THE ULTIMATE LBI BUYER’S GUIDE
Everything You Need to Know About Buying a Home on Long Beach Island
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.
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.