kevo

IF YOU WANT TO RENT YOUR HOUSE IN THE HAMPTONS….. A FEW THINGS YOU SHOULD KNOW FIRST!

One of the great things about owning a home in the Hamptons is your ability to rent it out.    Yes, for some it’s a cash cow and can help off set most of your yearly expenses in just 3 short months.    But you better know what you’re doing.   If you rent to the wrong tenant or your house isn’t ready, you could end up making less than money than a romantic comedy with Katherine Heigl and Nicholas Cage.

So what do you need to know and how do you get the most money possible for your rental?  Well luckily Hamptons Chatter is here to tell you.

Price it Right – This is my rule of thumb…  if you just bought your house and it’s decorated and well maintained, you can expect about 4-5% the cost of the property for the Memorial Day to Labor Day period.   50% of that should be counted for the August rental.   For example, your Restoration Hardware decorated home you just bought for $1,000,000 should rent MD-LD for $50k or $25K for August.   This is not a hard and fast rule.  If your house is a few years old, ask an agent what they think would be a good rental price. It’s also not a science so adjusting the price as you get close to the season may be needed.

List your property properly –  First off, keep it as an open listing.  Unless you’re renting your home for $250k or more, most companies won’t even take an exclusive rental and that’s not a bad thing.   Agents are no different than anyone else and they’re looking to earn a living.   So if it’s between a $100k rental that’s an exclusive rental where the agent will have to give a chunk to the listing agent or an open listing where they get the lions share, which one do you think they’re going to show?   Most rental listings in the Hamptons are open listings, so keep yourself competitive.   But also know, unless you tell your agent to share the listing you’ll need to make sure every company has your home and at the right (same) price!

Busy, busy, busy!!  www.uglyhousephotos.com

Get the house ready to go – If agents are starting to show your house,  it should look like your tenants are moving in tomorrow.     Reduce the clutter around the house, make sure all of your photos and personal Nick-knacks are stored away and please, please, please keep it neat and clean.    Also, less is more…. if the house is overloaded with furniture that’s not a plus for most tenants, it will only make the property feel crowded and full.
your house if there are dirty dishes are in the sink and pet hair on all of the sofas (nobody wants to live in someone else’s dirt).   “Clean” is also a key word when it comes to decor.   Busy patterns or tons of floral bed spreads, pillow cushions or curtains will overwhelm some potential tenants.   While you’re taste may be good, it might not be for everyone.   That’s why   Do not show Baskin and Robbins has 31 flavors but you don’t need that many colors!

Make it and easy show – While I don’t suggest leaving a key under the mat (that’s a really bad idea for a number of reasons).   You have to make sure agents have easy access to your property.   Customers run late… HELLO, IF THINK YOU’RE IN THE HAMPTONS AND YOU DIDNT HIT TRAFFIC YOU’RE ONLY IN SHIRLEY…. and sometimes agents run late too so if it becomes to difficult to coordinate they’ll move on.  The best way to control access and make sure you get shown is to drop a key off with your local broker.  They’ll keep the key locked up and log who borrows and uses the key.   You could also buy a lock box or better yet buy a digital remote system where you can grant access to your home via your cell phone.  My personal favorite is the KEVO system, which you can buy easily enough on Amazon.

Get professional photos – If you want a good laugh, go through one of those “home for rent -by owner” sites.  Would you rent some of these homes?   I didn’t think so.  Bad photos are a home owners biggest enemy.   My advice is hire a professional photographer (call any agency they’ll recommend who to call) and then share these photos to all the agencies.   You have to spend money to make money and this particular expense is a no brainer to me.

Finally a few last points about “Hamptons Summer Renting” – if you use an agent to rent your house you’ll need to pay the commission and in most cases it’s 10% of the term of the lease.     It might seem like a lot but most agents screen their customers or get them via referral.  You’ll be less likely to get a bad egg tenant.     Also, most leases require that tenants will maintain the property while in residency, so make sure they use the folks who know the house… your housekeeper, your lawn guy, your pool person, etc.

Also, if you live in Southampton Town make sure to get a rental permit.  It’s not easy to do but it will protect you in the long run if you have problems with the tenant.

Now remember, I couldn’t cover everything in this brief posting but I hope its a helpful start.   I also know not everyone will agree with my advice so feel free to post what you think.

BLOCKING THE BROKER BULL AND HOW WE CAN STILL SAVE THE HAMPTONS!

I’ve always wondered what the owners of those 10, 20 or 30 million dollar homes in the Hamptons would say if they knew that the “power broker” agent they hired, rarely accompanied showings in their home?!  While not all of these brokers do it but it’s more common than you think!     In my opinion at least 50% of brokers go ahead of time and unlock the home or leave a key under the mat.    Seriously!   Think about it.   If they have say 40-50 listings and they’re as busy as they’re telling you, how can they possibly be there to actually “SELL” the house.   Nobody knows a house better than an owner, but it’s an agents job to be there and explain why the home is worth it and actually earn their 6%!

Kevo lock…tells you who is coming and going!

So what is a seller to do?  Well one solution that I encourage is to install a KEVO Keyless entry system.   This nifty system retails for about $220 dollars on Amazon and allows you to unlock your door just by tapping on it, thanks to Bluetooth technology that will detect the smart phone in your pocket or a fob for those less tech savvy.   The best part about this is you can also give “e-keys” to your agent, friends, workmen, whoever to let them in when you’re not around.  It also keeps track of who is coming and going and when.    It’s a good way to see if your agent is really showing your house in addition to telling you when and how often.

Meanwhile, if you’re reading social media of any sort you probably noticed it’s crankville here on the east end.   The locals say the summer people are nasty and rude and the summer people say the same thing in reverse.    Either way, it’s tense out here and it’s something my friend on Facebook “Robert” called “S.A.D.” – Summer Affective Disorder.  Although I’ve gotten accustomed to this seasonal fatigue we have a new honor here on the east end,  Conde Nast Traveller placed the Hamptons in their “Top 10 Undfriendliest Places” in the U.S.”    It’s enough to make someone move to Asbury Park… NOT!    But let’s be real here.  It can be unfriendly but it’s not too late.   I’m asking everyone who reads this blog to take the following few steps and we can turn the Hamptons into the Stepford of beach communities in no time!

1 – Say “thank you.”  – Nobody is entitled to have a door open for them unless they’re going into K-Mart’s auto doors.    If I hold a door for you, it’s not an admission of your entitlement or my own social guilt.   It’s just a matter of being human!    So pay it forward, just say “thank you!”

Yes, Johnny is just adorable!

2 – Don’t expect others to tolerate your bad behavior or that of your children! – True stories here…. Scenario 1 – I tell a small child not to step in the busy street while their parents are busy staring into Tory Burch, as the parent rushes I stop the kid from going forward to which the little spawn screams “Don’t tell me what to do, you’re not my father.”   NICE!  But what’s worse is the father doesn’t say thank you or apologize for the kids obnoxious response!   Hmmmm.   Scenario 2 – local bagel store starts making my bagel for me when I stop the clerk and say it’s not what I requested and correct the order.   When checking out, I say to the worker “sorry for the confusion.”   But rather than say, “no problem,” she grunts and continues to ignore me!   I wasn’t rude so don’t be rude to me!   Golden rule folks, treat others as you want to be treated no matter who they are and what car they drive  (YES, having driven both a Ford Taurus and a BMW there’s discrimination on both sides).

3- Smile and lighten up Frances! – It’s summer and it’s the Hamptons folks!   DO YOU KNOW HOW LUCKY WE ARE?!   There’s nobody launching rockets at your house or depriving you of your ability to shop Citarella!   Take a deep breathe, enjoy the moment and realize you’re in one of the most spectacular places on the planet!    Life can be a beach you just have to let it happen!