Short-Term Rental (STR) Investment Guide: Frenchtown, New Jersey

Overview: Are Short-Term Rentals Allowed in Frenchtown, NJ?

Short-term rentals are currently in a regulatory gray area in Frenchtown, NJ. As of September 2022, the Borough has not adopted any specific ordinances governing short-term rentals, but the issue has been actively discussed by the Planning Board and Borough Council.

Current Status: The Borough's Attorney has advised that short-term rentals in single-family homes would likely require a use variance, as they do not meet the ordinance definition of single-family dwelling units. The municipality is actively working on developing regulations, with discussions ongoing since at least 2017.

Future Outlook: Frenchtown is in the process of developing STR regulations and has been researching models from other municipalities. Until specific ordinances are adopted, investors should proceed with caution and expect potential regulatory changes.

How to Start a Short-Term Rental Business in Frenchtown

Current Approach (As of September 2022)

1. Property Assessment: Verify if your property meets the definition of a single-family dwelling unit under current zoning ordinances
2. Use Variance Application: If operating as a short-term rental, prepare for a potential use variance application
3. Planning Board Consultation: Schedule pre-application meetings with the Planning Board to discuss your specific situation
4. Legal Review: Engage with the Borough Attorney and/or private land use attorney to understand current requirements

Recommended Steps for Future Investors

1. Monitor Ordinance Development: Stay informed about ongoing STR regulation discussions
2. Engage with Local Officials: Participate in public meetings and provide input on proposed regulations
3. Prepare for Compliance: Once regulations are adopted, ensure full compliance with all requirements

Required Documents, Permits, Licenses, and Guidelines

Current Requirements (As of September 2022)

• Use Variance: Required for short-term rental operations in residential zones
• Site Plan Approval: May be required depending on the property and proposed use
• Building Permits: If any alterations are planned for short-term rental use
• Fire Safety Approvals: Standard residential fire safety compliance
• Health Department Approvals: If renting rooms with shared facilities

Future Requirements (Anticipated)

Based on the discussion of other municipal models:

• Business Registration/License
• Rental Registration
• Occupancy Permits
• Tax Registration (local and state)
• Compliance with Safety Standards
• Neighbor Notification Requirements

Specific Regulations for Short-Term Rentals

City-Level (Frenchtown Borough)

Currently No Specific STR Ordinances

• Zoning Compliance: Short-term rentals must comply with underlying zoning requirements
• Use Variance: Currently required for STR operations in residential zones
• Planning Board Review: All variance applications reviewed by Planning Board

Pending Regulations (Under Development)

• Borough is considering regulations similar to West Amwell's model
• Potential 90-day limit for non-owner occupied properties
• Police power vs. zoning ordinance approaches being evaluated

County-Level (Hunterdon County)

No county-specific STR regulations identified. County regulations focus on broader planning, economic development, and tourism initiatives.

State-Level (New Jersey)

Municipal Authority Upheld:

• Jersey City case (August 2022) in Third Circuit Court of Appeals upheld municipal STR regulations
• Limitations on non-owner occupied properties to 60 days per year are permissible
• Regulations can be implemented through police powers rather than zoning

Legal Framework:

• Municipalities have authority to regulate short-term rentals
• Case law supports reasonable municipal regulation
• Challenges based on federal constitutional law have been unsuccessful

Contact Information

Primary Contacts for STR Regulation

Frenchtown Borough Hall

• Address: 29 Second Street, Frenchtown, NJ 08825
• Phone: (908) 996-4521
• Website: frenchtownboro.com
• Email: Available through website contact form

Planning Board

• Contact through Borough Hall
• Meets regularly to review development applications
• Handles use variance applications for STRs

Borough Attorney

• Guliet Hirsch (as of September 2022; retiring end of 2022)
• Provides legal guidance on land use and zoning matters

Hunterdon County Planning Board

• Address: 314 State Route 12, Building #1, Courthouse, Flemington, NJ 08822
• Phone: (908) 788-1350
• Website: www.co.hunterdon.nj.us

Additional Resources

• NJ Department of Community Affairs: For state housing regulations
• Hunterdon County Chamber of Commerce: For business development support

Important Links to Source Documents

Primary Municipal Documents

• Frenchtown Planning Board Minutes - September 28, 2022
• 2021 Master Plan & Development Regulations Reexamination

Key Sections for STR Investors

• September 28, 2022 Minutes: Detailed discussion of STR legal framework and regulatory approaches
• Master Plan Reexamination: Broader planning context and demographic information

Investment Considerations and Risk Factors

High-Priority Concerns

1. Regulatory Uncertainty: Active development of STR regulations creates uncertainty
2. Use Variance Requirement: Current operations may require expensive variance applications
3. Potential Restrictions: Future regulations may limit rental periods or require additional compliance

Mitigation Strategies

1. Proactive Engagement: Participate in the regulatory development process
2. Legal Consultation: Work with experienced land use attorneys
3. Flexible Business Model: Design operations to adapt to future regulations
4. Neighbor Relations: Maintain positive community relationships to support regulatory approval

Timeline Expectations

• Short-term: Continue operating under current variance requirements
• Medium-term: New regulations expected within 12-24 months
• Long-term: Stable regulatory environment anticipated after ordinance adoption

Conclusion

Frenchtown, NJ represents an emerging STR market with significant regulatory development activity. While current operations require use variances and operate in a legal gray area, the municipality is actively working toward comprehensive STR regulations. Investors should approach this market with careful attention to evolving regulations and maintain flexibility to adapt to new requirements once adopted.

The Borough's proactive approach to developing STR regulations, combined with strong municipal planning and development oversight, suggests a managed approach to STR growth that balances economic development with neighborhood preservation concerns.