Ownership Costs in the LBI Real Estate Market
Ownership Information in the Long Beach Island Real Estate Market
When buying a home on Long Beach Island, the purchase price is only part of the equation. Ownership costs in the LBI real estate market—including property taxes, flood insurance, maintenance, utilities, and seasonal expenses—can significantly impact your budget and long-term investment. Whether you’re purchasing a vacation home, a rental property, or a year-round residence, understanding these costs upfront ensures smarter financial planning and helps you avoid surprises after closing.
Commission & Listing Fees
Local Real Estate Agencies: If you choose to rent through a local agency, expect to pay a commission of 10%-15% of the base rental amount. While these commissions are negotiable in New Jersey, they provide valuable services, including marketing and tenant screening.
For Rent By Owner (FRBO) Websites: Platforms like VRLBI offer a flat-fee listing model, typically ranging from $500 to $1,000 per year.
National Rental Websites: Services like VRBO and Airbnb charge a percentage-based fee, similar to local agencies, but with added flexibility for homeowners managing their own bookings.
Cleaning & Maintenance Costs
Weekly cleanings are essential for rental homes, especially during peak season. Cleaning fees typically range from $300 to $800 per week, depending on the size of the property and the level of service required.
Routine maintenance and repairs should also be budgeted, as rental homes experience more wear and tear than owner-occupied properties.
Utility Expenses
With more occupants using the home, utility costs will generally be higher. On average, homeowners should budget an additional $1,000 to $2,000 per season for increased electric and water usage.
Rental Management Options
Managing a rental property can be a time-consuming task, but several options are available to simplify the process:
Local Real Estate Agencies: A traditional, full-service approach where an agency handles bookings, guest communication, and maintenance in exchange for a commission.
Evolve Vacation Rentals: Offers a low 10% booking fee, professional property listings, and cross-platform distribution with no long-term commitment.
VRLBI & Other FRBO Websites: Cost-effective alternatives that allow homeowners to handle their own bookings while avoiding high service fees.
National Booking Platforms: Websites like VRBO and HomeAway provide a direct-to-tenant approach but require owners to manage guest relations and property maintenance.
Whether you choose to work with an agency or manage your rental independently, understanding these costs will help you maximize your rental income while maintaining a well-kept property.
Rental Expenses
If you plan to rent out your home on Long Beach Island, it’s important to account for additional expenses that come with managing a rental property. These costs can vary depending on whether you work with a real estate agency, use an online platform, or manage bookings yourself. Commission fees for local agencies typically range from 10%-15%, while flat fees for platforms can range from $500 to $1,000. Cleaning fees average $300-$800 per week, and routine maintenance costs should be budgeted. Utility expenses may increase by $1,000 to $2,000 per season. Understanding these costs helps maximize rental income while maintaining a well-kept property.
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Nathan Colmer
C: 609-290-4293 O: 609-492-1511 Email Me
I’m Nathan Colmer, and I’ve spent years living, working, and exploring every corner of Long Beach Island. My deep knowledge of LBI comes from hands-on experience—understanding the unique character of each town, the nuances of oceanfront and bayside properties, and the factors that drive this market. Whether it’s flood zones, elevation requirements, or rental income potential, I know what matters because I’ve helped countless clients navigate these details successfully. My goal is simple: to provide you with clear, honest guidance so you can make the best decision for your lifestyle and investment.
