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Homeowners looking to rent their South Fork homes for the summer may benefit from a mild winter and a slower home-buying season. The result seems to be a stronger rental season than the last.
Robert Nelson, senior managing director at Brown Harris Stevens of the Hamptons, has been aware of weekends being busier than normal for this time of year. I did notice a number of people last year who were surprised that their wonderful home didn't rent, and this year it's already rented," he said, mostly crediting the weather, which has been enticing visitors regularly.
The rental market also appears to be strengthening in the wake of large home purchases in recent years.
"Last year, we had all kinds of price records," said real estate appraiser Jonathan Miller, of Miller Samuel Inc. "The expectation is that this year won't keep up with last year, which would lead to a greater demand for the higher-end seasonal rentals. That's the logic."
Mr. Nelson agrees, noting a behavioral trend that has existed for decades. "When a market is booming, people go to purchase; when a market is unsure, people go back to renting," he said. "Now we're in a level playing field," resulting in more people seeking out rentals, he added.
"The rental market benefits from a more subdued purchase market," Mr. Miller summarized.
There are, of course, a few self-evident variables that help determine whether a rental will succeed. For example, homeowners who offer clean, inviting houses that are fairly priced will have better luck renting them out, said Mr. Nelson.
This summer's average rental prices on the South Fork vary slightly from one municipality to the next. Depending on the area, the price to rent from Memorial Day to Labor Day can range from about $30,000 to $125,000 or more. Southampton Town and Southampton Village are the most expensive, with average prices hovering around $210,000, according to data provided by Douglas Elliman. Wainscott boasts the most affordable prices, with an average of $100,000 for the summer.
Summer rentals in Bridgehampton average around $190,000; Amagansett, $170,000; Montauk, East Hampton Town, East Hampton Village, and Water Mill, around $150,000. Finally, the average summer rental in Sag Harbor fetches $110,000.
With the summer season still a few months away, real estate professionals are reticent to offer fixed predictions, except to say that signs indicate there will be an uptick in rentals.
"There have been a lot of people out looking at rentals, and we're signing leases," said Mr. Nelson. "It looks like a respectable season."
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Carey London on Feb 28, 2016