Overview: Are short‑term rentals allowed?

Short‑term rentals (STRs) are not permitted in Union City, New Jersey. The City prohibits “vacation rentals” in residential properties—defined as rental of any dwelling unit, in whole or in part, for thirty (30) consecutive days or less—to transient guests where the unit is only approved for permanent residential occupancy and not for transient occupancy. Union City began enforcing this prohibition via ordinance in 2015 and has reinforced strict enforcement since 2024 due to safety and quality‑of‑life concerns, particularly noise complaints linked to platforms such as Airbnb and Vrbo. Municipal inspectors and police actively pursue violations; penalties include fines, court summons, cost reimbursement, and injunctions.

How to start a short‑term rental business in Union City

Given the City’s categorical ban on STRs in residential properties, starting a new STR operation within Union City is not possible. Prospective operators should consider:

• Exiting the Union City STR market entirely or converting to long‑term residential tenancy (≥31 consecutive days), which is permitted as standard housing use.
• Exploring licensed hospitality businesses (hotels, motels, bed‑and‑breakfasts) if operating transient lodging. The City’s ordinance expressly exempts City‑approved hotels, motels, and bed‑and‑breakfasts; however, these categories must comply with separate licensing and zoning requirements outside the scope of the STR ban.
• Confirming property‑specific compliance with the City’s definition of “vacation rental” and consulting the City Clerk or Code Enforcement before any transient lodging activity.

Required documents, permits, licenses, and guidelines

The City’s STR prohibition means there is no municipal registration, permit, or license pathway for STRs in residential properties. The City’s Board of Commissioners retains authority to promulgate implementing regulations, set fees, and adjust enforcement procedures for any transient lodging that falls under City oversight, but no STR‑specific permits are issued in residential zones.

Operationally, STRs that somehow continue to advertise or operate in Union City would be subject to the following legal expectations:

• Compliance with Union City Code Chapter 296, Article V (Short‑Term Vacation Rentals in Residential Properties Prohibited), including the definition of “vacation rental” and prohibition on hosting, aiding, or advertising such rentals.
• Observance of any future regulations the Board may adopt, which could include permit conditions, reporting, inspections, advertising restrictions, disclosures, or insurance requirements.

There are no City‑provided STR application forms or license registers because STRs in residential properties are barred.

Specific regulations at the city, county, and state level

City of Union City (Hudson County) — STRs Prohibited

• Ordinance (2015): Amends Chapter 296 (“Peace and Good Order”) to add Article V: Short‑Term Vacation Rentals in Residential Properties Prohibited; Section 296‑13 codifies the ban.
• Definitions:
  • Vacation Rental: Rental of any dwelling unit, in whole or in part, within Union City to any person(s) for exclusive transient use of thirty (30) consecutive days or less, whereby the unit is only approved for permanent residential occupancy and not approved for transient occupancy by this Chapter. City‑approved hotels, motels, and bed‑and‑breakfasts are excluded.
  • Hosting Platform: Any marketplace facilitating vacation rentals through advertising, match‑making, or other means, from which the platform derives revenues (e.g., booking fees or advertising revenues).
• Prohibitions:
  • No person (including hosting platform operators) shall undertake, maintain, authorize, aid, facilitate, or advertise any vacation rental activity that does not comply with City Code.
• Regulations:
  • The Board of Commissioners may promulgate additional regulations (permit conditions, reporting, inspection frequencies, enforcement procedures, advertising restrictions, disclosure requirements, or insurance requirements) and set fees by Resolution to effectuate the Chapter’s purpose.
• Enforcement:
  • Violations trigger Municipal Court summons by the Police Department, Code Enforcement Official, or Health Officer.
  • Violations are punishable under Chapter 1, General Provisions, Article IV (General Penalty), with a minimum fine of $250 payable through the Municipal Court Violations Bureau for each violation.
  • Convicted violators must reimburse the City and participating law enforcement agencies for full investigative costs and remit all illegally obtained rental revenue to the City for restitution to victims of illegal STR activities.
  • Injunctions and other relief are available; prevailing parties may recover reasonable costs and attorney’s fees.
  • Remedies are not exclusive; other penalties or procedures under law remain available.

Hudson County

• No county‑specific STR regulations were identified in the provided sources. Enforcement is municipal (Union City) and state‑driven where applicable.

State of New Jersey

• No state‑wide STR licensing or permitting system is referenced in the provided sources. The City’s ordinance relies on local authority and cites judicial decisions upholding municipal power to prohibit vacation rentals. Investors should consult New Jersey statutes and regulations (e.g., OTA Registration Act for transient accommodations) independently for broader context, but Union City’s local prohibition will govern property‑level STR operations in this jurisdiction.

Contact information (local authority in charge of STRs)

Union City’s STR enforcement is led by multiple departments. For formal questions, compliance verification, or to report violations:

• City of Union City

  • Address: 3715 Palisade Avenue, Union City, NJ 07087
  • Website: Union City official site (see “Links to source pages” below)
  • Enforcement Contact Points:
    • Union City Police Department (for summonses and enforcement)
    • Code Enforcement Official (for code violations)
    • Health Officer (health‑related violations)
    • City Clerk’s Office (for general inquiries and ordinance clarification)

• Note: A phone directory is referenced on the official site but not captured in the provided content. Visit the Union City website “Directory” page for current department phone numbers.

Links to source pages

• From the Mayor’s Desk: Strict Enforcement of Airbnb Policy (Union City) — includes enforcement statement and a link to UC‑Airbnb‑Policy‑Enforcement.pdf:
  • ucnj.com/News/View/2405/from-the-mayor-s-desk-strict-enforcement-of-airbnb-policy
• NJ.com article confirming STR ban and increased enforcement (September 2024):
  • www.nj.com/hudson/2024/09/union-city-vows-crackdown-on-illegal-short-term-rentals.html
• Union City Code Chapter 296 STR prohibition (PDF ordinance, adopted December 2015):
  • hudsoncountyview.com/wp-content/uploads/2016/02/Union-City-Airbnb.pdf

Practical takeaway for STR investors: Union City’s regulatory environment is explicitly hostile to residential STRs. Avoid acquisition or operation of STRs within Union City; focus on long‑term residential tenancy or compliant hospitality operations outside this market if seeking exposure to Hudson County lodging.