Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Bayonne licenses only property owners, and a tenant can't be the operator.[1] The city's FAQ says a rental can't run more than 60 days per calendar year.[1] The license costs $1,000 to start and $750 a year to renew.[2]
Our verdict, based on the sources at the end of this guide.
Bayonne licenses only property owners, and its FAQ says a tenant can't be a short-term rental landlord.[1] The FAQ also says a rental can't run more than 60 days per calendar year.[1] The license costs $1,000 to start and $750 to renew, and each rental needs its own application.[2] The introduced ordinance limits rentals to certain property types, mostly owner-occupied, and sets fines of $100 to $2,000 per violation per day.[3]
Only a property owner can operate a short-term rental after getting a license, and a tenant can't be the landlord.[1] The introduced ordinance also bars a tenant from applying or subleasing short term, and a permit expires on its own when the property changes ownership.[3]
The introduced ordinance allows rentals only in condominium, homeowner and cooperative association units, owner-occupied single-family homes, two-family homes with one owner-occupied unit, three- and four-unit buildings with an owner-occupied unit, and bed and breakfasts.[3] Each unit needs its own application, even under one owner.[2]
The FAQ says a short-term rental can't be rented more than 60 days per calendar year.[1] The introduced ordinance applies the 60-night limit to rentals where the owner isn't present, and counts each extra night as a separate violation.[3]
The license costs $1,000 to apply and $750 to renew.[2] The zoning determination letter costs $50.[1] You also send proof of principal residence, two recent utility bills, ownership papers and proof of $500,000 in liability insurance.[2]
You can't have more than one dangerous condition in the past year, a noise violation in the past two years, or any outstanding fines, taxes or water and sewer charges.[1] Apply through the SDL Online Portal, and the city issues the license within 30 calendar days of satisfactory inspections.[1]
Name a responsible party who can be reached 24/7 and who responds to complaints within two hours.[3] An owner can name a property manager as that responsible party, and a New Jersey-licensed real estate agent or another person to file the application.[1]
The city schedules required inspections after it reviews your application for compliance.[2] The introduced ordinance asks for a fire safety and property maintenance inspection within six months for a new application and within three years for a renewal.[3] The FAQ says renewals need the inspection form only every three years.[1]
Carry at least $500,000 in general liability insurance and send proof with your application.[2, 3]
The primary occupant must be over 21 and must actually occupy the unit.[3] Each unit can have only one rental contract at a time, and renters are limited to one vehicle per two occupants.[3] Keep a log of occupants' names, ages and rental dates.[3]
Put the permit number in every print, digital or internet ad, and don't put up signs advertising the rental.[3] Post the owner, agent and responsible party contacts, the Department of Public Safety number, and parking and trash details at the property.[3]
New Jersey's guidance for transient accommodations lists a 6.625% sales tax and a 5% State Occupancy Fee.[4] The state's current hotel and motel pages show the same rates.[5, 7]
The state's municipal occupancy tax list has no Bayonne entry.[6] A municipality can impose up to 3% on transient accommodations by ordinance.[4]
A transient space marketplace must collect and remit the sales tax and State Occupancy Fee on bookings made through it.[4] If you book directly and your unit is professionally managed, you must register and collect as a seller.[4] A unit is professionally managed if its owner or controller offers two or more other units for rent in the calendar year.[4]
Rentals of at least 90 consecutive days are exempt as permanent resident stays.[4]
Fines run up to $2,000 per violation, and not less than $100 per violation per day.[3] Each night over the 60-night limit counts as a separate violation.[3] You get 30 days to cure before a fine applies, with a Municipal Court hearing available.[3]
Three or more substantiated complaints mean the permit is revoked, and the property can't get a new one for one year.[3] Two substantiated complaints about excessive vehicles can also lead to revocation.[3]
You have ten business days to appeal a denial or revocation, and the city decides the appeal within 30 days.[3]
Owners running two rentals when the ordinance was adopted could keep one non-owner-occupied rental under conditions.[3] Tenant-operators could continue only until their lease ended or July 1, 2024, whichever came first.[3]
Skip Bayonne for arbitrage. Only owners can be licensed, and a rental can't run more than 60 days a year.
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