Is Closter, New Jersey Good for Airbnb Investment?

To start an Airbnb in Closter, New Jersey, begin by researching local zoning laws and regulations through the Borough of Closter municipal office, as many New Jersey municipalities have specific short-term rental ordinances that may require registration, permits, or have restrictions on rental duration (typically 30+ days minimum in residential zones). Contact the Closter Building Department at 201-768-8833 to obtain necessary permits, which may include a Certificate of Occupancy for rental use, fire safety inspections, and business registration with the state of New Jersey. Find a suitable property by purchasing or securing landlord permission for an existing property, ensuring it meets safety codes including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the space with quality furniture, linens, kitchen essentials, and amenities while ensuring compliance with New Jersey's implied warranty of habitability standards. Create your Airbnb listing with professional photos, competitive pricing (average $150-250/night for Closter area properties as of 2023), and detailed descriptions highlighting proximity to New York City (20 miles). For ongoing management, establish cleaning protocols between guests, maintain 24/7 communication availability, collect and remit New Jersey sales tax (6.625%) and Bergen County hotel tax (5%), obtain appropriate business insurance coverage, and consider property management software or local management companies like RedAwning or Vacasa to handle bookings, cleaning, and guest services while ensuring compliance with evolving local regulations.

To identify profitable short-term rental properties in Closter, New Jersey, focus on locations within walking distance of the downtown area along Closter Dock Road and properties near the Northern Valley Regional High School, as these areas attract visiting families and business travelers. Target single-family homes or condos with 2-4 bedrooms, modern amenities, dedicated parking, and outdoor spaces like decks or patios, as Closter's suburban appeal draws guests seeking comfort and space. Analyze pricing by researching comparable Airbnb listings in Closter and neighboring Demarest, Cresskill, and Norwood, typically ranging $150-300 per night depending on size and amenities, while factoring in seasonal demand from NYC visitors and local events. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Closter has limited STR inventory due to its residential nature, creating opportunity for well-positioned properties. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and consult Bergen County regulations and Closter Borough zoning requirements, as New Jersey municipalities often have specific short-term rental restrictions that could impact profitability and legal operation.

To obtain an Airbnb/STR permit in Closter, New Jersey, you must first contact the Closter Borough Clerk's office at Borough Hall located at 295 Closter Dock Road to inquire about short-term rental regulations and application procedures, as the borough may require a business license and zoning compliance review. Required documents typically include a completed application form, proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (minimum $1 million coverage), floor plans showing maximum occupancy, contact information for a local property manager if you're not residing on-site, and payment of applicable fees which generally range from $100-300 annually. You must also ensure your property complies with Bergen County health department regulations, obtain any necessary fire safety inspections, and verify that your property is located in a zone that permits short-term rentals under Closter's zoning ordinances. The application process typically takes 30-60 days for review and approval, during which time the borough may conduct property inspections to ensure compliance with safety codes, parking requirements, and noise ordinances. Additionally, you'll need to register with the New Jersey Division of Taxation for sales tax collection purposes and may be required to provide neighbors with notification of your intent to operate a short-term rental, maintain guest registries, and adhere to maximum occupancy limits typically based on bedroom count plus two additional guests.

Short-term rentals (STRs) in Closter, New Jersey operate under local municipal regulations that generally restrict or prohibit them in residential zones. As of 2023-2024, Closter Borough has zoning ordinances that typically limit short-term rentals in single-family residential areas, following the trend of many Bergen County municipalities that have enacted restrictions to preserve neighborhood character. The borough generally requires STRs to comply with zoning laws that may classify them as commercial activities prohibited in residential zones, though some limited exceptions may exist for owner-occupied properties or specific zoning districts. Property owners seeking to operate STRs must obtain proper permits and may face restrictions on rental duration (often requiring minimum stays of 30+ days), occupancy limits, and parking requirements. Recent legal changes across New Jersey have given municipalities greater authority to regulate STRs, and Closter has likely updated its ordinances accordingly to address noise, parking, and neighborhood compatibility concerns, making most traditional short-term vacation rentals effectively prohibited or heavily restricted in residential areas.

The most promising areas for Airbnb investment in Closter, New Jersey include the historic downtown district near Closter Plaza and Demarest Avenue, which attracts visitors exploring the borough's charming small-town atmosphere and proximity to hiking trails in the Palisades. The residential neighborhoods along Harrington Avenue and Schraalenburgh Road offer excellent potential due to their quiet, family-friendly environment that appeals to business travelers working in nearby corporate centers in Paramus and Englewood, as well as families visiting local residents. The areas near Closter Nature Center and the Northern Valley Regional High School district are particularly attractive for parents visiting prospective students and nature enthusiasts exploring the extensive trail systems. Properties within walking distance of the NJ Transit bus routes along Closter Dock Road provide added value for guests commuting to Manhattan, approximately 20 miles away, making these locations ideal for extended business stays. The neighborhoods near Ruckman Road and Homans Avenue benefit from proximity to both natural attractions and the upscale shopping and dining options in nearby Demarest and Cresskill, attracting weekend visitors from New York City seeking a peaceful suburban retreat with easy access to outdoor recreation and local amenities.

In Closter, New Jersey, Airbnb hosts are subject to New Jersey's state sales tax of 6.625% on rental stays of less than 90 days, which applies to the total rental amount including cleaning fees but excluding separately stated taxes. Additionally, Bergen County imposes a 3% hotel/motel occupancy tax on short-term rentals under 30 days. Hosts must register with the New Jersey Division of Taxation to obtain a Certificate of Authority and collect these taxes from guests at the time of booking or payment. The state sales tax must be remitted monthly if collections exceed $500 per month, otherwise quarterly, while the county occupancy tax is typically remitted quarterly to Bergen County. Closter itself does not impose a separate municipal lodging tax as of 2023. Exemptions may apply for stays of 90 days or longer for state sales tax purposes, and certain government or non-profit organization bookings may qualify for exemptions with proper documentation. Airbnb may collect and remit these taxes automatically in some cases through their platform, but hosts remain ultimately responsible for compliance and should verify that all applicable taxes are being properly collected and remitted to avoid penalties and interest charges.

Starting an Airbnb in Closter, New Jersey requires approximately $850,000-$950,000 in total initial investment. Property purchase costs around $750,000-$825,000 based on median home prices in Bergen County. Furnishing a 3-bedroom property costs $25,000-$35,000 including furniture, appliances, linens, and decor. Initial setup expenses total $8,000-$12,000 covering professional photography, listing optimization, welcome materials, and cleaning supplies. Permits and fees range from $2,500-$4,000 including business registration, short-term rental permits, fire safety inspections, and potential HOA approvals. Insurance costs $3,000-$5,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits require $1,500-$2,500 for electricity, gas, water, internet, cable, and security systems. First six months operating costs total $18,000-$25,000 including utilities ($600-800/month), cleaning services ($150-200 per turnover), maintenance and repairs ($300-500/month), property management software ($50-100/month), marketing ($200-400/month), and miscellaneous supplies ($200-300/month). Additional considerations include potential property taxes of $15,000-$25,000 annually and mortgage payments if financing the purchase.

Airbnb properties in Closter, New Jersey typically generate annual revenues of $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-$50 per turnover), property management (10-20% of revenue), utilities ($150-$300 monthly), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher-end homes near the Palisades achieving better performance due to proximity to New York City attractions. Success factors include professional photography, consistent 4.8+ star ratings, strategic pricing during peak seasons (summer and fall foliage), and targeting business travelers commuting to Manhattan. Properties within walking distance of the Northern Valley Regional High School or near hiking trails command premium rates, while hosts who provide local recommendations and maintain rapid response times see occupancy rates of 65-80% compared to the market average of 45-60%. The market benefits from Closter's location 20 miles from Manhattan, attracting guests seeking suburban tranquility with urban accessibility.

Based on Closter, New Jersey market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property acquisition costs and financing structure. Properties in Closter, located approximately 15 miles from Manhattan, benefit from proximity to New York City while offering suburban appeal, with average daily rates of $150-220 and occupancy rates of 65-75% annually. Initial profitability usually occurs within 18-24 months, factoring in startup costs of $15,000-25,000 for furnishing and property preparation. The Bergen County location commands premium rates during peak seasons and corporate travel periods, with successful operators like Vacasa and RedAwning reporting gross rental yields of 10-14% before expenses. Market appreciation in Closter has averaged 4-6% annually since 2020, contributing to total returns of 12-18% when combining rental income and property value increases over a 3-5 year investment horizon.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Closter, New Jersey. Local real estate agents specializing in investment properties include Keller Williams Realty in nearby Englewood (2018-present), Coldwell Banker Residential Brokerage with offices in Demarest and Cresskill, and RE/MAX Village Square Realty in Closter itself. National services include Mashvisor for property analysis and market insights, BiggerPockets for investor networking and deal sourcing, and Roofstock which expanded into short-term rental investments around 2020. AirDNA provides market data and revenue projections specifically for Airbnb properties, while RedAwning offers property management services for short-term rentals. Local property management companies serving the area include Northern New Jersey Property Management and Bergen County Rental Services. Investment-focused real estate agents in the broader Bergen County area include teams at Weichert Realtors and Century 21 Semiao & Associates, both of which have experience with income-producing properties in the Closter market since approximately 2015-2017.