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Council considers regulating short‑term rentals; councilor offers draft ordinance

Mayor and Council of the Borough of Peapack and Gladstone · April 22, 2026
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Summary

Council discussed exploring regulation of short‑term rentals (Airbnb/VRBO), including registration, possible local fees or hotel tax and enforcement tools. A council member said they drafted an ordinance for council review.

At the April 21 meeting Mayor Hirano brought a Local Finance Notice from the state about short‑term transient accommodations and asked whether the council wanted to explore local regulation of Airbnb/VRBO‑style rentals.

A council member said they had drafted an ordinance modeled on neighboring towns that would require registration, allow for local fees and use the state occupancy tax mechanism (up to 3 percent) where applicable. The council member said the ordinance would include accountability measures—registration, a process to track infractions and local authority to shut down properties that create repeated nuisances such as large unauthorized gatherings.

Council members discussed prior conversations on short‑term rentals in 2017 and confirmed the borough currently has no code text authorizing short‑term rentals; the mayor noted that while the state handles collection of the occupancy tax, local registration and enforcement would provide neighborhood accountability. The council agreed to circulate the draft to all members through the clerk for review.

What happens next: the council member will distribute the draft ordinance to the clerk and council for study; council indicated openness to returning the item for formal introduction if consensus develops.

Sources: council discussion recorded at the April 21 meeting.