Is Lakewood, New Jersey Good for Airbnb Investment?

To start an Airbnb in Lakewood, New Jersey, begin by researching local zoning laws and regulations through the Lakewood Township Planning Department, as the township has specific ordinances regarding short-term rentals that may require special permits or restrict operations in certain residential zones. Contact the Township Clerk's office at 732-364-2500 to obtain necessary business licenses and permits, which typically include a Certificate of Occupancy inspection and potentially a short-term rental permit that costs approximately $150-300 annually. Find a suitable property by working with local real estate agents familiar with Lakewood's Orthodox Jewish community needs, focusing on areas like Pine Street, Clifton Avenue, or near Beth Medrash Govoha, with properties ranging from $300,000-600,000 for multi-family homes. Furnish the property with kosher-friendly amenities including separate sets of dishes, multiple sinks if possible, and consider the community's Sabbath observance needs by providing manual light switches and timers, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and local platforms, highlighting proximity to religious institutions and kosher restaurants, with competitive rates of $120-200 per night depending on size and location. Manage the property by establishing relationships with local cleaning services familiar with kosher requirements, implementing keyless entry systems, and maintaining 24/7 communication channels while respecting Sabbath restrictions, potentially hiring local property management companies that understand the community's unique needs and charge 15-25% of rental income.

To identify profitable short-term rental properties in Lakewood, New Jersey, focus on locations within 2-3 miles of major attractions like Lake Carasaljo, downtown shopping districts, and proximity to major highways like Route 9 and Garden State Parkway for easy access to nearby beaches and New York City. Target 3-4 bedroom single-family homes or larger apartments with modern amenities, full kitchens, parking spaces, and outdoor areas, as Lakewood attracts large Orthodox Jewish families and groups seeking kosher-friendly accommodations. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-300 per night depending on size and location, while analyzing seasonal demand patterns around Jewish holidays and summer beach season. Research competition by studying existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in amenities like kosher kitchens, Shabbat-friendly features, or family-oriented spaces. Utilize tools like Rabbu for kosher travel insights, local Facebook groups for Orthodox community preferences, and consult with Lakewood-based real estate agents familiar with the religious tourism market, while ensuring compliance with local zoning laws and HOA restrictions that may limit short-term rentals in certain neighborhoods.

To obtain an Airbnb/STR permit in Lakewood, New Jersey, you must first contact the Lakewood Township Planning and Zoning Department at 231 3rd Street, Lakewood, NJ 08701, as short-term rentals typically require a Certificate of Occupancy and zoning compliance review. Required documents include a completed rental registration application, proof of property ownership or lease agreement, floor plans showing room layouts and occupancy limits, fire safety inspection certificate from the Lakewood Fire Department, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager if you're an absentee owner, and a site plan showing parking availability. The application fee is approximately $150-200 for initial registration plus $75-100 for annual renewal, with additional inspection fees of $50-75. You must also register with the New Jersey Division of Taxation for hotel/motel tax collection and obtain a business license from Lakewood Township if operating commercially. The timeline typically takes 4-8 weeks for initial approval, depending on inspection scheduling and any required corrections. Lakewood-specific requirements include maintaining minimum parking spaces (typically 2 per unit), ensuring compliance with occupancy limits based on bedroom count, adhering to noise ordinances particularly in residential zones, and providing 24/7 contact information for guest issues. Properties in certain residential zones may face additional restrictions or prohibitions, so verify zoning compliance before applying through the Township's zoning office.

Short-term rentals (STRs) in Lakewood, New Jersey are generally prohibited or heavily restricted under the township's zoning ordinances, which primarily allow only long-term residential rentals of 30 days or more. The township has maintained strict residential zoning that does not permit transient accommodations or hotel-like uses in residential areas, effectively banning most Airbnb and VRBO-style rentals. Lakewood's large Orthodox Jewish community and the township's focus on maintaining residential neighborhood character have influenced these restrictive policies. Property owners found operating illegal STRs face code enforcement actions, fines, and potential legal proceedings. The township has not shown signs of relaxing these restrictions as of recent years, and any STR operations would likely require special use permits or zoning variances that are difficult to obtain. Lakewood's approach contrasts with some other New Jersey municipalities that have created regulated STR frameworks, but the township appears committed to preserving its residential zoning integrity by limiting transient rental activities.

The best areas for Airbnb investment in Lakewood, New Jersey include the downtown historic district near Lake Carasaljo, which attracts visitors for its scenic waterfront views and proximity to local restaurants and shops, and the areas surrounding Georgian Court University, which generate consistent demand from visiting families, prospective students, and academic conferences throughout the year. The neighborhoods near Lakewood BlueClaws baseball stadium on Cedar Bridge Avenue offer seasonal rental opportunities during the baseball season from April through September, while properties close to the large Orthodox Jewish community centers and institutions benefit from religious tourism and family visits, particularly during Jewish holidays and summer months. Areas within walking distance of major shopping centers like Lakewood Commons and near Route 9 corridor provide convenience for business travelers and families visiting the numerous camps and educational institutions that operate year-round, with companies like Amazon and FedEx having distribution centers nearby creating additional business travel demand.

In Lakewood, New Jersey, Airbnb hosts are subject to New Jersey's state sales tax of 6.625% on lodging accommodations, which applies to rentals of less than 90 consecutive days. Ocean County imposes an additional hotel/motel occupancy tax of 3% on short-term rentals. The City of Lakewood also levies a local occupancy tax of 3% on transient accommodations. These taxes are typically collected by Airbnb directly from guests at the time of booking through their tax collection service, which began around 2018 for New Jersey properties. Airbnb remits the collected state and local taxes directly to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the New Jersey Division of Taxation and obtain any required local business licenses. Properties rented for 90 days or more to the same guest are generally exempt from these occupancy taxes, and certain charitable or religious organizations may qualify for exemptions under specific circumstances, though standard vacation rentals do not typically qualify for exemptions.

To start an Airbnb in Lakewood, New Jersey, expect total costs around $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run approximately $1,500-$2,500. Permits and fees vary but budget $500-$1,200 for business registration, short-term rental permits, and local compliance requirements. Insurance costs including landlord and short-term rental coverage average $2,000-$3,500 annually, so factor $1,000-$1,750 for six months. Utilities including electricity, gas, water, internet, and cable typically cost $300-$500 monthly, totaling $1,800-$3,000 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and vacancy periods average $3,000-$5,000. Additional considerations include property taxes, HOA fees if applicable, and a cash reserve for unexpected repairs or extended vacancy periods.

Airbnb properties in Lakewood, New Jersey typically generate annual revenues between $15,000-$35,000 for entire homes and $8,000-$18,000 for private rooms, with average daily rates ranging from $75-$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 ($1,200-$2,500 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by leveraging Lakewood's proximity to Six Flags Great Adventure, the Jersey Shore beaches, and New York City accessibility. Properties within walking distance of downtown Lakewood or featuring amenities like pools, parking, and family-friendly spaces command premium rates and higher occupancy. A typical 3-bedroom home generating $28,000 annually might incur $16,000 in expenses, yielding approximately $12,000 in net profit (43% margin), while underperforming properties often struggle with seasonal fluctuations, inadequate marketing, or poor guest experiences that result in lower ratings and reduced bookings.

Airbnb investments in Lakewood, New Jersey typically generate annual ROI of 8-12% based on current market conditions, with cash-on-cash returns ranging from 6-10% depending on financing structure and property type. Properties in desirable neighborhoods near Ocean County College or close to major highways like Route 9 and the Garden State Parkway tend to perform better, with investors commonly seeing 12-18 month timeframes to reach profitability after accounting for initial setup costs, furnishing, and marketing expenses. The market benefits from proximity to the Jersey Shore (15-20 minutes to Seaside Heights and Point Pleasant), attracting summer vacationers, while year-round demand comes from business travelers and visitors to nearby Lakewood's growing commercial district. Average daily rates range from $85-140 depending on property size and amenities, with occupancy rates typically hitting 65-75% annually, though seasonal fluctuations see summer months reaching 85-90% occupancy while winter months may drop to 45-55%.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Lakewood, New Jersey. Local real estate agents like those at Keller Williams Shore Properties and RE/MAX Central have experience with investment properties in the Lakewood area and understand the local rental market dynamics. National services include Mashvisor, which provides Airbnb analytics and property recommendations, and AirDNA, offering market data and investment insights for short-term rentals. BiggerPockets connects investors with local agents and provides educational resources, while Roofstock focuses on turnkey rental properties that can be converted to Airbnb use. Local property management companies like Shore Property Management and Jersey Shore Rentals can assist with both acquisition advice and ongoing management of Airbnb properties. RedAwning and Awning offer marketplace services for finding and managing vacation rental properties, and companies like Vacasa provide full-service management that can help evaluate potential acquisitions based on revenue projections in the Lakewood market.