How Freehold Handles Short-Term Rentals: A Practical Guide

Freehold maintains 38 local ordinances across all categories, and 6 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Freehold falls on the strict-to-permissive spectrum compared to other cities.

Occupancy Limits

Freehold Borough has not adopted a stand-alone STR ordinance. Maximum occupancy follows the New Jersey Uniform Construction Code (N.J.A.C. 5:23) habitable-space minimums - 70 sq ft for the first occupant plus 50 sq ft for each additional occupant. All rental units must register annually with the Borough.

Key details: STR Ordinance: No stand-alone STR ordinance. Default Standard: N.J.A.C. 5:23 (UCC). Bedroom Minimum: 70 sq ft + 50 sq ft per add'l. Rental Registration: Annual + every change in occupancy. Inspection Cycle: Every 3 years.

Operating an unregistered rental or exceeding UCC occupancy limits can result in summons, daily fines under the Borough's enforcement schedule, and revocation of the rental certificate of occupancy.

Insurance Requirements

Freehold Borough has no STR-specific insurance ordinance. New Jersey P.L. 2022, c.92 (N.J.S.A. 46:8-39) sets the statewide floor at $500,000 in liability coverage per occurrence for rental units, or $300,000 for owner-occupied 1-4 unit dwellings. The certificate must be filed annually with the municipality.

Key details: State Minimum (Rentals): $500,000 per occurrence. Reduced Minimum: $300,000 (1-4 unit owner-occupied). State Authority: P.L. 2022, c.92 / N.J.S.A. 46:8-39. Annual Filing: Required with rental registration. Borough Clerk: 732-462-4200.

P.L. 2022, c.92 sets civil penalties of $500 to $5,000 for failure to maintain or register the required liability insurance. The Borough may also deny or revoke the rental certificate of occupancy.

Permit Requirements

Freehold Borough requires all rental properties to be registered annually under Ordinance #2025/13. Owners must register within 30 days of certificate of occupancy and upon any change in occupancy. A registered agent residing in Monmouth County is required.

Key details: Registration: Annual, through Code Office. Agent Required: Must reside in Monmouth County. Inspections: At least once every 3 years. Exemption: Owner-occupied units exempt.

Operating without required license: $100 to $2,000/day. Safety violations: immediate suspension. Tax non-remittance: back taxes + penalties.

Parking Rules

Short-term rental guests must follow Freehold Borough parking regulations. Downtown on-street parking has a 3-hour limit with paid meters ($1-$2/hour). Overnight parking on Borough streets requires appropriate permits. Municipal lots have time-restricted free and paid zones.

Key details: Street Limit: 3-hour on-street limit. Meter Rate: $1-$2/hour depending on time. Free Parking: 4-hour limit in free lots. Overnight: Check permit requirements.

Parking plan non-compliance may affect STR license renewal. Street parking violations: standard municipal fines. Overnight ban violation: towing.

Noise Rules

Short-term rental guests in Freehold Borough are subject to the same noise standards as all residents. NJ DEP Noise Control Code (N.J.A.C. 7:29) applies: 65 dBA daytime, 50 dBA nighttime. Landlords may face enforcement action for repeated tenant violations.

Key details: Standard: Same as residential noise rules. Nighttime Limit: 50 dBA (10 PM-7 AM). Landlord Liability: May face action for repeat issues. Complaints: Report to police: 732-462-5812.

Noise violation at STR: $200 to $1,000. Multiple complaints: license suspension/revocation. Host responsible for guest behavior.

Taxes & Fees

Short-term rentals in Freehold Borough are subject to NJ Sales Tax of 6.625% on transient accommodations under 90 days. Municipalities may levy an additional occupancy tax up to 3% under N.J.S.A. 40:48F-1. Platforms like Airbnb auto-collect NJ sales tax.

Key details: NJ Sales Tax: 6.625% on stays under 90 days. Municipal Tax: Up to 3% (N.J.S.A. 40:48F-1). Platform Collection: Airbnb auto-collects NJ tax. Registration: May need NJ Division of Taxation.

Non-remittance: back taxes + 5 to 25% penalty + interest. NJ Division of Taxation audit authority. Willful evasion: criminal charges.

The Bottom Line

Freehold's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Freehold is broadly strict or permissive.

All of the above reflects Freehold's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.