Real Estate, Updates, News & Tips

Users of short-term rental sites such as Airbnb and VRBO who book accommodations directly with property owners in New Jersey must pay a 5 percent tax—unless they, instead, use a real estate agent to complete the transaction. The loophole in the state’s occupancy tax could be a boon for practitioners but also may cause headaches for homeowners who advertise short-term rentals. “Since 50 percent of bookings are direct by owner, it’s going to affect a large part of the Jersey Shore,” Duane Watlington, owner of short-term rental site VRLBI.com, told the Asbury Park Press. New Jersey is one of 44 states, plus the District of Columbia, where Airbnb guests likely will have to pay occupancy taxes. But owners of vacation homes may use real estate professionals to rent their property. Therefore, lawmakers exempted visitors from the tax if they use a real estate agent. “We are not a transient occupancy website,” Jarrod Grasso, chief executive officer of the New Jersey REALTORS®, told Asbury Park Press. “We are proving a service to the homeowners. They saw fit to exempt us.”