Is Matawan, New Jersey Good for Airbnb Investment?

To start an Airbnb in Matawan, New Jersey, begin by researching local zoning laws and regulations through the Matawan Borough municipal office, as short-term rentals may require special permits or be restricted in certain residential zones. Contact the Borough Clerk at 732-566-3898 to inquire about business licenses, occupancy permits, and any specific short-term rental ordinances that may have been enacted since 2020-2022 when many New Jersey municipalities began regulating Airbnb properties. Obtain necessary permits including a Certificate of Occupancy, fire safety inspection, and potentially a business registration through the New Jersey Division of Revenue. Find a suitable property by searching areas near the Matawan Train Station or historic downtown, considering proximity to NYC commuter access which attracts many guests, with average property prices ranging $400,000-$600,000 for single-family homes. Furnish the space with quality basics including WiFi, kitchen essentials, linens, and safety equipment like smoke detectors and carbon monoxide alarms as required by New Jersey fire codes. Create your Airbnb listing with professional photos highlighting the property's proximity to beaches, NYC transportation, and local attractions like Cheesequake State Park. For management, establish cleaning protocols between guests, implement keyless entry systems, maintain responsive communication, and consider hiring local cleaning services like those found through Matawan-area Facebook groups or TaskRabbit, while setting competitive rates typically ranging $80-150 per night depending on property size and amenities.

To identify profitable short-term rental properties in Matawan, New Jersey, focus on locations within walking distance of the NJ Transit train station for easy NYC access, properties near Cheesequake State Park for nature enthusiasts, and homes in quiet residential neighborhoods that appeal to business travelers and families visiting the area. Target 2-3 bedroom single-family homes or townhouses built after 1980 with modern amenities, dedicated parking, outdoor spaces, and updated kitchens and bathrooms, as these features command higher nightly rates in the $100-150 range typical for Matawan's market. Conduct pricing analysis using AirDNA and Mashvisor to compare similar properties within a 5-mile radius including Old Bridge and Marlboro, aiming for properties that can achieve 60-70% occupancy rates with gross rental yields of 8-12%. Research competition by analyzing existing Airbnb and VRBO listings in Matawan's 07747 zip code, noting that the market has approximately 15-25 active STR properties with most being entire homes rather than shared spaces. Utilize tools like Rabbu and AllTheRooms for local market data, partner with Monmouth County-based property management companies familiar with township regulations, and leverage the New Jersey Shore proximity during summer months while targeting corporate travelers from nearby pharmaceutical companies like Merck in Rahway year-round.

To obtain an Airbnb/STR permit in Matawan, New Jersey, you must first contact the Matawan Borough Clerk's office at Borough Hall located at 201 Broad Street to inquire about short-term rental regulations and obtain application forms. Submit a completed STR permit application along with required documents including proof of property ownership or lease agreement, certificate of occupancy, general liability insurance policy (minimum $1 million coverage), floor plan of the rental unit, emergency contact information, and parking plan. Pay the application fee of approximately $150-250 and annual renewal fee of $100-150 to the Borough Clerk. The property must comply with Matawan's zoning ordinances (typically allowed in residential zones with restrictions), meet all fire safety codes including smoke and carbon monoxide detectors, provide adequate parking spaces, maintain occupancy limits based on square footage and bedrooms, and ensure the rental doesn't exceed 30 consecutive days to qualify as short-term. Schedule required inspections with the building department and fire official, which may cost an additional $75-125. The approval process typically takes 4-6 weeks from submission of complete application. Once approved, display the permit number in all online listings and renew annually by December 31st. Contact Matawan Borough Hall at (732) 566-3898 to confirm current requirements as regulations may have been updated since implementation around 2019-2020.

Short-term rentals (STRs) in Matawan, New Jersey operate in a complex legal environment as of 2024. While New Jersey state law generally permits STRs, Matawan Borough has implemented local regulations that restrict their operation in residential zones, requiring special use permits and compliance with specific safety and occupancy standards. The borough prohibits STRs in certain residential districts and requires operators to obtain business licenses, maintain liability insurance, and limit occupancy to no more than 8 guests at a time. Properties must meet fire safety codes and parking requirements, with violations subject to fines up to $2,000. Recent changes in 2023 tightened enforcement mechanisms and increased registration fees from $150 to $300 annually. STR operators must also collect and remit state sales tax and local occupancy taxes, and properties cannot be rented for less than 7 consecutive days in some zones. The borough has designated specific commercial and mixed-use areas where STRs are permitted by right, while residential zones require conditional use approval through the planning board process.

The most promising Airbnb investment areas in Matawan, New Jersey include the neighborhoods near Matawan Train Station and downtown Matawan Borough, which attract business travelers commuting to New York City via NJ Transit's North Jersey Coast Line, offering 45-minute access to Manhattan. The residential areas around Lake Lefferts and Cliffwood Beach provide appeal for leisure travelers seeking waterfront access and proximity to Raritan Bay recreational activities. Properties near the Garden State Parkway corridor (Routes 34 and 35) are strategically positioned for guests visiting nearby attractions like Six Flags Great Adventure (20 minutes away), PNC Bank Arts Center concerts, and Monmouth Park Racetrack. The historic Old Bridge Township border area benefits from overflow demand during major events at nearby venues and offers lower property acquisition costs while maintaining easy highway access. Additionally, neighborhoods within walking distance of Matawan's antique shops, restaurants along Main Street, and the scenic Cheesequake State Park entrance point attract weekend visitors and nature enthusiasts, particularly during fall foliage season and summer months when outdoor activities peak.

In Matawan, 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 occupancy tax of 5% on rental charges. Monmouth County may impose a local hotel/motel tax of up to 3%, though specific rates for Matawan vary by municipal ordinance. The Borough of Matawan may also levy its own local occupancy tax, typically ranging from 1-3% of gross rental receipts. These taxes are generally collected by the host from guests at the time of booking or check-in and must be remitted to the New Jersey Division of Taxation on a quarterly basis using Form ST-50 for sales tax and Form HTL for occupancy taxes. Hosts earning over $20,000 annually or conducting more than 200 transactions must register for tax collection. Exemptions typically apply to rentals exceeding 90 consecutive days, rentals to permanent residents, and accommodations provided to certain government employees or tax-exempt organizations, though documentation is required to claim these exemptions.

To start an Airbnb in Matawan, New Jersey, expect total costs around $485,000-$520,000. Property purchase represents the largest expense at approximately $400,000-$425,000 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 décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business registration, short-term rental permits, and any required municipal licenses. 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, totaling $1,800-$2,700 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing should be budgeted at $8,000-$12,000. Additional considerations include property taxes, HOA fees if applicable, and a contingency fund for unexpected repairs or vacancy periods.

Airbnb properties in Matawan, New Jersey typically generate annual revenues between $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-80 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($800-1,500 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved through strategic pricing during peak summer months and proximity to NYC commuter routes. Success factors in Matawan include targeting business travelers using NJ Transit connections to Manhattan, maintaining properties near Matawan Regional High School for visiting families, and capitalizing on the area's lower property costs compared to coastal New Jersey markets. Properties within walking distance of Matawan Train Station command premium rates of $120-160 nightly, while those offering parking and family-friendly amenities near local parks like Thompson Park see occupancy rates of 65-75% annually, significantly outperforming the state average of 58%.

Airbnb investments in Matawan, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in this Monmouth County location, positioned between New York City and the Jersey Shore, benefit from proximity to major employment centers and seasonal tourism demand. Initial investment costs average $350,000-$450,000 for suitable properties, with expected gross rental yields of $35,000-$55,000 annually after accounting for occupancy rates of 65-75%. Cash-on-cash returns assume 20-25% down payments, with monthly operating expenses including utilities, cleaning, maintenance, and platform fees typically consuming 35-45% of gross revenue. Most investors achieve profitability within 18-24 months, factoring in initial setup costs, furnishing, and marketing expenses. The market shows particular strength during summer months due to Shore proximity and year-round demand from business travelers accessing nearby corporate centers and transportation hubs, with average daily rates ranging from $120-$180 depending on property size and amenities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Matawan, New Jersey. Local real estate agents like those at Keller Williams Realty in nearby Middletown and RE/MAX Central in Old Bridge have experience with investment properties in the Matawan area and understand the local rental market dynamics. National services include Mashvisor, which provides Airbnb analytics and property search tools, and AirDNA, offering market data and investment insights for the Matawan region. BiggerPockets connects investors with local professionals and resources, while Roofstock focuses on turnkey rental properties that can be converted to short-term rentals. Local property management companies such as Monmouth County Property Management and Jersey Shore Property Services can assist with identifying properties and managing Airbnb operations. Real estate investment firms like Awning and Vacasa also provide end-to-end services from property acquisition to management in the New Jersey market, with Vacasa having expanded their services to cover the Matawan area since 2019.