southampton

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.

Weekend Wrap-up; Renting Sight Unseen… Winter of Our Discontent Continues!

So, it was another snowy weekend here on the East End.    The snow, the ice, the frigid cold and the general lousy weather continues here in the Hamptons.     While internet activity for rentals and sales still remains strong and steady,  the number of people willing to trek through snow and frigid temps is dwindling.    This in turn has led to a number of rentals actually being rented sight unseen.

Rapid Rescue… lifesavers!  Yep, that’s my car!

One broker I spoke with “E” said it, “makes me very nervous.”    Renting from a picture which could have very well been photo-shopped is a bad idea.    Another agent “G” indicated that they’re seeing tenants from previous seasons going back to the house they rented last year so they don’t have to come back out and look again.    Speaking to my cadre (aren’t you impressed with my vocabulary?) of experienced brokers and agents, the weather continues to put somewhat of a damper on the Hamptons market.   That being said, once the snow melts they’re expecting an explosion of activity….  because phones are ringing and e-emails are being traded back and forth.  So the grade for this weekend was a C+. I really have to go to Florida soon! 

An offer at Guild Hall you can’t refuse!

If you want an example of how difficult it is to get around the Hamptons, look no further than yours truly.     I made the mistake of taking my “4 Wheel” car out last night to pick up some food.    But alas, after one gunning of the accelerator and a slippy driveway I ended up in a snow bank on my own driveway.   I mean with all of the ice, if you don’t see sharp you’ll be flat (read that again).   Anyway, thanks to RAPID RECOVERY and $135,  I finally got my car out this morning.    By the way, I also want to thank my lovely neighbor for trying to pretend he didn’t see.    I wasn’t going to ask for your help anyway!    So for the next few days, keep Rapid Recovery on speed dial, they were great and there in about an hour…(631) 728-7752.

Meanwhile, this week there’s an offer at Guild Hall you can’t refuse.  The East Hampton film society will be presenting a special screening this Thursday night at 7 p.m. of the 1972 classic, “The Godfather.”  Personally I liked the “Godfather II” better but still this flick glues me to the screen every time I catch it on TV.   Tickets are $8.00 for non members.  If you want more information  click here for the website and you can also buy tickets.  So, take it to the mattresses and go get a ticket…. otherwise you may find a horse in your bed!

MONDAY MORNING MARKET REPORT…. HAMPTONS WEEKEND ACTIVITY!

 

One of the first questions I get asked every week is “how busy was the weekend?”   Here in the Hamptons, the real estate market (IMHO) really sees most of it’s action Thursdays – Sundays.   It makes sense since we are a secondary home market that most buyers come on the weekends to take a look.   That being said, I’m going to try on Monday mornings to quarterback the weekends activity!   I mean we all get those market reports but in a world where everyone wants instantaneous information this is my attempt to satisfy that need.    From now on every Monday I’ll be posting my “MONDAY MORNING MARKET REPORT.”

The results of this little “report” are not very scientific but I’m trying to make it as accurate as possible.   It is compiled from a cross section of about a dozen broker and agents from different companies and all have more than 5 years in the business and have at least a hand full of listings and are actually earning a living.    It’s a “Hamptons Chatter” exclusive and hopefully more accurate than a Brian Williams special report broadcast but not quite as detailed as PBS’ Newshour.

The weekend of February 6th-8th has traditionally (this time of year) been a slow to moderately busy weekend for Hamptons real estate and this year was pretty much on par with last.    While Internet traffic has been steadily increasing with a a big bump back on MLK weekend, the cold and icy weather put a damper on actual showings and appointments.   Homes with un-plowed drives and walks covered with snow made it difficult for buyers, renters, sellers and agents.     Some agents have also mentioned homeowners concerns with liability issues over icy and dangerous walkways.

Rental traffic has also been effected by the bad weather.   While there is still ample rental inventory, homeowners are choosing to hold out for whole season rentals before breaking down to monthly terms due to the slow traffic.    We can also expect to have more rentals to be added to the market as agents continue to update from 2014.

The above factors have impacted overall activity and influenced it’s grading as a “C” weekend.  This is on a grading system of “A” being extremely busy and an “F” being dead as a door nail.   Look for a jump next weekend as the President’s Day Holiday has traditionally been a busy time for everyone on the East End.

Meanwhile, since so many Hamptonites have been hunkered down and snowed in more times than not these past few days,  I have a suggestion that will make that time in front of the fire and flat screen a little more bearable.   Why not grab a box of wine?   Yes, a box of wine.    But before you roll your eyes, I’m here to tell you these aren’t your “cheese cubes and Ritz crackers” boxes of wines.   With some of the biggest and best vineyards in Europe and California already boxing their potable spirits, it was only a matter of time before Long Island vineyards joined the trend.  If you don’t believe me, check out this article from Edible East End … it’s worth the read!

So remember, stay warm be careful on the icy roads and remember to top that box to get the last drop!  Cheers!

 

YEEEEE GADS! It’s Already August 8th! A FEW THINGS YOU NEED TO DO BEFORE LABOR DAY!

In case you were sleeping, it’s now August and it’s full throttle here on the East End.   But unlike Summer when I was 12 years old and it lasted forever, the season seems to fly faster and faster.     But before you get to entrenched with sitting on Route 27 for hours on end or waiting an extra 40 minutes at virtually any restaurant for your table, please make sure to remember why you’re out here in the first place.  You’re here to enjoy the beach, the water, the sun and snarking at the overdressed families at Scoop Du Jour on Tuesday nights!   So here are some of my favorite things to do while the sun is still high.  If you do, you might actually thinking spending all of the money to be in the Hamptons was worth it!

 

A Beach Dinner – While you could use one of the numerous “Claws” or “Clam” companies to caterer your affair… and yes its one heck of a presentation… I prefer to hit Citerella and get some dishes and salads to go.    A big blanket and some nice chilled….errr…errr… “seltzer water” because wine on the beach is not allowed make for a really fantastic evening.  You’ll may also want to wait till after 6 p.m. so that way you can start a nice little beach bonfire and there are some rules for that too (click here) for East Hampton and (here) for Southampton.    But there is nothing more relaxing and memorable then the sound of the surf, the sand and an amazing light show above!  My personal favorite is Wiborg Beach!   The parking lot is small so there aren’t as many other picnickers.

Biking Shelter Island – A few weeks ago I was talking to some local police officers about living in the Hamptons.  One thing they said they would never do during the season is go bicycling!  Yes, the local walk in clinics are making a fortune from cyclists getting clipped by texting busy summer drivers.    Perhaps that’s the reason why I prefer heading to Shelter Island for biking.     In fact, Sag Harbor Cycle Company runs a group ride every Sunday at 7:30 am.  It’s a perfect time to go before the roads get flooded with cars and the gang that runs these things know the safer routes and the roads less traveled.   If you want more information, visit their website and NO TEXTING AND BIKING!

Go Paddeling – It’s about the water people, not about seeing the people that live down the hall from you in the city at spin class!  Its a great work out and think about it, unless you love getting a gamma globulin shot do you really want to fall into the east river?   There are some great companies out here that will rent you kayaks or paddle boards and even give you a lesson.     The calm waters of Shinnecock Bay or Georgica Pond are two local favorites.     If you want more details on who and where, try Main Beach Surf Shop in Wainscott or Adventure PaddleBoards in Southampton.

Take the Dogs to the Beach –  Did I mention that my dogs Bella and Russell love the beach?!  Hmmmmmm…. I’m not sure.  Do your homework and find what times your furry friends are allowed to run the surf!  Also remember to clean up and bring some treats in case they go chasing some delicious piping plover!

Now get off the damn computer and go outside!!!!