The vacation rental market in the United States is a booming industry, especially as more small businesses enter the market. Currently, over 70% of vacation rental companies are small businesses. The market is expected to continue growing in the upcoming years.
If you've decided to join the market, then it's important to know the legal considerations for vacation rentals. It's not as simple as letting someone pay to stay on your property.
Here are some NJ rental owner guidelines you'll need to follow.
Avalon Vacation Rental Regulations
The first thing you should do is look into specific local regulations regarding short-term and vacation rentals. Legal requirements for rentals will often change from place to place, and zoning laws will also have an effect.
For example, Avalon's zoning laws determine where you can have short-term rentals. Some areas restrict residential areas to only family homes and long-term residents. Other neighborhoods can have HOAs that impose additional restrictions.
New Jersey Rental Property Laws
New Jersey state law is another factor to consider. There are various requirements for property owners if they plan on renting out their property.
Some of these landlord responsibilities include:
- Rental registration
- Maintaining a safe and habitable rental property
- Abiding by the lease's terms
- Communicating with renters and addressing any concerns
- Paying relevant taxes and fees
What a landlord cannot do is increase rent without notice, take security deposits without just cause, or enter the premises without notifying the tenants in advance.
Insurance Requirements
Some cities require insurance coverage before you can do short-term rentals.
Standard homeowners' insurance policies often won't cover short-term rental activities. In that case, property owners will need to purchase additional coverage through a vacation rental insurance policy.
Some insurance plans to consider include host damage protection, liability insurance, and insurance for loss of rental income. Any of these plans can help if a guest decides to make claims or file suit against you.
Vacation Rental Compliance Tips
Make sure to keep up to date with NJ rental owner guidelines. Ensure that your property is registered with Avalon and that you have all the necessary permits.
Create a clear rental agreement that takes into account different lengths of stay and outlines tenant responsibilities. You'll also want to use language that addresses local ordinances, like noise restrictions.
Perform regular property inspections. Deep clean the rental whenever a tenant leaves. Focus on high-touch areas, including the bathroom, and maintain outdoor spaces.
Try to enforce guest rules as much as possible. Any violations made by guests can leave the property owner responsible.
Don't Forget the Legal Considerations for Vacation Rentals
There are a lot of legal considerations for vacation rentals to keep in mind. Ignoring these requirements and regulations can easily land you in legal hot water. You may also end up paying excessive fines as a result.
PMI Saltwater provides property management services for Avalon, Stone Harbor, and the South Jersey Shore. We can make sure your vacation homes reach the tourists you desire. Contact us for your free consultation and to learn more about our services.
