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Clifton, NJ Short-Term Rentals: Primary-Residence-Only Rule (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Governing section
§ 378A-2B eligibility; § 378A-2C exclusions
Eligible property types
Owner-occupied single-family, two-family or multi-family
Banned property types
Condos, townhomes, non-owner-occupied units, illegal apartments
Principal residence test
Majority time, domestic-life center, licensed address (3 parts)
Proof required
Driver's license or State ID confirming address
Permit expires
Automatically upon change of property ownership

Summary

Clifton only allows short-term rentals in homes where the owner actually lives. Chapter 378A limits STR permits to single-family houses, one unit of a two-family home, or units in a multi-family building where the owner occupies another unit and calls it their principal residence, and bars any non-owner-occupied dwelling, condo or investment property from renting short-term.

Short-term rentals shall be permitted to be conducted in the following classifications of property in the City of Clifton: (1) Individually or collectively owned single-family residences, which one of the owners legally identifies as the address of his or her principal residence, as that term is defined herein; and (2) One unit within a two-family residential dwelling, where the other unit is occupied by the owner and identified by the owner as his or her principal residence, as that term is defined herein; and

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4963532; v64 updated 2026-07-21; through 07-21-2026).

Full Breakdown

Section 378A-2B ties STR eligibility to a specific principal-residence test defined in § 378A-1B: the address where an owner spends the majority of non-working time, that is the center of domestic life, and that appears as the legal address on the owner's driver's license or State ID. All three elements must be met. Under § 378A-2B, permitted STR classifications are limited to (1) a single-family residence one owner identifies as a principal residence, (2) one unit of a two-family dwelling where the owner occupies and lives in the other unit, (3) a unit in a multi-family dwelling where another unit is owner-occupied, and (4) up to two rooms sharing a kitchen and bath within an owner-occupied single-family home.

Section 378A-2C explicitly bars short-term rental of condominiums and townhomes, any single-family home none of the owners identify as their principal residence, a non-owner-occupied unit in a two-family dwelling, a shared-facility room in a home where the resident is not the owner, three or more rooms rented within one single-family dwelling, and illegal basement or attic apartments. Applicants must submit a copy of their driver's license or State ID confirming the STRP is their principal residence and swear under oath to that fact (§ 378A-4A(3), (4)).

Because the permit is tied to the specific owner's occupancy, § 378A-3G provides that the permit automatically expires when the property changes ownership, and the new owner must reapply and show they meet the principal-residence test before renting short-term again.

Violations & Fines

Renting or advertising a property as a short-term rental that does not meet the principal-residence test violates § 378A-2 and § 378A-2C. The Department of Engineering can deny or revoke a permit on this basis, and operating or advertising without a valid permit is itself a chapter violation under § 378A-3B, exposing the owner and any listing agent to fines up to $2,000 per violation per day under § 378A-8.

Frequently Asked Questions

Can I run a short-term rental in Clifton if I don't live there?
No. Clifton Code § 378A-2B restricts STR permits to properties where the owner identifies the unit, or another unit on the same lot, as a principal residence. A single-family home, duplex unit or multi-family unit qualifies only if one owner actually lives in the building and meets the three-part principal-residence test in § 378A-1B.
Are condos allowed to be short-term rentals in Clifton?
No. Section 378A-2C expressly prohibits short-term rental of condominiums and townhomes, regardless of who owns or occupies them. The same subsection also bars renting a single-family home that none of the owners identify as their principal residence, and bars illegal basement or attic apartments from STR use entirely.
What proof of principal residence does Clifton require for an STR permit?
Applicants must submit a copy of the owner's driver's license or State Identification Card showing the STRP's address, plus a sworn statement acknowledging that the property is their principal residence as defined in § 378A-1B, under § 378A-4A(3) and (4). Falsifying that acknowledgment can void the permit.

Sources & Official References

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