Cryan-Bateman Bill Would Require Refunds for Cancelled Rentals

TRENTON – Those who were forced to cancel short-term rentals because of the COVID-19 crisis would be entitled to refunds or credits under legislation sponsored by Senator Joe Cryan and Senator Kip Bateman that was approved the Senate today.

The bill, S-2412, would require refunds or credits for a reservation or booking during a public health emergency or a state of emergency.

“The coronavirus pandemic has disrupted the lives and livelihoods of nearly everyone,” said Senator Cryan (D-Union). “People have lost out on vacations and business travel at the same time many are also losing income and often their jobs. They also shouldn’t be forced to pay for reservations they can no longer keep, much less afford.”

“This virus and subsequent shutdown have upended every aspect of our lives, including travel and vacation,” said Senator Kip Bateman (R-16). “No one should be charged for an unused rental during these trying times, especially with so many New Jerseyans still out of work and caught up in the unemployment backlog. Refunding renters for the vacations they are unable to take during the public health emergency is the right thing to do.”

The bill would apply to services by “transient space marketplaces” such as VRBO and Airbnb that operate as a digital platform on a hosted Internet website where accommodations are reserved in exchange for monetary or other compensation. It would also apply to other forms of private short-term rentals, such as hotels, private residential properties not offered on a digital platform, short-term leases, and rental transactions completed by licensed real estate brokers.

A refund or credit would be required for reservations or bookings of 90 or fewer consecutive days, would remain in place through the fourth month following the end of the emergency and would create a 30-day window for consumers to request a refund or credit.

The legislation would create a uniform approach to provide refunds for consumers who were unable to fulfill their reservations due to the COVID-19 pandemic, said Senator Cryan, who praised Airbnb for already offering refunds and for committing $250 million to offset the cost that complying with the policy would have on their hosts.

The vote was 32-5.