Wildwood Crest Short-Term Rental Regulations

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Permit & Licensing

Mercantile License for Property Rentals (charged per sleep room), required under Borough Code Chapter 40 (Mercantile Licenses) together with the rental license/registration required by Chapter 56A (Rental Properties); applies to single-family homes, condos, apartments and individually-owned hotel/motel-structure units alike

This permit type does not require primary residence.

Application Process

Owner submits the Mercantile Residential Rental License Application (or non-rental certification, if not renting) to the Borough Clerk with property/block-lot details, number of sleep rooms, and (for new applications or a change of use) a floor plan sketch and Certificate of Zoning Use Compliance. The property must be registered and inspected by the Fire Prevention Bureau annually. All municipal taxes, water/sewer charges and other municipal assessments must be current. Fees (mercantile license, plus the separate annual Greater Wildwoods Tourism Development Fee) are invoiced by the Mercantile Office; license runs May 1-April 30 and must be paid before June 1 to avoid a late fee.

Tax Obligations

Combined rate: 15.475% of gross rental income.

Collection: When booked through a transient space marketplace (e.g. Airbnb, VRBO), the marketplace itself is required to collect and remit the applicable Sales Tax, State Occupancy Fee, and local tourism tax/assessment on behalf of the host; otherwise the person collecting the rent is responsible for collection and remittance.

Rental Limits

Wildwood Crest does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Maximum occupancy is computed from usable floor area: each sleeping room for one occupant needs a minimum 70 sq ft (50 sq ft per additional occupant in that room); overall, a non-transient rental unit needs a minimum 150 sq ft for the first occupant plus 100 sq ft per additional occupant (children under 2 not counted). Kitchens, non-habitable areas, bathrooms, hallways and interior public areas may not be used for sleeping. The computed maximum occupant count must be posted on the unit and filed with the mercantile license.

Zoning & Restrictions

Ordinary licensed short-term/seasonal rentals of dwelling units (single-family homes, condos, apartments) are permitted borough-wide, subject to the Chapter 56A licensing/inspection scheme. However, a "resort house" -- a residential-styled structure marketed/rented for gatherings of invited guests for events such as weddings, retreats or parties -- is defined as a commercial use that has never been a legally permitted use anywhere in the Borough outside the Hotel/Motel (M-1-A/M-1-B/M-1-C) zone.

Insurance & Safety

Insurance

Wildwood Crest does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• All rental properties must be registered and inspected by the Fire Prevention Bureau at least once every license year, for compliance with the Uniform Fire Safety Act and the International Property Maintenance Code (as adopted by the Borough); each condominium unit is inspected individually as its own rental unit.

Penalties for Non-Compliance

Violating the rental-licensing chapter (Ch. 56A) or the mercantile-license ordinance (Ch. 40) -- e.g. operating without a license, exceeding the posted maximum occupancy, or providing false/misleading information on a license application -- is punishable, upon conviction, by a fine, imprisonment, and/or community service; each continuing day of violation is a separate offense, and no mercantile license will be issued/renewed for a non-compliant property.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Wildwood Crest:

1. Meet safety requirements. All rental properties must be registered and inspected by the Fire Prevention Bureau at least once every license year, for compliance with the Uniform Fire Safety Act and the International Property Maintenance Code (as adopted by the Borough); each condominium unit is inspected individually as its own rental unit.
2. Apply for Mercantile License for Property Rentals (charged per sleep room), required under Borough Code Chapter 40 (Mercantile Licenses) together with the rental license/registration required by Chapter 56A (Rental Properties); applies to single-family homes, condos, apartments and individually-owned hotel/motel-structure units alike. Submit application + $20 per sleep room (mercantile license fee) fee.
3. Register for tax accounts. Set up lodging tax accounts with New Jersey Division of Taxation (state Sales Tax and State Occupancy Fee); Borough of Wildwood Crest / Greater Wildwoods Tourism Improvement and Development Authority (local Tourism Tax and Tourism Assessment).
4. Collect and remit taxes. 15.475% on all bookings.
5. Renew annually. $20 per sleep room annually (same mercantile license tariff; license year runs May 1 - April 30) renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Wildwood Crest?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Wildwood Crest requires a short-term rental permit.

Does Wildwood Crest require a short-term rental to be your primary residence?

No. Wildwood Crest allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Wildwood Crest?

Wildwood Crest does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Wildwood Crest?

Short-term rental stays in Wildwood Crest are subject to a combined 15.475% in lodging taxes. This combines 6.625% New Jersey Sales Tax + 5% New Jersey State Occupancy Fee + 2% Greater Wildwoods Tourism Tax + 1.85% Greater Wildwoods Tourism Assessment. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Wildwood Crest?

Violating the rental-licensing chapter (Ch.