When it comes to real estate, location is always important, whether it’s for your primary residence or a vacation home. The great thing about a vacation home is that while you can enjoy it with your friends and family, you can also rent it out and have an investment property that brings in weekly revenue. The better the location, and quality of the home, the higher the weekly rent you can charge.
Long Beach Island, long a desired destination for many families, has beautiful beaches, fun activities, amazing restaurants and wonderful shopping. “Every time you cross over the bridge, even though you're still in New Jersey, it absolutely feels like you're somewhere else,” says Alisa Molbert, a Realtor Associate® with Berkshire Hathaway HomeServices Zack Shore, REALTORS® in Ship Bottom.
The weekly rentals, according to Alisa, "from bayfront to beachfront and everything in between can range from $2,500 to $25,000 weekly depending on the location and property."
The average rental price, she says, has increased from $5,200 in 2020 to $6,925 as of February 2024. One of her current listings, though it has never been rented before, has the potential to bring in $3,500 weekly rental income or $35,000 for a 10-week summer season. You can enjoy a few weeks for yourself and rent out the rest both in season and yes, even off season. The demand is there.
People also enjoy renting in the off season, when the beaches are quieter, but the water is still warm. There are also plenty of activities on the island as well such as Kite Fest and Chowder Fest in the fall. And, as a bonus, dogs are allowed on the beach in the off season, so you can bring your furry family member on vacation with you!
Although rental rates are not as high in the off season, they are still very impressive. Let’s look at an example of Alisa’s current three bedroom, two bath 1,200 SF beautiful listing located at 9006 Long Beach Blvd #B in Long Beach Twp, NJ. “In May, June, October and November, there is the potential of $2,500 weekly or more, property specific.” With a potential of the additional 16 weeks of rental income, it has the potential to bring in an estimated $40,000 in off-season rental income. Combine both the ten weeks in season of $35,000 and the additional 16 weeks off season, the property has a potential rental income of $75,000 for only 26 weeks of use!
People also like to rent during the holidays, such as Thanksgiving, Christmas, New Years, and Easter. It’s a unique way to celebrate. “I estimate those rental rates would be about $2,000 for the week,” says Alisa.
Buyers who are interested in a rental LBI investment property should look at the home’s prior rental history (if it’s been rented before) or benchmark similar properties to estimate and forecast the potential weekly rental income it can bring. Again, location matters. “Beach Haven, on the south side of the island, tends to be more popular with families because of Fantasy Island,” she says. “There’s also Bay Village for shopping and lots of restaurants.
“Towards the north side of the island, Surf City is very popular because renters can walk or bike to restaurants and shops.” The farther north you go, the quieter it gets, and that’s a great sanctuary for people looking for a more restful vacation.
Since inventory is still low, Alisa recommends looking for properties as soon as possible if you want to be in this summer. Even if you don’t want to invest in a rental property, investing in an LBI shore house brings many impressive financial rewards.
“In 2020, the average sales price in LBI was $1.192M,” she says. “At the end of 2023, the average sales price was $1.938M. That’s quite a bump. You can put your money into these properties and watch them gain equity because we are still anticipating prices to continue to increase for years to come.”
Whether you are looking for a wonderful summer vacation home to enjoy with your family or a revenue generating LBI property, the data shows that it can be great investment to add to your portfolio.
Alisa is not only an award winning LBI Realtor, but she is also a long-time resident of Long Beach Island. If you are curious about options and are looking to own a shore house, go to LongBeachIslandListings.com and reach out to Alisa at AMolbert@ZackShore.com.
“A lot of homeowners who rent also block time for themselves.”
