Council Passes Ordinance For Short-Term Rentals

By Anne Levin

An ordinance that regulates the operation of short-term rental properties, such as Vrbo and Airbnb, was unanimously approved by Princeton Council on Monday, December 8.

According to the new rules, owners must use the properties as a primary residence starting in 2028. In addition, a 3 percent tax, which is currently collected in hotels, will be charged.

An initial draft of the ordinance was discussed by Council on October 8. Councilman David Cohen, among the participants in a working group on the subject, said that several options on implementing some controls on short-term rentals were considered, “balancing the need to preserve traditional rental housing for long-term residents as well as convenience and need for alternative kinds of short-term rentals not provided by hotels.”

Another member of the group, Councilman Leighton Newlin, paid special thanks to Deputy Administrator/Health Officer Jeff Grosser for providing data “and willingness to wrestle with the hard questions. What you see tonight is more than regulations. It’s a reflection of who we are as a community.”

The group’s main concern was the effect short-term rentals have on the residents of the town. Chip Crider, a longtime resident, had worries about how the new rules would be enforced. “How do you prove that someone’s doing a short-term rental? None of the ads online give an address,” he said.

The ordinance addresses different scenarios of ownership, varying according to whether the unit is a one-family, two-family, or multiple dwelling property. Owners or owners’ representatives must be available 24 hours a day, seven days a week, to respond within two hours to a complaint by the renter about the condition, maintenance, or operation of the property. Additional stipulations relate to the maximum number of occupants, trash and recycling pickup, among other points.

Two operators of short-term rentals spoke during the meeting. James Mogliver thanked the Council for providing three years in which to adapt to the

regulations. He also asked for a sunset provision in which the Council would reconsider changes after two years of collecting data, but Council members said it was not necessary.

“We can amend the ordinance at any time, but I’m reluctant to put in a sunset revision,” said Cohen. “We are using real data. We will follow the data that
we gather.”

Councilwoman Mia Sacks said that the issue is complicated, and she appreciates the work of the committee. “I hope where we’re going to land is the right place for balancing the concerns and needs of the community,” she said. “If not, as with any policy we implement, there can be unintended consequences. So I hope we’ll continue to monitor and see that it is complying with the letter and the spirit of
the law.”

Newlin said that research strongly suggests that most of the Airbnb traffic in Princeton concerns people working with Princeton University. “Maybe it’s time for the University to take a look at providing more alternative accommodations for the people who come here,” he said. “How about that?”

Also at the meeting, Council introduced ordinances regarding lane use restrictions and municipal salaries, both of which will be the subject of public hearings on December 22. Council approved a resolution for the express bus route operated by WeDriveU between Princeton Shopping Center and the Dinky train station, allowing residents to flag the bus at any point on
the route.

The next meeting of Council is on December 22 at 7 p.m.