Is Franklin Lakes, New Jersey Good for Airbnb Investment?

To start an Airbnb in Franklin Lakes, New Jersey, begin by researching local zoning laws and regulations through the Franklin Lakes Borough Office, as the township may have specific ordinances regarding short-term rentals that require special permits or restrict rentals in certain residential zones. Contact the Bergen County health department and Franklin Lakes building department to obtain necessary permits, which typically include a Certificate of Occupancy for rental use, fire safety inspections, and potentially a business license. Find a suitable property by purchasing or leasing a home in areas zoned for rental use, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the property with quality furniture, linens, kitchen essentials, and amenities like WiFi, focusing on creating a comfortable guest experience while ensuring compliance with New Jersey's implied warranty of habitability standards. List your property on Airbnb and other platforms with professional photos, competitive pricing based on Franklin Lakes market rates (typically $150-300 per night), and detailed descriptions highlighting proximity to New York City and local attractions. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, collecting New Jersey's 6.625% sales tax plus Bergen County's additional taxes, and ensuring compliance with Franklin Lakes' noise ordinances and parking regulations while maintaining good relationships with neighbors in this affluent suburban community.

To identify profitable short-term rental properties in Franklin Lakes, New Jersey, focus on locations within walking distance of Ramapo College or near major highways like Route 287 and Interstate 287 for business traveler accessibility. Target 3-4 bedroom single-family homes or townhouses built after 1980 with modern amenities, parking, and outdoor spaces, as Franklin Lakes attracts families and corporate visitors to nearby pharmaceutical companies like Becton Dickinson. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties in Wyckoff, Oakland, and Mahwah, aiming for $150-250 per night depending on property size and amenities. Research competition by monitoring active Airbnb and VRBO listings within a 5-mile radius, noting occupancy rates and guest reviews to identify market gaps. Utilize tools like Rabbu and STR Helper for Franklin Lakes-specific market data, while leveraging local resources such as the Franklin Lakes Chamber of Commerce and Bergen County tourism data to understand seasonal demand patterns driven by college events, corporate relocations, and proximity to New York City for weekend getaways.

To obtain an Airbnb/STR permit in Franklin Lakes, New Jersey, you must first contact the Franklin Lakes Borough Clerk's office at Borough Hall located at 432 DeKorte Drive to inquire about short-term rental regulations, as the borough may require a business license or special use permit. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (typically $1 million minimum), floor plans, and contact information for a local property manager if you're not residing on-site. The application fee is estimated to be between $100-300, with potential additional inspection fees of $50-150. You must also register with the New Jersey Division of Taxation for sales tax collection and may need to comply with fire safety inspections and zoning requirements specific to residential areas. The approval timeline typically ranges from 30-60 days depending on completeness of application and inspection scheduling. Franklin Lakes may require annual permit renewals, adherence to occupancy limits (usually 2 people per bedroom plus 2 additional), quiet hours enforcement, and maintaining adequate parking spaces for guests. Contact the Planning and Zoning Department at (201) 891-3131 to confirm current regulations, as requirements can change and some residential zones may prohibit short-term rentals entirely.

Short-term rentals (STRs) in Franklin Lakes, New Jersey are generally prohibited or heavily restricted under the borough's zoning ordinances, which typically classify residential properties for single-family use only and do not permit commercial lodging activities in residential zones. Franklin Lakes, an affluent Bergen County municipality, maintains strict residential zoning that effectively prohibits STR operations like Airbnb or VRBO in most areas of the borough, as these activities are considered commercial uses incompatible with residential neighborhoods. The borough has not adopted specific STR regulations that would allow such uses, and property owners attempting to operate STRs would likely face zoning violations and enforcement actions. Unlike some New Jersey municipalities that have created frameworks to regulate STRs, Franklin Lakes appears to maintain its traditional residential-only approach, with no recent legal changes to accommodate short-term rental businesses, reflecting the community's preference to preserve its residential character and prevent transient occupancy in neighborhoods zoned for permanent residents.

Franklin Lakes offers limited Airbnb investment opportunities due to its primarily residential zoning restrictions, but the most promising areas would be properties near the Wyckoff border along Route 208 corridor and homes close to the Franklin Lakes Nature Preserve. The Route 208 area attracts business travelers visiting nearby corporate headquarters including Becton Dickinson (established major presence 1980s) and Stryker Corporation facilities, while properties near the nature preserve appeal to weekend visitors seeking outdoor recreation and proximity to hiking trails. The Ewing Avenue and Colonial Road neighborhoods are attractive for their larger luxury homes that can accommodate corporate retreats and family gatherings, particularly benefiting from overflow demand when nearby Mahwah hotels are full during pharmaceutical and healthcare industry conferences. Investment potential is also strong near the Franklin Lakes Municipal Building area due to its central location and easy access to major highways, serving visitors attending events at nearby venues like the Ramapo College campus or conducting business in the broader Bergen County pharmaceutical corridor.

In Franklin Lakes, New Jersey, Airbnb hosts 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, hosts must collect the state's occupancy tax of 5% on rental fees. Bergen County may impose a local hotel/motel tax of up to 3%, though specific rates for Franklin Lakes vary. The state requires hosts to register for a sales tax permit through the New Jersey Division of Revenue and Enterprise Services, collect taxes from guests at the time of booking or check-in, and remit payments quarterly using Form ST-51. Airbnb may collect and remit these taxes automatically for hosts in certain jurisdictions through their tax collection service, but hosts remain ultimately responsible for compliance. Exemptions typically include rentals to permanent residents (90+ days), rentals to government employees on official business, and certain charitable organizations, though documentation is required. Hosts should also check for any additional municipal lodging taxes that Franklin Lakes may have implemented, as local ordinances can vary and change frequently.

To start an Airbnb in Franklin Lakes, New Jersey, expect total costs around $850,000-$950,000. Property purchase represents the largest expense at approximately $750,000-$800,000 based on median home prices in this affluent Bergen County suburb as of 2023-2024. Furnishing costs typically range $25,000-$40,000 for a complete 3-4 bedroom home including furniture, bedding, kitchenware, and décor to achieve competitive listing standards. Initial setup costs including professional photography, listing optimization, and basic renovations average $5,000-$8,000. Permits and fees in New Jersey include business registration ($125), potential municipal short-term rental permits ($200-$500), and tax registrations totaling approximately $1,000-$2,000. Insurance costs increase significantly for short-term rentals, with specialized Airbnb coverage running $3,000-$5,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable services cost roughly $1,500-$2,500. First six months operating costs including utilities ($1,200/month), cleaning services ($150 per turnover), maintenance reserves ($300/month), platform fees (3% of bookings), property management software ($50/month), and marketing expenses total approximately $15,000-$20,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Franklin Lakes, New Jersey, demonstrate strong profitability potential with average nightly rates ranging from $150-$300 depending on property size and amenities, generating annual revenues of $35,000-$65,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($1,500-$3,000 annually), and maintenance reserves (5-10% of revenue), resulting in net profit margins of 25-40% for successful operators. Success factors in this affluent Bergen County market include proximity to corporate headquarters like Campbell Soup Company and Becton Dickinson, professional staging with high-end furnishings, responsive guest communication, and competitive pricing strategies that capitalize on the area's appeal to business travelers and families visiting nearby attractions. Properties within walking distance of Franklin Lakes Nature Preserve or featuring luxury amenities like pools and home offices command premium rates, with some hosts reporting annual profits exceeding $25,000 on single-family home rentals, while smaller properties or those with poor management often struggle with sub-20% profit margins due to higher per-unit operational costs and lower occupancy rates.

Airbnb investments in Franklin Lakes, New Jersey typically generate annual ROI of 8-12% based on the area's proximity to New York City and strong demand from business travelers and weekend visitors. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $150-250 per night depending on size and amenities. Most investors achieve profitability within 18-24 months, with initial investment recovery timeframes of 8-12 years. The market benefits from Franklin Lakes' upscale residential character, excellent schools attracting visiting families, and location within 25 miles of Manhattan, though seasonal fluctuations occur with lower occupancy in winter months. Properties in the $600,000-900,000 range with 3-4 bedrooms perform best, generating approximately $45,000-65,000 in annual gross rental income with occupancy rates of 65-75% throughout the year.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Franklin Lakes, New Jersey. Local real estate agents serving the area include Keller Williams Village Square Realty, Coldwell Banker Residential Brokerage, and RE/MAX Village Square, with agents like those at Prominent Properties Sotheby's International Realty who understand the luxury market dynamics of Franklin Lakes. National services include AirDNA for market analytics, Mashvisor for investment property analysis, and BiggerPockets for networking and deal sourcing. RedAwning and Vacasa provide property management services for investors, while local property management companies like North Jersey Property Management and Elite Property Management Group offer hands-on local expertise. Additional services include AIRDNA for revenue projections, Awning for short-term rental management, and local mortgage brokers like Cross Country Mortgage and Guaranteed Rate who understand investment property financing in Bergen County's competitive market.