Short-Term Rental Regulations
in West Cape May, NJ

Airbnb listings are allowed in West Cape May, NJ, but with restrictions. The Borough’s Short-Term Rental License Regulations require that each rental unit be registered with the Borough Clerk prior to being made available for rent, with separate registration for each unit and owner responsibility for accuracy of registration information. Borough code requires compliance with mercantile licensing procedures (annual mercantile license term Jan 1–Dec 31), compliance with the State Landlord Registration Act where applicable, and mandatory liability insurance amounts established by P.L. 2022, c. 92 (S1368) (minimum $300,000 for certain small owner-occupied multifamily properties and $500,000 for other rental units). Chapter 31 (rental housing) establishes landlord responsibility provisions, complaint thresholds that can trigger suspension/revocation of rental licenses, bond requirements, and a 3% transient occupancy tax. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

The Borough’s Short-Term Rental License Regulations require that each rental unit be registered with the Borough Clerk prior to being made available for rent, with separate registration for each unit and owner responsibility for accuracy of registration information. Borough code requires compliance with mercantile licensing procedures (annual mercantile license term Jan 1–Dec 31), compliance with the State Landlord Registration Act where applicable, and mandatory liability insurance amounts established by P.L. 2022, c. 92 (S1368) (minimum $300,000 for certain small owner-occupied multifamily properties and $500,000 for other rental units). Chapter 31 (rental housing) establishes landlord responsibility provisions, complaint thresholds that can trigger suspension/revocation of rental licenses, bond requirements, and a 3% transient occupancy tax.

Yes, a permit is required to operate a short-term rental in West Cape May. 1) File a rental unit registration with the Borough Clerk’s office prior to making the unit available for rent and submit a mercantile license application/renewal (forms available in the Clerk’s Document Center). 2) Include required documentation with the application: proof of applicable liability insurance (certificate registered annually per P.L. 2022, c. 92), landlord registration statement if the property is non-owner-occupied, and pay the applicable mercantile/license fee as listed on the mercantile license application. The Borough Clerk forwards complete applications to Health Officer, Tax Assessor/Collector, Construction Official, Police Department, and Water & Sewer Clerk for review and must issue or disapprove a complete mercantile license within 15 days of receipt.

1) File a rental unit registration with the Borough Clerk’s office prior to making the unit available for rent and submit a mercantile license application/renewal (forms available in the Clerk’s Document Center). 2) Include required documentation with the application: proof of applicable liability insurance (certificate registered annually per P.L. 2022, c. 92), landlord registration statement if the property is non-owner-occupied, and pay the applicable mercantile/license fee as listed on the mercantile license application. The Borough Clerk forwards complete applications to Health Officer, Tax Assessor/Collector, Construction Official, Police Department, and Water & Sewer Clerk for review and must issue or disapprove a complete mercantile license within 15 days of receipt.

Vrbo is permitted in West Cape May, NJ under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in West Cape May are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for West Cape May. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.