Airbnb Management in Cape May & Lower Township, NJ

Cape May and Lower Township’s Short-Term Rental Rules

The City of Cape May and Lower Township run separate rental licensing regimes with different clerks, deadlines and fire inspections. Neither licensing code we read sets a minimum-night rule or a cap on the number of rental licenses. Whether short-term rental is a permitted use in every zoning district isn’t confirmed, so we confirm zoning for your address in writing before you list.

• City of Cape May: registration and license. A rental unit registration must be filed with the City Clerk before the unit is made available for rent, and that includes advertising on a transient space marketplace. Each unit needs its own registration and an annual rental license (license year May 1 to April 30). A license requires a completed application and fees, municipal taxes and water and sewer charges paid current, and a Fire Prevention Bureau inspection at the initial license and at each renewal. A decal goes on the main door or a window, and each day of occupancy without a license is a separate violation. Fees change by license year, and the code and the City’s form give slightly different due dates, so we confirm both with the City Clerk. City of Cape May Code, Chapter 310 Article IV City Clerk
• City of Cape May: agent rule. If an owner designates an agent or managing agent, that person must live in Cape May County. The ordinance doesn’t make a managing agent mandatory for every owner. Non-owner-occupied one- and two-unit rentals must also be registered with the Municipal Clerk under the Landlord Registration Act. City of Cape May Code, Chapter 310
• City of Cape May: fire inspection. Residential rentals are inspected once a year, and the owner schedules the visit. If tenants are in the unit, the owner or manager has to be present. Occupying, or advertising to occupy, an unregistered property carries a $1,000 penalty. Schedule through fireprevention@capemaycity.com or 609-884-9599. Fire Prevention Code 247-9 Fire Prevention Bureau
• City of Cape May: insurance, occupancy and seasonal rules. Owners of rental units other than owner-occupied buildings of four or fewer units must carry at least $500,000 in combined liability coverage and register the certificate with the license application. Kitchens, uninhabitable spaces and interior public areas can’t be used for sleeping, and renting or advertising an amenity of a dwelling on its own is prohibited. After three substantiated disorderly-conduct complaints in a year at a seasonal rental, the City may require a landlord bond of $500 to $5,000. Penalties run up to $1,000 for a violation and $1,000 to $2,000 for a repeat offense. City of Cape May Code, Chapter 310 Chapter 401
• City of Cape May: zoning and historic district. The zoning chapter lists residential districts, a Residential-Seasonal district and Historic Preservation Districts with a Historic Preservation Commission. The code doesn’t confirm whether short-term rental is permitted in each zone or how historic review affects exterior work, so we ask the zoning officer for your address. City of Cape May Zoning
• Lower Township: mercantile license. A mercantile license is required for rentals of under 175 consecutive days, due by March 15 each year. The short-term rental application asks for the property type, an occupancy limit, a certificate of insurance of at least $500,000, the platforms you advertise on and your contact information. If you live outside Cape May County, it requires a Cape May County resident who can be served with legal papers. Real estate taxes must be current. The Clerk’s Office is at 2600 Bayshore Road, Villas. Lower Township Code, Chapter 432 License application
• Lower Township: fire safety registration and inspection. Every rental gets one inspection per calendar year, and seasonal and vacation rentals must pass before the June 1 start of the rental season. Inspectors check items such as smoke detectors under 10 years old, carbon monoxide alarms, a mounted kitchen extinguisher, metal dryer vents and 4-inch contrasting house numbers. An unregistered rental carries a penalty of $500 to $2,000 per unit. The Bureau of Fire Safety is at 1389 Langley Road, Erma, 609-889-0404. Lower Township Code, Chapter 340 2026 fire safety sheet
• Lower Township: license suspension and lead paint. A rental license is suspended automatically for one year after two convictions within 12 months of tenants or guests for disorderly conduct, or of the licensee for property-condition violations. The township’s lead-based paint program exempts single-family and two-family seasonal rentals rented under six months a year to tenants without consecutive lease renewals, and homes built in 1978 or later. How that applies to a platform-booked rental isn’t confirmed, so we ask the township. Lower Township Code, Chapter 523
• State landlord registration. For single-unit and non-owner-occupied two-unit dwellings, if any record owner’s address is outside the county, the registration must name a person who lives in that county and is authorized to accept notices and service of process for the owner. NJ DCA landlord registration form
• Taxes. Bookings through a marketplace such as Airbnb or Vrbo, and bookings at professionally managed units (an owner who offers three or more units for rent in New Jersey), carry New Jersey’s 6.625% sales tax and 5% State Occupancy Fee. The City of Cape May (effective January 1, 2022) and Lower Township (effective February 1, 2023) each add a 3% municipal occupancy tax, about 14.6% combined. Rentals of 90 or more consecutive days are exempt, and Cape May County’s tourism taxes apply to short-term rentals only in Wildwood, Wildwood Crest and North Wildwood. Marketplaces collect and remit on bookings made through them. For bookings outside a marketplace, who collects depends on whether the home is a professionally managed unit. NJ Division of Taxation, TB-81R Municipal occupancy tax list

We keep the license and inspection calendar on schedule, walk you through the local agent requirement on your Property Fit Call and provide clear monthly booking and tax reporting. West Cape May and Cape May Point are separate boroughs with their own rules, and condo and HOA documents control individually, so check yours first.

Rules change. Confirm current requirements with the City of Cape May Clerk and the Lower Township Clerk’s Office before you rent.