Hidden Costs of Buying an LBI Real Estate Vacation Rental

Costs of Owning a Vacation Rental in the Long Beach Island NJ Real Estate Market

Long Beach Island Real Estate

There are many investment opportunities in the Long Beach Island real estate market, and one of the most common is buying and managing a summer vacation rental. While owning a rental home in the LBI real estate market has historically proven to be a great investment, there are hidden costs you need to consider before purchasing. Understanding the costs, both in time and in finances, that is involved with owning a vacation rental property on Long Beach Island is a key first step in the sale process.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Hidden Costs of Buying an LBI Real Estate Vacation Rental

The first item to consider is the cost of purchasing the property and the pricing of the LBI real estate market. Long Beach Island is a popular destination, and as such, property prices are high. You must have a sizeable down payment and be prepared for mortgage payments, property taxes, and insurance premiums. The summer rental income should easily cover the monthly ownership of a home on Long Beach Island, but this needs to be evaluated first and foremost.

Additionally, owning a vacation rental property in the LBI real estate market requires ongoing maintenance and repairs. You will need to keep the property in top condition to attract renters, which can require regular updates and renovations. The amount of time and money that this will require will depend on how much involvement you want to have. Some owners will take on some of this role themselves, while others will outsource everything, thereby increasing the ownership cost of the home.

Another hidden cost is the cost of advertising and marketing your property. With so many vacation rental properties on Long Beach Island, you need to invest in effective advertising to make your property stand out. This can include listing fees on popular rental websites, professional photography, and social media advertising. The pricing of advertising and marketing will vary greatly. Local LBI real estate agencies tend to be the most expensive, typically charging between 10% and 15% of the rent, but they will manage the process for you. There are the national rental websites, such as VRBO and Airbnb, which will charge less but require more of your time, and lastly local websites like VRLBI which are by far the least expensive, but require the most work on your part.

You will also need to be prepared for unexpected costs such as property damage caused by renters, emergency repairs, and legal fees. These costs can quickly add up and impact your bottom line.

Lastly, there is a hidden cost of time. Before buying a home on Long Beach Island, you should be prepared to do at least some work to manage and maintain the property. This will vary depending on how you advertise and manage your LBI rental property, but no matter what, there will be some investment of time.

Costs of Owning a Vacation Rental in the Long Beach Island NJ Real Estate Market

Owning a vacation rental property on Long Beach Island can be a lucrative investment, but it’s important to consider the hidden costs before making a purchase. By taking the time to understand the full financial commitment, you can make an informed decision and ensure that your investment is profitable in the long run. For more information about Long Beach Island or about the LBI real estate market please do not hesitate to contact me.

By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market