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 understand specific requirements, which typically include obtaining a Certificate of Occupancy for rental use, business registration, and potentially a short-term rental permit. Find a suitable property in Short Hills' upscale neighborhoods, considering the $800,000-$2M+ property values and targeting the area's business travelers and visitors to nearby Summit and Millburn. Ensure the property meets New Jersey's rental safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with high-end amenities matching Short Hills' affluent demographic, including quality linens, modern appliances, and professional décor. Register for New Jersey sales tax through the Division of Revenue and obtain necessary insurance coverage. Create your Airbnb listing with professional photography highlighting proximity to Short Hills Mall, NYC train access via Summit station, and the area's prestigious reputation. Set competitive pricing around $150-300+ per night based on local market rates. Implement management systems for guest communication, cleaning between stays (budget $100-150 per turnover), and compliance with New Jersey's 30-day advance booking requirement for short-term rentals under certain circumstances, while maintaining detailed records for tax purposes and potential township inspections.

To identify profitable STR properties in Short Hills, New Jersey, focus on location criteria including proximity to major corporate headquarters like Bell Labs, Summit downtown area, and NYC transportation hubs via NJ Transit, as this affluent suburb attracts business travelers and visitors to nearby pharmaceutical companies and financial firms. Target property features such as 3-4 bedroom single-family homes or luxury condos with modern amenities, parking, and professional-grade WiFi, as the area commands premium rates of $200-400+ per night due to its high-income demographics and limited hotel inventory. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against the 15-25 existing STR properties in the immediate area, focusing on seasonal demand patterns driven by corporate relocations and summer family visits. Research competition by analyzing occupancy rates of properties within 2-3 miles, noting that successful listings often emphasize proximity to Short Hills Mall, local restaurants, and easy Manhattan access. Utilize tools like Rabbu for New Jersey-specific STR regulations, connect with local real estate agents familiar with the Morris County luxury market, and leverage the Short Hills Chamber of Commerce for networking, while ensuring compliance with local zoning laws that may restrict STR operations in certain residential areas.

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, proof of property ownership or lease agreement, certificate of occupancy, floor plans, proof of liability insurance (minimum $1 million), fire safety inspection certificate, and a site plan showing parking availability. You'll need to pay application fees ranging from $150-300, annual licensing fees of approximately $200-400, and inspection fees of $100-200. The timeline generally takes 4-8 weeks from submission to approval, 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, install smoke and carbon monoxide detectors, provide emergency contact information to neighbors, maintain quiet hours from 10 PM to 8 AM, and limit the maximum number of guests to 2 per bedroom plus 2 additional guests. Properties must also pass health and safety inspections and operators must register with the state of New Jersey for tax collection purposes.

Short-term rentals (STRs) in Short Hills, New Jersey are generally prohibited or heavily restricted as Short Hills is primarily a residential community within Millburn Township that maintains strict zoning ordinances to preserve its residential character. Millburn Township, which governs Short Hills, typically does not permit commercial activities like short-term rentals in residential zones, and most properties in Short Hills are zoned for single-family residential use only. The township has historically enforced zoning laws that prevent the operation of transient accommodations in residential areas, and there have been no recent legal changes to allow STRs in the community. Property owners looking to operate short-term rentals would likely face zoning violations and enforcement actions, as the township prioritizes maintaining the quiet, residential nature of the area. Any potential STR operation would require special permits or zoning variances that are rarely granted in this affluent residential community.

The most attractive areas for Airbnb investment in Short Hills, New Jersey include the neighborhoods near the Short Hills Mall and downtown area, particularly around Hobart Avenue and White Oak Ridge Road, which benefit from proximity to one of the nation's premier luxury shopping destinations attracting visitors year-round. The residential areas near Chatham Township border are ideal due to their accessibility to both Short Hills train station and nearby corporate headquarters including companies like Prudential Financial and other Fortune 500 businesses in the greater Morris County area, generating consistent business travel demand. Properties near the Cora Hartshorn Arboretum and Bird Sanctuary attract nature enthusiasts and families seeking weekend retreats from New York City, just 45 minutes away by train. The neighborhoods surrounding Short Hills Country Club and Baltusrol Golf Club are particularly valuable for golf tourism and corporate events, especially during major tournaments. Areas within walking distance of the NJ Transit train station on Stewart Road command premium rates due to the direct 35-minute connection to Manhattan's Penn Station, making them perfect for business travelers and tourists who want suburban comfort with urban accessibility.

In Short Hills, New Jersey, Airbnb properties 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. Additionally, Essex County imposes a 5% hotel/motel occupancy tax on short-term rentals. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automatic tax collection system, which began in New Jersey around 2019, and the platform remits these taxes quarterly to the New Jersey Division of Taxation and Essex County tax authorities. Property owners who collect taxes independently must register with the state, obtain a Certificate of Authority, and file monthly returns by the 20th of the following month using Form ST-51. Exemptions include rentals to permanent residents (90+ days), certain government employees on official business, and properties rented for less than $15 per day, though few exemptions typically apply to standard Airbnb operations in Short Hills given the area's high property values and typical nightly rates.

The total cost to start an Airbnb in Short Hills, New Jersey would be 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 would range $40,000 to $60,000 for high-end furniture, appliances, linens, and decor suitable for luxury guests. Initial setup including professional photography, listing creation, and marketing materials would cost $3,000 to $5,000. Permits and fees including business registration, short-term rental permits, and potential homeowner association approvals would total $2,000 to $4,000. Insurance including liability coverage and property protection would cost $8,000 to $12,000 annually. Utilities including electricity, gas, water, internet, and cable would run $3,000 to $4,000 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and property management would total $15,000 to $25,000. Additional costs for legal consultation, accounting setup, and contingency funds would add another $10,000 to $15,000 to ensure smooth operations in this premium market location.

Airbnb properties in Short Hills, New Jersey demonstrate strong profitability potential with average nightly rates ranging from $150-300 due to the area's affluent demographics and proximity to Manhattan, generating annual revenues of $35,000-65,000 for well-managed properties. Operating expenses typically include 25-30% for Airbnb fees and payment processing, $8,000-15,000 annually for property management, $3,000-6,000 for utilities, $2,000-4,000 for maintenance and supplies, and $1,500-3,000 for insurance, resulting in net profit margins of 35-45% for successful operators. Success factors include luxury amenities targeting business travelers and weekend visitors, professional photography showcasing the upscale neighborhood, strategic pricing during peak Manhattan events, and maintaining 4.8+ star ratings through exceptional guest experiences. A typical 3-bedroom property near downtown Short Hills averaging $220 per night with 65% occupancy generates approximately $52,000 annually, with total expenses around $28,000, yielding a net profit of $24,000 or 46% margin, though properties closer to train stations and shopping areas like The Mall at Short Hills command premium rates and achieve higher occupancy rates of 70-80%.

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 proximity to Manhattan and high-income demographics. Properties in this affluent Morris County suburb, with median home values around $1.2-1.8 million, can command nightly rates of $200-400 for luxury accommodations targeting business travelers and families visiting the area. Initial profitability usually occurs within 18-24 months, assuming 60-70% occupancy rates and accounting for New Jersey's property taxes averaging 2.4% annually. The market benefits from consistent demand due to Short Hills' location near major corporations like Prudential Financial and proximity to Newark Liberty International Airport, though investors should factor in higher acquisition costs and potential regulatory restrictions that some New Jersey municipalities have implemented on short-term rentals.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Short Hills, New Jersey. Local real estate agents like those at Coldwell Banker Residential Brokerage, Keller Williams Mid-Town Direct Realty, and Century 21 Moretti Realty have extensive knowledge of the Short Hills market and can identify properties suitable for Airbnb investments. National services include Mashvisor, which provides Airbnb analytics and investment property search tools, AirDNA for market data and revenue projections, and Roofstock for turnkey rental property investments. RedAwning offers property management and optimization services for short-term rentals, while local property management companies like Awning and HostGPO can handle day-to-day Airbnb operations. Real estate investment firms such as Roofstock and Fundrise also operate in the New Jersey market, and platforms like BiggerPockets connect investors with local professionals who understand the Short Hills area's zoning laws, HOA restrictions, and profit potential for vacation rental properties.