Is Keyport, New Jersey Good for Airbnb Investment?

To start an Airbnb in Keyport, New Jersey, begin by researching local regulations as Keyport requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking. Contact Keyport Borough Hall at 732-264-3344 to obtain the necessary permits including a Certificate of Occupancy, fire safety inspection, and business registration, which costs approximately $50-100 annually. Find a suitable property by searching areas near the Raritan Bay waterfront or downtown Keyport, with average home prices ranging $300,000-500,000, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the space with essential amenities including Wi-Fi, linens, towels, kitchen supplies, and local guidebooks highlighting nearby attractions like the Keyport waterfront, Cheesequake State Park, and proximity to NYC ferry services. List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $80-150 per night based on seasonal demand and proximity to water activities, emphasizing Keyport's charm as a historic bayshore community just 45 minutes from Manhattan. Manage your rental by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with New Jersey's 6.625% sales tax and local occupancy taxes while building relationships with local cleaning services and maintenance contractors for ongoing property management.

To identify profitable short-term rental properties in Keyport, New Jersey, focus on waterfront locations within walking distance of the Raritan Bay, particularly properties near Keyport Harbor and the downtown area with easy access to NYC Ferry service which connects to Manhattan. Target 2-4 bedroom single-family homes or condos built after 1950 with parking, outdoor spaces, water views, and modern amenities like updated kitchens and WiFi-ready infrastructure. Analyze pricing by researching comparable Airbnb listings in Keyport and nearby Highlands, Red Bank, and Asbury Park, aiming for properties under $400,000 that can command $150-250 per night during peak summer months. Conduct competition research using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Keyport has limited STR inventory compared to shore towns, creating opportunity. Utilize tools like Zillow, Realtor.com, and local MLS data through Monmouth County resources, while connecting with Keyport-based real estate agents familiar with zoning regulations and seasonal rental patterns, and monitor the town's proximity to both NYC commuters and Jersey Shore tourists for year-round booking potential.

To obtain an Airbnb/STR permit in Keyport, New Jersey, you must first contact the Keyport Borough Clerk's office at Borough Hall located at 70 West Front Street to inquire about short-term rental regulations, as the borough likely requires registration under local zoning ordinances. You'll need to submit an application form (available at Borough Hall or their website), provide proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (typically $1 million minimum), floor plans showing maximum occupancy, contact information for a local property manager if you're not local, and pay applicable fees which typically range from $100-300 annually in similar New Jersey municipalities. The process generally takes 30-45 days for approval, and you must ensure your property complies with fire safety codes, has working smoke and carbon monoxide detectors, meets parking requirements (usually one space per bedroom), and adheres to occupancy limits based on square footage. Additionally, you'll need to register with the New Jersey Division of Taxation for sales tax collection, obtain a Certificate of Authority, and may need to comply with Monmouth County health department regulations for properties with septic systems, while also ensuring compliance with any homeowners association rules if applicable.

Short-term rentals (STRs) in Keyport, New Jersey operate in a complex regulatory environment where the borough has not established comprehensive STR-specific ordinances as of 2023, leaving property owners to navigate existing zoning laws and residential use regulations. Currently, STRs exist in a legal gray area in Keyport, with the borough's zoning code primarily designed for traditional residential uses, though some properties may operate under existing bed-and-breakfast or rooming house provisions. The borough requires STR operators to comply with standard property maintenance codes, fire safety regulations, and potentially obtain business licenses, while properties in residential zones face restrictions on commercial activities that could limit STR operations. Recent discussions at the borough council level have addressed concerns about STRs' impact on housing availability and neighborhood character, with some consideration given to developing specific regulations similar to those implemented in nearby Shore communities like Asbury Park and Long Branch, though no formal STR ordinance has been adopted. Property owners should verify current zoning compliance and may face enforcement action if STR operations violate existing residential use restrictions or create nuisance conditions.

The best areas for Airbnb investment in Keyport, New Jersey include the Historic Waterfront District along the Raritan Bay shoreline, which attracts tourists seeking scenic bay views and proximity to the Keyport Marina and fishing charters. The Main Street/Downtown area offers excellent potential due to its walkable historic charm, antique shops, and proximity to restaurants like The Chubby Pickle, drawing weekend visitors and couples seeking small-town experiences. The residential neighborhoods near Keyport Beach and Cliffwood Beach are attractive for summer rentals, capitalizing on seasonal beach tourism and water activities. Areas close to the NJ Transit train station provide strong appeal for business travelers commuting to New York City, as Keyport offers a more affordable alternative to Manhattan accommodations while maintaining easy access via the North Jersey Coast Line. The neighborhoods surrounding Keyport's annual events like the Keyport Fire Department Carnival and various waterfront festivals create seasonal demand spikes, making properties within walking distance of these venues particularly lucrative for short-term rentals.

In Keyport, 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 charges. Monmouth County may impose a local hotel/motel tax of up to 3%, though specific rates for Keyport vary by municipal ordinance. The Borough of Keyport itself may levy additional local occupancy taxes ranging from 1-3% depending on local regulations established around 2018-2020. Taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state taxes in New Jersey as of 2019, though hosts remain responsible for registering with the New Jersey Division of Taxation and filing quarterly returns (Form ST-50) for any additional local taxes not collected by the platform. Exemptions generally apply to stays exceeding 90 days, rentals to permanent residents, and accommodations provided to certain government employees or during emergencies, with hosts required to maintain detailed records of all transactions and exemption claims for at least four years.

To start an Airbnb in Keyport, New Jersey, the total estimated costs would be approximately $485,000-$565,000. Property purchase costs around $400,000-$450,000 based on median home prices in Monmouth County. Furnishing a 2-3 bedroom property would cost $15,000-$25,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores. Initial setup costs including professional photography, listing creation, and marketing materials would be $2,000-$3,000. Permits and fees including business registration, short-term rental permits, and potential municipal licensing would cost $500-$1,500. Insurance including landlord and short-term rental coverage would be $2,500-$4,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $1,000-$1,500. First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($2,000), property management software ($300), and marketing ($1,000) would total approximately $8,700. Additional costs may include legal consultation ($1,000-$2,000) and initial inventory of supplies ($500-$1,000).

Airbnb properties in Keyport, New Jersey typically generate annual revenues between $15,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and proximity to Raritan Bay waterfront areas. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management costs (15-25% if outsourced), utilities ($200-$400 monthly), insurance premiums ($1,200-$2,000 annually), and maintenance expenses averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with waterfront or recently renovated homes achieving higher occupancy rates of 60-75% compared to 45-60% for standard properties. Success factors include strategic pricing during peak summer months when demand increases due to nearby beaches and proximity to NYC (45-minute train ride), professional photography, responsive guest communication, and maintaining consistent 4.8+ star ratings. Properties within walking distance of Keyport's downtown area and ferry services to Manhattan command premium rates, with some hosts reporting annual profits of $8,000-$18,000 after expenses, while inland properties typically yield $3,000-$12,000 annually depending on property condition and host engagement levels.

Airbnb investments in Keyport, 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 NYC ferry connections and seasonal shore demand. Properties within walking distance of the Keyport waterfront and ferry terminal command premium rates of $120-180 per night during peak summer months (June-September) and $80-120 during off-season, with average occupancy rates of 65-75% annually. Initial investment recovery and profitability typically occurs within 18-24 months for well-positioned properties, with single-family homes and waterfront condos performing strongest due to Keyport's appeal as a gateway to Sandy Hook and its growing reputation among NYC commuters seeking weekend retreats. The market benefits from limited hotel inventory and increasing tourism to the Raritan Bay area, though investors should factor in New Jersey's higher property taxes averaging 2.4% annually and seasonal fluctuations that can impact winter bookings by 30-40%.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Keyport, New Jersey. Local real estate agents serving the Keyport area include Keller Williams Realty and Coldwell Banker Residential Brokerage, both of which have agents experienced in investment properties and vacation rentals. RE/MAX agents in the Monmouth County area also work with Airbnb investors seeking properties in coastal New Jersey markets. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Roofstock, which focuses on turnkey rental properties including short-term rentals. BiggerPockets connects investors with local professionals and provides educational resources for Airbnb investing. Local property management companies like Awning and RedAwning can help investors identify suitable properties while offering management services. Investment-focused brokerages such as Roofstock and Mynd also serve the New Jersey market, helping investors find properties with strong short-term rental potential in waterfront communities like Keyport.