Ocean City Council Passes Safety Measures Aimed At Short-Term Rentals

OCEAN CITY, NJ — Ocean City has taken the first step to combat a growing trend officials call a safety concern in the tourism industry. “Short term rentals” is a term used for owners rent out parts of their property online. As a result, they are not subject to the same regulations regular renters and the hotel industry must adhere to, causing concerns about possible unsafe living conditions renters may be exposed to both locally and nationally.

On Thursday night, June 22, Ocean City Council unanimously approved a proposed resolution on second reading that calls for homeowners who are looking to rent out even part of their property to have a mercantile license. It’s an amendment to an existing ordinance that covers residents looking to rent out their entire property.

Homes will also be required to have a smoke detector/carbon monoxide detector inspection. The fee for the license is $30, plus a $145 Ocean City Tourism Commission fee.

Ocean City Hospitality Association Secretary Karen Morella spoke out in support of the proposal Thursday night.

“We’re grateful that you listened to our concerns and acted on them,” Morella told council prior to the vote.
When the proposal was introduced on June 8, city officials said they can’t prevent the renting out of partial units at the municipal level. That would be left up to the state. The city also can’t put a cap on the number of people that a renter can rent out to, but a hotel can.

Typically, a property owner must be renting out four units or more before they need certification from the state. Anything less allows property owners to sidestep regulations the hotel and motel industry are subjected to.

Three days before the vote, on June 19, the New Jersey State Senate passed a bill that calls for short-term rentals to be taxed the same way hotels are, according to nj.com. The bill has already been passed by the State Assembly, and now heads to Gov. Chris Christie’s desk. It is unclear if the governor will sign it.

The bill, sponsored by Annette Quijano (D-20), proposes allowing municipalities to apply state sales-and-use tax and the hotel and motel occupancy fee to these rental sites. Airbnb would collect the taxes and remit them to the state, and supports this proposal, according to philly.com.

A related Assembly bill calling for the total ban on short-term rentals has yet to be voted on.

Patch file photo