A large percentage of our shore buyers have reaped the benefits of the HOT shore rental market, which remains strong in the years after COVID first prompted a significant surge in demand. Whether looking to just cover the cost of your taxes, or build a steady source of regular income, there is no doubt that a purchase in the Barnegat Bay and surrounding area can offer great opportunity for gain!
Take it from us, you'll want a real estate professional by your side who knows the ins and outs of the local rental market, including the features of a home that matter most to renters.
Some important considerations when purchasing a rental property:
- Regulations Vary by Town: Many towns require annual licenses, inspections, and have strict occupancy/parking limits. Some, like Mantoloking and Bay Head, require a minimum stay of seven days, while some require a minimum stay of 30 days, like Point Pleasant Borough. Additionally, townhomes, condos and homes that are part of Associations may have further restrictions on rental stays.
- The "Season" Dynamics: Income is heavily concentrated between Memorial Day and Labor Day. That said, the Shore offers a steady fall/winter rental market as traveling medical professionals, construction workers and other professionals move to the area for a short term.
- High Operating Expenses: Expect a percentage of your gross income to go toward property management, higher cleaning fees, maintenance due to salt air, and specialized insurance for short-term rentals.
- Hidden Costs & Taxes: Municipalities may charge 3-6% in occupancy taxes, plus state income taxes.
To get the most bang for your buck, be sure to take into account the following:
- Location, location, location - proximity to the beach and walking (or biking) distance into town is a major plus!
- The amenities your home offers - particularly pools, outdoor showers and access to a dock - will set you apart from the competition.
- People love their pets....so if you are willing to allow animals - for an extra fee or security deposit - you'll see a greater response rate.
- Want to know what your rental home needs to offer? Give us a shout, we've got the checklist you didn't know you needed.
Curious to know the rent-ability of your home? We're always happy to give a confidential, data-driven rental opinion of your property!
-Thoughtful Real Estate -