By William Sokolic
Fall is not quite in the air yet, but Labor Day is upon us, and in Jersey Shore lingo, it means summer is sort of over. But the shoulder season of September and October marks another opportunity for the business community down the Shore to cash in. The rental market could use the extra weeks.
It was not a great year. A little off, if we’re being honest here. Then again, it’s been a little off for two maybe three years now. And vacation rentals remain one of the key indicators of a successful summer season. The market from Ocean City to Brigantine took a dip, whether the community relied on weekly rentals, often from Saturday to Saturday, or seasonal or half seasonal rentals in the Downbeach towns of Longport, Margate and Ventnor.
Real estate agents blame the poor showing on higher rental fees, which priced many folks out of the market. The high prices began the summer after the Covid 19 pandemic when the pent-up demand was met by elevated rental fees. But property owners kept the high prices through this season when the market demanded otherwise.
Monihan Realty, in Ocean City, had one of its best years in 2021, but the numbers have declined since, says broker Chris Monihan.
“We had a lot of open weeks even in July and August,” he says. ”The rental fees were in line with last year but still riding the post-Covid increases.”
People go to Europe or the Caribbean. But the Shore is still on everyone’s list and it’s still more affordable, especially if two families get together and share the apartment, Monihan says.
Over in Brigantine, few owners increased their rates from 2023, says Tammy Lancaster, a broker associate of Weichert Realtors-Brigantine Realty.
“I believe that people are taking the `Big Vacation’ this year instead of just going to the Jersey Shore,” she says.
The Shore is still on people’s radar, even if they rent a property in the shoulder season of September and October. The prices come down in the fall and the weather can often be more cooperative than the summer. Lancaster says about 10 percent of its annual market comes from these types of rentals.
“It’s slower than the last four years after Covid drove prices up,” said Angela Desch, broker for Keller Williams Realty Jersey Shore in Margate. “It’s cheaper for tenants to travel overseas.”
Downbeach communities also faced less demand for full summer rentals, as renters combined the summer with vacations away from the Jersey Shore. The market often leaves some properties available for half season rentals, with the second half running from August 1 to Labor Day.
Still, properties remain vacant, Desch says. The vacancy rate could be as high as 40 percent. “Landlords have lowered prices to get tenants,” she says. “This has put a strain on landlords. They do creative things to get rented or adjust prices to pre-Covid leases.”
Airbnb and VRBO offer short term rentals, some for two or three days, but the impact on the traditional rental market has been minimal, Desch says.
“Vacationers who come to Downbeach do so for the amenities,” Desch says. “It’s a different mindset. The bars and growing number of restaurants add to the mix as does a kind of family atmosphere.”
In the long run, people prefer a month in Margate to a month in Europe, said Michael Busler, professor of finance at Stockton University.
According to Mayor Tim Kriebel, Ventnor has no laws on the books to prevent landlords from renting their apartments or homes weekly like Brigantine or Ocean City.
“If the Realtors or statistics you’ve seen don’t reflect these types of rentals, I’m not aware of anything the city has done to inhibit them,” Kriebel says.
What the city doesn’t want is a weekend party house. The current ordinance establishes short-term rentals as less than 30 days. The ordinance establishes minimum rental periods based on the number of bedrooms:
Two-bedroom units: minimum of two nights,
Three or more-bedroom units: minimum of three nights,
“At the end of the summer, we plan to review all the data we’ve gathered on short-term rentals. We may consider extending the minimum rental period to five days for homes with a large number of bedrooms (five or six) to deter party houses,” Kriebel says.
The Downbeach communities would rather have a more stable renter who is not there for partying but rather is there to enjoy a season or a month of more quiet enjoyment of the beaches, restaurants and local shopping, Busler says.
In the meantime, there is next year to think about. “Our suggestion was to not raise (rates) anymore,” Monihan says.
As a result, he expects a turnaround next year. The number of bookings in 2025 are already off to a good start.
William Sokolic is a veteran journalist who has written for daily, weekly and monthly publications. He’s covered a wide range of news, features and entertainment stories. Much of his work concerns tourism, Atlantic City, and the gaming industry.
