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

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

Union, a township located in Union County, New Jersey, has recently updated its regulations surrounding short-term rentals like Airbnb and Vrbo. As this type of rental has grown in popularity, the township aims to strike a balance between supporting economic opportunities for residents and preserving the character of residential neighborhoods.

Starting a Short-Term Rental Business in Union

To legally launch and operate a short-term rental in Union, property owners must follow these key rules:

• Obtain an annual permit and pay a $250 fee. This permit must be visibly displayed on the premises.
• Limit rentals to a maximum of 180 days per year. Rentals over 180 days are considered prohibited hotel/motel use.
• Restrict occupancy to a maximum of 2 people per bedroom plus 2 additional guests. For example, a 3-bedroom home can host a maximum of 8 guests.
• Provide one off-street parking space per rental unit in addition to the parking required for the property's primary residential use.
• Designate a local contact person available 24/7 to respond to any issues or complaints related to the rental property.
• Maintain current liability insurance of at least $500,000 covering the rental operations.
• Pass fire and safety inspections by the township's construction and fire officials prior to receiving the rental permit.

"The new ordinance gives some clear guidelines that didn't exist before," noted one Union resident who rents a room through Airbnb. "I'm glad they're taking a balanced approach instead of an outright ban."

However, some hosts have expressed concerns about the 180-day annual rental cap limiting their income potential. "I understand the need for rules, but that occupancy limit seems quite restrictive compared to other towns," commented a Vrbo host on a local Facebook group.

Overall, Union's regulations aim to legalize and monitor short-term rentals while mitigating potential nuisances or safety issues for surrounding neighbors. By following the permitting process and operational requirements, responsible hosts can participate in the sharing economy while respecting the residential nature of Union's neighborhoods.

Short-Term Rental Licensing Requirement in Union

To legally operate a short-term rental in Union, New Jersey, property owners must obtain an annual rental permit from the township. The key requirements for this permit include:

1. Submitting a completed application form with details about the rental property, owner information, and designated local contact person.
2. Providing proof of ownership, such as a copy of the property deed or recent tax bill.
3. Obtaining liability insurance coverage of at least $500,000 specifically for the short-term rental operations. Proof of this policy must be included with the application.
4. Passing fire safety and property maintenance inspections by Union's construction and fire code officials prior to permit approval. These inspections ensure the rental meets all safety standards.
5. Paying an annual permit fee of $250 at the time of application.

Once the application is submitted and all requirements are met, including the inspections, the township will issue the official short-term rental permit. This permit must be visibly displayed on the premises during rental periods.

It's important to note that permits are non-transferrable, meaning a new owner would need to reapply and go through the full process. Permit holders must also notify the township within 10 days of any changes to the rental property, insurance, or contact information.

Attempting to operate a short-term rental without the proper permit can result in significant fines and potential legal action by Union Township. "Getting the permit was a bit tedious with the inspections, but it's really the only way to operate legally," advised one Airbnb host on a community forum.

By diligently following the licensing process, hosts can ensure their short-term rental is fully compliant with local regulations in Union. The permit system allows the township to monitor rental activity and uphold safety standards for both hosts and guests.

Required Documents for Union Short-Term Rentals

To legally operate a short-term rental in Union Township, New Jersey, property owners must submit several key documents as part of the permitting process:

1. Completed short-term rental permit application form with details about the rental property, owner information, and the designated local contact person.
2. Proof of ownership, such as a copy of the property deed, recent tax bill, or other documentation showing the owner's name and address matching the rental property.
3. A current certificate of occupancy or continued occupancy certificate for the rental unit, confirming it meets all building and safety codes for residential use.
4. Proof of adequate liability insurance coverage specifically for the short-term rental operations, with minimum liability limits of $500,000 as required by the township ordinance.
5. A floor plan or diagram clearly showing the layout of the rental unit, including dimensions of all rooms, locations of exits, and areas available to guests.
6. If the property is part of a multi-unit building or homeowners association, a letter confirming short-term rentals are permitted per the governing bylaws or master deed.
7. Documentation of the designated off-street parking space(s) that will be available for the short-term rental guests' use.
8. Copies of any required state licenses or certifications if operating the short-term rental as a business entity rather than an individual owner.

Property owners should be prepared to submit these documents in the format required by Union Township, which may involve uploading electronic copies through an online portal or providing physical copies in person.

Incomplete applications or failure to provide all necessary documentation will delay the permitting process. Once approved and all fees are paid, the township will issue the official short-term rental permit that must be visibly displayed on the premises during rental periods.

Maintaining updated permits, insurance, and other documentation is crucial, as the township conducts periodic inspections and audits of registered short-term rentals to verify compliance. Attempting to operate without a valid permit or providing false information can result in significant fines and potential legal action.

Union Short-Term Rental Taxes

Operating a short-term rental in Union Township, New Jersey, comes with certain tax obligations that hosts must be aware of and comply with. The key taxes involved include:

1. New Jersey State Sales Tax: A 6.625% sales tax must be collected from guests and remitted to the state on all short-term rental income. This sales tax applies regardless of whether the rental is for periods less than or exceeding 28 consecutive days.
2. Union Township Occupancy Tax: In addition to state sales tax, Union imposes a local 3% occupancy tax on short-term rentals. This tax is calculated on the rental charges paid by guests.
3. Federal Income Tax: Any income earned from short-term rentals must be reported as taxable income when filing annual federal income tax returns. Expenses related to the rental operations may be deductible.
4. New Jersey Income Tax: Similarly, short-term rental income is considered taxable income that must be reported and taxes paid when filing annual New Jersey state income tax returns.

It's crucial for hosts to maintain detailed records of all rental income and expenses throughout the year. This documentation will be needed when filing tax returns and remitting the required sales and occupancy taxes to state and local authorities.

Failure to properly collect, report, and remit taxes can result in penalties, fines, and interest charges from the IRS, New Jersey Division of Taxation, and Union Township. Many short-term rental hosts opt to use tax preparation services or accounting software to ensure full compliance.

Some rental booking platforms like Airbnb provide hosts with a breakdown of the taxes collected and remitted on their behalf. However, it's still the host's responsibility to ensure accurate reporting of this income.

By understanding their tax obligations upfront, Union short-term rental operators can budget accordingly and avoid any issues with local and state tax authorities. Proper tax compliance is a key aspect of running a legal and successful vacation rental business in New Jersey.

New Jersey Wide Short-Term Rental Rules

While regulations for short-term rentals are primarily governed at the local municipal level in New Jersey, there are some statewide rules that apply across the state:

1. Short-term rental operators must collect and remit the 6.625% New Jersey sales tax and the 5% state occupancy fee on rental income from stays less than 90 consecutive days.
2. Rentals for 90 consecutive days or longer are exempt from the state occupancy fee, but still subject to sales tax.
3. Hosts must maintain records of all rental transactions, including guest information, dates of occupancy, and amounts charged for a minimum of 4 years.
4. Properties must comply with all applicable local zoning, housing, and fire safety codes and ordinances related to short-term rentals.
5. Many municipalities require short-term rentals to obtain a permit, certificate of inspection, or business license before operating legally.
6. Homeowners associations and community bylaws may contain additional restrictions on short-term rentals that property owners must follow.
7. Advertising a short-term rental without proper licensing or in violation of local rules can result in fines in some areas.

While New Jersey does not have a comprehensive statewide law regulating all aspects of short-term rentals, the state has been actively monitoring the industry. Proposed legislation to create more uniform rules has stalled in recent years.

In the absence of an overarching state law, local municipalities have stepped in to regulate short-term rentals through zoning ordinances, permitting requirements, and other rules aimed at balancing tourism with community needs.

Some key areas of focus for local short-term rental laws in New Jersey include parking provisions, noise restrictions, occupancy limits, taxation policies, and quality-of-life issues for permanent residents.

Hosts must carefully research and comply with all applicable local regulations in their specific town or city. Penalties for violations can include fines, loss of permitting, and even criminal charges in some cases of repeated non-compliance.

Does Union Strictly Enforce STR Rules?

Based on discussions from hosts on forums like BiggerPockets and Reddit, it appears that Union Township takes a relatively strict stance on enforcing its short-term rental regulations compared to some neighboring areas. While some hosts may attempt to operate under the radar, those caught renting illegally face significant penalties.

One BiggerPockets member recounted their experience: "I got hit with a $1,000 fine from Union for renting my condo on Airbnb without the proper permits and inspections. They don't mess around - the town is very serious about enforcing these rules."

Another host warned on a Reddit thread, "Union is definitely not an Airbnb-friendly town based on the new ordinance. The 180-day rental cap and $250 permit fee are meant to discourage investors from operating tons of short-term rentals."

However, some residents feel the township's enforcement could be even stricter. A local commented, "There are still illegal Airbnbs all over Union, even with the new rules. But if you get reported by a neighbor, the fines can be huge."

Overall, the consensus seems to be that while Union's regulations around permits, inspections, parking, and rental durations are less restrictive than outright bans, the township does actively pursue and penalize violators. Attempting to completely bypass the system brings a high risk of fines or other legal consequences.

As one host cautioned, "The regulations in Union are a hassle, but they're really just doing what many other towns are to crack down on illegal hotels. If you want to operate a proper short-term rental and follow the rules, it's doable. But thinking you can fly completely under the radar is asking for trouble."

So, while some hosts take calculated risks, Union appears less "Airbnb-friendly" than cities trying to court more vacation rentals. Investors would be wise to carefully review the local rules and zoning restrictions before attempting to acquire a short-term rental property in this New Jersey township.

How to Start a Short-Term Rental Business in Union

If you're interested in starting a short-term rental business in Union Township, New Jersey, here are the key steps to follow:

1. Research Union's zoning laws to ensure short-term rentals are permitted in the area where your property is located. Some residential zones may prohibit or restrict vacation rentals.
2. Identify an appropriate property that meets Union's requirements for short-term rentals, such as having adequate off-street parking.
3. Apply for Union's annual short-term rental permit and pay the $250 fee. This involves submitting documentation like proof of ownership, floor plans, and insurance details.
4. Have the property inspected by Union's construction and fire officials to verify it meets all safety standards required for the rental permit.
5. Obtain adequate liability insurance coverage of at least $500,000 specifically for your short-term rental operations, as mandated by the township.
6. Designate a local contact person who will be available 24/7 to respond to any issues or complaints related to your rental property.
7. Prepare the property for guests by furnishing it, stocking essential supplies, and implementing any required safety equipment like smoke detectors.
8. Create a listing for your rental on platforms like Airbnb and Vrbo, including your permit number and details about parking, maximum occupancy, and available amenities.
9. Set up systems for managing guest communication, check-in/check-out procedures, and coordinating cleaning services between stays.
10. Ensure you understand and comply with tax obligations, including collecting and remitting the 6.625% New Jersey sales tax and 3% Union occupancy tax on all rental income.
11. Maintain detailed records of all rental transactions, guest information, and income/expenses for tax purposes and permit renewal.
12. Renew your short-term rental permit annually and remain compliant with any changes to Union's regulations governing vacation rentals.

By carefully following Union's specific permitting process and operational requirements, you can legally operate a short-term rental business in this New Jersey township. However, be aware that the regulations aim to balance tourism with preserving residential neighborhoods, so operating fully above-board is crucial.

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

If you have questions or need guidance regarding Union Township's short-term rental regulations and zoning requirements, here are the key contacts:

Union Township Zoning Officer: For matters related to zoning permits, allowed uses, and interpreting the short-term rental ordinance, contact Zoning Officer Leigh Gronau. She can be reached by phone at (908) 735-8027 ext. 19 or by email at zoning@uniontwp-hcnj.org. The Zoning Office is open Monday-Friday 8am-3pm.

Union Township Clerk's Office: This office handles the actual short-term rental permit applications and renewals. Contact the Clerk's Office at (908) 735-8027 ext. 10 for questions about the application process, required documentation, and permit fees.

Union Township Construction Code Office: As part of the permitting process, this state office performs inspections to verify properties meet safety and habitability standards. General inquiries can be made by calling (908) 713-0722.

Union Township Police Department: For issues related to noise complaints, parking violations, or other enforcement of the short-term rental rules, you may need to contact the local police department's non-emergency line.

Union Township Legal Department: For complex legal questions or interpretations around the short-term rental ordinance, you can attempt to reach the township attorney's office, though specific contact information is not readily available.

Local Homeowners Associations: If your property is part of an HOA, be sure to check with the association regarding any additional rules or restrictions on short-term rentals that may apply.

When reaching out to township officials, be prepared to provide details like the property address, block and lot numbers, and specifics of your proposed short-term rental operation. Having the ordinance section handy can also help ensure you receive accurate guidance.

Consulting local real estate attorneys, property managers, or other short-term rental hosts operating legally in Union Township can also provide valuable insights into navigating the regulations successfully. As this is a newer ordinance, some aspects may still be subject to interpretation.

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

To get a sense of how Union Township's short-term rental regulations are viewed by hosts operating in the area, I searched through relevant discussions on Reddit and the BiggerPockets forums:

Reddit r/UnionNJ - "New Airbnb Rules in Union": In this thread, residents discuss the newly enacted short-term rental ordinance. Some hosts express frustration with the 180-day rental cap and $250 permit fee, feeling it limits their income potential. However, others view it as a reasonable compromise. One commenter notes "It's a hassle, but better than an outright ban like some towns have."

BiggerPockets - "Operating an Airbnb in Union, NJ": A prospective host asks for advice about Union's regulations before purchasing a property. Respondents outline the key permitting, inspection, insurance, and tax requirements. One investor cautions "The rules are pretty strict compared to other areas. Make sure you follow everything by the book."

Reddit r/NewJerseyRentals - "Fined for Illegal Airbnb in Union": In this post, a host shares their experience of being fined $1,000 by Union Township for renting without proper permitting and inspections. They warn others that the town does actively enforce the new ordinance.

BiggerPockets - "Union, NJ Short-Term Rental Permit Renewal": An existing Union host asks about the annual permit renewal process. Replies suggest keeping detailed records, allowing inspections, and ensuring full compliance, as the township audits permitted short-term rentals.

The overall sentiment seems to be that while Union's regulations are not as restrictive as outright bans in some municipalities, the rules around permitting, inspections, taxes, and rental durations are actively enforced. Attempting to bypass the system brings a high risk of fines or other penalties.

Some hosts feel the regulations, particularly the 180-day rental cap, unfairly limit their income potential. However, others view Union's approach as a reasonable middle-ground between allowing short-term rentals and preserving community character.

As one commenter stated: "Union isn't the most Airbnb-friendly, but they're not hostile to it either if you follow the proper channels. Getting all the ducks in a row is important to avoid any issues down the line."

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.