Villas, New Jersey

Villas is an unincorporated community within Lower Township, so short-term rentals are governed by the Township of Lower, not by Villas itself. New Jersey has no statewide STR licensing regime; regulation is municipal. Lower Township requires anyone renting a dwelling to obtain a rental-unit Mercantile License under Township Code Chapter 432. These rental licenses run on a separate cycle: fees are due by March 15 each year and the license expires March 14 of the following year, effectively an annual cycle; late payment carries a $25 penalty plus the application fee.

A key compliance condition: the license can be revoked if the owner, guests, or occupants are convicted of two or more violations of any township ordinance arising from the physical condition of the unit within any 12-month period, so property upkeep matters. There is no owner-occupancy or primary-residence requirement and no annual night cap.

On taxes, marketplace bookings of transient accommodations of 89 nights or fewer owe 6.625% New Jersey sales tax plus the 5% New Jersey State Occupancy Fee, roughly 11.625% combined. The extra Cape May County Tourism Tax applies only in Wildwood, North Wildwood, and Wildwood Crest, not in Lower Township or Villas. Rentals arranged through a licensed NJ real estate broker are generally exempt from the sales tax and occupancy fee; the tax typically applies when booking directly through an online platform. Enforcement is rated moderate. Investors should confirm the current fee schedule and inspection details directly with the Lower Township Clerk before operating.