Short-term rentals in Cape May, explained properly.

Sec. 310-30(C) requires the registration before the unit is made available for rent, and a separate registration for each unit. The owner is responsible for the accuracy of the registration, which lists the property address, property classification, block and lot, the owner of record, the owner's agent or managing agent if applicable, and the rental agent if applicable. Available for rent or lease is defined in Sec. 310-29 as any action by the owner of record to advertise, solicit or contract to market a rental unit, by any means.

Sec. 310-35(C) makes the scheduled inspection a condition of the rental license, and says all licenses are conditioned on continuing compliance with the Uniform Fire Safety Act and Chapter 247 of the City Code. Sec. 310-32(A) says each rental property must be licensed and inspected, at least annually. Sec. 310-45(A) makes a license holder's permission to lease or rent subject to conformance with the Uniform Fire Safety Act and Chapter 247. We haven't reviewed Chapter 247, so its inspection standards and fees are not shown.

Sec. 310-35(B) sets this condition for the applicant or the applicant's agent. Sec. 310-35(A) also requires a completed City application form with any required attachments and payment of the applicable fees.

Sec. 310-46 states that, for the avoidance of doubt, it prohibits property owners from renting amenities such as swimming pools independent of the principal structure, and from advertising pool rentals in print or online.

Sec. 310-32(B) sets these registration paths under the Landlord Registration Act, N.J.S.A. 46:8-27 to 46:8-37, in addition to the City license (Sec. 310-30(D)). Under Sec. 310-32(C) the City rental license application collects the information the Landlord Registration Act requires, and the filing is indexed for public inspection, but this does not relieve the owner of other duties under that Act.

Sec. 310-29 defines seasonal rental/short-term rental this way, and Sec. 310-31(C) cites N.J.S.A. 40:52-1(n), which authorizes 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. The City's rental license requirement in Sec. 310-33 applies to all rental properties and rental units, not only to rentals of that length.

Sec. 310-29 defines the agent or managing agent as the individual or individuals designated by the owner to perform any duty the chapter imposes on the owner, and says the individual must reside in Cape May County, New Jersey, as set forth in N.J.S.A. 46:8-28(c). The registration lists the owner's agent or managing agent, if applicable (Sec. 310-30(C)(3)). A rental agent who negotiates the lease is not the managing agent unless the rental agent expressly consents to assume those duties.

Sec. 310-40 requires the decal to be permanently affixed to the main door through which access is gained to the rental unit, or in a window in the rental unit, visible from the exterior of the premises.

Sec. 310-33(C), amended 7-19-2022 by Ord. No. 472-2022, applies the residential rental licensing fees in Sec. 316-10A(23) to properties covered by the article. The late fee is paid at registration in addition to all other fees. We haven't reviewed Sec. 316-10A(23) or its fee schedule, so the base fee amount is not shown.

Sec. 310-30(E), added 10-4-2022 by Ord. No. 477-2022 under P.L. 2022, c. 92, sets minimums for combined property damage and bodily injury coverage in any one accident or occurrence. One property with multiple units may register one certificate of insurance that meets the applicable minimum. Failure to comply with the registration requirement carries a minimum penalty of $500.

Sec. 310-45(B) sets this limit as a condition of a licensed owner's permission to lease or rent the unit. The same section requires conformance with the Uniform Fire Safety Act and Chapter 247 of the City Code. We haven't reviewed Chapter 247 or the zoning code for guest or occupancy limits.

Sec. 310-48 sets these penalties for anyone violating the article. The City Code section on enforcement (Sec. 310-47) names the Police Chief or designee, the Construction Code Official, the Fire Official, the Licensing Clerk, the Code Enforcement Official, the Zoning Official, any employee designated by City Council and the Cape May County Department of Health as enforcers.

Sec. 310-41 makes the landlord responsible for each day of occupancy as a separate and distinct violation, subject to the fines in Sec. 310-48.

The Division of Taxation page on hotel and motel occupancies says New Jersey imposes sales tax on hotel and motel occupancies at a current rate of 6.625% (page last updated 04/07/26, no effective date shown). The Division's Tax Topic Bulletin S&U-13 (rev. 3/23) says it does not address transient accommodations and points to a separate bulletin on them, which was not read for this layer. The Department of Community Affairs' Local Finance Notice 2026-09 (April 7, 2026) says P.L. 2018, c. 49 and P.L. 2019, c. 235 amended the hotel and motel occupancy fee law to implement sales tax and the State Occupancy Fee on a transient accommodation obtained through a transient space marketplace, or one that is a professionally managed unit. The notice defines a professionally managed unit as a unit that is directly or indirectly owned or controlled by a person offering for rent two or more other units during the calendar year. Because the rate for transient accommodations is not stated on a page that addresses them, this is marked for review. Booking-platform collection is covered in a separate row.

The Division of Taxation's State Occupancy Fee page says the fee is 5% of charges for the rental of hotel and motel rooms that are subject to sales tax, in addition to sales tax and any municipal occupancy tax, and is imposed at a lower rate in cities where hotel and motel occupancies are already subject to a local tax: 1% in Atlantic City, Elizabeth, Newark and Jersey City, and 3.15% in the three Wildwoods. The fee is imposed directly on the occupant and must be shown on the bill as "New Jersey State Occupancy Fee". It is not imposed on an occupancy of at least 90 consecutive days (the permanent resident exemption), on assembly space, or on qualifying government occupants. Bulletin S&U-13 (rev. 3/23) gives the same rates for hotels. The Department of Community Affairs' Local Finance Notice 2026-09 says the State Occupancy Fee applies to transient accommodations obtained through a transient space marketplace or that are professionally managed units; the fee page and bulletin read here describe hotel and motel rooms, so how the rates apply to a short-term rental is marked for review. The fee page was last updated 09/22/25 and shows no effective date for its rates.

The Department of Community Affairs' Local Finance Notice 2026-09 (April 7, 2026) says municipalities that allow short-term rental of transient accommodations are authorized to impose a municipal occupancy tax not to exceed 3% on those transactions, except Newark, Elizabeth, Jersey City, Paterson, Atlantic City, Wildwood, Wildwood Crest and North Wildwood, which are authorized to apply separate hotel or tourism-related statutory taxes to transient accommodation rentals. The notice says the municipal tax applies only to transient accommodations obtained through a transient space marketplace or that are professionally managed units, and that leases of real property with a term of at least 90 consecutive days are not transient accommodations. A new or amended ordinance must be transmitted to the Division of Taxation and does not take effect until 90 days after it is transmitted. The tax must be collected by the person collecting rent from the customer. Tax Topic Bulletin S&U-13 gives the same 3% ceiling and the same list of excluded cities for hotel occupancies. Each municipality's own tax is on its page.

Local Finance Notice 2026-09 (April 7, 2026) of the Department of Community Affairs, Division of Local Government Services, says rental of short-term transient accommodations is largely subject to municipal ordinance and quotes N.J.S.A. 40:52-1(n) as authorizing municipalities to issue licenses for rental of real property "for a term less than 175 consecutive days for residential purposes by a person having a permanent place of residence elsewhere". License amounts are to be adopted by the governing body as part of the municipal fee ordinance. The notice adds that many municipalities have adopted ordinances authorizing and regulating short-term rentals through online marketplaces such as Airbnb and VRBO. The statute itself was not read; its wording is taken from the notice. Each municipality's own rules are on its page.