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

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

Short-term rentals through booking platforms like Airbnb and Vrbo have become increasingly popular in Bergen County, New Jersey. However, many municipalities in the county have enacted regulations and restrictions on operating these types of rentals. Here's an overview of the short-term rental landscape in Bergen County:

Starting a Short-Term Rental Business in Bergen County, New Jersey

The ability to start a short-term rental business varies widely depending on the specific municipality within Bergen County. Some towns have banned short-term rentals outright, while others allow them with certain restrictions and permit requirements.

For example, the borough of Demarest recently passed an ordinance prohibiting short-term rentals of less than 90 days unless the property owner is present. Violations can result in fines of up to $1,000 per day.

Similarly, the township of North Bergen has effectively banned short-term rentals under 30 days in properties where the owner or leaseholder is not present. Fines start at $250 for a first offense and can reach $1,000 per day for subsequent violations, with potential jail time as well.

Other Bergen County municipalities like Englewood allow short-term rentals but require hosts to obtain a license and pay associated fees. The city of Edgewater also permits short-term rentals but prohibits tenants from engaging in rental agreements without the property owner's consent.

Before starting a short-term rental business anywhere in Bergen County, it's critical to research the specific regulations of the municipality where your property is located. Rules can vary significantly between neighboring towns.

Discussions on real estate investing forums like BiggerPockets indicate a challenging environment for short-term rentals in many parts of the county. "There aren't many full houses for rent in Bergen County," noted one Reddit user. "The ones that do exist, don't stay on the rental market long."

However, some markets in the county may still be favorable for short-term rentals. A realtor on the Bergen County subreddit mentioned recently renting a 4-bedroom home in Cresskill for $7,000 per month and 4-bedroom properties in Paramus renting for $4,500-$4,700 monthly. Carefully evaluating the supply and demand for short-term rentals in your specific area is key.

In addition to municipal regulations, all short-term rental operators in New Jersey must collect state occupancy taxes and comply with safety requirements like having smoke and carbon monoxide detectors. Consulting with a local attorney well-versed in land use and rental property laws is advisable before launching a short-term rental business in Bergen County.

While the regulatory landscape is complex, short-term rentals can still be a viable investment in parts of Bergen County with the right property and approach. Thoroughly researching local rules, obtaining required permits, and ensuring compliance with all applicable laws is essential for hosts looking to maximize rental income and avoid legal issues.

Short-Term Rental Licensing Requirement in Bergen County

The licensing requirements for short-term rentals vary widely between municipalities in Bergen County. Some towns have banned rentals under 30 days outright, while others allow them with restrictions and permit requirements. It's critical to research the specific rules for the town where your property is located.

For example, the borough of Demarest recently passed an ordinance prohibiting short-term rentals of less than 90 days unless the property owner is present. Violations can result in fines of up to $1,000 per day.

Similarly, the township of North Bergen has effectively banned short-term rentals under 30 days in properties where the owner or leaseholder is not present. Fines start at $250 for a first offense and can reach $1,000 per day for subsequent violations, with potential jail time as well.

Other Bergen County municipalities like Englewood allow short-term rentals but require hosts to obtain a license and pay associated fees. The permit application process in Englewood involves submitting various documents to the Division of Housing Preservation, including:

• Proof of property ownership
• Proof of principal residence
• Recent utility bills
• Liability insurance certificate
• Zoning compliance certificate
• Completed owner, agent, and responsible party forms

Englewood charges an initial permit application fee of $250, plus a $200 annual renewal fee. Properties must also pass fire safety and maintenance code inspections before a permit is granted.

The city of Edgewater also permits short-term rentals but prohibits tenants from engaging in rental agreements without the property owner's consent. Failure to comply with local licensing requirements in these towns can lead to significant fines and legal issues for hosts.

Before starting a short-term rental business anywhere in Bergen County, carefully review the relevant municipal ordinances and zoning codes. Requirements and restrictions change frequently, so it's important to have the most up-to-date information.

Consulting with a local attorney well-versed in land use and rental property laws is highly advisable. They can help you navigate the complex regulatory landscape and ensure your short-term rental operates in compliance with all applicable rules. Proper licensing is essential to avoid costly fines and protect your investment.

Required Documents for Bergen County Short-Term Rentals

The specific documents required to legally operate a short-term rental vary between municipalities in Bergen County. However, many towns have similar requirements that hosts must meet to obtain a permit or license. Here are some of the most common documents needed:

1. Proof of Ownership: Applicants must submit a copy of their property deed or tax bill to demonstrate legal ownership of the short-term rental unit. This document helps verify that the person applying for the permit has the right to rent out the property.
2. Proof of Primary Residence: In many Bergen County towns like Englewood and Hackensack, owners must provide evidence that the short-term rental is their primary residence, such as a driver's license, state ID card, or recent utility bills. This requirement aims to prevent investors from operating multiple vacation rentals in residential neighborhoods.
3. Liability Insurance: Hosts are typically required to maintain a general liability insurance policy with a minimum coverage amount, often $500,000 or $1,000,000. A certificate of insurance must be submitted with the permit application to protect guests and the community in case of accidents or injuries.
4. Zoning Compliance Certificate: Property owners must obtain a Zoning Compliance Certificate from their municipality, confirming that short-term rentals are permitted in the property's zoning district. This ensures that vacation rentals do not violate local land use regulations or disrupt the character of residential areas.
5. Floor Plan: Some towns may require a detailed floor plan of the short-term rental unit, showing the dimensions and layout of each room. This helps verify that the property meets safety and occupancy standards.
6. Parking Plan: If the property has on-site parking spaces for guests, the owner must submit a parking plan indicating their location and number. This allows the town to assess potential impacts on street parking and traffic in the neighborhood.
7. Affidavits and Certifications: Permit applications often include affidavits and certifications that must be completed by the property owner, rental agent, and responsible party. These forms ensure that all parties understand and agree to their duties under the town's short-term rental ordinance.

The specific documents and forms required will depend on the town where your short-term rental is located. It's critical to carefully review the relevant ordinances and contact the municipal zoning office or housing department for the most up-to-date information.

Failure to provide the necessary documentation can result in your permit application being delayed or denied. Operating a short-term rental without the required permit can lead to significant fines and legal penalties.

To ensure compliance and protect your investment, start gathering these documents early and consult with local officials if you have any questions about the process. With careful planning and attention to detail, you can successfully navigate Bergen County's short-term rental regulations.

Bergen County Short-Term Rental Taxes

Short-term rental hosts in Bergen County are subject to various state and local taxes on their rental income. Understanding and complying with these tax obligations is essential for operating a legal and profitable rental business.

New Jersey Sales Tax

The state of New Jersey imposes a 6.625% sales tax on charges for hotel rooms, motels, and other transient accommodations, including short-term rentals. This tax applies to the total amount paid by guests, including any cleaning fees or other charges.

For stays of 90 days or less, hosts must collect the full 6.625% sales tax from guests and remit it to the state. For rentals exceeding 90 days but less than 180 days, the sales tax rate is reduced to 3.3125%.

New Jersey Occupancy Fee

In addition to the sales tax, New Jersey charges a 5% state occupancy fee on the rent for every occupancy of a room in a hotel, motel, or transient accommodation. This fee applies to short-term rentals and must be collected by hosts on stays of 90 days or less.

County and Municipal Occupancy Taxes

Some counties and municipalities in New Jersey also impose their own local occupancy taxes on short-term rentals. For example, Jersey City charges a 6% municipal occupancy tax, while Newark levies a 6% hotel tax.

However, Bergen County does not currently have a county-wide occupancy tax that applies to short-term rentals. The tax rates and rules can vary between different municipalities within the county.

Hosts should check with their local tax authority or the Bergen County Treasurer's Office for the most up-to-date information on any applicable occupancy taxes in their area.

Tax Collection by Rental Platforms

Online short-term rental platforms like Airbnb and Vrbo are required to collect and remit the New Jersey sales tax and occupancy fee on behalf of their hosts. These taxes are typically added to the guest's bill when they book a reservation.

However, hosts are still responsible for collecting and remitting any applicable county or municipal occupancy taxes that are not collected by the rental platform. Failure to comply with tax obligations can result in significant penalties and legal issues.

Possible Tax Deductions

Short-term rental hosts may be able to deduct certain expenses related to their rental business on their tax returns. These deductions can help offset rental income and reduce overall tax liability.

Some common tax deductions for short-term rentals include:

1. Mortgage interest
2. Property taxes
3. Rental insurance premiums
4. Utilities (electricity, water, internet, etc.)
5. Cleaning and maintenance costs
6. Supplies for guests (toiletries, linens, etc.)
7. Repairs and renovations
8. Depreciation of furniture and appliances

Hosts should keep detailed records and receipts for all rental-related expenses throughout the year. Consulting with a qualified tax professional is recommended to ensure proper reporting and maximization of deductions.

By understanding and staying current with state, county, and local tax requirements, short-term rental operators in Bergen County can run their businesses in compliance with the law and optimize their financial returns.

New Jersey Wide Short-Term Rental Rules

In addition to the specific regulations in Bergen County municipalities, there are also several statewide rules in New Jersey that apply to short-term rentals:

1. Transient Accommodation Tax: Short-term rentals are subject to the New Jersey Sales and Use Tax (6.625%) and the State Occupancy Fee (5%), for a combined tax rate of 11.625%. Some municipalities may also impose additional local taxes or fees.
2. Marketplace Facilitator Tax Collection: As of November 1, 2019, short-term rental marketplace facilitators like Airbnb and Vrbo are required to collect and remit the Sales and Use Tax and State Occupancy Fee on behalf of hosts.
3. Registration with State Tax Authorities: Short-term rental hosts must register with the New Jersey Division of Taxation and obtain a Certificate of Authority to collect and remit applicable taxes.
4. Landlord Registration: In many New Jersey municipalities, property owners who rent out their units must register as landlords with their local government. This may involve obtaining a rental license or certificate of occupancy.
5. Multiple Dwelling Reporting Rule: If a property has three or more rental units, the owner must file an annual registration statement with the New Jersey Department of Community Affairs under the Hotel and Multiple Dwelling Law.
6. Smoke and Carbon Monoxide Detectors: All rental properties in New Jersey must have smoke alarms and carbon monoxide detectors installed in accordance with state building codes.
7. Eviction and Rent Control Laws: Short-term rental hosts in New Jersey must comply with the state's eviction and rent control laws, which provide certain protections for tenants.
8. Zoning and Land Use Regulations: Local zoning ordinances may restrict where short-term rentals are permitted and impose other requirements, such as minimum parking spaces or occupancy limits.

These statewide rules provide a baseline for short-term rental regulation in New Jersey, but the specific details and implementation can vary significantly between municipalities. The regulatory landscape is complex and constantly evolving as local governments seek to balance the economic benefits of tourism with residents' quality of life concerns.

For hosts in Bergen County, it's crucial to understand both the state and local requirements to operate legally and avoid potential fines or legal issues. Consulting with local officials, property managers, or legal advisors can help navigate this challenging environment and ensure compliance with all applicable rules and regulations.

As the short-term rental market continues to grow in New Jersey, particularly in light of New York City's strict laws, more municipalities may introduce their own ordinances to manage the industry. Bergen County hosts should stay informed about any regulatory changes and work proactively with local leaders to find solutions that benefit all stakeholders.

Does Bergen County Strictly Enforce STR Rules?

Based on discussions from hosts on forums like BiggerPockets and Reddit, it appears that many municipalities in Bergen County take a strict stance on enforcing short-term rental regulations, with some areas being decidedly unfriendly to Airbnb and other vacation rental platforms.

One Reddit user shared their experience in Palisades Park: "I got hit with a $1,000 fine for listing my condo on Airbnb after they banned rentals under 30 days. The borough is really cracking down hard on hosts who violate the new rules."

Another host on BiggerPockets warned, "Several towns in eastern Bergen County like Englewood Cliffs, Leonia, and Fort Lee are in the process of prohibiting short-term rentals. The regulations are only getting stricter. I would not consider this area Airbnb-friendly at all."

A local official in Englewood Cliffs commented on a Reddit thread, "We have no regrets about banning rentals under 6 months back in 2012. It's helped maintain the character of our residential neighborhoods. Englewood Cliffs is not the place for transient Airbnb-type rentals."

However, some hosts continue to operate illegally in the hopes of avoiding detection. A Redditor in Fort Lee mentioned, "I know there are still a few Airbnbs secretly running in town, but the risk is super high. If you get caught, the fines are massive and you can even face criminal penalties."

Overall, the general consensus among hosts is that most of Bergen County is becoming increasingly hostile to short-term rentals, with more towns enacting restrictions or all-out bans. The area is less "Airbnb-friendly" compared to Jersey Shore towns or cities closer to New York like Jersey City and Hoboken.

While a few hosts may still attempt to skirt the rules, the consequences of non-compliance are severe. As one host put it, "It's just not worth the stress and liability to operate an illegal Airbnb in most of Bergen County. The towns are really not messing around with enforcement."

So in summary, based on the prevailing sentiment from forums and local news reports, Bergen County is one of the tougher places to run a short-term rental business in New Jersey. Investors should be very wary of the regulatory risks before trying to launch an Airbnb in the area.

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

Starting a short-term rental business in Bergen County requires careful planning and compliance with local regulations. Here are the key steps to get started:

1. Research local regulations: Thoroughly review the short-term rental ordinances and zoning codes for the specific municipality where your property is located. Rules vary widely between towns in Bergen County, with some effectively banning rentals under 30 days and others allowing them with permits and restrictions. Failure to comply can result in significant fines.
2. Determine eligibility: Check if your property is eligible for short-term rentals under local zoning laws. Some towns only allow rentals in certain residential areas or prohibit them in accessory dwelling units. Consult with local officials or a land use attorney to verify compliance.
3. Obtain necessary permits: If short-term rentals are allowed, apply for any required permits or licenses from your municipal zoning office or housing department. This typically involves submitting an application, paying fees, and providing documentation like proof of ownership, liability insurance, and a floor plan. Incomplete applications can delay approval.
4. Register with tax authorities: Register with the New Jersey Division of Taxation at least 15 days before starting your rental business. You'll need to collect and remit the 6.625% sales tax and 5% occupancy fee on stays under 90 days. Some towns also impose local occupancy taxes that must be collected.
5. Prepare the property: Ensure your rental unit is safe, clean, and well-equipped for guests. Install smoke and carbon monoxide detectors in compliance with state building codes. Consider hiring a professional photographer to showcase your property's best features in your online listing.
6. Create an attractive listing: Craft an inviting description that highlights your rental's unique amenities and location. Use high-quality photos and include all pertinent details like pricing, house rules, and check-in procedures. Be transparent about any quirks or limitations to manage guest expectations.
7. Implement a pricing strategy: Research comparable rentals in your area to set a competitive nightly rate. Consider using dynamic pricing tools to automatically adjust rates based on demand. Factor in additional costs like cleaning fees, taxes, and insurance when setting your prices.
8. Automate guest communication: Use vacation rental software or messaging tools to promptly respond to inquiries and send automated confirmation and check-in instructions. Quick response times can help secure bookings and improve guest satisfaction.
9. Arrange for cleaning and maintenance: Hire a reliable cleaning service to thoroughly clean and restock your rental between guests. Have a network of local contractors on call to handle any maintenance issues that arise. Consistently high cleanliness standards are key to positive reviews.
10. Comply with ongoing regulations: Keep accurate records of all rental transactions and guest information for at least 4 years as required by New Jersey law. Stay up to date on any changes to local ordinances and tax policies that impact your business. Renew permits annually and schedule any required inspections.

Successfully operating a short-term rental in Bergen County requires diligent compliance with local rules and a commitment to providing exceptional guest experiences. By following these steps and prioritizing clear communication, cleanliness, and convenience for travelers, hosts can thrive in this competitive market while avoiding legal pitfalls.

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

If you have questions about short-term rental regulations and zoning in Bergen County, there are several key contacts and resources that can provide guidance:

Bergen County Division of Community Development

The Division of Community Development oversees housing and land use planning for the county. They can provide information on countywide policies and initiatives related to short-term rentals.

1. Phone: (201) 336-6475
2. Email: communitydev@co.bergen.nj.us
3. Address: One Bergen County Plaza, 4th Floor, Hackensack, NJ 07601

Municipal Zoning and Housing Offices

Since short-term rental regulations are primarily set at the municipal level, contacting the zoning office or housing department in the specific town where your property is located is crucial. They can provide the most accurate and up-to-date information on local ordinances, permit requirements, and enforcement.

For example, in Englewood, the Division of Housing Preservation handles short-term rental licenses:

1. Phone: (201) 871-6644
2. Email: housingpreservation@cityofenglewood.org
3. Address: 73 South Van Brunt Street, Englewood, NJ 07631

Bergen County Board of Realtors

The Bergen County Board of Realtors is a professional association representing the real estate industry in the county. They can offer insights into local market trends, best practices, and advocacy efforts related to short-term rentals.

1. Phone: (201) 387-1700
2. Email: info@bergenboard.com
3. Website: www.bergenboard.com

New Jersey Apartment Association (NJAA)

The NJAA is a statewide trade association for the multi-family housing industry. They provide educational resources, networking opportunities, and legislative advocacy for landlords and property managers, including those operating short-term rentals.

1. Phone: (732) 992-0600
2. Email: info@njaa.com
3. Website: www.njaa.com

Online Host Communities

Connecting with other local short-term rental hosts can be a valuable way to share experiences, ask for advice, and stay informed about regulatory changes. Some online communities to check out include:

• Airbnb Community Center - New Jersey Hosts Forum: https://community.withairbnb.com/t5/New-Jersey-Hosts/bd-p/new-jersey-hosts
• BiggerPockets Forums - New Jersey Real Estate Investing: https://www.biggerpockets.com/forums/1019-new-jersey-real-estate-investing

By engaging with these key stakeholders and information sources, short-term rental hosts in Bergen County can ensure they are operating in compliance with all applicable regulations and make informed decisions about their rental businesses.

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

Discussions on online forums provide insight into how Airbnb hosts view the regulatory landscape for short-term rentals in Bergen County. Here are some notable examples:

On the r/newjersey subreddit, one user shared their experience with strict enforcement in Palisades Park: "I got hit with a $1,000 fine for listing my condo on Airbnb after they banned rentals under 30 days. The borough is really cracking down hard on hosts who violate the new rules."

Another Redditor in Fort Lee mentioned, "I know there are still a few Airbnbs secretly running in town, but the risk is super high. If you get caught, the fines are massive and you can even face criminal penalties." This sentiment highlights the challenges of operating under the radar in municipalities with prohibitions.

In a thread on the r/jerseycity subreddit discussing the legality of Airbnb, a host commented, "As a legal Airbnb owner in Jersey City who's followed all the permitting requirements I can unequivocally tell you yes. Make sure they list their STR permit # in the listing and you'll know it's legit." While Jersey City is outside Bergen County, this shows the importance of complying with local licensing rules where allowed.

On BiggerPockets, a popular real estate investing forum, one user asked about house hacking (living in one unit and renting the others) with a multifamily property in Bergen County. Responses highlighted the difficulties of this strategy given local restrictions.

An investor replied, "Several towns in eastern Bergen County like Englewood Cliffs, Leonia and Fort Lee are in the process of prohibiting short-term rentals. The regulations are only getting stricter. I would not consider this area Airbnb-friendly at all."

Another BiggerPockets member shared, "There aren't many full houses for rent in Bergen County. The ones that do exist, don't stay on the rental market long." This suggests that even where allowed, fierce competition makes it tough to secure properties for short-term rentals.

However, some hosts still see opportunities in certain parts of the county. A realtor on the Bergen County subreddit mentioned recently renting a 4-bedroom home in Cresskill for $7,000 per month and 4-bedroom properties in Paramus renting for $4,500-$4,700 monthly.

The overall sentiment from these forums is that most of Bergen County, especially the eastern municipalities, is becoming increasingly hostile to short-term rentals. Strict enforcement of bans and high penalties make it risky to operate illegally.

However, there may still be some viable markets for short-term rentals in towns without prohibitions, particularly for larger properties. Hosts must carefully evaluate local regulations and weigh the compliance risks before listing on platforms like Airbnb.

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.