Jersey shore- short term rentals

11 Replies

Hello Everyone, 

Are there members here who own/operate Short Term Rentals in Jersey shore?

How has you experience been so far? and do you get any occupancy during winter months? 

Hi there Sunny, I had a condo in Wildwood Crest that was exclusively a rental with no personal use for 10 years that I just sold to 1031 into a home in Florida. I did everything myself except cleaning.

Anybody can rent any decent place at the Jersey shore from the last week of June until 1 week prior to Labor Day, plus Memorial Day weekend. When school is out there is unending demand. May/June and September are difficult but not impossible to rent. It depends on what events are happening in the community at that time. Since the Wildwoods are big on post-season events for example it is a no-brainer to do weekends until almost the end of September.

To really outperform you need to turn those offseason weekends into weeks. When I found older couples without kids that would rent a week from me offseason I would aggressively approach them to return year after year and slowly built up solid rentals until the end of September.

Traditionally I have never had an offseason rental and was OK with that. You need the home to be ready at a moment's notice so you can't turn off the heat or cable/internet for the winter, your cleaners are likely to be in Florida, our condo building would be locked up, etc. A SFH somewhere like LBI might do better in that regard but would be extremely pricey.

The condo was a 3br/2ba fully paid off and after all expenses except depreciation made me $13k per year. Expenses are extremely high in NJ. While I had some price appreciation it just wasn't enough to be worth it for me since I was doing all the work. Being a condo I had to worry about the rest of the building not liking renters, to the point where I had to be the president of the HOA just to protect my investment. The Jersey shore has many retired 2nd home owners and/or teachers that want to use their place all summer and don't take kindly to those evil renters in their building. So be aware of that if looking at multifamily.

Good luck!

Hi Sunny!

We’ve had a place in Brigantine ( just north of AC) for about 6 years now. It’s a 4 bed/2.5 bath townhouse, beach block. I can honestly say it’s rented solidly every year we’ve had it. July and August are the only sure thing months...June shore weather can be iffy, and kids are usually still in school so it’s hit or miss. We can usually count on 1 weekend a month in the off season as well. We self manage, local realtors account for 75% of our in season rentals, on line platforms account for the rest and all off season rentals. The 15% lodging tax assessed to on line rentals (which realtors are exempt from) I think is the reason our in season on line performance is lower. I used to do all the off season cleaning myself but have been fortunate enough to finally find an excellent cleaning crew so they do it all now. Except for spring cleaning...my wife just can’t let someone else do that 😂. We’re also finally covering almost all our expenses with rental income. And that’s with us using it 2 weeks in season and very frequently off season. I think our only regret is not doing this sooner...it really has become our Happy Place. Good luck and feel free to reach out if I can answer and more specific questions.

Originally posted by @Kurt S. :

Hi Sunny!

We’ve had a place in Brigantine ( just north of AC) for about 6 years now. It’s a 4 bed/2.5 bath townhouse, beach block. I can honestly say it’s rented solidly every year we’ve had it. July and August are the only sure thing months...June shore weather can be iffy, and kids are usually still in school so it’s hit or miss. We can usually count on 1 weekend a month in the off season as well. We self manage, local realtors account for 75% of our in season rentals, on line platforms account for the rest and all off season rentals. The 15% lodging tax assessed to on line rentals (which realtors are exempt from) I think is the reason our in season on line performance is lower. I used to do all the off season cleaning myself but have been fortunate enough to finally find an excellent cleaning crew so they do it all now. Except for spring cleaning...my wife just can’t let someone else do that 😂. We’re also finally covering almost all our expenses with rental income. And that’s with us using it 2 weeks in season and very frequently off season. I think our only regret is not doing this sooner...it really has become our Happy Place. Good luck and feel free to reach out if I can answer and more specific questions.

Thank you Kurt, can you explain "local realtors account for 75% of our in-season rentals" I was aware of big platforms like Airbnb, VRBO etc only.

Is there anything to watch out in the Brigantine and AC area?

I intend to manage myself except for the cleaning part, what stops me from taking action is occupancy in winter months which would account for overall profitability. My success criteria is 20k profit from a 200k property.

Originally posted by @Joe C. :

Hi there Sunny, I had a condo in Wildwood Crest that was exclusively a rental with no personal use for 10 years that I just sold to 1031 into a home in Florida. I did everything myself except cleaning.

Anybody can rent any decent place at the Jersey shore from the last week of June until 1 week prior to Labor Day, plus Memorial Day weekend. When school is out there is unending demand. May/June and September are difficult but not impossible to rent. It depends on what events are happening in the community at that time. Since the Wildwoods are big on post-season events for example it is a no-brainer to do weekends until almost the end of September.

To really outperform you need to turn those offseason weekends into weeks. When I found older couples without kids that would rent a week from me offseason I would aggressively approach them to return year after year and slowly built up solid rentals until the end of September.

Traditionally I have never had an offseason rental and was OK with that. You need the home to be ready at a moment's notice so you can't turn off the heat or cable/internet for the winter, your cleaners are likely to be in Florida, our condo building would be locked up, etc. A SFH somewhere like LBI might do better in that regard but would be extremely pricey.

The condo was a 3br/2ba fully paid off and after all expenses except depreciation made me $13k per year. Expenses are extremely high in NJ. While I had some price appreciation it just wasn't enough to be worth it for me since I was doing all the work. Being a condo I had to worry about the rest of the building not liking renters, to the point where I had to be the president of the HOA just to protect my investment. The Jersey shore has many retired 2nd home owners and/or teachers that want to use their place all summer and don't take kindly to those evil renters in their building. So be aware of that if looking at multifamily.

Good luck!

Thanks, Joe for your inputs. If you do not mind, did you buy another STR in Florida?

@Sunny A.

Hi Sunny!

We list with local realtors for the summer, basically because we didn’t know how to do the on line stuff initially. We tried getting away from them this year but every week they’d call with another booking. Brigantine is separated from AC by the causeway bridge and honestly it’s a world away. I’d have no problems letting our kids ( when they were younger) go anywhere alone in Brigantine. But we’re literally 10 minutes away from world class restaurants in the casinos. Best of both worlds. If you’re paying cash for a property you can probably turn a 20k profit, but like I said, we’re finally breaking even this year with the mortgage, utilities, improvements,etc. But we get to vacation for free whenever we want. And we do love it here.

Winter occupancy for Jersey Shore is pretty much 0% for winter months as VRBO/Airbnb. Might be worth considering a long term tenant for those months at a discount of some kind so there's a hybrid rental strategy where you get yield from the summer months as a vacation rental but don't have to ride the offseason without some kind of cash flow. 

Originally posted by @Pawan Vaswani :

@joe 

@Joe C.where in florida is your STR and did you hire a property manager to take care?

Miramar Beach, and yes for now. Longer term when my life settles down I may self manage again but for right now having a property manager was the way to go for me. Like I said I did it all myself for years, I'm ready for a break.

@Sunny A.

Jersey shore is tough because the price of the property relative to rental income. Unless you dont have a mortgage and are paying cash. Otherwise its hard to break even with only the summer rental season. And the idea is to make money not just break even. Unless you are doing it to use for yourself and help offset expenses.

There is no way dropping $400 or $500k on a house is worth 15 rental weeks a year. The only caveat is if covid changes peoples ability to work remote, so a winter week down the shore might be more prevalent.