Short-Term Rentals in Lakewood, NJ: What Residents Actually Need to Know
If you live in Lakewood or are thinking about moving there, short-term rentals are one of those things you probably won't think about until they affect you directly. Lakewood has 6 specific rules on the books covering different aspects of short-term rentals, and some of them might surprise you.
Occupancy Limits
Lakewood Township has no short-term-rental-specific ordinance. Any rented dwelling, including a transient or vacation rental, is governed by Chapter 15 (Rental Housing) of the Township Code. Before leasing, the owner must obtain a Rental Certificate of Occupancy from the Department of Code Enforcement and Zoning, and the inspector posts a maximum-occupancy notice in the unit that the landlord and tenant may not exceed.
Key details: Code: Township Code Ch. 15. Permit: Rental C.O. required. Issuing Department: Code Enforcement & Zoning. Occupancy Standard: Posted at inspection. State Tax Authority: N.J.S.A. 54:32D.
Renting without a Rental Certificate of Occupancy or exceeding the posted maximum occupancy violates Chapter 15. Chapter 15 lead-hazard violations carry penalties up to $1,000 per week if not cured within 30 days, and other Chapter 15 violations are enforced through the Lakewood Municipal Court at the Township's general code-violation penalty (up to $2,000 per New Jersey N.J.S.A. 40:49-5).
Insurance Requirements
Lakewood Township's Chapter 15 (Rental Housing) does not impose a numeric liability-insurance minimum on landlords or short-term-rental hosts. There is no Lakewood-specific STR ordinance, and New Jersey state law (N.J.S.A. 54:32D and the 2018 transient-accommodations amendments) likewise does not set a coverage floor. Hosts should still confirm coverage with their insurer because standard New Jersey homeowner policies typically exclude commercial or transient-rental use.
Key details: Local Insurance Minimum: None. State Insurance Minimum: None (N.J.S.A. 54:32D). Required Permit: Rental C.O. (Ch. 15). State Tax Registration: Form NJ-REG, 15 days prior. Recommended: STR endorsement + platform coverage.
There is no Lakewood Township penalty tied specifically to insurance because the Township does not require it. Operating without the required Rental Certificate of Occupancy under Chapter 15, however, is enforced by the Department of Code Enforcement and Zoning through the Lakewood Municipal Court under the general N.J.S.A. 40:49-5 penalty cap (up to $2,000 per offense, plus possible community service or imprisonment).
If you are coming from a city with tighter rules, you will find Lakewood gives residents more flexibility on insurance requirements.
Taxes & Fees
Lakewood requires rental housing certificates of approval and mercantile licenses with associated fees. NJ sales tax of 6.625% applies to transient accommodations under 90 days. Municipalities may impose up to 3% occupancy tax under N.J.S.A. 40:48F-1.
Key details: License Required: Certificate of approval / mercantile. NJ Sales Tax: 6.625% on transient stays. Municipal Tax: Up to 3% (N.J.S.A. 40:48F-1). Contact: Code Enforcement.
Operating without proper licensing is a violation with daily penalties.
Noise Rules
Rental property tenants in Lakewood must comply with Chapter BH16 noise regulations. Construction noise is exempt only between 7 AM and 8 PM. Special event permits cap sound at 60 dBA. Property owners are responsible for tenant compliance.
Key details: Construction Exempt: 7 AM – 8 PM only. Event Sound Limit: 60 dBA. State Code: 65 dBA day / 50 dBA night. Owner Responsibility: Yes.
General noise penalties apply. Rental housing certificate may be jeopardized by repeated violations.
Parking Rules
Rental properties in Lakewood must provide off-street parking in accordance with the Residential Site Improvement Standards (RSIS). Vehicles must be parked on approved surfaces. The Unified Development Ordinance governs parking requirements by zoning district.
Key details: Standard: RSIS (state standard). Lawn Parking: Not permitted. Unregistered Vehicles: Must be enclosed. Zoning Review: Required for compliance.
Parking violations are enforced by Code Enforcement. Inadequate off-street parking may affect rental certificate renewal.
Permit Requirements
Lakewood regulates rental housing under Chapter 15, requiring certificates of approval and/or mercantile licenses for all rental properties including hotels, boarding houses, and rooming houses. The ordinance applies retroactively to all existing rental operations.
Key details: Code Section: Chapter 15 (Rental Housing). Certificate Required: Certificate of approval / mercantile license. Inspections: Consent given upon application. Retroactive: Applies to all existing rentals.
Operating a rental without proper certification is a municipal violation. Each day of non-compliance is a separate offense.
The Bottom Line
Lakewood'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 Lakewood is broadly strict or permissive.
This guide is based on Lakewood's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.