Short-Term Rental Regulation Discussed at Council Meeting

By Anne Levin

Work sessions on municipal transit services and the regulation of short-term rentals (STRs) in town were the focus of Princeton Council’s meeting on October 8.

Matt Thomas of Telos Advisers gave a preliminary report on the feasibility of a second mini bus operating throughout the town. Responding to a recent study by the consultants Nelson Nygaard on transportation needs, Telos said the bus would follow an express route between Princeton Shopping Center and the Dinky train station during morning and evening rush hours.

Telos doesn’t recommend changing the existing route, which serves the Central Business District, the shopping center, Nassau Street, and the Dinky station. The second route would be faster, with fewer stops, running Monday to Saturday between 6 a.m. and 9 p.m., every 45 minutes.

Thomas said the company would suggest a PILOT model with a one-year contract starting in January 2026. Regular “pulse checks” and a formal evaluation in October 2026 looking at cost per ride, user surveys, and demographics would test the plan.

“This represents an important step toward advancing our goals to fostering a more sustainable and less car-centered town,” said Councilwoman Michelle Pirone Lambros.

Deputy Administrator Jeff Grosser reported on the possible regulation of STRs, or Airbnbs, that currently operate without oversight from the municipality. A study group made up of members of the town’s administrative, health, zoning, engineering, and planning departments as well as Councilmembers David Cohen, Leighton Newlin, and Mayor Mark Freda, has been looking at the issue since it was formally made a priority early this year.

Grosser, who estimated that 100 to 150 STRs are currently in operation in Princeton, said that the goals of the suggested ordinance were to ensure public safety, preserve neighborhood character, and address any concerns of neighbors. The ordinance would also maintain the availability of housing for long-term residents. The study group reviewed similar ordinances from Trenton, Hamilton, Asbury Park, and other towns that currently have an ordinance in place.

Based on that research, the ordinance should include regulations, a permit application fee, the application process and inspections, the issuance of permit and appeals, operational requirements, and violations and penalties, Grosser said.

Four options were presented. Grosser said a key consideration is whether it be required that the operator of the short-term rental would have to claim the house as their principal residence. Without that, some members of Council said, a homeowner could operate an Airbnb but not have to pay the same taxes that existing hotels in town are charged.

Several Council members favored option 2, which provides “a phase-out period (12-24 months/end of current registration) for legally operating non-principal STRs,” according to the presentation. It “provides a grace period to remove a property from the STR market, convert it to a long-term residence, or make it a principal residence.”

Councilmembers agreed that passing an ordinance as soon as possible makes sense.

“We’re trying to make Princeton more accessible to more people,” Newlin said. “If we have people with the ability to live anywhere and own a home here and put it on the rental market as a transient home, they compete with everything that builds community and what we stand for. We’re not trying to make money with this endeavor, we’re trying to make peace, and build community. We have got to move on this in an aggressive way.”

Council President Mia Sacks stressed that passing an ordinance is not an attempt to vilify those who operate Airbnbs. “I have one across the street from me, and one would never know it’s an Airbnb,” she said. “The point is trying to maintain our neighborhoods and not just have large swaths of town that feel like a hotel, and have people in our community who are committed to being here long term. That is what community is.”

Freda said that in the past five years that he has served as mayor, he has heard numerous complaints from residents about short-term rentals. The ordinance “is a good balance between you can still make some money from your property, but you’ve got to be respectful of everything going on around you in your neighborhood.”

Grosser said feedback from the work session will be incorporated into the draft of an ordinance. It could potentially be implanted in 2026.

The next meeting of Council is on Monday, October 27 at 7 p.m.