[HISTORY: Adopted by the Mayor and Council of the Borough
of Sea Bright 11-14-2022 by Ord. No. 10-2022. Amendments noted
where applicable.]
A.
This section aims to regulate the increasingly widespread practice
of renting or leasing various types of dwellings, or segments thereof,
located primarily in residential neighborhoods, on a short-term basis
to transient guests. This practice has been popularized and facilitated
by various websites that advertise and broker these rentals. Left
unregulated, this practice could adversely affect the health, safety,
and general welfare of the citizens of the Borough. This section seeks
to balance the rights of the owners of residential dwelling units
and the needs of the community at large.
B.
This section does not apply to lawfully established and operating
hotels, motels, rooming houses, boardinghouses, and bed-and-breakfast
establishments.
As used in this chapter the following terms shall have the meanings
indicated below:
An individual or entity holding title to a property proposed
for short-term rental, by way of a legally recorded deed.
The owner of the property resides in the short-term rental property (also referenced as "STRP"), or in the principal residential unit with which the STRP is associated on the same lot, and identifies same as his or her principal residence as that term is defined in this Chapter 164.
The address: (1) where at least one of the property owners spends the majority of his or her non-working time, and (2) which is identified on his or her driver's license 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 Chapter 164.
A parcel of real property located within the boundaries of
the Borough of Sea Bright.
Both the short-term rental property owner and a person (or
property manager) designated by the owner to be called upon and be
responsible at all times during the period of a short-term rental
and to answer for the maintenance of the property, or the conduct
and acts of occupants of the short-term rental property, and, in the
case of the property manager, to accept service of legal process on
behalf of the owner of the short-term rental property.
The use of a dwelling unit as defined in § 130-5 of the Code of the Borough of Sea Bright for occupancy by someone other than the unit's owner or permanent resident for a period of 90 days or less consecutive days. Short-term rental properties are required to have a minimum stay period of seven consecutive days. Any advertisement or rental of short-term rental properties must include and invoke this minimum stay requirement.
A dwelling unit as defined in § 130-5 of the Code of the Borough of Sea Bright, that is used and/or advertised for rent as a short-term rental by transient occupants as guests, as those terms are defined in this Chapter 164. Dwelling units rented to the same occupant for more than 90 continuous days, licensed bed-and-breakfast establishments, licensed rooming or boardinghouses, hotels, and motels shall not be considered a short-term rental property.
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: (1) registered as a short-term rental property, or (2) satisfies the definition of a short-term rental property, as such term is defined in this Chapter 164. It shall be a rebuttable presumption that any person who holds themselves out as being an occupant or guest of an occupant of the short-term rental is a transient occupant.
A marketplace or travel agency through which a person may
offer STRs to customers and through which customers may arrange for
occupancies of STRs. The definition of a transient space marketplace
does not include a marketplace or travel agency that exclusively offers
transient accommodations in New Jersey owned by the owner of the marketplace
or travel agency. "Obtained through a transient space marketplace"
means that payment for the accommodation is made through a means provided
by the marketplace or travel agency, either directly or indirectly,
regardless of which person or entity receives the payment, and where
the contracting for the accommodation is made through the marketplace
or travel agency.
A.
It shall be unlawful for the owner of any property within the Borough to rent or operate a short-term rental contrary to the procedures and regulations established in this Chapter 164 or applicable state statute.
B.
Short-term rentals shall be permitted to be conducted in the following
classifications of property in the Borough of Sea Bright:
(1)
Condominium units, where the condominium association bylaws and master
deed do not prohibit a short-term rental;
(2)
Single-family residences;
(3)
One unit within a two-family residential dwelling, where the other
unit is occupied by the owner and identified by the owner as his or
her principal residence;
(4)
Not more than two 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.
C.
Notwithstanding the provisions of Subsection B above, short-term rentals shall not be permitted in:
(1)
Condominiums or townhomes, where the condominium association bylaws
or master deed, or condominium rules and regulations, do not permit
such short-term rental of condominium units in the development;
(2)
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.
D.
The provisions of this Chapter 164 shall apply to short-term rentals as defined in § 164-2 above. The following do not qualify as a STRP, as that term is used herein, and are not required to obtain a short-term rental permit pursuant to this Chapter 164: any hotel, motel, studio hotel, rooming house, dormitory, public or private club, bed-and-breakfast inn, convalescent home, rest home, home for aged people, foster home, halfway house, transitional housing facility, or other similar facility operated for the care, treatment, or reintegration into society of human beings; any housing owned or controlled by an educational institution and used exclusively to house students, faculty or other employees with or without their families; any housing operated or used exclusively for religious, charitable or educational purposes; or any housing owned by a governmental agency and used to house its employees or for governmental purposes.
A.
In addition to any land use requirement(s) set forth by the Zoning
and Land Use Regulations of the Borough of Sea Bright,[1] the owner of a short-term rental property shall obtain
a short-term rental permit from the Borough of Sea Bright Municipal
Clerk, before renting or advertising for rent any short-term rental.
B.
No person or entity shall operate a STRP, or advertise a residential
property for use as a STRP, without the owner of the property first
having obtained a STR permit issued by the Borough of Sea Bright.
The failure to obtain a valid STR permit prior to advertising the
short-term rental property in any print, digital, or internet advertisement
or web-based platform, and/or in the MLS or any real estate agent's
property listing shall be a violation of this chapter. No STR 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.
C.
An owner of property intended to serve as a short-term rental property,
or any agent acting on behalf of the owner, shall submit to the Borough
of Sea Bright Municipal Clerk, a short-term rental permit application
provided by the Borough, a long with an annual application/registration
fee of $500.
D.
The short-term rental permit, if granted, shall be valid for a period
of one year from the date of issuance.
E.
The owner of a short-term rental property, or any agent acting on
behalf of the owner, who intends to rent all of the property, or any
permitted part thereof as a short-term rental, shall also make application
to the Municipal Clerk, in conjunction with the short-term rental
permit application, for the issuance of a rental certificate of occupancy
for the short-term rental property, on such forms as required by that
Department.
F.
A short-term rental permit and rental certificate of occupancy shall be renewed on an annual basis, based upon the anniversary of the original permit issuance, by submitting to the Municipal Clerk a short-term rental permit application and rental certificate of occupancy application and a registration fee as set forth in § 164-4C.
G.
The short-term rental permit shall expire automatically when the
short-term rental property changes ownership, and a new initial application
and registration fee will be required in the event that the new owner
intends to use the property as a short-term rental property. A new
application and registration fee shall also be required for any short-term
rental that had its short-term rental permit revoked or suspended.
A.
Applicants for a short-term rental permit shall submit, on an annual basis, per § 164-4D and F, an application for a short-term rental permit to the Borough of Sea Bright. Such application shall include:
(1)
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;
(2)
The address of the unit to be used as a short-term rental;
(3)
The name, address, telephone number and email address of the short-term
rental property responsible party, which shall constitute his or her
seven days a week, 24 hours a day contact information;
(4)
The owner's acknowledgement that he or she has received a copy
of this chapter, has reviewed it, understands its requirements and
certifies as to the accuracy of all information provided in the permit
application;
(5)
The number and location of all parking spaces available to the premises,
which shall include the number of legal off-street parking spaces
and on-street parking spaces directly adjacent to the premises. The
owner shall certify that every effort will be made to avoid and/or
mitigate issues with on-street parking in the neighborhood in which
the short-term rental is located, resulting from excessive vehicles
generated by the short-term rental of the property, in order to avoid
a shortage of parking for residents in the surrounding neighborhood;
(6)
The owner's agreement that all renters of the short-term rental
property shall be limited to one vehicle per four occupants in the
short-term rental property;
(7)
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
(8)
Any other information required to be provided to the Borough in connection
with an application for a rental certificate of occupancy. The Borough
Administrator or his or her designee shall have the authority to obtain
additional information from the STRP owner/applicant or amend the
permit application to require additional information, as necessary,
to achieve the objectives of this section.
B.
Every application for a short-term rental permit shall be subject
to inspections every three months for the STRP's compliance with
the state's or Borough's fire safety regulations and the
Borough's property maintenance code. In addition, each application
is subject to review to verify the STRP's eligibility for use
as a short-term rental and compliance with the regulations in this
chapter.
C.
For a condominium short-term rental permit application, a letter
of approval by the condominium association must be submitted with
the application.
D.
A zoning compliance certificate, which states that the premises are
not being occupied or used in violation of the Zoning and Land Use
Regulations of the Borough, shall be required.
E.
Confirmation 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.
F.
Attached to and concurrent with submission of the permit application
described in this chapter, the owner shall provide:
(1)
Proof of the owner's current ownership of the short-term rental
unit;
(2)
Proof of general liability insurance in a minimum 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, except
in the case of the owner of a multifamily home which is four or fewer
units, one of which is owner occupied, then coverage must be maintained
for the foregoing in an amount no less than $300,000, or such minimum
amounts which may be set by state law; and
(3)
Written certification from the responsible party that they agree
to perform all of the respective duties specified in this chapter.
G.
The STRP owner/permit holder shall publish the short-term rental
permit number issued by the Borough 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 short-term rental
property is advertised for rent on a short-term basis.
H.
Each and every time there is a change of occupancy by transient occupants
during the year when the permit is active, the STRP owner, their agent,
or the responsible party must provide the Borough with information
as to the identity of all transient occupants who will be occupying
the STRP, on a form to be made available by the Municipal Clerk or
in electronic format on the Borough website. The intent is that the
Borough shall have basic identifying information of all occupants
of the STRP at all times, just as required by the Borough in conjunction
with any standard 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 short-term rental period of the respective occupant(s).
I.
In no event shall a short-term rental property be rented to anyone
younger than 18 years of age. The primary occupant of all short-term
rentals executing the agreement between the owner and the occupant
must be over the age of 18, and must be the party who will actually
occupy the property during the term of the short-term rental. The
primary occupant may have guests under the age of 18 who will share
and occupy the property with them. Both the primary occupant executing
the short-term rental agreement and the STRP 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 18, during the term of the short-term rental.
A.
Once an application is submitted, complete with all required information
and documentation and fees, the Municipal Clerk, following any necessary
investigation for compliance with this chapter shall either issue
the short-term rental 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.
B.
If denied, the applicant shall have 10 business days to appeal in
writing to the Borough Administrator, by filing the appeal with the
Borough Administrator's office.
C.
Within 30 days thereafter, the Borough Administrator or his or her
designee shall hear and decide the appeal.
A.
All short-term rentals must comply with all applicable rules, regulations
and ordinances of the Borough of Sea Bright and all applicable rules,
regulations and statutes of the State of New Jersey, including regulations
governing such lodging uses, as applicable. The STRP owner shall ensure
that the short-term rental is used in a manner that complies with
all applicable laws, rules and regulations pertaining to the use and
occupancy of a short-term rental.
B.
A dwelling unit shall be limited to a single short-term rental contract
at a time.
C.
The owner of a STRP shall not install any advertising or identifying
mechanisms, such as signage, including lawn signage, identifying the
property for rent as a short-term rental property.
D.
Transient occupants of the STRP shall comply with all ordinances
of the Borough of Sea Bright, 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 STRP and the responsible party listed in the short-term rental
permit application, to the issuance of fines and/or penalties, and
the possibility of the revocation or suspension of the STRP permit.
E.
The owner of a STRP shall post the following information in a prominent
location within the short-term rental:
(1)
Owner name; if owner is an entity, the name of a principal in the
entity, and phone number for the owner (individual);
(2)
The name and phone number for the responsible party;
(3)
The phone numbers for the Borough of Sea Bright Police Department,
the Borough of Sea Bright Fire Department, the Borough of Sea Bright
Department of Code Enforcement and the Borough of Sea Bright Building
Department;
(4)
The maximum number of parking spaces available or site;
(5)
Trash and recycling pickup day, and all applicable rules and regulations
regarding trash disposal and recycling;
(6)
A copy of this Ordinance No. 10-2022;
(7)
Notification that a guest, transient occupant, the responsible party
or STRP owner may be cited or fined by the Borough of Sea Bright Police
Department, Code Enforcement, or the Borough of Sea Bright Building
Department, for violations of, and in accordance with any applicable
ordinance(s) of the Borough of Sea Bright.
F.
In the event any complaints are received by the Sea Bright Police
Department, Code Enforcement, or the Building Department regarding
the short-term rental and/or the transient occupants in the STRP,
and the owner of the STRP is unreachable or unresponsive, the responsible
party listed in the short-term rental permit application shall have
the responsibility to take any action required to properly resolve
such complaints, and shall be authorized by the STRP owner to do so.
G.
While a STRP is rented, the owner, 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 STRP premises, maintenance of the STRP premises, operation
of the STRP, or conduct of the guests at the STRP, or nuisance complaints
from the Sea Bright Police Department or neighbors, arising by virtue
of the short-term rental of the property.
H.
If the STRP is the subject of two or more civil and/or criminal complaints
which result in sustained violations of this chapter, other provisions
of the Borough Code or state law, the Borough Administrator or his
designee may revoke the short-term rental permit issued for the property,
in which case, the STRP may not be the subject of a new STRP permit
application for one year following the date of revocation of the permit.
I.
Failure to make application for, or to obtain the issuance of, a
short-term rental permit prior to advertising the STRP 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 STRP 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 STRP owner and the
responsible party to issuance of fines and/or penalties.
J.
The person offering a dwelling unit for short-term rental use must be the owner of the dwelling unit. A tenant of a property may not apply for a short-term rental permit, nor shall the property or any portion thereof be subleased by the tenant on a short-term basis, or operated as a STRP by the tenant. This STRP regulation shall supersede any conflicting provision in a private lease agreement permitting subleasing of the property, or any portion of the property. Violation of this Chapter 164 will result in enforcement action against the tenant, the STRP owner, and the responsible party, and will subject all such parties to the issuance of a summons and levying of fines and/or penalties.
K.
In the event that the Borough finds three occurrences where the number of vehicles belonging to the transient occupants of a STRP exceeds the number allowed pursuant to § 164-5A(6), the short-term rental permit for the property is subject to revocation by the Borough Administrator or his designee.
L.
The STRP owner must be current with all tax and sewer charges assessed
to the property prior to the issuance of a short-term rental permit.
In the event that any code violations have been issued by the Borough
relating to the STRP, a short-term rental permit shall not be issued
until such time as such violations have been properly abated. The
STRP owner must also close any open construction permits for the property
prior to the issuance of a short-term rental permit.
M.
All fines or penalties issued by the Municipal Court for the Borough
of Sea Bright for any past code violations relating to the STRP, including
penalties for failure to appear in Court, must be satisfied in full
prior to the issuance of a short-term rental permit.
A violation of any provision of this chapter may subject the
STRP owner, transient occupant(s), and the responsible party or their
agents to fines assessed by the Court. Penalties for noncompliances
with the requirements set forth in the ordinance shall be as follows:
A.
Pursuant to New Jersey Statutes 40:48F-1 et seq., all STRs which
are obtained through a transient space marketplace, and/or all STRs
which do not share any living or sleeping space with any other rental
unit, and are directly or indirectly owned or controlled by a person
offering for rent two or more other units during the calendar year,
are subject to a 3% short-term rental municipal tax (tax) on all charges
of rent. This tax shall not apply to STRs where no maid service, room
service, linen-changing service, or other common hotel services are
made available by the lessor, and the rental transaction is executed
by a real estate broker licensed by the New Jersey Real Estate Commission,
and where the keys to the property, whether a physical key, access
to a keyless locking mechanism, or other means of physical entrance
to the property, are provided to the lessee at the off-site location
of the licensed real estate broker.
B.
Any unpaid taxes under this section shall be subject to interest
at a rate of 5% per annum.
C.
The tax stated herein shall be paid by the lessees of the STR.
D.
No vendor of a transient space marketplace shall assume or absorb
the tax created in this section.
E.
No vendor of a transient space marketplace shall in any manner advertise
or hold out to any person or to public in general, in any manner,
directly or indirectly, that the tax will be assumed by the vendor,
that the tax will not be separately charged and stated to the customer,
or that the tax will be refunded to the customer.
F.
Each assumption or absorption by a vendor of the tax created in this
section shall be deemed a separate offense and each representation
or advertisement by a vendor for each day the representation or advertisement
continues to be deemed a separate offense.
G.
All violations in regard to the provisions of this section as to the tax shall be subject to the penalties stated in § 164-7.
H.
The tax created by this section shall be collected on behalf of the
Borough by the person collecting the rent from the STR customer.
I.
The individual required to collect the tax per Subsection H shall be personally liable for the tax imposed, collected or required to be collected hereunder.
J.
Notwithstanding any other provision, transient space marketplaces
are required to collect and pay the tax for transactions obtained
through the transient space marketplace in accordance with state statute.
