The purpose of this article is to establish reasonable regulations and restrictions concerning the letting of real property in Princeton as short-term rentals in a manner that enables property owners and long-term lessees to appropriately utilize real property for short-term rental in Princeton while protecting the health, safety and welfare of occupants of short-term rentals, Princeton's residents and the community at large.
[Added 12-8-2025 by Ord. No. 2025-20]
For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:
Means "accessory dwelling unit" as defined in § B17A-201 of this Code.
Means "dwelling, attached" as defined in § B17A-201 of this Code.
Means "dwelling unit" as defined in § B17A-201 of this Code.
Means a tenant of real property subject to a tenancy of at least six months who is authorized by the owner to sublet that real property for purposes of a short-term rental under this article.
Means "dwelling, multiple" as defined in § B17A-201 of this Code.
Means "dwelling, one-family" as defined in § B17A-201 of this Code.
Means the record owner of real property proposed for use as a short-term rental.
A person designated in writing by the owner to act on the owner's behalf under this article.
Means an owner or long-term lessee who has been issued a permit for a short-term rental under the provisions of this article. "Permittee" shall also mean the owner's representative when granted a permit that complies with § B16-88(c).
Means the address: (1) where at least one of the owners (or long-term lessees), as defined herein, spends the majority of their non-working time; (2) which is the center of the owner's or long-term lessee's domestic life; and (3) which is identified on the owner's or long-term lessee's driver's license, voter registration card or state identification card as said owner's or lessee's legal address. All the above requirements must be met in order for an address to be considered a principal residence for purposes of this article.
Means a lease of a dwelling unit, or portion thereof, with a term of less than 30 days.
Means "transient accommodation" as defined in N.J.S.A. 54:32-2(ggg).
Means "dwelling, two-family" as defined in § B17A-201 of this Code.
(a)
It shall be unlawful for any person to advertise for rent, rent to another person or operate a short-term rental of real property located in Princeton unless in compliance with the provisions of this article.
(c)
Except as provided in § B16-88, prior to advertising for rent, renting to another person or operating a short-term rental of real property in Princeton, the owner or long-term lessee shall apply for and obtain a permit from the Princeton Rental Housing Inspections Office in accordance with §§ B16-81 and B16-82 below and comply with all other requirements and conditions required in this article.
(d)
Nothing in this article shall exempt any person from compliance with any and all other laws, regulations and ordinances that may apply to the advertising for rent, rental or use of any real property within Princeton, including but not limited to provisions regulating housing, parking, zoning, land use and noise.
(e)
The requirements of this article shall apply regardless of (1) whether the real property is successfully rented as a short-term rental and (2) the frequency of occupancy of a property as a short-term rental.
(f)
The following shall be exempt from the permit and other requirements of this article: 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)
A short-term rental shall be permitted in a dwelling unit within Princeton if the dwelling unit is the owner's or long-term lessee's principal residence, subject to the following limitations:
(1)
If the dwelling unit is a one-family or attached dwelling unit, then the dwelling unit may be used as a short-term rental if it is the owner's or long-term lessee's principal residence;
(2)
If the dwelling unit is part of a two-family dwelling, then up to two dwelling units may be used as short-term rentals if at least one of the dwelling units is the owner's or long-term lessee's principal residence;
(3)
If the dwelling unit is part of a multiple dwelling, then up to two dwelling units may be used as short-term rentals if at least one dwelling unit is the owner's or long-term lessee's principal residence; and
(4)
If the dwelling unit is an accessory dwelling unit, then the accessory dwelling may be used as a short-term rental when the principal, one-family dwelling is the owner's or long-term lessee's principal residence.
(b)
A short-term rental shall also be permitted in a dwelling unit that does not otherwise comply with the specific requirements of § B16-80(a)(1) through (4) above when in strict compliance with the provisions of § B16-88(c) below.
(a)
Except as provided in § B16-88, the owner or long-term lessee of a short-term rental shall obtain a permit from the Princeton Rental Housing Inspections Office before advertising for rent, renting to another person or operating any short-term rental. A separate short-term rental permit shall be required for each short-term rental unit even if multiple short-term rental units (i.e., a two-family or multiple dwelling) have common ownership.
(b)
The applicant shall apply for the permit by filing an application on forms provided by the Rental Housing Inspections Office.
(c)
The application for a short-term rental permit shall, at a minimum, include the following information to be deemed complete:
(1)
The name, address, cell phone number and email address of the owner of the real property for which the short-term rental permit is requested. If the owner is not an individual, then the application shall include the names of all parties, officers and/or directors of the entity and contact information for each of them;
(2)
The name, address, cell phone number and email address of the person requesting the permit, if the person making the application is a long-term lessee. The application shall include written authorization from the owner that the long-term lessee is authorized to file the application and utilize the property as a short-term rental;
(3)
The location and description of the real property for which the short-term rental permit is sought, including:
a.
Street address and tax map reference (lot and block);
b.
Details regarding the areas to be rented or used by occupants (including bedrooms, kitchen, bathroom facilities), and a floor plan with room measurements; and
c.
Details regarding available parking for the short-term rental, including the number and location of off-street and on-street parking spaces for use by the short-term rental occupants;
(4)
The type of real property and verification that the real property qualifies for short-term rental, as authorized in § B16-80 above, and as follows:
a.
Proof that the owner's or long-term lessee's principal residence is the proposed short-term rental unit as required by § B16-80(a), including the following documentation:
1.
A copy of the owner's or long-term lessee's New Jersey driver's license or New Jersey non-driver identification card;
2.
A copy of the front page of the owner's or long-term lessee's Federal 1040 tax return where the tax identification number and financial information has been redacted (past immediate two years for initial permit applications; the immediate past year for renewals); and
3.
A copy of the owner's or long-term lessee's bank statement with account numbers and financial information redacted from the past three months, showing the owner's or long-term lessee's address;
(5)
The applicant's agreement to use best efforts to ensure that use of the property as a short-term rental will comply with the provisions of this article and other Princeton ordinances regulating land use, zoning, parking and noise, and acknowledgment that the failure to comply with the provisions of this article and other Princeton ordinances regulating land use, zoning, parking and noise may result in revocation of a short-term rental permit under § B16-86;
(6)
The applicant's acknowledgment that the applicant has received a copy of this article and agrees to be bound by it;
(7)
The applicant's verification that:
a.
There are no open construction permits for the property at which the short-term rental is located;
b.
There are no delinquent or overdue taxes, sewer charges or other outstanding municipal fees for the property at which the short-term rental is located; and
c.
There are no open housing, noise, code enforcement, zoning, solid waste, recycling or other municipal violations in connection with the property at which the short-term rental is located;
(8)
The name, address, telephone number and email address of the person who shall be responsible for communications with the Rental Housing Inspections Office concerning the short-term rental. The person shall be the owner, owner's representative or long-term lessee (as those terms are defined above), and shall be available seven days a week, 24 hours a day during short-term rentals;
(9)
Proof of sufficient liability insurance for each short-term rental unit that is subject to the short-term rental, which shall be in a minimum amount of $500,000 for property damage and personal injury;
(10)
Application fee in the amount of $200 per short-term rental unit, which shall be nonrefundable;
(11)
A copy of the eight-and-one-half-inch by eleven-inch placard to be placed on the inside surface of the front door of the short-term rental unit as required by this article; and
(12)
Any other information reasonably required to ensure compliance with this article.
(a)
Upon the filing of a complete application, which shall also include the payment of the application fee to Princeton, the Rental Housing Inspections Office shall review each application for short-term rental and complete an on-site inspection of each proposed unit to ensure compliance with this article, pursuant to the authority vested under § B16-4 of this Code.
(b)
The Rental Housing Inspections Office shall either issue the short-term rental permit or issue a written denial of the permit (with the reasons for such denial being stated therein). The Rental Housing Inspections Office shall also be authorized to provide an applicant with an opportunity to cure a minor deficiency in the application in lieu of a denial. As used here, a "minor deficiency" shall mean an immaterial omission or other condition that does not substantially impact health or safety, and can be easily corrected.
(c)
If the Rental Housing Inspections Office determines that the application for short-term rental complies with the requirements of this article, then the Rental Housing Inspections Office shall issue a permit. If granted:
(1)
The permit shall only be issued to the owner, long-term lessee or owner's representative when authorized by this article;
(2)
The permit shall be valid for a period of one year from date of issuance;
(3)
The permit shall be assigned an identifying number. The permittee shall publish the identifying number of the short-term rental permit in every print, digital or internet advertisement and any real estate agency listing or multiple listing service (MLS) advertising the property for permitted short-term rental;
(4)
The permit shall not be transferrable or assignable to any person or entity or for use at any other property location or unit other than the unit for which it is issued;
(5)
A short-term rental permit shall automatically terminate upon revocation of a permit, a change of ownership of the short-term rental property or change in long-term tenancy of the short-term rental property. If the unit is thereafter to be used again as a short-term rental property, then a new application and permit shall be required and shall be subject to the same procedures, requirements and fees as required in the initial application process; and
(6)
Except as provided in § B16-88, the failure to obtain a valid short-term rental 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 realtor's property listing, shall be a violation of this article.
(d)
The failure to submit all required information or comply with the application requirements shall result in a denial of a permit. If denied, the applicant may appeal the denial in writing by filing an appeal with the Rental Housing Inspections Office within 10 business days of the date of the denial. The Health Officer shall hear and decide the appeal within 30 days of receipt of the written appeal. The Health Officer's decision shall be final.
(a)
If the permittee seeks to renew a short-term rental permit, then the permittee shall submit an application for renewal on forms provided by the Rental Housing Inspections Office with a $100 renewal fee at least 30 days prior to the expiration of the initial permit.
(b)
The permittee shall be required to complete a self-inspection of the unit in accordance with a checklist maintained and provided by the Rental Housing Inspections Office. The Rental Housing Inspections Office shall be authorized to complete an on-site inspection as may be necessary as part of its review of a renewal application.
(c)
The permittee shall not be eligible for renewal of a short-term rental permit if the permittee has had any convictions of violating any Princeton ordinance regulating housing, occupancy tax, zoning, land use, parking, noise, solid waste or recycling in connection with the property that is the subject of the short-term rental during the immediately preceding one-year period.
Permittees shall be responsible to pay a tax of 3% of charges of rent for every occupancy of a short-term rental unit when the unit also qualifies as a "transient accommodation" in accordance with the provisions of Chapter B15A of this Code. Such tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy of the short-term rental, including but not limited to sale and use taxes.
(a)
All short-term rentals must comply with all applicable rules, regulations and ordinances of Princeton, including but not limited to the provisions of this chapter, and all applicable rules, regulations and statutes of the State of New Jersey, including regulations governing such lodging uses, as applicable. The permittee 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. Failure to comply shall be grounds for revocation of the short-term rental permit.
(b)
Permittees shall (1) maintain a ledger for all permitted short-term rentals, recording for each such rental the name(s) and address(es) of all occupants and the dates and duration of the rental; and (2) retain the ledger and copies of all related rental agreements for at least two years. These documents shall be subject to inspection by the Rental Housing Inspections Office upon reasonable request.
(d)
The permittee shall not install or permit the installation of any advertising or identifying mechanisms, such as signage, including lawn signage, on the exterior of the property (or which is visible from the public right-of-way) identifying the property for rent as a short-term rental property.
(e)
In the event any complaint is received by the Municipal Clerk, Police Department or other agency having jurisdiction concerning the use or occupancy of the short-term rental property or alleging a violation of applicable laws and regulations by the occupants, the owner, owner's representative or long-term lessee shall be responsible for taking action required to resolve the complaint. The response to all complaints shall be coordinated through the Municipal Clerk.
(f)
Whenever the short-term rental is occupied by renters, the owner, owner's representative or long-term lessee shall be available 24 hours per day and seven days per week for the purpose of responding to complaints regarding the condition, maintenance or operation of the property, the conduct of occupants or the presence of a nuisance. The required response time shall be two hours or less. The failure of the owner, owner's representative or long-term lessee to respond within this time shall constitute a violation of this article.
(g)
The permittee shall prominently post on the interior of the front door of the unit and keep current an eight-and-one-half-inch by eleven-inch placard providing the following information:
(1)
Name and phone number of the person who holds the permit for the short-term rental;
(2)
Name and phone number of the owner's representative (if different from the owner);
(3)
Phone numbers for the Police Department and Municipal Clerk;
(4)
Maximum number of permitted occupants;
(5)
Trash and recycling pickup day and all applicable rules and regulations regarding trash disposal and recycling;
(6)
Rules concerning parking; and
(7)
Notification that an occupant, as well as the permittee and/or owner's representative, shall be subject to prosecution for violations of Princeton ordinances and applicable laws.
(a)
A permit may be revoked by the Rental Housing Inspections Office for any of the following causes:
(1)
Fraud, misrepresentation or false statements contained in the application for permit;
(2)
Fraud, misrepresentation or false statement made in the course of carrying out activities pursuant to the permit; or
(3)
Conviction of violating any provision of this article or another Princeton ordinance relating to the short-term rental property.
(b)
Notice of revocation shall be provided to the permittee in writing, setting forth the grounds for revocation, notifying the permittee of a right to a hearing prior to the revocation taking effect and applicable time periods for challenging the revocation. The notice shall be served personally upon the permittee or sent via certified mail to the permittee's address.
(c)
The permittee shall have the right to a hearing before the Health Officer. The hearing shall take place within 30 days of the original notice, and the hearing officer's decision shall be final. If the permittee does not participate in a hearing, then the revocation shall take effect as indicated in the notice from the Rental Housing Inspections Office and shall be in effect for one year from its commencement.
(a)
The provisions of this article shall be subject to enforcement by the Princeton Police Department, Zoning Officer, Health Officer, Construction Official, Fire Official and Rental Housing Inspector.
(b)
Any person violating any provision of this article shall, upon notice, immediately cease and desist the conduct or condition which is the reason for the violation.
(c)
Violations of this article shall be subject to fines and penalties including a fine up to $1,250, imprisonment for any term not exceeding 90 days, and/or a period of community service not exceeding 90 days. Each day the violation has continued shall constitute a separate violation.
(d)
The fines and/or penalties for violation of this article shall be in addition to any and all remedies available under this article, applicable laws and other Princeton ordinances.
(a)
A dwelling unit that is in use as a short-term rental as of the effective date of this article may continue to be used as a short-term rental without interruption only when in compliance with either subsection (b) or (c) of this section. As used in this section, a dwelling unit or accessory dwelling unit is in "use" as a short-term rental if, during the 180 days immediately preceding the effective date of this article, the unit has been (1) on at least one occasion rented as a short-term rental to a third party and/or (2) actively advertised for rental as a short-term rental for at least 30 consecutive days.
(b)
If the dwelling unit is the owner's or long-term lessee's principal residence in accordance with the provisions of § B16-80(a), then the owner or long-term lessee may continue to use the dwelling unit as a short-term rental as long as the owner or long-term lessee applies for a permit within 30 days of the effective date of this article in accordance with the provisions of § B16-81 and complies with all other provisions of this article. In the event the Rental Housing Inspection Office denies the permit, the owner or short-term lessee's right to continue to use the short-term rental unit shall immediately terminate. The applicant shall retain the right of appeal set forth in § B16-82(d).
(c)
A dwelling unit that is in use as a short-term rental that is not the principal residence of the owner or long-term lessee in accordance with the provisions of § B16-80(a) may continue to be used as a short-term rental following the effective date of this article for a period of 36 months therefrom when in strict compliance with this § B16-88(c).
(1)
Only the owner, long-term lessee or owner's representative may apply for a permit under this subsection.
(2)
The applicant shall apply within 30 days of the effective date of this article in accordance with the provisions of § B16-81, except that if the owner's representative is the applicant, then the application shall include written authorization from the owner that said representative is authorized to file the application.
(3)
The applicant shall provide documentation demonstrating that the dwelling unit is "in use" as a short-term rental as of the effective date of this article.
(4)
In the event the Rental Housing Inspection Office denies the permit, the ability to continue to use the short-term rental unit shall immediately terminate. The applicant shall retain the right of appeal set forth in § B16-82(d).
(5)
The owner, long-term lessee or owner's representative shall comply with all other provisions and requirements of this article for the duration of use of the dwelling unit as a short-term rental.