[HISTORY: Adopted by the Township Committee of the Township of Colts Neck 2-10-2021 by Ord. No. 2021-1.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance was originally adopted as Ch. 138 but was renumbered to maintain the organization of the Code.
The Mayor and Township Committee hereby find and adopt, as if set forth more fully herein, the fact assertions of the "Whereas" clauses of this chapter,[1] as their findings of fact.
[1]
Editor's Note: A full copy of this ordinance, including the "whereas" clauses, is on file in Township offices.
It shall be unlawful for any owner of any property within the geographic bounds of Colts Neck Township, New Jersey, to rent or operate a residential rental property contrary to the procedures and regulations established in this chapter or applicable state statute.
A. 
Short-term rentals, defined as having a duration of less than 30 consecutive days, shall be prohibited as provided by § 178-4 of this chapter.
B. 
Medium-term rentals, defined as having a duration between 30 days and 174 consecutive days, shall be permitted to be conducted pursuant to the requirements of § 178-5 of this chapter.
C. 
Long-term rentals, defined as having a duration of 175 or greater consecutive days shall be exempt from all requirements of Chapter 178, but shall remain subject to the certificate of continued occupancy requirements of Chapter 93.
As used in this chapter, the following terms shall have the meanings indicated below:
ADVERTISE or ADVERTISING
Any form of solicitation, promotion, and communication for marketing, used to solicit, encourage, persuade, or manipulate viewers, readers, or listeners into contracting for goods and/or services in violation of this chapter, as same may be viewed through various media including but not limited to, newspapers, magazines, flyers, handbills, pamphlets, commercials, radio, direct mail, internet websites, or text or other electronic messages.
CONSIDERATION
Soliciting, charging, demanding, receiving or accepting any legally recognized form of consideration including a promise or benefit, a quid-pro-quo, rent, fees, other form of payment, or thing of value.
DWELLING UNIT
Any structure, or portion thereof, whether furnished or unfurnished, which is occupied in whole or in part, or intended, arranged or designed to be occupied, for sleeping, dwelling, cooking, gathering and/or entertaining, as a residential occupancy, by one or more persons.
HOUSEKEEPING UNIT
Constitutes a family-type situation, involving one or more persons, living together that exhibit the kind of stability, permanency and functional lifestyle equivalent to that of a traditional family unit, as further described in the applicable reported and unreported decisions of the New Jersey Superior Court.
MEDIUM-TERM RENTAL (also referenced as "MTR")
The accessory use of a dwelling unit for occupancy by someone other than the unit's owner or permanent resident for a period between 30 days and 174 consecutive days, which dwelling unit is regularly used and kept open as such for the lodging of guests, and which is advertised or held out to the public as a place regularly rented to transient occupants, as that term is defined in this section.
MEDIUM-TERM RENTAL PROPERTY (also referenced as "MTRP")
A dwelling unit, as hereinabove defined, that is used and/or advertised for rent as an MTR by transient occupants as guests, as those terms are defined in this section. Dwelling units rented to the same occupant for at least 175 consecutive days (as confirmed by the existence of a written lease or rental agreement), licensed rooming or boarding houses, hotels, and motels shall not be considered a MTRP.
OCCUPANT
Any individual using, inhabiting, living, gathering, entertaining, being entertained as a guest, or sleeping in a dwelling unit, or portion thereof, or having other permission or possessory right(s) within a dwelling unit.
OWNER
Any person(s) or entity(ies), association, limited liability company, corporation, or partnership, or any combination, who legally use, possess, own, lease, sub-lease or license (including an operator, principal, shareholder, director, agent, or employee, individually or collectively) that has charge, care, control, or participates in the expenses and/or profit of a dwelling unit pursuant to a written or unwritten agreement, rental, lease, license, use, occupancy agreement or any other agreement.
OWNER-OCCUPIED
The owner of the property resides in the MTRP, or in the principal residential unit with which the MTRP is associated on the same lot, and identifies same as his or her principal residence as that term is defined in this section. For purposes of this section, if the owner of the property is an entity other than an individual or individuals, then at least one principal or member of the owner entity must reside in the MTRP, or in the principal residential unit with which the MTRP is associated on the same lot, and identify same as his or her principal residence as that term is defined in this section.
PERSON
An individual, firm, corporation, association, partnership, limited liability company, association, entity, and any person(s) and/or entity(ies) acting in concert or any combination therewith.
PRINCIPAL RESIDENCE
The address where at least one of the property owners spends the majority of his or her nonworking time, and which is most clearly the center of his or her domestic life, and which is identified on his or her driver's license, voter registration or state identification card as being his or her legal address. All the above requirements must be met in order for an address to constitute being a principal residence for purposes of this section.
PROPERTY
A parcel of real property located within the boundaries of Colts Neck Township, Monmouth County, New Jersey.
RENTAL AGENT
Any New Jersey licensed real estate agent or other person designated and charged by the owner of a MTRP, with the responsibility for making the MTRP application to the Township on behalf of the owner, and fulfilling all of the obligations in connection with completion of the MTRP permit application process on behalf of the owner. Such person shall be available for, and responsive to contact on behalf of, the owner, at all times.
RESIDENTIAL OCCUPANCY
The use of a dwelling unit by an occupant(s).
RESPONSIBLE PARTY
Both the MTRP owner and a person (property manager) designated by the owner to be called upon and be responsible at all times during the period of a MTR and to answer for the maintenance of the property, or the conduct and acts of occupants of the MTRP, and, in the case of the property manager, to accept service of legal process on behalf of the owner of the MTRP.
SHORT-TERM RENTAL
The accessory use of a dwelling unit for occupancy by someone other than the unit's owner or permanent resident for a period less than 30 consecutive days.
TRANSIENT OCCUPANT
Any person or a guest or invitee of such person, who, in exchange for compensation, occupies or is in actual or apparent control or possession of residential property, which is either: registered as a MTRP, or satisfies the definition of a MTRP, as such term is defined in this section. It shall be a rebuttable presumption that any person who holds themselves out as being an occupant or guest of an occupant of the MTR is a transient occupant.
A. 
Notwithstanding anything to the contrary contained in the Township Code, it shall be unlawful for an owner, lessor, sub-lessor, any other person(s) or entity(ies) with possessory or use right(s) in a dwelling unit, their principals, partner or shareholders, or their agents, employees, representatives and other persons(s) or entity(ies), acting in concert or a combination thereof, to receive or obtain actual or anticipated consideration for soliciting, advertising, offering, and/or permitting, allowing, or failing to discontinue the use or occupancy of any dwelling unit, as defined herein, for a period of less than 30 consecutive days.
B. 
The lease or rental, for any purpose, of any amenity, feature, accessory, or appurtenance to or associated with a dwelling unit is prohibited.
C. 
The residential occupancy of an otherwise lawful and lawfully occupied dwelling unit for a period of 30 days or less by any person who is a member of the housekeeping unit of the owner, without consideration, such as house guests, is permitted.
A. 
Subject to the provisions of this chapter, medium-term rentals ("MTR") shall be permitted to be conducted in the following classifications of property in Colts Neck Township:
(1) 
Condominium units, where the condominium association by-laws or master deed permit an MTR, and where the owner of the unit legally identifies the address as his or her principal residence;
(2) 
Individually or collectively owned single-family residences, which one of the owners legally identifies as the address of his or her principal residence, as that term is defined herein;
(3) 
Up to two separate units within a two-family residential dwelling, where one of the two units is occupied by the owner and identified by the owner as his or her principal residence, as that term is defined herein;
(4) 
Not more than two separate units in any multifamily residential dwelling, where one other unit in the same dwelling is occupied by the owner and identified by the owner as his or her principal residence, as that term is defined herein; and
(5) 
Not more than two bedrooms within a single-family residential dwelling unit, where the bedrooms share common kitchen and bathroom facilities with the occupant of the dwelling unit, and the remainder of the single-family dwelling unit is occupied by the owner and identified by the owner as his or her principal residence, as that term is defined herein.
B. 
Notwithstanding the provisions of Subsection A above, MTRs shall not be permitted in boarding or rooming houses, dormitories, foster homes, adult family care homes, assisted living facilities, community residences for developmentally disabled persons, community shelters for victims of domestic violence, or nursing homes. Further, MTR of the following properties is prohibited:
(1) 
Condominiums or townhomes, where the condominium association by-laws or master deed, or condominium rules and regulations, do not permit such MTR of condominium units in the development;
(2) 
An individually or collectively owned single-family residential dwelling unit, which address none of the owners legally identifies as his or her principal residence;
(3) 
A unit in a two-family residential dwelling, where the other unit is not occupied by the owner nor legally identified by the owner as his or her principal residence;
(4) 
Two or more units in a multifamily residential dwelling, and where one of the other units is not occupied by the owner nor legally identified by the owner as his or her principal residence;
(5) 
A room within a single-family, two-family or multifamily residential dwelling unit, where the room shares common kitchen and bathroom facilities with the occupant(s) of the dwelling unit in which it is located, which occupant(s) is neither the owner of the dwelling unit nor identifies the remainder of the dwelling unit in the single-family, two-family or multifamily residence as his or her principal residence; and
(6) 
Two or more individual rooms within a single-family, two- family or multifamily residential dwelling unit, where the rooms share common kitchen and bathroom facilities with the occupant(s) of the dwelling unit(s) in which they are located, which occupant(s) is neither the owner of the dwelling unit nor identifies the remainder of the dwelling unit in the single- family, two-family or multifamily residence as his or her principal residence.
C. 
Medium-term rental permit, permit registration fee/application, and residential rental certificate of occupancy.
(1) 
In addition to any land use requirement(s) set forth by Colts Neck Township Land Use Regulations, the owner/operator of a medium-term rental property ("MTRP") shall obtain an MTR permit from Colts Neck Township before renting or advertising for rent any MTR.
(2) 
No person or entity shall operate a MTRP, or advertise a residential property for use as a MTRP, without the owner/operator of the property first having obtained a MTRP permit issued by Colts Neck Township. The failure to obtain a valid MTRP permit prior to advertising the MTRP in any print, digital, or internet advertisement or web-based platform, and/or in the MLS or any realtor's property listing shall be a violation of this chapter. No MTRP permit issued under this chapter may be transferred or assigned or used by any person or entity, other than the owner to whom it is issued, or at any property location or dwelling unit other than the property for which it is issued.
(3) 
An owner of property intended to serve as a MTRP, as defined herein, or any agent acting on behalf of the owner, shall submit to the Colts Neck Township Zoning Officer, an MTR permit application provided by the Township, along with an application/registration fee of $500. Said fee shall be nonrefundable, including in the event that the application is denied. The fee shall also constitute the required fee for the residential rental certificate of occupancy application, referenced below.
(4) 
The MTR permit, if granted, shall be valid for a period of one year from the date of issuance.
(5) 
The owner of a MTRP, as defined herein, or any agent acting on behalf of the owner, who intends to rent all of the property, or any permitted part thereof as a MTR, shall also make application to the Colts Neck Township Zoning Officer, in conjunction with the MTR permit application, for the issuance of a residential rental certificate of occupancy for the MTR property, on such forms as required by the Zoning Officer.
(6) 
An MTR permit and residential rental certificate of occupancy shall be renewed on an annual basis, based upon the anniversary of the original permit issuance, by submitting to the Colts Neck Township Zoning Officer, an MTR permit application and residential rental certificate of occupancy application and a renewal registration fee of $100. A reinspection fee of $85 shall apply for each failed reinspection.
(7) 
The MTR permit shall expire automatically when the MTRP changes ownership, and a new initial application and first-time registration fee will be required in the event that the new owner intends to use the property as a MTRP. A new application and first-time registration fee shall also be required for any MTR that had its MTR permit revoked or suspended.
D. 
Application process for medium-term rental permit and inspections.
(1) 
Applicants for an MTR permit shall submit, on an annual basis, an application for an MTR permit to the Colts Neck Township Zoning Officer. The application shall be furnished, under oath, on a form specified by the Zoning Officer, accompanied by the nonrefundable application fee as set forth in § 178-5C above. Such application shall include:
(a) 
The name, address, telephone number and email address of the owner(s) of record of the dwelling unit for which a permit is sought. If such owner is not a natural person, the application must include and identify the names of all partners, officers and/or directors of any such entity, and the personal contact information, including address and telephone numbers for each of them;
(b) 
The address of the unit to be used as an MTR;
(c) 
A copy of the driver's license, voter registration or state identification card of the owner of the MTRP, confirming, as set forth in this section, that the property is the principal residence, as that term is defined herein, of the owner making application for the MTRP permit;
(d) 
The owner's sworn acknowledgement that they comply with the requirement that the MTRP constitutes the owner's principal residence;
(e) 
The name, address, telephone number and email address of the rental agent, which shall constitute his or her seven-day-a-week, twenty-four-hour-a-day contact information;
(f) 
The name, address, telephone number and email address of the MTRP responsible party, which shall constitute his or her seven-day-a-week, twenty-four-hour-a-day contact information;
(g) 
The owner's sworn acknowledgement that he or she has received a copy of this chapter, has reviewed it, understands its requirements and certifies, under oath, as to the accuracy of all information provided in the permit application;
(h) 
The number and location of all parking spaces available to the premises, which shall include the number of legal off-street parking spaces on the property;
(i) 
The owner's agreement that all renters of the MTRP shall be limited to one vehicle per two occupants in the MTRP;
(j) 
The owner's agreement to use his or her best efforts to assure that use of the premises by all transient occupants will not disrupt the neighborhood, and will not interfere with the rights of neighboring property owners to the quiet enjoyment of their properties; and
(k) 
Any other information that this chapter requires a property owner to provide to the Township in connection with an application for a residential rental certificate of occupancy. The Colts Neck Township Zoning Officer or its designee shall have the authority to obtain additional information from the MTRP owner/applicant or amend the permit application to require additional information, as necessary, to achieve the objectives of this chapter.
(2) 
Every application for an MTR permit shall require annual inspections for the MTRP's compliance with the Township's fire safety regulations and Property Maintenance Code. In addition, each application is subject to review to verify the MTRP's eligibility for use as an MTR and compliance with the regulations in this section. Failure to abate any outstanding violations prior to occupancy can result in a summons.
(3) 
For a condominium MTR permit application, a letter of approval by the condominium association must be submitted with the application.
(4) 
A zoning permit, which states that the premises are not being occupied or used in violation of the Township's development regulations, shall be required.
(5) 
A sworn statement shall be required that there have been no prior revocations or suspensions of this or a similar license, in which event a license shall not be issued, which denial may be appealed as provided hereinafter.
(6) 
Attached to and concurrent with submission of the permit application described in this chapter, the owner shall provide:
(a) 
Proof of the owner's current ownership of the MTR unit;
(b) 
Proof of general liability insurance in a minimum amount of $500,000; and
(c) 
Written certifications from the rental agent and responsible party that they agree to perform all of the respective duties specified in this chapter.
(7) 
The MTRP owner/permit holder shall publish the MTR permit number issued by the Township in every print, digital, or internet advertisement, and/or in the multiple listing service (hereinafter "MLS") or other real estate listing of a real estate agent licensed by the NJ State Real Estate Commission, in which the MTRP is advertised for rent.
(8) 
Each and every time there is a change of occupancy by transient occupants during the year when the permit is active, the MTRP owner, or rental agent must provide the Township with information as to the identity of all transient occupants who will be occupying the MTRP, on a form to be made available by the Colts Neck Township Zoning Officer or in electronic format on the Township website. The intent is that the Township shall have basic identifying information of all occupants of the MTRP at all times, just as required by the Township in conjunction with any standard residential rental certificate of occupancy application, which information shall include the occupant's or occupants' names and ages, and the dates of the commencement and expiration of the term of each MTR period of the respective occupant(s).
(9) 
In no event shall a MTRP be rented to anyone younger than 21 years of age. The primary occupant of all MTRs executing the agreement between the owner and the occupant must be over the age of 21, and must be the party who will actually occupy the property during the term of the MTR. The primary occupant may have guests under the age of 21 who will share and occupy the property with them. Both the primary occupant executing the MTR agreement and the MTRP owner shall be responsible for compliance with this provision, and shall both be liable for a violation, where the property is not occupied by at least one adult over the age of 21, during the term of the MTR.
(10) 
The Township Administrator or their designee may waive irregularities within this chapter upon its implementation.
E. 
Issuance of permit and appeal procedure.
(1) 
Once an application is submitted, complete with all required information and documentation and fees, the Zoning Officer, following any necessary investigation for compliance with this section, shall either issue the MTR permit and certificate of occupancy, or issue a written denial of the permit application (with the reasons for such denial being stated therein), within 10 business days.
(2) 
If denied, the applicant shall have 10 business days to appeal in writing to the Township Administrator, by filing the appeal with the Township Administrator's Office.
(3) 
Within 30 days thereafter, the Township Administrator or their designee shall hear and decide the appeal.
(4) 
A permit shall only be issued after all outstanding violations have been abated.
F. 
Medium-term rental operational requirements.
(1) 
All MTRs must comply with all applicable rules, regulations and ordinances of Colts Neck Township and all applicable rules, regulations and statutes of the State of New Jersey, including regulations governing such lodging uses, as applicable. The MTRP owner shall ensure that the MTR is used in a manner that complies with all applicable laws, rules and regulations pertaining to the use and occupancy of an MTR.
(2) 
A dwelling unit shall be limited to a single MTR contract at a time.
(3) 
The owner of a MTRP shall not install any advertising or identifying mechanisms, such as signage, including lawn signage, identifying the property for rent as a MTRP.
(4) 
Transient occupants of the MTRP shall comply with all ordinances of Colts Neck Township including, but not limited to those ordinances regulating noise and nuisance conduct. Failure of transient occupants to comply shall subject the transient occupants, the owner of the MTRP, the responsible party and the rental agent listed in the MTR permit application, to the issuance of fines and/or penalties, and the possibility of the revocation or suspension of the MTRP permit.
(5) 
The owner of a MTRP shall post the following information in a prominent location within the MTR:
(a) 
Owner name; if owner is an entity, the name of a principal in the entity, and phone number for the owner (individual);
(b) 
The names and phone numbers for the responsible party and the rental agent (as those terms are defined in this chapter);
(c) 
The phone numbers for the Colts Neck Township Police Department, the Colts Neck Township Fire Department, the Colts Neck Township Code Enforcement Department and the Colts Neck Township Zoning Officer;
(d) 
The maximum number of parking spaces available on site;
(e) 
Trash and recycling pick-up day, and all applicable rules and regulations regarding trash disposal and recycling;
(f) 
A copy of Colts Neck Township Code Chapter 79, Animals; and
(g) 
Notification that a guest, transient occupant, the rental agent, the responsible party or MTRP owner may be cited or fined by the Colts Neck Township Police Department or the Colts Neck Township Zoning Officer, for violations of, and in accordance with any applicable ordinance(s) of Colts Neck Township;
(6) 
In the event any complaints are received by the Colts Neck Police Department or the Zoning Officer regarding the MTR and/or the transient occupants in the MTRP, and the owner of the MTRP is unreachable or unresponsive, both the responsible party and the rental agent listed in the MTR permit application shall have the responsibility to take any action required to properly resolve such complaints, and shall be authorized by the MTRP owner to do so.
(7) 
While a MTRP is rented, the owner, the rental agent, or the responsible party shall be available 24 hours per day, seven days per week for the purpose of responding within two hours to complaints regarding the condition of the MTRP premises, maintenance of the MTRP premises, operation of the MTRP, or conduct of the guests at the MTRP, or nuisance complaints from the Colts Neck Police Department or neighbors, arising by virtue of the MTR of the property.
(8) 
If the MTRP is the subject of two or more substantiated civil and/or criminal complaints, the Township Administrator or their designee may revoke the MTR permit issued for the property, in which case, the MTRP may not be the subject of a new MTRP permit application for one year following the date of revocation of the permit.
(9) 
Failure to make application for, and to obtain the issuance of, a MTR permit prior to advertising the MTRP in print publications or newspapers, on any internet-based booking platforms, or online, and/or in the MLS or other real estate listing of a real estate agent licensed by the NJ State Real Estate Commission, shall be equivalent to operation of the MTRP without a permit, and shall constitute a violation of this Code, and will result in enforcement action and the issuance of a summons, and shall subject the MTRP owner, the rental agent, and the responsible party to issuance of fines and/or penalties.
(10) 
The person offering a dwelling unit for MTR use must be the owner of the dwelling unit. A tenant of a property may not apply for an MTR permit, nor shall the property or any portion thereof be sub-leased by the tenant on a medium-term basis or operated as a MTRP by the tenant. This MTRP regulation shall supersede any conflicting provision in a private lease agreement permitting sub-leasing of the property, or any portion of the property. Violation of this chapter will result in enforcement action against the tenant, the MTRP owner, the rental agent, and the responsible party, and will subject all such parties to the issuance of a summons and levying of fines and/or penalties.
(11) 
In the event that the Township receives three substantiated complaints concerning excessive vehicles belonging to the transient occupants of a MTRP, the MTR permit for the property is subject to revocation by the Township Administrator or his designee.
(12) 
The MTRP owner must be current with all tax and sewer charges assessed to the property prior to the issuance of an MTR permit. In the event that any code violations have been issued by the Township relating to the MTRP, an MTR permit shall not be issued until such time as such violations have been properly abated. The MTRP owner must also close any open construction permits for the property prior to the issuance of an MTR permit.
(13) 
All fines or penalties issued by the Municipal Court for Colts Neck Township for any past code violations relating to the MTRP, including penalties for failure to appear in Court, must be satisfied in full prior to the issuance of an MTR permit.
It shall be unlawful to advertise, solicit or promote by any means actions in violation of this chapter.
A. 
The provisions of this chapter shall be enforced by the Zoning Officer for the Township or other persons designated by the Township Committee, to issue municipal civil infractions directing alleged violators of this chapter and/or to appear in court or file civil complaints.
B. 
A violation of this chapter is hereby declared to be a public nuisance, a nuisance per se, and is hereby further found and declared to be offensive to the public health, safety and welfare.
C. 
Any person found to have violated any provision of this chapter, without regard to intent or knowledge, including the property owner, transient occupant(s) and/or the rental agent, shall be liable for the maximum civil penalty, upon adjudicated violation or admission, of a fine not exceeding $2,000. Each day of such violation shall be a new and separate violation of this chapter.
D. 
The penalty imposed herein shall be in addition to any and all other remedies that may accrue under any other law, including, but not limited to, eviction proceedings and/or injunction, reasonable attorney's fees or other fees and costs, in the Township's Municipal Court or the Superior Court of New Jersey in the vicinage of Monmouth County, or in such other Court or tribunal of competent jurisdiction, by either summary disposition or by zoning or construction code municipal proceeding.