With the World Cup on the horizon and tourism expected to surge across the region, many New Jersey residents are considering turning extra rooms or apartments into short-term rentals. But before you list your space on Airbnb, it’s important to understand that some cities, especially popular destinations like Jersey City and Newark, have strict regulations in place for short-term rentals (STRs).

Jersey City Regulations

• Short-term rentals are not allowed to be managed by tenants.
• Property owners may list their primary home, along with up to two other units within the same structure, so long as they reside there themselves. If the owner isn’t staying on-site during the guest’s visit, they may only rent the property out for a total of 60 nights each year. A permit from the Division of Housing Preservation is required before hosting can begin.
• Permit applications can be found online.

Application Requirements

A full list of requirements can be found here, but some of them include:

• $250 registration fee
• Proof of ownership, such as a recent property tax statement
• A document verifying the property as your primary residence (e.g., a driver’s license or state-issued ID)
• Two utility bills from the last 30 days for residency confirmation
• A liability insurance policy with a minimum of $500,000 in coverage

Newark Regulations

The first mandatory step is obtaining a Short-Term Rental (STR) Permit through the Department of Engineering. Advertising or hosting guests without this permit is a violation of city rules. You will also need:

• Proof of ownership (e.g., deed or tax bill)
• Liability insurance with at least $500,000 coverage
• Signed agreements from your rental agent and responsible party confirming their roles

Once your permit is approved, you also need to apply for a Certificate of Code Compliance to make sure your property meets safety and zoning standards. Both the STR permit and the code compliance certificate must be renewed annually, and there’s a $250 renewal fee each year.

Whether you are hoping to make some extra income during the World Cup or planning to rent your space short-term year-round, it is crucial to understand and follow your city’s regulations. Ignoring these rules can result in fines or permit revocation, so get your paperwork in order before welcoming your first guest!

For additional questions about short term rental rules or other rental issues in your city, please contact PTGB Law at 201-569-5959.