Red Bank Approves Owner-Occupied Short-Term Rentals

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By Sunayana Prabhu

RED BANK – The highly debated ordinance from 2023 that banned short-term rentals (STR) was reconsidered and revised after public input May 8 and adopted at the May 23 borough council meeting. The revised ordinance allows STRs for up to 28 consecutive days in owner-occupied premises only, potentially cutting out nonresident investment opportunities.

After hearing concerns from residents, the borough council unanimously approved amendments to the municipality’s STR ordinance. STRs like Airbnb will be allowed for properties occupied by their primary resident owners, a departure from the measure previously adopted by the former administration in February 2023.

The previous ordinance, debated for months at public meetings from 2022 through 2023, restricted STRs to commercial and mixed-use areas. The former council saw it as a compromise, but some who depended on rental income vehemently opposed it.

Mayor Billy Portman, at the helm of the newly formed and transitioning government, vetoed the STR ordinance last year. It was reintroduced and amended last week with a unanimous vote.

“I hope this truly is helpful to you guys who’ve been dealing with some unpleasant situations,” said Portman at the meeting.

The newly revised ordinance does admit that “certain transitory uses of residential properties tend to negatively affect the residential character of the community and, if unregulated, can be injurious to the health, safety and welfare of the community,” a concern of many supporting the original ordinance.

Now STRs will be allowed in owner-occupied single-family homes, duplexes and up to two units in multifamily buildings. The ordinance defines an “owner” as the “individual or entity holding title to a property proposed for short-term rental, by way of a legally recorded deed,” and “owner-occupied” as the person who owns the property residing there and using it as their legal residential address.
Additionally, the ordinance clarifies that the STR owner must register their rental property as a commercial entity with the Borough of Red Bank and obtain an STR permit from the Red Bank fire marshal’s office before renting or even advertising the property for rent.

Before issuing permits, the police department will check its records for violations of the borough’s noise ordinance or code enforcement associated with the property or owners. Violating any provisions stated in the ordinance will result in a fine of up to $2,500 per violation per day that the violation exists. Owners convicted of three separate violations will be permanently banned from operating an STR in the borough.

The ordinance will take effect June 12, but public opinion on the matter remains divided. At the meeting, Amy Corrado, a resident of Waverly Place, asked for clarification on “how to report or how to look into whether a place is licensed or operating legally.” Deputy Mayor Kate Triggiano suggested filling out a code enforcement form, available on the borough website. The form can be submitted anonymously.

Resident Emily Smith, who lives next to an active Airbnb, complained that the house being used “is not anyone’s primary residence. It’s a revolving door,” she said.

“It’s not the first time that’s happened and it’s been dozens of times over the past year.” She complained about late-night noise disturbances.

“I’m very happy that we’re fixing this ordinance,” said council member Ben Forest, who noted he is open to future changes like limiting the number of STRs allowed. The “owner-occupied part is really critical for me,” he said. “I do not want investment properties. I don’t want a property that doesn’t have somebody there 24/7 making sure that people there behave responsibly.”

A spate of other bills on stormwater management and roads was introduced, including the phased renovations of Marine Park. The council approved a bonding amount of around $4 million. A public hearing for this ordinance, allowing residents to provide input on Marine Park improvement plans before they are approved, is scheduled for June 11.

The article originally appeared in the June 6 – June 12, 2024 print edition of The Two River Times.