Short-term-rental rules
Can you Airbnb in Demarest, NJ?
Researched and reviewed by Jake Lee, FounderCurrent as of July 2026How this atlas is maintained
Demarest bans short-term rentals outright: Ordinance 1109-22 (adopted July 25, 2022) added Chapter 143 to the borough code, making it unlawful to receive any consideration for a residential occupancy of less than 90 consecutive days, whole-home or partial, borough-wide. There is no permit path and no owner-occupancy exception for paid stays (the only carve-out is unpaid houseguests or family); advertising and platform listings are also unlawful, with fines up to $1,000 and each day a separate violation. Any Airbnb-style stay under 30 nights is squarely prohibited.
What the rules say in Demarest
- Short-term rental defined as any residential occupancy for less than 90 consecutive days (§143-1); receiving actual or anticipated consideration for such use of any dwelling unit (whole or portion) is unlawful borough-wide (§143-2(a))
- Renting all or part of the exterior of residential property (pool, pool area, backyard) is also prohibited (§143-2(b))
- Advertising a short-term rental is unlawful, and hosting platforms may not facilitate or advertise them (§143-4)
- No owner-present/owner-occupied exception for paid stays: only occupancy by members of the owner's housekeeping unit or houseguests WITHOUT consideration is permitted (§143-3); secondary blogs claiming an owner-present exception contradict the adopted text
- Rentals of 90+ consecutive days remain lawful (§143-2(c)); hotels under N.J.S.A. 55:13-1 et seq. are exempt (§143-2(d))
- Penalty: fine up to $1,000 for each violation, and each day counts as a new, separate violation; declared a public nuisance per se, enforced by police, code officials, and borough counsel (§143-5, amended at adoption to add 'for each violation')
Sources: Ordinance No. 1109-22 full text PDF (Borough of Demarest official site) - creates Chapter 143, read in full; Mayor & Council minutes July 25, 2022 - public hearing and unanimous adoption of 1109-22 as amended (§143-5(c) 'for each violation'); Borough of Demarest 2022 ordinance index listing 1109-22 Short Term Rental; Ordinance 1180-26 (2026 repeal-and-replace of Chapter 175 Zoning) - grepped full text; no STR/transient-occupancy provisions, Chapter 143 unaffected; Demarest code on eCode360 (DE0832) - official online code host; direct fetch blocked by Cloudflare, classification rests on the adopted ordinance PDFs above. 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.
Demarest short-term-rental FAQ
Can I run a short-term rental (Airbnb) in Demarest, NJ?
Demarest bans short-term rentals outright: Ordinance 1109-22 (adopted July 25, 2022) added Chapter 143 to the borough code, making it unlawful to receive any consideration for a residential occupancy of less than 90 consecutive days, whole-home or partial, borough-wide. There is no permit path and no owner-occupancy exception for paid stays (the only carve-out is unpaid houseguests or family); advertising and platform listings are also unlawful, with fines up to $1,000 and each day a separate violation. Any Airbnb-style stay under 30 nights is squarely prohibited.
Do I need a permit or registration to run an STR in Demarest?
No owner-present/owner-occupied exception for paid stays: only occupancy by members of the owner's housekeeping unit or houseguests WITHOUT consideration is permitted (§143-3); secondary blogs claiming an owner-present exception contradict the adopted text
What taxes apply to a short-term rental in Demarest, 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 Demarest?
Short-term rentals face real limits in Demarest (see the status above), so it may not be the right play. Palisade Stays can still help you understand what's possible for your property, including a compliant mid-term or longer rental, and run it if it's a fit. Start with a quick assessment.
Navigating Demarest's rules?
We'll help you find out what's actually possible for your Demarest property, short-term, mid-term, or otherwise, and run it if it's a fit.
Nearby Bergen towns