Thinking about listing your Readington home for weekend stays or a few weeks at a time? You’re smart to check the rules first because short‑term rentals can be limited by local zoning and taxes. In this guide, you’ll learn what is and is not allowed, which taxes apply, and the steps to get set up the right way. Let’s dive in.
Readington rules at a glance
Zoning limits six months or less
Several Readington residential districts restrict short‑term stays. The Land Development Ordinance states in certain zones, including SRR and RR, that “no dwellings on the subject property shall be rented for a time period of six months or less.” Review the code text for your zone to see if this applies to your property (Readington zoning code).
Local hotel tax at 3 percent
Readington imposes a 3 percent Hotel/Motel Occupancy Tax on taxable stays that began on or after January 1, 2024. This municipal tax is in addition to any New Jersey state taxes and fees (Chapter 135, Hotels and Other Rental Units).
Check your zoning first
How to verify your parcel
Your zoning district determines if short‑term stays are permitted. To confirm your parcel:
- Check the Township’s zoning resources and contact the Zoning Office for parcel‑specific guidance or a written determination (Readington Zoning Office).
- If your plan is not a typical permitted use, ask whether a zoning permit, variance, or Board of Adjustment review is required.
Licensing and inspections
When Chapter 135 applies
Readington’s Chapter 135 establishes licensing and inspection rules for hotels, motels, and certain residential rental properties with multiple units. If your property meets those definitions, you should expect to apply for a municipal license and pass inspections by Health, Fire, Building, and related departments. The ordinance also authorizes penalties for violations and license suspension for noncompliance.
New Jersey taxes on stays
Sales tax and occupancy fee
For most transient accommodations in New Jersey, two state charges apply to short stays:
- New Jersey Sales Tax of 6.625 percent, generally for stays under 90 consecutive days.
- State Occupancy Fee, generally 5 percent, with lower rates in a few cities. Review state guidance to confirm whether your rental is taxable and whether you must register before hosting (NJ Sales Tax and registration, State Occupancy Fee overview).
Will platforms collect for you
Many listing platforms say they collect and remit certain taxes in New Jersey, but you remain responsible for compliance. Confirm which taxes a platform will handle for your specific listing and keep records for your files (Airbnb tax collection guidance, NJ transient accommodations FAQ).
Insurance, HOA, and safety
Insurance to protect your home
Standard homeowners insurance may limit or exclude short‑term rental activity. Talk with your insurer about a short‑term rental endorsement or a landlord policy, and understand any platform protections and their limits (short‑term rental insurance overview).
HOA or lease restrictions
If you are in a condo, co‑op, HOA, or leased property, your governing documents or lease may restrict short‑term rentals. Review them and obtain any required approvals before listing (association rules background).
Safety basics guests expect
Even if a municipal STR license is not required for your home, plan for safety and operations:
- Working smoke and carbon‑monoxide detectors and a visible fire extinguisher.
- Clear exits, posted occupant limits, and house rules on parking and quiet hours.
- An on‑file local emergency contact who can respond quickly.
Step‑by‑step host checklist
- Determine your zoning. If your parcel is in a zone that bars rentals of six months or less, do not list short stays.
- Confirm whether Chapter 135 licensing applies. If yes, prepare your application and schedule inspections early.
- Map your taxes. Identify whether your stays are taxable, if a platform will collect for you, and whether you must register with New Jersey before hosting.
- Register if required. File NJ‑REG at least 15 business days before your first rental and set up your online account to file returns.
- Review insurance. Get proper coverage for liability and property.
- Check HOA or lease rules. Obtain written approval where needed.
- Finalize your guest operations plan. Set house rules, trash and parking plans, and an emergency response protocol.
Common risks and penalties
- Zoning violations. Hosting short stays in a prohibited zone can lead to notices to cease, fines, and enforcement actions.
- Licensing issues. Failure to meet Chapter 135 requirements can result in inspections, license suspension, or penalties.
- Tax exposure. Not registering or remitting required taxes can trigger audits, penalties, and interest under state law (state enforcement overview).
Need local guidance?
Short‑term rental rules in Readington are manageable when you plan ahead. If you want help reviewing zoning, mapping your costs, or exploring long‑term rental alternatives, reach out. You’ll get a balanced, practical plan tailored to your property. Connect with Gregory Brozowski to get started.
FAQs
Are short‑term rentals legal in Readington Township?
- It depends on your zoning district; several residential zones, including SRR and RR, prohibit renting a dwelling for six months or less, so confirm your parcel’s zoning in the township code and with the Zoning Office.
What local taxes apply to short‑term stays in Readington?
- Readington imposes a 3 percent municipal Hotel/Motel Occupancy Tax on taxable occupancies that began on or after January 1, 2024, in addition to any New Jersey state taxes and fees.
What New Jersey taxes might I owe as a host?
- New Jersey generally applies 6.625 percent Sales Tax and a State Occupancy Fee, typically 5 percent, to taxable transient accommodations, and you may need to register before hosting.
Do I need a Readington license for my Airbnb?
- If your property meets Chapter 135’s definitions for hotels, motels, or certain multi‑unit rentals, you must obtain a municipal license and pass inspections; single‑unit homes may not fall under that chapter, but zoning still controls whether short stays are allowed.
Will Airbnb or Vrbo handle my taxes for me?
- Platforms often collect and remit some taxes in New Jersey, but coverage can vary by listing and jurisdiction, so confirm what is collected on your behalf and keep documentation.
