Airbnb Management in Ocean City, NJ

Ocean City’s Short-Term Rental Rules

Ocean City, New Jersey requires a rental registration, a smoke and carbon monoxide certificate and liability insurance, and it charges a 3% city fee on Airbnb and Vrbo stays on top of New Jersey’s taxes. Rules you may find online for Ocean City, Maryland do not apply here.

• Rental registration (Mercantile License). Every residential and commercial rental property must hold a Mercantile License, also called a rental registration, from the Office of Licensing (115 East 12th Street). A seasonal short-term rental registration is $175 for one unit and $350 for two, per the city’s form. A yearly rental (a lease of 175 days or more) for one or two units has no fee but needs proof of yearly tenancy, and yearly rentals built before 1978 require a lead paint inspection. Ocean City Office of Licensing Rental registration form
• License period and penalties. The code sets the license year at June 1 to May 31 with fees due on or before June 1 and a $25 late fee, but the city’s current rental registration form cites a June 30 due date, so we confirm the date with the Office of Licensing. Violating the license section can bring a fine of up to $500 and up to 90 days in jail. Ocean City Code, Chapter 5
• Liability insurance. Under N.J.S.A. 40A:10A-1 and following, owners of rental units must carry at least $500,000 in liability insurance and register the certificate annually with the city, with the City of Ocean City listed as certificate holder or additional interest. Ocean City Office of Licensing
• Smoke, carbon monoxide and fire extinguisher certification. Required for all seasonal and yearly rentals in 1 and 2 family dwellings through the Division of Fire Prevention, and the code also covers individually owned condo units within a multifamily structure. The fee for smoke and CO, with one reinspection included, is $50 within 7 business days, $75 within 4 business days and $100 within 24 hours. Certificates for seasonal rental units run up to 12 months and aren’t transferable, and renting without one can bring a fine of up to $500. A portable fire extinguisher is required in yearly rentals and not in seasonal summer units. CO alarms are required where a unit has a fuel-burning appliance or an attached garage, and homes built May 1, 1993 or later need hardwired, interconnected smoke detectors with battery backup. Division of Fire Prevention Ocean City Code, Chapter 13
• Group rule (Sec. 4-21.3). No dwelling may be rented to a group of more than three people not related by blood or marriage unless the owner or agent registers the dwelling with the City Clerk within 24 hours after it is rented, names an adult member of the group who will be present each day or, if there is none, an owner or agent who will visit at least twice daily, and posts the registration in the unit. City Council can suspend or revoke the certificate. How the city applies this to ordinary guest groups isn’t spelled out, so we confirm with the city and walk you through how your home meets it on your Property Fit Call. Ocean City Code, Chapter 4
• Occupancy caps, minimum stays and zoning. We didn’t find a municipal per-bedroom occupancy cap, minimum-stay rule, night cap, license lottery or short-term-rental-specific zoning restriction in the code chapters we reviewed (3, 4, 5, 12, 13 and 30). Chapter 25 (zoning) wasn’t fully reviewed, so we confirm the current rules for your address before you list. Ocean City Code, Chapter 4
• Condos and associations. Rental minimums, caps and fees for a condo come from each association’s governing documents, so check yours before you list.
• Local lodging tax (3%). Ordinance 25-08, adopted July 17, 2025 (Code Sec. 3-4, Transient Accommodations Fee), sets a 3% occupancy tax on rent for transient accommodations obtained through a transient space marketplace (Airbnb and Vrbo type platforms). It is paid by the guest on top of other taxes and fees and collected for the city by the person collecting the rent. The state’s municipal occupancy tax list shows Ocean City at 3%, effective November 1, 2025. Ocean City Code, Chapter 3 NJ Division of Taxation
• State taxes. New Jersey’s 6.625% sales tax and 5% State Occupancy Fee apply to rentals booked through a transient space marketplace and to professionally managed units, and marketplaces collect and remit on their bookings. With the city’s 3%, a marketplace booking carries about 14.6% in taxes and fees. NJ Division of Taxation, TB-81R
• Direct bookings. A professionally managed unit (an owner or manager controlling three or more units in New Jersey) must register with the State (Form NJ-REG, at least 15 business days before starting) and collect sales tax and the State Occupancy Fee on direct rentals of under 90 consecutive days. Owners with one or two units renting directly aren’t subject. The ordinance text describes the 3% as applying to rent obtained through a transient space marketplace, and it doesn’t spell out how the city treats direct bookings, so we confirm with the city and the Division of Taxation. NJ Division of Taxation, TB-81R

We keep your paperwork current, provide clear monthly booking and tax reporting (with a recommendation to use Avalara for lodging tax registration and filing on direct bookings) and confirm each rule for your address before you list.

Rules change. Confirm current requirements with the Ocean City Office of Licensing before you rent.