[Added 2-1-2022 by Ord. No. 452-2021]
Unless the context clearly indicates a different meaning, the
following words or phrases when used in this chapter shall have the
following meaning:
The individual or individuals designated by the owner as
the person(s) authorized by the owner to perform any duty imposed
upon the owner by this chapter, provided that in order to be an agent
or managing agent the individual designated must reside in Cape May
County, New Jersey, as set forth in N.J.S.A. 46:8-28(c). The term
does not include a licensed real estate broker or salesman of the
State of New Jersey as those terms are defined by N.J.S.A. 45:15-3;
unless such broker or salesperson shall affirmatively consent to act
as such agent or managing agent.
Any apartment, cottage, bungalow or other dwelling unit consisting
of one or more rooms occupying all or part of a floor or floors in
a building of one or more floors or stories, but not the entire building,
whether designed with or without housekeeping facilities for dwelling
purposes and notwithstanding whether the apartment be designed for
residence, for office, or the operation of any industry or business,
or for any other type of independent use.
Any action taken by the owner of record to advertise, solicit
or contract to market a rental unit with or without a lease, by any
means including but not limited to: a licensed real estate agency,
transient space marketplace, print and electronic media, newspaper
ads, personal referrals, signage.
Any building or structure, or part thereof, used for human
habitation, use or occupancy and includes any accessory buildings
and appurtenance belonging thereto or usually enjoyed therewith. Consistent
with the definitions contained in the Uniform Construction Code (UCC)
and the Uniform Fire Code (UFC), "building" shall also mean a structure
enclosed with exterior walls or fire walls, built, erected and framed
of component structural parts, designed for the housing, shelter,
enclosure and support of individuals, animals or property of any kind.
When used herein, building and structure shall be interchangeable
except where the context clearly indicates otherwise.
A single-family house, a unit within a multiple-unit building,
condominium, transient accommodation, apartment, cottage, bungalow,
or other unit consisting of a room for a suite of rooms which is occupied,
or intended, arranged, or designed to be occupied, for sleeping or
dwelling purposes.
See definition of "visitors."
See definition of "owner."
The license issued by the City attesting that the rental
unit has been properly inspected and licensed at required intervals
in accordance with this chapter
Shall be for a maximum term of 12 months as provided herein.
The person to whom the license is issued pursuant to this
chapter. The term "licensee" includes within its definition the term
"agent" or "managing agent," where applicable.
The municipal official or employee designated to receive
rental license applications and registrations and to issue licenses
pursuant to this chapter.
See definition of "agent."
Person who resides in a rental unit, including, but not limited
to, the named tenant(s). The term shall include residents, overnight
visitors and children. The term shall not include those visitors or
guests who are not residing therein.
The person who owns, purports to own or exercises control
over any building. Consistent with the definitions contained in the
Uniform Construction Code (UCC) and the Uniform Fire Code (UFC), "owner"
shall also mean the owner or owners in fee of the property or a lesser
estate therein, a mortgagee or vendee in possession, an assignee of
rents, receiver, executor, trustee, lessee or any other person, firm
or corporation, directly or indirectly in control of a building, structure
or real property and shall include any subdivision thereof of the
state.
An individual, firm, corporation, partnership, association,
trust or other legal entity, or any combination thereof.
An individual who is licensed by the State of New Jersey
as a real estate salesperson, a real estate broker-salesperson, and/or
a real estate referral agent, as those terms are defined in the New
Jersey Real Estate Brokers and Salesmen Act ("Brokers Act"), N.J.S.A.
45:15-1 to 29.5.
The person who negotiates for the lease of the rental unit
on behalf of the owner. Such person shall be the holder of the required
license mandated by the State of New Jersey. The rental agent is not
the managing agent under the terms of this chapter unless the rental
agent should expressly consent to assume such duties or obligations.
A building or structure which contains one or more rental
units including, but not limited to, resort houses, which is rented,
leased, subleased or occupied by a tenant. The term "rental property"
shall not include any property covered by the New Jersey Hotel and
Multiple Dwelling Law, N.J.S.A. 55:13A-1, et seq.
Collectively the term apartment or dwelling, building, dwelling
unit, as defined by this chapter. This definition shall not apply
to any single-family home which is not available for rental purposes.
Any lease or tenancy, whether written or oral, for any term
of less than 175 consecutive days where the tenant(s) has/have a permanent
place of residence elsewhere.
Any person who occupies any rental unit, as a named lessee,
pursuant to the terms of a lease agreement, whether written or oral,
or who occupies a rental unit pursuant to permission or license of
any kind granted by an owner or owner's agent. The term shall be construed
liberally to include not only tenants but guests and occupants. The
term shall also include subtenants.
This article shall be known as the "Short-Term Rental License
Regulations" of the City.
A.
Introduction.
All rental properties, or properties containing rental units, including
but not limited to resort houses, are subject to licensing and inspection
by the City.
B.
License
requirements. This chapter is applicable to each and every rental
unit or rental property which shall include:
(1)
A
property with one or more rental units including owner-occupied properties
with one or more rental units; and including but not limited to single-family,
multi-unit, and condominium buildings.
C.
D.
In addition
to the licensing requirements imposed by this chapter, certain properties
must also be registered with either the City or the State of New Jersey
pursuant to the Landlord Registration Act, N.J.S.A. 46:8-27 to 46:8-37.
E.
Pursuant
to P.L. 2022, c. 92 (S1368),[1] the owner of a multifamily rental property which is four
or fewer units, one of which is owner-occupied, shall maintain liability
insurance for negligent acts and omissions in an amount of no less
than $300,000 for combined property damage and bodily injury to or
death of one or more persons in any one accident or occurrence. The
owner of any other rental unit or units shall maintain liability insurance
for negligent acts and omissions in an amount of no less than $500,000
for combined property damage and bodily injury to or death of one
or more persons in any one accident or occurrence. A single property
with multiple units may register with one certificate of insurance
satisfying the applicable minimum limit set forth herein. All rental
unit owners shall annually register the applicable certificate of
insurance in connection with their mercantile license application.
Pursuant to P.L .2022, c. 92 (S1368), the failure to comply with this
registration requirement carries a minimum penalty of $500.
[Added 10-4-2022 by Ord. No. 477-2022]
[1]
Editor's Note: See N.J.S.A. 40A:10A-1 et seq.
A.
It is
the stated policy of the City that every property containing rental
unit(s) within the City shall be required to submit to inspection
and be licensed to be leased or occupied.
B.
City Council
finds that such licensing is necessary for the protection of the public;
to establish the location of all such rental units in order to protect
and promote the enforcement of land use ordinances, such as zoning,
site plan, subdivision, and other similar ordinances of the City.
C.
The New
Jersey Legislature, pursuant to N.J.S.A. 40:52-1(n), specifically
authorized municipalities to license and regulate the "rental of real
property for a term of less than 175 consecutive days for residential
purposes by a person having a permanent place of residence elsewhere."
D.
Furthermore,
most, if not all, such rental units are located within residential
neighborhoods in the City and abut owner-occupied homes and residences
and, if not responsibly managed, many such rental units may have a
negative impact upon the immediate neighbors.
The owner of rental unit(s) has a dual responsibility as follows:
A.
Each rental
property containing one or more rental units must be licensed and
inspected, at least annually, by the City in accordance with this
chapter; and
B.
Each property
containing one or more rental units must, in addition, be registered
in accordance with the Landlord Registration Act, N.J.S.A. 46:8-27
to 46:8-37 as follows:
(1)
Owner-occupied
one or two rental units: No registration is required.
(2)
Non-owner-occupied
one or two rental units: Must be registered (in addition to being
licensed and inspected) with the Municipal Clerk or designee.
(3)
Properties
containing three or more rental units must be registered with the
State of New Jersey.
C.
As an
accommodation to City owners, and to the extent permitted by law,
the application for a rental license shall contain the information
required by the Landlord Registration Act and, when completed and
filed by the owner, shall be indexed and made available for public
inspection as required by said law. This dual filing accommodation
shall not, however, relieve the owner of any other duty or responsibility
imposed by the Landlord Registration Act as the same may be amended
or supplemented.
A.
All rental
properties located within the City shall be required to be inspected
and licensed annually by the City. No rental property or rental unit
shall be leased or occupied unless a rental license has been issued
for the property or rental unit as provided in this chapter. This
provision does not apply to hotels or motels.
B.
All rental
units shall be licensed by the City. Application for a rental license
shall be made on forms which shall be provided for that purpose by
the City Licensing Clerk. Such licensing shall be required on an annual
basis; that is, at least once in every consecutive twelve-month period
or term as provided herein. An application form shall be required
for each rental unit and a rental license shall be required for each
individual rental unit.
C.
License
fees and late registration fees. Residential rental licensing fees
provided in § 316-10A(23) shall be applicable to properties
covered by this chapter. All inspection and registration fees shall
be paid by May 1. If not paid by that date, an additional fee equal
to 10% of the applicable square footage fee multiplied by each calendar
month the applicant is late (beginning the first of each month), representing
a late registration fee, shall be paid at the time of registration
in addition to all other fees required at that time.
[Amended 7-19-2022 by Ord. No. 472-2022]
In order to qualify for a rental license, the following requirements
shall be met by the applicant or applicant's agent:
A.
An application
on a form supplied by the City shall be completed and shall contain
all of the information, including any attachments which may be required,
and payment of applicable fees.
B.
All municipal
taxes, water and sewer charges and any other municipal assessments
are paid on a current basis, that is, paid through the tax quarter
immediately preceding the initial application or any renewal thereof.
C.
Prior to the issuance of a rental license, on either an initial application or on any renewal application, the rental unit must be scheduled for inspection by the Fire Prevention Bureau pursuant to § 247-9. All licenses are conditioned on continuing compliance with the provisions of the Uniform Fire Safety Act and Chapter 247 of the City Code.
In addition to the issuance of a rental license, each licensee
shall be issued a decal, which shall be permanently affixed to the
main door through which access is gained to the rental unit, or in
a window in the rental unit, in such a way that the decal is visible
from the exterior of the premises in which the rental unit is located.
Any landlord who leases a rental unit while such unit is unlicensed
shall be deemed in violation of this article and subject to the fines
and penalties herein. Each day that a tenant shall remain in occupancy
of such unlicensed rental unit shall be considered a separate and
distinct violation of this chapter for which the landlord shall be
responsible.
Each owner granted a license pursuant to this section shall
be permitted to lease or rent the rental unit subject to the following:
The lease or rental, for any purpose, of any amenity, feature,
accessory, or appurtenance to or associated with a dwelling is prohibited.
For the avoidance of doubt, this section prohibits property owners
from renting any "amenities," such as swimming pools, independent
from the principal structure and from advertising, either in print
or online, pool rentals.
A.
The provisions
of any of the several articles of this chapter shall be enforced by
any one or more of the following: the Chief of the City of Cape May
Police Department or his/her designee, the Construction Code Official,
the Fire Official, the Licensing Clerk, Code Enforcement Official
and Zoning Official of the City, any employee designated by the City
Council, and the Cape May County Department of Health.
B.
The absence
of a mercantile license for rental of a particular property shall
not be deemed dispositive for purposes of a zoning determination as
to whether a preexisting use has been abandoned.
A.
Any person
violating any of the provisions of this article shall, upon conviction,
be subject to a fine not to exceed $1,000.
B.
For any
second or subsequent offense, a fine in the minimum amount of $1,000
and not to exceed the sum of $2,000.
C.
The foregoing
penalties shall be in addition to any other penalties provided by
law.
