[Adopted 7-18-2022 by Ord. No. 1655-22]
A.
Purpose.
(1)
The Township Committee of the Township of Middle finds and declares
that the short-term rental of limited residential dwelling units within
the Township benefits the local community by affording owners of such
units the ability to garner additional income from their real property
(also referenced as "property") in order to diminish the financial
burden of carrying costs and maintenance expenses related to the property,
as well as providing travelers with an alternative option for accommodations
in the Township. Notwithstanding those benefits, the Township Committee
also finds and declares that certain transitory uses of residential
property tend to affect the residential character of the community
and, if unregulated, can be injurious to the health, safety, and welfare
of the community.
(2)
The intended purposes of this section are to a) balance the rights
of the owners of residential dwelling units proposed for short-term
rental use and the Township's business community affected by
the allowance and existence of short-term rentals; b) protect the
public health, safety and general welfare of individuals and the community
at large; c) provide for an organized and reasonable process for the
short-term rental of certain defined classifications of residential
dwelling units in the municipality; d) monitor and provide a reasonable
means for mitigation of impacts created by such transitory uses of
residential properties within the municipality of Middle; e) preserve
and protect the long-term housing market stock in the Township; f)
implement rationally based and reasonably tailored regulations to
protect the integrity of the Township's residential neighborhoods,
and g) ensure that the short-term rental property inventory in the
Township satisfies basic property maintenance standards, in order
to protect the safety of occupants and the citizens of the municipality.
(3)
The Middle Township Committee has therefore determined that it shall
be unlawful for any owner of any property within the geographic bounds
of the Township of Middle, New Jersey, to rent or operate a short-term
rental contrary to the procedures and regulations established in this
section, or applicable state statute.
(4)
Therefore, all residential housing units, dwelling units, rooms or
other spaces which are occupied on a transient rental basis shall
obtain a short-term rental license prior to the first occupancy of
the year for that unit.
B.
Authority.
(1)
In accordance with New Jersey law, a municipality may make and enforce
within its limits all ordinances and regulations not in conflict with
general laws, as it may deem necessary and proper for the good government,
order and protection of persons and property, and for the preservation
of the public health, safety and welfare of the municipality and it
inhabits. The Township of Middle herby adopts the within ordinance
in accordance with said authority.
C.
APPLICATION FEE
NUISANCE PROPERTY
OCCUPANCY LOAD
OWNER
PROFESSIONALLY MANAGED UNIT
PROPERTY
REAL ESTATE BROKER
(1)
(2)
(3)
(4)
RESPONSIBLE PARTY
SHORT-TERM RENTAL (also referenced as "STR")
SHORT-TERM RENTAL PROPERTY (also referenced as "STRP")
SHORT-TERM RENTAL PROPERTY AGENT
TRANSIENT OCCUPANT
TRANSIENT SPACE MARKETPLACE
Definitions. As used in this section, the following terms shall have
meanings indicated below:
The fee charged by the Township for the initial application
and renewal fee for the short-term rental license.
Any property that has been determined as violating the Middle
Township Code or this through excessive qualifying calls for services,
substantiated complaints, or for violations of the chapter.
The numbers of persons permitted in a short-term rental property,
based upon an inspection completed in compliance with the International
Property Maintenance Code, IPMC, and shall be capped at 16 occupants,
regardless of the number of bedrooms.
An individual or entity holding title to a property proposed
for short-term rental, by way of a legally recorded deed.
A professionally managed unit that is a room, group of rooms,
or other living or sleeping space for the lodging of occupants in
New Jersey, that is offered for rent as a rental unit that does not
share any living or sleeping space with any other rental unit, and
that is directly or indirectly owned or controlled by a person offering
three or more units for rent during the calendar year. An owner who
offers three or more units for rent in New Jersey and who directly
rents (such as through classified ads in newspapers or websites, personal
referrals, signage, etc.) continues to be required to collect sales
tax, the state occupancy fee, and other applicable taxes and fees
because the transient accommodation is a professionally managed unit.
A parcel of real proper located within the boundaries of
the Township of Middle, New Jersey.
Rentals transactions that are executed by a licensed New
Jersey real estate broker are not subject to any of the applicable
taxes and fees imposed on transient accommodations. "Executed by a
real estate broker" means that the real estate broker performs all
the services necessary to carry out the rental. For example, a real
estate broker advertises the rental listing, solicits renters, assists
in referrals, negotiates and executes rental agreements, collects
rent, etc. See N.J.S.A. 45:15-3. The rental is excluded from the definition
of "transient accommodation" and is not subject to sales tax, the
state occupancy fee, or any other occupancy tax, assessment, or fee
when the following four criteria are satisfied:
The rental is executed by a real estate broker licensed by the
New Jersey Real Estate Commission; and
The keys or other means of physical entrance to the property
are provided to the renter at the location of the offsite real estate
broker; and
The rental property is private residential property; and
No common hotel services such as maid service, room service,
or linen-changing service are provided.
Both the short-term rental property owner and a person (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 the
occupants of the short-term rental property, and, in the case of the
property manager, to accept services of legal process on behalf of
the owner of the short-term rental property.
The accessory use of a dwelling unit for occupancy by someone
other than the unit's owner or permanent resident for a period
of less than 90 consecutive days. The dwelling unit can be rented
to short-term renters throughout the licensed period (one year).
A residential dwelling unit as defined in the Code of the
municipality, that is used/or advertised for rent as a short-term
rental by transient occupants as guests, as those terms are defined
in this section.
Any New Jersey licensed real estate agent or other person
designated and charged by the owner of a short-term rental property,
with the STR application to the Township on behalf of the owner, and
fulfilling all of the obligations in connection with completion of
the short-term rental property license application process on behalf
of the owner. Such person shall be available for, and responsive to
contact on behalf of, the owner at all times.
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:
When a rental is "obtained through a transient space marketplace"
where the agreement for the rental is made through the marketplace
or travel agency and where payment for the accommodation is made through
a means provided by the marketplace or travel agency, regardless of
who receives the payment. Transient space marketplaces will continue
to collect sales tax, the state occupancy fee, and other applicable
taxes and fees imposed on a transient accommodation when the rental
is "obtained through a transient space marketplace."
D.
Process for application and license issuance.
(1)
Upon receipt of an application fee, a thorough review of documents
will occur to ensure the required documents are provided, current
and accurate. Additionally, a thorough physical inspection within
accordance with the International Property Maintenance Code (hereinafter,
"IPMC") will be conducted for the completed (and approved) the annual
license fee must be submitted. When payment is received, the short-term
rental license shall be issued.
E.
Regulations pertaining to short-term rentals.
(1)
It shall be unlawful for any owner of any property within the geographic
bounds of the Township of Middle, New Jersey, to rent or operate a
short-term rental contrary to the procedures and regulations established
in this section or applicable state statute.
(2)
Short-term rentals shall be permitted to be conducted in the following
classifications of property in the municipality of Middle Township:
(3)
Notwithstanding the provisions of Subsection E(2) above, short-term rentals shall not be permitted in boarding or rooming houses, dormitories, foster homes, adult family care homes, assisted living facilities, community residences for developmentally disabled persons, community shelters for victims of domestic violence, or nursing homes. Further, short-term rental of the following properties is prohibited:
(a)
Condominiums or townhomes, where the condominium association
by-laws or master deed, or condominium rules and regulations, do not
permit such short-term rental of condominium units in the development;
F.
Short-term rental license, application, and certificate of occupancy.
(1)
In addition to any land use requirement(s) set forth by the Township
of Middle Land Use Regulations, the owner/operator of a short-term
rental property shall obtain a short-term rental license from the
Township of Middle and register with each applicable Bureau of Fire
Prevention before renting or advertising for rent any short-term rental.
(2)
The failure to obtain a valid STR license prior to operating or 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.
(3)
No STR license issued under this section 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.
(4)
An owner of property intended to serve as a short-term rental property,
as defined herein, or any agent acting on behalf of the owner, shall
submit to the Township of Middle a short-term rental license application
provided by the Township of Middle, along with an application and
registration fee. Said fee shall be nonrefundable, including in the
event that the application is denied.
(5)
The short-term rental license, if granted shall be valid for the
year for which the applicant has applied, without proration.
(6)
A short-term rental license and any required rental certificate of
occupancy shall be renewed on an annual basis, by submitting a renewal
application to the Municipal Clerk's Office.
(7)
The short-term rental license shall expire automatically when the
short-term rental property changes ownership, and a new application
will be required in the event that the new owner intends to use the
property as a short-term rental property. A new application shall
also be required for any short-term rental that had its short-term
rental license revoked or suspended. Fees charged to the owner shall
not be prorated.
G.
Application process for short-term rental license and inspections.
(1)
Applicants for a short-term rental license shall submit, on an annual
basis, an application for a short-term rental license to the Township
of Middle. The application shall be furnished, under oath, on a form
specified by the Township, accompanied by the nonrefundable application
fee as set forth in subsection above. Such application shall include:
(a)
The name, address, telephone number and email address of the
owner(s) of record of the dwelling unit for which a license 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.
(b)
The address of the unit to be used as a short-term rental;
(c)
If the owner is an LLC, corporation or partnership, the following
information must be included: individual names of all members of the
LLC, principals of corporation or partners in partnership; and
(d)
A copy of the driver's license or state identification
card of the owner of the short-term rental property;
(e)
The name, address telephone number and email address of the
short-term rental property responsible party/agent, which shall constitute
his or her seven-day-a-week, twenty-four-hour-a-day contact information;
(f)
The owner's acknowledgement that he or she has received
a copy of this article, has reviewed it, understands its requirements
and certifies, under oath as to the accuracy of all information provided
in the license application.
(g)
The owner's acknowledgement that there is only one on-street
parking space available to the premises. No other parking will be
permitted, unless as designated by the Township. 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 property, in order to avoid a shortage of parking for residents
in surrounding neighborhoods; and
(h)
The owner's agreement shall state that all renters of the
short-term rental property will not be authorized to park vehicles
on street neighborhood, parking spaces;
(i)
The owner's agree 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 the neighboring
property owners to the quiet enjoyment of their properties; and
(j)
Any other information that this chapter requires a property
owner to provide to the Township in connection with an application
for rental certificate of occupancy. The construction official or
his designee shall have the authority to obtain additional information
from the STRP owner/applicant or amend the license application to
require additional information, as necessary, to achieve the objectives
of this chapter.
(k)
Every application for a short-term rental license shall require
annual inspections for the STRP's compliance with the Townships
fire safety regulations and 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 regulation
in this section.
(l)
For a condominium short-term rental license application, a letter
of approval by the condominium association must be submitted with
application.
(m)
Every owner must comply with the Township's Land Use Regulations
and Zoning Ordinance.
(n)
A sworn statement shall be required 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.
(o)
Attached to and concurrent with submission of the license application
described in this section, 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
$500,000 including coverage specific to short-term rental activity;
and
[3]
Written certificates from the short-term rental property agent
and responsible party that they agree to preform all of the respective
duties specified in this section.
(2)
There shall be no conditional licenses. Upon review of documents
according to the IPMC, the unit will receive either a pass or a fail
for license. If unit receives a "fail," the owner must make all necessary
improvements and call for a new inspection. Each additional inspection
will be a charge of $50 to the owner.
(3)
In no event shall a short-term rental property be rented to anyone
younger than 21 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 21, 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 21 who will share
occupy the property with them. Both the primary occupant executing
the short-term rental agreement and the property 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 21 during the term of the short-term rental;
(4)
The owner of the short-term rental must maintain three years of records
concerning rental occupancy, including the identity of all transient
occupants who have occupied the property, which shall consist of names,
ages, addresses and dates of occupancy, which shall be made available
upon request of the Township.
H.
Issuance of license and appeal procedure.
(1)
An application is submitted, complete with all required information
and documentation and fees, the Municipal Clerk's Office, following
any necessary investigation for compliance with this section, shall
either issue the short-term rental license, or issue a written denial
of the license application (with the reasons for such denial being
stated therein), with 10 business days.
(2)
If denied, the applicant shall have 10 business days to appeal in
writing to the Municipal Clerk.
(3)
Within 30 days thereafter, the Municipal Clerk or their designee
shall hear and decide the appeal.
I.
Short-term rental operational requirements.
(1)
All short-term rentals must comply with all applicable rules, regulations
and ordinances of the Township of Middle 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.
(2)
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.
(3)
Transient occupants of the STRP shall comply with all ordinances
of the Township of Middle, 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, the responsible party and the short-term rental agent listed
in the short-term rental license application, to the insurance of
fines and/or penalties, and the possibility of the revocation or suspension
of STRP license.
(4)
If a property been determined to be a nuisance property, as defined
in the Township Code, the Chief of Police may suspend the ability
of the owner to rent the property. The owner will have 10 business
days to appeal this determination in writing, by filing appeal with
the governing body. Within 30 days thereafter, the Chief of Police
or his designee shall hear and decide on the appeal.
(5)
The owner of a STRP shall post the following information in a prominent
location within the short-term rental:
(a)
Owner name; if an entity, the name of a principal in the entity,
and phone number for the owner (individual);
(b)
The names and phone numbers for the responsible party and the
short-term rental agent (as those terms are defined in this section);
(c)
The phone numbers for the Middle Township Police Department,
and the applicable fire department.
(d)
Copy of the short-term rental license/license.
(e)
Trash and recycling pick-up day(s) and all applicable rules
and regulations regarding trash disposal and recycling must be posted
in a prominent location. The number of trash receptacles required
for the STR unit will be based upon occupancy load of the property,
and this will be determined prior to issuance of the STR license/license.
Should the solid waste and recycle amounts be excessive (exceed normal
levels) the owner may be required to retain a private waste hauler;
if so a copy of the agreement will be required.
(f)
Notification that a guest, transient occupant, the short-term
rental property agent, the responsible party or owner may be cited
or fined by the Township of Middle's Police Department or the
Township Code Enforcement Department, and any applicable fire district
for violations of, and in accordance with any applicable ordinance(s)
of the Township of Middle;
(6)
In the event any complaints are received by the Middle Township Police
Department or any other governing department regarding the short-term
rental and/or the transient occupants in the STRP, and the owner of
the STRP is unreachable or unresponsive, both the responsible party
and the short-term rental agent listed in the short-term rental license
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.
(7)
While a STRP is rented, the owner, the short-term rental agent, or
the responsible party shall be available 24 hours per day, seven days
per week for the purpose of responding within one hour of 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 Middle Township Police Department
or neighbors, arising by virtue of the short-term rental of the property.
(8)
Failure to make application for, and to obtain the issuance of, a
short-term rental license prior to advertising the rental 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 Real Estate Commission, shall be equivalent
to operation of the rental without a license, and shall constitute
a violation of this code, and will result in enforcement action and
the issuance of a summons, and may subject the rental owner, the rental
agent, and the responsible party to issuance of fines and/or penalties.
(9)
The person offering a dwelling unit for short-term rental use must
be the owner of the dwelling unit. A tenant of the property may not
apply for a short-term rental license, 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 short-term rental regulation
shall supersede any conflicting provision in a private lease agreement
pertaining subleasing of property, or any portion of the property.
Violation of this section will result in enforcement action against
the tenant, the owner, the rental agent, and the responsible party,
and will subject all such parties to the issuance of a summons and
levying of fines and/or penalties.
(10)
The STRP owner must be current with all taxes assessed to the
property prior to the issuance of a short-term rental license. In
the event that any code violations have been issued by the Township
relating to the STRP, a short-term rental license shall not be issued
until such time as all violations are remedied.
(11)
All fines or penalties issued by the Municipal Court of Middle
Township 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 license.
(12)
Nothing in this article shall be read to prohibit or regulate
in any way room sharing within in a dwelling between related and otherwise
consenting parties.
J.
Tax established.
(1)
On and after August 9, 2019, rentals of transient accommodations
are no longer subject to the sales tax, the state occupancy fee, and
other applicable taxes and fees on occupancies, unless the rental
is either obtained through a transient space marketplace (Air BnB,
VRBO, Facebook Marketplace or similar online platform), which includes
a travel agency, or is considered to be a professionally managed unit,
as defined in the new law.
(2)
The Township of Middle shall impose a tax upon any short-term rental
of a qualified dwelling in the Township of Middle equal to 3% of the
total rental fee, excluding any deposit or tax.
(3)
The short term rental occupancy tax shall be subject to collection
by the listing agenda or online platform, if such property is listed
in that manner, or by the individual/operator in conjunction with
the submission of the occupancy tax collection report.
K.
Violations and penalties.
(1)
A violation of any provision of the within section may subject the
STRP owner, transient occupants(s), the short-term property rental
agent, and responsible party or their agents to fines assessed by
the court up to $1,250 per violation, per day that the violation exists.
These fines are in addition to violations of any other section of
applicable chapters on the Township Code of the Township of Middle.
