Is Englewood Cliffs, New Jersey Good for Airbnb Investment?

To start an Airbnb in Englewood Cliffs, New Jersey, begin by researching local zoning laws and regulations as the borough requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to owner-occupied properties or require special permits. Contact the Englewood Cliffs Building Department at Borough Hall (201-569-7888) to obtain necessary permits including a Certificate of Occupancy for short-term rentals, fire safety inspections, and potentially a home occupation permit if operating from your primary residence. Find a suitable property in residential zones like those near Palisade Avenue or residential areas off Route 9W, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with quality furniture, linens, kitchen essentials, and amenities that appeal to business travelers visiting nearby New York City (15 minutes away) or tourists exploring the Palisades area, budgeting approximately $3,000-8,000 for a one-bedroom setup. Create your Airbnb listing with professional photos highlighting proximity to NYC, George Washington Bridge access, and local attractions like the Palisades Interstate Park, setting competitive rates around $80-150 per night based on 2024 market analysis. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with New Jersey's 6.625% sales tax plus Bergen County's additional hotel tax requirements while keeping detailed records for tax purposes.

To identify profitable short-term rental properties in Englewood Cliffs, New Jersey, focus on locations within walking distance of the Palisades Interstate Park and properties offering Hudson River or Manhattan skyline views, as these command premium rates of $150-300 per night. Target 2-3 bedroom single-family homes or condos built after 1980 with modern amenities, parking spaces, and outdoor areas, as these attract families and business travelers visiting nearby corporate headquarters like LG Electronics USA and Unilever. Conduct pricing analysis using AirDNA and Mashvisor to identify properties generating 15-20% annual returns, with average daily rates 20-30% higher than comparable long-term rentals in the $400,000-800,000 purchase range. Research competition by analyzing the 50-80 active STR listings in the area, focusing on properties near the George Washington Bridge approach and Englewood Cliffs Nature Preserve, while monitoring seasonal demand patterns that peak during summer months and corporate travel periods. Utilize tools like Rabbu for local market analysis, STR Helper for performance tracking, and consult with Englewood Cliffs municipal offices regarding zoning restrictions and STR regulations, as Bergen County has specific requirements for short-term rental operations that affect profitability calculations.

To obtain an Airbnb/STR permit in Englewood Cliffs, New Jersey, you must first contact the Borough Clerk's office at Borough Hall located at 10 East Palisade Avenue to inquire about short-term rental licensing requirements, as the borough likely requires a business license and zoning compliance review. You'll need to submit a completed business license application, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, proof of liability insurance (typically $1 million minimum), floor plans showing maximum occupancy, and contact information for a local property manager if you're not residing on-site. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $100-200. You must also register with the New Jersey Division of Taxation for sales tax collection and remit the state's 6.625% sales tax plus Bergen County's additional hotel/motel tax. The timeline typically takes 4-8 weeks for approval, including zoning review and safety inspection. Englewood Cliffs specifically requires STR properties to maintain off-street parking for guests, limit occupancy to 2 guests per bedroom plus 2 additional guests, prohibit rentals shorter than 2 nights, and maintain a 24-hour contact person for neighbor complaints. Properties must also comply with fire safety codes including smoke and carbon monoxide detectors in all sleeping areas and common spaces.

Short-term rentals (STRs) in Englewood Cliffs, New Jersey are generally prohibited or heavily restricted under the borough's zoning ordinances, which typically classify residential properties for long-term occupancy only. The borough, like many affluent Bergen County municipalities, has maintained strict residential zoning that effectively prohibits commercial short-term rental operations in single-family and multi-family residential zones. Properties cannot be legally operated as STRs for periods less than 30 days without proper commercial zoning and licensing, which is extremely limited in this primarily residential community. Recent enforcement efforts around 2020-2022 have targeted illegal STR operations, with the borough issuing cease and desist orders to property owners advertising on platforms like Airbnb and VRBO. The restrictions are part of broader efforts to maintain the residential character of the community and prevent commercial activities in residential neighborhoods, with violations subject to fines and legal action.

The most attractive areas for Airbnb investment in Englewood Cliffs, New Jersey include the Palisades area near the Hudson River waterfront, which offers stunning Manhattan skyline views and attracts tourists seeking scenic accommodations just minutes from NYC via the George Washington Bridge. The residential neighborhoods along Sylvan Avenue and East Palisade Avenue are prime locations due to their proximity to major corporations like LG Electronics USA headquarters and Unilever's North American offices, generating consistent business travel demand. Areas near Englewood Hospital and Medical Center attract medical tourists and visiting families, while properties close to the Englewood Cliffs Nature Preserve appeal to nature enthusiasts and weekend getaway seekers. The neighborhoods surrounding local country clubs and upscale dining establishments along Route 9W benefit from affluent visitors attending social events and business meetings. Properties within walking distance of NJ Transit bus routes to Manhattan are particularly valuable as they provide easy access for tourists wanting to explore New York City while staying in a quieter, more affordable suburban setting with parking availability.

Airbnb properties in Englewood Cliffs, New Jersey are subject to New Jersey's state sales tax of 6.625% on short-term rental accommodations, which applies to stays of less than 90 consecutive days. Additionally, Bergen County imposes a 3% hotel/motel occupancy tax that extends to short-term rentals including Airbnb properties. Englewood Cliffs itself does not currently impose a separate municipal lodging tax, though the borough requires short-term rental operators to obtain proper licensing and permits. The state sales tax is typically collected by Airbnb directly from guests and remitted to the New Jersey Division of Taxation on behalf of hosts through their automated collection system, while the Bergen County occupancy tax may require separate registration and quarterly remittance by individual hosts to the Bergen County Tax Administrator. Exemptions generally apply to stays exceeding 90 days, rentals to permanent residents, and certain government or charitable organization bookings, though hosts should verify current exemption criteria as regulations can change.

Starting an Airbnb in Englewood Cliffs, New Jersey requires significant upfront investment with property purchase being the largest expense at approximately $850,000 for a median-priced home in this affluent Bergen County borough as of 2024. Furnishing costs typically range from $15,000-25,000 for a complete setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-3,000. Permits and fees vary but expect $500-1,500 for business registration, potential short-term rental permits, and municipal compliance requirements. Insurance costs approximately $2,000-3,500 annually for landlord and short-term rental coverage. Monthly utilities including electricity, gas, water, internet, and cable average $300-450 per month. First six months operating costs encompass utilities ($1,800-2,700), cleaning services ($3,000-4,500), maintenance and repairs ($1,500-2,500), Airbnb platform fees (3% of bookings), marketing expenses ($500-1,000), and miscellaneous supplies ($800-1,200), totaling approximately $7,600-12,000. The complete startup investment ranges from $878,000-896,000, making Englewood Cliffs one of the more expensive markets for Airbnb investment in New Jersey due to its proximity to New York City and high property values.

Airbnb properties in Englewood Cliffs, New Jersey typically generate annual revenues between $25,000-$45,000 for entire home listings, with average daily rates ranging from $120-$180 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($50-$80 per turnover), property management costs (15-25% of revenue), utilities ($200-$400 monthly), insurance premiums ($1,500-$3,000 annually), and maintenance expenses averaging $2,000-$4,000 per year. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts achieving higher margins through strategic pricing, excellent guest experiences, and efficient operations. Success factors in this Bergen County market include proximity to Manhattan (30-minute commute), targeting business travelers and weekend visitors, maintaining 4.8+ star ratings, offering amenities like parking and WiFi, and leveraging the area's appeal to families visiting nearby attractions like the Palisades Interstate Park. Properties near the Palisades or with Hudson River views command premium rates, while hosts who actively manage their listings and respond quickly to inquiries typically achieve 70-80% occupancy rates compared to 50-60% for passive hosts, directly impacting profitability in this competitive New York metropolitan area market.

Airbnb investments in Englewood Cliffs, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, based on the area's proximity to New York City and strong demand from business travelers and tourists visiting the metropolitan area. Properties in this Bergen County location, with average daily rates of $150-220 and occupancy rates of 65-75%, generally achieve profitability within 18-24 months when accounting for initial setup costs, furnishing, and marketing expenses. The market benefits from Englewood Cliffs' upscale residential character and easy access to Manhattan via the George Washington Bridge, with investors typically seeing break-even on their initial investment by month 20-26, assuming 20-25% down payment on properties valued between $400,000-700,000 in the current market conditions.

STRSearch leads the national market for Airbnb investment property analysis and market research, followed by Mashvisor which provides comprehensive rental property analytics including short-term rental projections for the Englewood Cliffs market. Local real estate specialists include Keller Williams Fort Lee and Coldwell Banker Residential Brokerage in nearby Fort Lee, with agents like those at Prominent Properties Sotheby's International Realty who understand the luxury vacation rental market in Bergen County. RedAwning and Awning.com offer property management and investment consulting services for short-term rentals in northern New Jersey, while AirDNA provides market data and revenue optimization tools specifically for the Englewood Cliffs area. Local property management companies such as NJ Shore Rentals and Garden State Property Management have expanded into the Airbnb sector, and investment firms like Roofstock and Arrived Homes occasionally feature properties in the greater New York metropolitan area including Bergen County locations suitable for short-term rental investments.