental business in Passaic County requires navigating a complex regulatory landscape that varies by town. Careful research, compliance with local rules, and a commitment to providing exceptional guest experiences are key to success in this market. As regulations continue to evolve, short-term rental operators must stay informed and adapt to changing requirements.

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

For questions about short-term rental regulations and zoning in Passaic County, it's best to contact officials in your specific municipality, as rules vary by town. However, here are some key county and city contacts:

Passaic County Department of Planning & Economic Development

1. Phone: (973) 569-4040
2. Email: salvatorep@passaiccountynj.org
3. Contact the Planning Department for questions about countywide land use policies and economic development initiatives that may impact short-term rentals.

City of Passaic Division of Code Enforcement & Zoning

1. Zoning Officer: Julio Santana
2. Phone: (973) 365-5632
3. Email: jsantana@cityofpassaicnj.gov
4. Contact the Zoning Officer for questions about allowable uses under Passaic's zoning code and any short-term rental-specific ordinances.

Township of West Milford Township Clerk's Office

1. Phone: (973) 728-2700 ext. 6012
2. Website: https://www.westmilford.org/
3. West Milford has a detailed short-term rental ordinance and permit application process. Contact the Township Clerk for forms and information on their STR regulations.

Passaic County Public Housing Agency

1. Phone: (973) 881-4372
2. Email: lukes@passaiccountynj.org
3. The Public Housing Agency may be able to provide guidance on how short-term rental activity could impact affordable housing and any applicable regulations.

In addition to government contacts, connecting with other local short-term rental hosts can provide valuable insights into navigating regulations. While there doesn't appear to be a Passaic County-specific host club, there are some online groups New Jersey hosts may find useful:

NJ Airbnb Host Forum on Airbnb Community Center: https://community.withairbnb.com/t5/Community-Cafe/NJ-New-Jersey-Host-Group/td-p/1698092

An online discussion forum for New Jersey hosts to share experiences and ask questions.

NJ Short-Term Rental Alliance: https://www.njstra.org/

A non-profit trade association advocating for fair short-term rental regulations in New Jersey. They provide educational resources and updates on STR policies.

When contacting local officials about short-term rental rules, be prepared with specific questions about your property and intended use. Provide your address, zoning district, and details on how often you plan to rent. Consulting with a local land use attorney can also help you understand and comply with the patchwork of STR regulations in Passaic County.

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

Discussions among Airbnb hosts on forums like Reddit and BiggerPockets provide insights into how local short-term rental regulations are impacting operators in Passaic County. Here are a few relevant threads:

BiggerPockets Forum: "Increasing Rent in Passaic, NJ"

A Passaic County landlord asks about the process for raising rents on tenants in multi-family properties. While not specifically about short-term rentals, the thread highlights the challenges of operating rentals profitably in the county.

BiggerPockets Forum: "Is Passaic NJ a good area to invest?"

A prospective investor considers purchasing a multi-family property in Passaic to house hack and then convert to rentals. Respondents note that specific neighborhoods vary in quality and that high property taxes are a concern.

While the original poster doesn't specify short-term vs long-term rentals, the high costs and variable desirability of Passaic locations would impact any rental strategy.

Reddit r/newjersey: "How are home owners not livid over the insanely high property taxes..."

A former NJ resident returning to the state expresses shock at high property taxes statewide. Commenters note that Passaic County towns have especially high taxes to fund local services and schools.

High fixed costs like property taxes make it challenging for short-term rental operators to run profitable businesses. Several comments argue NJ taxes make ownership unaffordable.

While these threads don't discuss Passaic County's short-term rental regulations directly, they highlight the difficult local environment hosts face. High property taxes, aging housing stock, and variable neighborhood quality all impact the viability of short-term rentals.

The lack of Passaic-specific discussions also suggests the county may not have a very active community of Airbnb hosts compared to more popular NJ short-term rental markets. With many towns lacking clear rules allowing STRs, hosts may be hesitant to openly discuss operating short-term rentals.

Overall, the experiences shared by Passaic County landlords and investors on these forums paint a challenging picture for would-be Airbnb hosts. Careful research into local regulations, high operating costs, and modest revenue potential are all important considerations in this market.

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.