Newark short-term rental rules could ease for owner-occupied Airbnb stays

A major city is considering loosening its ban on short-term rentals.

The Newark City Council is considering changes that would allow Airbnb, Vrbo and similar platforms to operate in owner-occupied homes, according to the “Newark Post.”

That means a homeowner could rent out part of their property, such as a spare bedroom, basement, or separate unit, as long as they remain on-site while the guest is staying there.

The proposal would not open the door to full-home vacation rentals.

Renting out an entire house or apartment for a short-term stay would still be illegal.

The city appears to be drawing a line between homeowners earning extra income from space in their own residence and operators and investors turning full properties into short-term rentals.

For operators, the takeaway is clear: Newark may be moving toward a more flexible policy, but it would still be one of the tighter short-term rental regulations.

The model being discussed favors hosted stays, not whole-home STRs.

It’s a step forward — but a very small one.

The city’s less than one percent vacancy rate is being cited as a main driver for the ban

Last month, Planning Director Renee Bensley told the Newark Post the city currently has no explicit ban, but code enforcement officers interpret existing rental property rules to disallow short-term occupancy.

“Every unit that’s being used as a short-term rental is a unit that is not in the housing market, and with a vacancy rate of less than 1 percent, that is a problem for the City of Newark,” Bensley said.

Over the past three years, roughly six property owners have been fined $100 per day for violations, usually after neighbors complained about party houses.

The proposed ordinance would make the prohibition explicit and allow the city to request that Airbnb and Vrbo delist Newark properties from their platforms.

Despite the enforcement stance, more than a dozen properties remain active on Airbnb, with entire homes listed for $200 to $300 per night.

Many promote walkability to the University of Delaware or transit access to Philadelphia, and several are already targeting soccer fans attending World Cup games this summer.

One apartment complex off Paper Mill Road lists units for $136 per night, and a townhouse on Madison Drive goes for $300.

The city argues that every unit used as a short-term rental removes housing stock from a market with almost no vacancy.

Passing a formal ban would give Newark clearer legal standing to pursue both hosts and platforms directly.