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Short-Term Rental Regulations
in West Cape May, NJ

Last verified: March 2026 · Report an update

Zoning & Conditions

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.

How to Obtain a Permit

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.

Official Resources

Official West Cape May STR regulation source

Frequently Asked Questions

Are short-term rentals allowed in West Cape May, NJ?
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.
Is a permit required to operate a short-term rental in West Cape May?
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.
How do I get a short-term rental permit 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.

Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction