Operating a rental property in Cape May requires an annual Rental License from the City Clerk. The process involves a mandatory safety inspection, proof of $500,000 liability insurance, and submission of a floor plan. Occupancy is limited to two persons per bedroom. All rentals are subject to a combined state and local tax rate of 16.625%, which is collected and remitted by online platforms.
To host an Airbnb in Cape May, you must get an annual Rental License from the city for $125. Before you can even apply, you need to pass a safety inspection from the fire department and have proof of $500,000 in liability insurance. A key rule is that you can only have two guests per bedroom. Be aware that the total tax on your rental is a very high 16.625%; while Airbnb handles collecting this, it's good to inform your guests. Finally, you must post your license and contact info inside the unit for your guests to see.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
16.6%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$125
Processing Time
2-4 weeks
Max Fine
$2,000
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