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 determine if you need a Certificate of Occupancy for rental purposes. Find a suitable property by working with local real estate agents familiar with Lakewood's Orthodox Jewish community needs and preferences, focusing on areas like the Westgate or Oak Street neighborhoods that are popular with visitors. Ensure the property meets New Jersey's safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with kosher-friendly amenities, separate sets of dishes and cookware for meat and dairy, and consider the religious observances of potential guests by providing Shabbat-friendly lighting and nearby synagogue information. Create your listing on Airbnb and VRBO with detailed photos and descriptions highlighting proximity to local attractions like Lake Carasaljo and the Lakewood BlueClaws stadium. For ongoing management, establish relationships with local cleaning services familiar with kosher requirements, implement a 24/7 guest communication system, and maintain compliance with New Jersey's 6.625% sales tax and local occupancy taxes while keeping detailed records for tax purposes.

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 areas, 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 season, with higher rates during summer months and Jewish holidays. Research competition by analyzing 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, STR Helper, and local Facebook groups focused on Lakewood real estate, while consulting with local property managers familiar with the Orthodox community's specific needs, and consider properties near Beth Medrash Govoha and other religious institutions that attract visitors year-round.

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 conditional use permit or special exception. Submit an application including property deed, site plan, floor plans, proof of property insurance with minimum $1 million liability coverage, fire safety inspection certificate from the Lakewood Fire Department, and a detailed operational plan describing guest capacity, parking arrangements, and noise control measures. Required documents also include a Certificate of Occupancy, tax clearance certificate, and neighbor notification forms for properties within 200 feet of your rental. The application fee ranges from $500-$1,200 depending on property size and zoning district, with additional inspection fees of approximately $150-$300. The approval process typically takes 60-90 days and includes a public hearing before the Planning Board, fire safety inspection, and building code compliance review. Lakewood specifically requires STR properties to maintain off-street parking for each rental unit, limit occupancy to 2 persons per bedroom plus 2 additional guests, prohibit rentals shorter than 7 days in residential zones, and maintain a local contact person available 24/7 for emergency situations, with violations subject to fines up to $2,000 per day.

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 population 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, with local officials continuing to prioritize long-term housing stability over short-term rental tourism, particularly given ongoing housing affordability concerns in the area.

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 conference attendees. 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 schools in the region, with Ocean County College nearby also contributing to steady demand from visiting faculty and families of students.

In Lakewood, New Jersey, Airbnb hosts are subject to New Jersey's state sales tax of 6.625% on lodging accommodations, which applies to short-term rentals under 90 days. Additionally, hosts must collect the state occupancy tax of 5% on room charges. Ocean County, where Lakewood is located, does not impose a separate county lodging tax, but the municipality of Lakewood may require business registration and local tax compliance. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, though hosts remain ultimately responsible for ensuring proper remittance to the New Jersey Division of Taxation on a quarterly basis using Form ST-50. Exemptions generally apply to stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation. Hosts must register for a New Jersey tax ID number and may need local business permits depending on Lakewood's specific ordinances regarding short-term rentals.

To start an Airbnb in Lakewood, New Jersey, expect total costs of approximately $485,000-$535,000. Property purchase costs around $400,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property will cost $15,000-$25,000 including beds, sofas, dining sets, appliances, linens, and décor. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees range from $500-$1,500 including business registration, short-term rental permits, and potential HOA approvals. Insurance costs $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs total $8,000-$12,000 covering cleaning services ($150 per turnover), maintenance, restocking supplies, property management software subscriptions, marketing, and potential vacancy periods. Additional considerations include property taxes averaging $12,000-$15,000 annually and potential mortgage payments if financing the purchase.

Airbnb properties in Lakewood, New Jersey typically generate annual revenues ranging from $15,000-$35,000 for single-family homes and $8,000-$18,000 for apartments, with average daily rates between $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% after expenses, with successful properties achieving higher margins through strategic pricing during peak summer months when proximity to the Jersey Shore drives demand. Properties within 10 miles of beaches and those offering family-friendly amenities like pools or large yards tend to outperform, with occupancy rates of 60-75% compared to 40-55% for standard listings. Success factors include professional photography, responsive communication, competitive pricing during Orthodox Jewish holidays when Lakewood sees increased visitors, and maintaining properties that accommodate larger groups given the area's family-oriented tourism. The market benefits from year-round demand due to Lakewood's growing population and business travelers, though seasonality affects rates with summer premiums of 20-40% over winter months.

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 property type and financing structure. Single-family homes and multi-bedroom properties near major attractions like the Jersey Shore (45 minutes away) and proximity to New York City tend to perform better, with investors commonly seeing break-even points within 18-24 months. The Orthodox Jewish community's frequent hosting of visitors for religious events and holidays creates consistent demand, particularly during summer months and Jewish holidays, with occupancy rates averaging 65-75% annually. Properties purchased in the $200,000-$350,000 range typically generate $1,800-$2,800 monthly gross rental income, and after accounting for expenses including property management (10-15%), cleaning fees, utilities, and maintenance, net annual returns of $8,000-$15,000 are common. The timeframe to full profitability including initial investment recovery typically ranges from 7-10 years, though cash flow positive operations usually begin within the first 12-18 months with proper property selection and management.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including in Lakewood, New Jersey. In the local market, Lakewood Real Estate Group and Century 21 Lakewood have agents experienced with investment properties and short-term rental regulations. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and investment analysis, and Roofstock which offers turnkey rental properties. Local property management companies like Shore Property Management and Lakewood Property Solutions can assist with Airbnb operations post-purchase. Additional national platforms include BiggerPockets for investor networking and deal sourcing, Awning for short-term rental property investment, and RedfinNow for quick property acquisitions. Real estate agents at Keller Williams Lakewood and RE/MAX Central have experience with investor clients seeking Airbnb properties, while services like RentSpree and Furnished Finder can help identify suitable properties for conversion to short-term rentals in the Lakewood market.