Is Short Hills, New Jersey Good for Airbnb Investment?

To start an Airbnb in Short Hills, New Jersey, begin by researching local zoning laws through Millburn Township (which governs Short Hills) as short-term rentals may require special permits or be restricted in certain residential zones. Contact the Millburn Township Building Department at 973-564-7058 to obtain necessary permits, which typically include a Certificate of Occupancy for rental use and potentially a business license costing approximately $50-100 annually. Find a suitable property by purchasing or leasing in Short Hills' desirable neighborhoods near the train station or Summit Avenue, with median home prices around $800,000-1.2 million, ensuring the property meets township fire safety codes and has adequate parking. Furnish the space with high-end amenities targeting business travelers and families visiting the area, including quality linens, WiFi, and kitchen essentials, budgeting $15,000-25,000 for a complete setup. List your property on Airbnb and VRBO with professional photography highlighting proximity to NYC (30-minute train ride), local attractions like Paper Mill Playhouse, and the upscale Short Hills Mall. Set competitive rates of $150-300 per night based on seasonal demand and local events. Manage the property by establishing cleaning protocols between guests, maintaining responsive communication, and potentially hiring local property management companies like RedAwning or Vacasa if needed, while ensuring compliance with New Jersey's 6.625% sales tax and local occupancy taxes that may apply to short-term rentals.

To identify profitable short-term rental properties in Short Hills, New Jersey, focus on location criteria including proximity to NYC transportation hubs like Summit and Millburn train stations (within 2-3 miles), upscale neighborhoods near the Short Hills Mall, and areas with corporate housing demand from companies like Bell Labs and pharmaceutical firms in nearby Florham Park. Target property features such as 3-4 bedroom single-family homes or luxury condos with modern amenities, parking, and professional staging potential, as the market commands premium rates of $200-400 per night for quality properties. Conduct pricing analysis using AirDNA and Mashvisor to evaluate comparable properties in Short Hills, Summit, and Millburn, targeting properties with potential gross yields of 8-12% annually. Research competition by analyzing existing Airbnb and VRBO listings within a 5-mile radius, identifying gaps in luxury accommodations and corporate housing options. Utilize tools like Rabbu for market analysis, partner with local real estate agents familiar with Short Hills' $800K-2M+ property market, and leverage resources from the Short Hills Business Association and Morris County tourism data to understand seasonal demand patterns driven by business travel, NYC overflow, and proximity to corporate headquarters in the area.

To obtain an Airbnb/STR permit in Short Hills, New Jersey, you must apply through Millburn Township since Short Hills is an unincorporated community within this township. Contact the Millburn Township Building Department at 375 Millburn Avenue, Millburn, NJ 07041, or call (973) 564-7058 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, certificate of occupancy, floor plans, proof of liability insurance (minimum $1 million), fire safety inspection certificate, and a site plan showing parking arrangements. You'll need to pay application fees ranging from $150-300 plus annual renewal fees of approximately $100-200. The approval timeline is generally 4-8 weeks depending on inspection scheduling and document completeness. Millburn Township requires STR properties to maintain minimum parking spaces (typically 2 per unit), comply with occupancy limits based on bedrooms and square footage, provide 24/7 contact information for emergencies, maintain quiet hours from 10 PM to 8 AM, and ensure properties meet all fire safety codes including smoke and carbon monoxide detectors. Properties must also comply with zoning restrictions, as some residential zones may prohibit or limit short-term rentals, and hosts may need to collect and remit local occupancy taxes.

Short-term rentals (STRs) in Short Hills, New Jersey are generally prohibited or heavily restricted as Short Hills is primarily a residential area within Millburn Township, which has zoning ordinances that typically do not permit commercial lodging activities in residential zones. Millburn Township, like many affluent New Jersey municipalities, maintains strict residential zoning that prohibits the operation of transient accommodations including Airbnb and VRBO rentals in single-family residential areas, which comprise most of Short Hills. The township's zoning code generally requires special use permits or conditional use approvals for any commercial activities in residential zones, and STRs are typically classified as commercial lodging rather than residential use. New Jersey state law allows municipalities to regulate STRs through local zoning ordinances, and Millburn Township has exercised this authority to maintain the residential character of neighborhoods like Short Hills. Property owners attempting to operate STRs without proper permits may face code enforcement actions, fines, and cease-and-desist orders from the township, making legal STR operations extremely difficult or impossible in most areas of Short Hills.

The most attractive areas for Airbnb investment in Short Hills, New Jersey include the neighborhoods near the Short Hills Mall and downtown Summit area, which draw significant business travelers and affluent shoppers year-round due to the presence of major corporate headquarters like Celgene and proximity to luxury retail. The residential areas along Hobart Avenue and White Oak Ridge Road offer excellent potential given their proximity to the Short Hills train station, making them ideal for NYC commuters and business travelers who prefer upscale accommodations over hotels. The Chatham Township border areas are particularly attractive due to their access to both Short Hills amenities and Chatham's downtown dining and entertainment scene, appealing to leisure travelers and families visiting the area. Properties near the Baltusrol Golf Club and surrounding estates attract golf tourism and corporate retreat guests, especially during tournament seasons and business events. The neighborhoods around JFK Parkway and Old Short Hills Road provide strong investment opportunities due to their central location between major highways and premium shopping destinations, making them convenient for both business and leisure travelers seeking luxury accommodations in one of New Jersey's most affluent communities.

Short Hills, New Jersey Airbnb properties are subject to multiple lodging and occupancy taxes including New Jersey's 6.625% state sales tax on transient accommodations, Essex County's 5% hotel/motel occupancy tax, and potentially local municipal taxes that can range from 1-3%. The state sales tax is collected by Airbnb directly from guests and remitted to the New Jersey Division of Taxation quarterly, while the Essex County occupancy tax must typically be collected by hosts and remitted monthly to the Essex County tax administrator using Form ST-4. Local municipal taxes in Short Hills may require separate registration with Millburn Township and monthly or quarterly remittance depending on local ordinances. Exemptions generally apply to stays exceeding 90 consecutive days, which are considered permanent residency rather than transient lodging, and some jurisdictions may exempt stays by government employees on official business. Hosts are required to maintain detailed records of all bookings, tax collected, and remittances for at least four years, and failure to properly collect and remit these taxes can result in penalties ranging from 5-25% of the unpaid amount plus interest.

The total cost to start an Airbnb in Short Hills, New Jersey is approximately $1,850,000 to $2,100,000. Property purchase represents the largest expense at $1,600,000 to $1,800,000 based on median home prices in this affluent area. Furnishing costs range from $75,000 to $125,000 for high-end furniture, appliances, linens, and décor suitable for luxury guests. Initial setup including professional photography, listing creation, and marketing materials costs $3,000 to $5,000. Permits and fees including business registration, short-term rental permits, and municipal licensing total $2,500 to $4,000. Insurance including landlord coverage and short-term rental protection runs $8,000 to $12,000 annually. Utilities including electricity, gas, water, internet, and cable average $2,500 to $3,500 monthly. First six months operating costs including utilities ($15,000), cleaning services ($7,200), maintenance ($5,000), property management software ($600), and marketing ($3,000) total approximately $30,800. Additional considerations include property taxes averaging $35,000 to $45,000 annually and potential HOA fees of $3,000 to $6,000 yearly in this upscale Morris County community.

Airbnb properties in Short Hills, New Jersey, demonstrate strong profitability potential with average daily rates ranging from $150-$300 due to the area's proximity to Manhattan (30 minutes by train) and affluent demographic. A typical 3-bedroom property can generate $4,000-$7,000 monthly revenue with occupancy rates of 65-75%, while expenses including mortgage, utilities, cleaning, insurance, and platform fees typically run $2,500-$4,000 monthly, yielding profit margins of 25-45%. Success factors include proximity to the Short Hills Mall, corporate housing demand from nearby pharmaceutical companies like Merck and Johnson & Johnson, and the area's reputation as one of New Jersey's wealthiest communities. Properties within walking distance of the Short Hills train station command premium rates, with some luxury homes achieving $400+ nightly rates during peak business travel periods. The market benefits from consistent demand from business travelers, families visiting the area, and overflow from New York City's high hotel costs, though property taxes averaging $25,000-$40,000 annually and strict local regulations requiring proper permits can impact overall returns.

Airbnb investments in Short Hills, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, given the area's high property values averaging $800,000-$1.2 million and strong demand from business travelers visiting nearby corporate headquarters like Prudential Financial and Summit-based pharmaceutical companies. Properties in this affluent Morris County suburb can achieve average daily rates of $180-250 due to proximity to Manhattan (35 miles), excellent schools, and upscale amenities, with occupancy rates of 65-75% annually. Initial profitability typically occurs within 18-24 months, factoring in property acquisition costs, renovations averaging $15,000-25,000 for short-term rental optimization, and ongoing operational expenses including property management fees of 15-20%, cleaning costs of $75-100 per turnover, and municipal taxes averaging 2.5% of property value. The market benefits from consistent demand during peak seasons (spring through fall) and corporate travel, with properties generating gross rental yields of 4-6% before expenses, making Short Hills a moderately attractive but capital-intensive Airbnb investment market requiring substantial upfront investment but offering stable returns in a premium location.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Short Hills, New Jersey. Local real estate agents who focus on investment properties in the Short Hills area include Keller Williams Realty agents, Coldwell Banker specialists, and Century 21 professionals who understand the luxury market dynamics of this affluent Morris County community. National services like Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for Short Hills Airbnb investments. BiggerPockets connects investors with local experts, while companies like RedAwning and Awning offer property management and investment guidance. Local boutique firms such as Summit Area real estate investment groups and Morris County property investment consultants provide specialized knowledge of zoning regulations and rental restrictions in Short Hills. Additional services include STR Helper for market analysis, Hostfully for property management setup, and local property managers who specialize in luxury short-term rentals in the greater Summit-Short Hills area, though investors should note that Short Hills has strict residential zoning that may limit Airbnb operations.