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Short-term-rental rules

Can you Airbnb in Caldwell, NJ?

Allowed with conditions

Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained

Caldwell has no short-term-rental-specific ordinance and no explicit ban, but its general rental licensing law (Code Chapter 131) covers any dwelling occupied by someone other than the owner, with or without payment: the unit must be registered and licensed yearly AND with each change of occupancy, pass an annual borough inspection, and every occupant's name must be on file, which makes per-guest Airbnb turnover legally burdensome. Zoning (Chapter 250) is silent on STRs; residential districts permit only family dwellings and hotels are allowed only in the B General Business District, so confirm the borough's enforcement stance before operating a whole-home STR.

What the rules say in Caldwell

  • No STR-specific ordinance exists anywhere in the Borough code (current through 5-19-2026); rentals under 30 nights are not expressly defined, permitted, or prohibited.
  • Ch. 131 Housing (Ord. 1286-14): every "rental unit" must be registered and licensed with the Borough Clerk; "rent or rented" means occupancy by any person other than the owner, regardless of whether there is an agreement or any consideration (131-1).
  • Registration is required yearly (license term from August 1) AND with each change of occupancy (131-4), so each new short-term guest turnover technically triggers re-registration.
  • The registration form must list the name, age, and gender of each tenant, and only occupants whose names are on file with the Borough may reside in the premises (131-2.I, 131-13).
  • Annual inspection by the Construction Code Official is required for rental facilities of 19 or fewer units; a failed inspection bars registration, licensing, and occupancy until corrected (131-5).
  • Fees and penalties: $30 per unit annual registration; violations carry fines of $100 to $1,250 per day plus possible 90 days imprisonment or community service, and license revocation (131-9, 131-14, 131-15).
  • Owner-occupied portions of a dwelling are excluded from the definition of "rental unit" (131-1), so a hosted room in the owner's primary residence arguably falls outside the licensing scheme; verify with the Borough Clerk.
  • Ch. 138 (Ord. 1442-23): rental-unit owners must annually file a certificate of liability insurance ($500,000; $300,000 for owner-occupied multifamily of 4 or fewer units) with a $25 fee; failure is a $500 fine.
  • Zoning Ch. 250: residential districts (RAA, RA, RB, RC, RD) use exclusive permitted-use lists limited to dwellings occupied by a "family" (unrelated groups must be of a "permanent and distinct domestic character", 250-7); "hotel or motel" (15+ rooms serving transient travelers) is permitted only in the B General Business District (250-16.A(6)). Zoning nowhere addresses short-term rental of a dwelling, leaving interpretive risk for whole-home transient use.
  • Ch. 182 Rent Control exempts owner-occupied one- and two-unit dwellings; it regulates rent levels, not rental duration.

Sources: Borough of Caldwell, NJ Code (eCode360, through 5-19-2026) - full chapter index; Caldwell Code Ch. 131 Housing (Ord. 1286-14) - rental registration, licensing, inspections; Caldwell Code Ch. 131 Art. II - Registration; Licensing; Rules and Regulations; Caldwell Code Ch. 250 Zoning - definitions, district use lists, hotel definition; Caldwell Code Ch. 138 - Liability Insurance and Registration Requirements for Rental Unit Owners; Caldwell Code Ch. 182 Rent Control - exemptions. Last reviewed 2026-07.

How short-term rentals are regulated in New Jersey

  • New Jersey has no single statewide short-term-rental ban. Instead, each municipality sets its own rules through local ordinances, which is why neighboring Bergen towns can differ completely.
  • Statewide, short-term rentals are generally subject to NJ Sales Tax and the State Occupancy Fee (and, in some areas, local taxes) on stays under 90 days, unless booked through certain channels that collect on the host's behalf.
  • Common municipal controls include registration or permits, owner-occupancy requirements, minimum-stay rules, caps on rental nights, and zoning limits on which districts allow short-term use.
  • Rules change. An ordinance can be added or amended at any time. Always confirm the current rule with the municipality before listing.

Caldwell short-term-rental FAQ

Can I run a short-term rental (Airbnb) in Caldwell, NJ?

Caldwell has no short-term-rental-specific ordinance and no explicit ban, but its general rental licensing law (Code Chapter 131) covers any dwelling occupied by someone other than the owner, with or without payment: the unit must be registered and licensed yearly AND with each change of occupancy, pass an annual borough inspection, and every occupant's name must be on file, which makes per-guest Airbnb turnover legally burdensome. Zoning (Chapter 250) is silent on STRs; residential districts permit only family dwellings and hotels are allowed only in the B General Business District, so confirm the borough's enforcement stance before operating a whole-home STR.

Do I need a permit or registration to run an STR in Caldwell?

No STR-specific ordinance exists anywhere in the Borough code (current through 5-19-2026); rentals under 30 nights are not expressly defined, permitted, or prohibited.

What taxes apply to a short-term rental in Caldwell, New Jersey?

Short-term stays in New Jersey are generally subject to NJ Sales Tax and the State Occupancy Fee (plus any local fees), unless collected for you by the booking platform. A tax professional can confirm what applies to your property.

Can Palisade Stays manage a short-term rental in Caldwell?

Palisade Stays launches and runs short-term rentals for owners end to end. Where a short-term rental works in Caldwell, we can handle setup, listing, guest operations, and turnovers. Start with a quick property-fit assessment.

Thinking about a short-term rental in Caldwell?

Palisade Stays launches and runs short-term rentals for owners end to end. Tell us about your property and we'll see if it's a fit.