East Hampton Summer Rentals Tanking?

Next week already is July and the East Hampton summer home rental market is one of the weakest since the bubble burst in 2007.

Now there will be the “Brexit” factor. Rosehip Partners (hamptonsrentals.com) rental agent Diane Shifman, a sailing buddy, has been saying for years, “July is the new August. People don’t want to rent as much in August. Shool starts early and the weather in late August is unpredictable.”

Other homeowners I spoke to seem very disappointed they were not able to rent their homes from Memorial Day to Labor Day as in past years. They say the trend is for weekly requests. Now with the new East Hampton registry law renting weekly is challenging because the homeowners like the idea of one big check, one big deposit and no hassles.

Other homeowners are complaining that those skirting the new registry law are at an advantage because some renters don’t want a paper trail of their activities and wish to pay in cash with a discount. Paying a $75K-like seasonal rental fee is a growing problem with shrinking middle class incomes and the rising cost of living.

Then there are some renters who think the prices are now too aggressive with too many homeowners falsely making big claims against the deposits. They believe longs weekends in Montauk motels are the new cost effective way, yet they are not thrilled with the scene in Montauk, even if it is now more under control.

Renters are now looking for creative ways to get what they want without paying what the homeowner wants. The savvy renter believes a good deal on a rental finances the rest of the summer vacation.

There is no way in forecasting the future effect of this situation on home prices in the Hamptons. The market is soft. There have been some Richard Gere splash deals here and there but notice the selling prices are way less than the asking prices — very different then 2006 when the elite homes sold at a premium.

The goods news is really hot weather can change things mid-summer for those who homes are still unrented. True, they will have to prep their homes a few times instead of once and the checks will be smaller but that’s the rental business. No one is pointing the finger only at the East Hampton town board and the new rental law, but no one can argue the new law hasn’t helped the rental season of 2016 in East Hampton.