As retirement approaches, I often receive inquiries from people wanting to supplement their living expenses with rental income. Small towns like Ridgefield in Bergen County have a steady demand for rentals due to their convenient commuting options to New York. However, even within Ridgefield, areas close to Main Street and quiet residential neighborhoods show different rental prices and tenant demographics.

The average rent for apartments in Ridgefield is reported to be around $2,611 per month as of July 2026. When looking at Bergen County as a whole, the average rent for a two-bedroom unit is $3,181 per month, which is a useful figure for investors considering renting out condos or townhouses. However, the actual rent you can charge may vary based on school district assignments or proximity to transit, so it's advisable to check the actual rental prices of nearby properties before making a purchase.

For those considering investment after retirement, the first thing to address is the loan conditions. Investment properties typically require a higher down payment than primary residences, usually ranging from 15 to 25 percent. While a credit score of 620 or higher allows for loan approval, a score above 740 is needed to secure favorable interest rates. Interest rates for investment properties are often set 0.5 to 0.75 percentage points higher than those for primary residences. If you plan to use part of your retirement funds for the down payment, it's important to calculate your remaining cash flow and monthly principal and interest payments.

During the loan approval process, only about 75 percent of the expected rental income is typically considered as income. This is calculated based on the rent schedule included in the lease agreement or appraisal report, so it's wise to verify the expected rent for the property through an appraiser or agent before purchase. Industry experience suggests that if the monthly rent exceeds 1 percent of the purchase price, the cash flow is likely to be positive, but remember this is just a starting point and not an absolute standard.

New Jersey does not implement statewide rent control. Some municipalities, like Newark and Jersey City, have local ordinances that limit annual rent increases to below the cost of living increase, but many small towns in Bergen County, including Ridgefield, often lack such regulations. However, the Anti-Eviction Act, which applies statewide, stipulates that tenants cannot be evicted without just cause, so it's important to approach tenant management carefully, regardless of rent increases. Check with the city hall or county to confirm whether such ordinances apply.

Property taxes are another item that can easily be overlooked when calculating cash flow after retirement. As of 2026, the effective tax rate in Bergen County is about 1.69 percent, which is lower than the New Jersey state average of 2.23 percent but still high compared to the national average of 0.91 percent. If you are moving from another state, you might estimate property taxes based on your previous residence and be surprised by the actual burden, so it's advisable to check the recent tax rates for the town before purchasing.

• Check down payment requirements of 15 to 25 percent and credit score criteria
• Keep in mind that only 75 percent of rental income is considered in loan assessments
• Calculate holding costs based on Bergen County's effective tax rate of about 1.69 percent
• Reassess net cash flow including landlord insurance and management fees

If you cannot manage the property yourself, hiring a property management company is an option, but typically incurs a fee of 8 to 12 percent of the monthly rent. When you add in landlord insurance, which has different coverage than standard homeowners insurance, and maintenance costs estimated at about 1 percent of the property's value annually, the net cash flow often decreases from the initial calculations. If you are in the stage of planning your income flow after retirement, it can be a practical benchmark to check if you still have a surplus after accounting for all these items. If you plan to sell this property later and move to another investment property, consider utilizing a 1031 exchange to defer capital gains taxes.

This article is not investment or legal advice, and it is recommended to consult with real estate and tax professionals before making any actual contracts.