Northfork Properties

Desperate Times in the Hamptons – Real Estate Agents Push Rentals

 
Posted on Monday May 23, 2016 2:23 AM
by Joseph Kazickas No Comments »

For the moment, at least, the mood among players in the Hamptons real estate market has turned negative. Brokers have been openly avowing a slow down in the market place and the data confirms it. Sales on the East End of Long Island are down year over year.
But another interesting thing is happening, observable in the mass email communications sent from agency to agency. Emails captioned “Rental Update”, “Courtesy Rental”, “Rental Open House” have increased exponentially over the last year.
For 2016 more real estate agents are circulating and sharing more rental market related data than ever before. This is happening because real estate agents who had neglected the rental market in the past are being forced to turn to it out of either desperation, or common sense, to generate income.
While the resale market contracts, the rental market offers some money making possibilities and a possible path to more lucrative business.


The Death of Cyril’s Fish House – The Hamptons Loses A Legend

 
Posted on Monday May 16, 2016 9:14 PM
by Joseph Kazickas No Comments »

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An era has come to an end and we are the sad witnesses. Cyril’s Fish House, arguably the most successful seasonal restaurant and bar in the history of the Hamptons will not re-open this year. Or ever again.

This most popular gathering place for an after beach pick me up, delicious food, and a fabulous mix of people from all walks of life has fallen victim to it’s own success and excess. On Saturday afternoons, during the season, Cyril would cater to hundreds, if not thousands, of happy people. From billionaires to bikers, celebrities and commoners, everyone was welcome. The scene could get raucous but the mood at Cyrils was always reggae “love your brother and sister.”

And now it’s gone.

And a part of East Hampton is lost with it.

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25 years ago Cyril Fitzsimons opened his Napeague bar/restaurant after having escaped an unclear history which, rumors suggest, dates to the Irish “Troubles”. Previously he had also enlisted, as an Irishman, into the United States Marine Corp., served in Viet Nam, and was wounded in battle. Like many Irishmen before him Cyril made his career in the hospitality business, where at different times he owned and operated bars in Spain and the Caribbean before eventually finding his namesake hospitality outpost on the Napeague Stretch, on the way to Montauk. Over the years he built an incomparable destination for outdoor fun, great food, good music, solid beverages, and happy, happy times.

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There may be questions as to how the bar/restaurant grew to violate zoning codes. The back story is always grey. And no one is above the law. But the law came down hard, and now the place where so many local kids snagged a job as a waiter, server, host, hostess or BBC Girl, made a small summer job fortune, and profited from the wisdom of an Irish curmudgeon mentor, with a heart of gold, a warm water Caribbean karma, a wicked streak, and a softness for those in need, is lost forever.

Thank you Cyril. Thank you for your generosity. We are all so sad and will miss you and the wonderful times.

I can truly say that the Hamptons will never see the likes again.

It was a beautiful run, and shouldn’t have ended the way it did. Your meeting place was a huge asset to the spirit of East Hampton.

Respect.

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Catching up on the Hamptons Real Estate Market

 
Posted on Saturday February 6, 2016 8:36 PM
by Joseph Kazickas No Comments »

It has been several months since we lasted posted on our favorite blog, and a lot has happened on the East End.
After a glorious 2015 summer, fall and early winter the calendar has flipped us into 2016 and we start back at zero.
Shaking the market in 2016 is new entrant Compass. The “technology driven” real estate brokerage moved into the Hamptons in a big way, but not without hitting some bumps on the road. Compass has pillaged the East Hampton office of Sotheby’s pulling top agent Ed Petrie (among others) into its warm embrace, and Petrie returned the love in short order orchestrating the $110,000,000 (yes, you are reading it correctly) sale of the Lily Pond Lane oceanfront compound assembled only in 2014, at a cost of $94,000,000, by hedge funder Scott Bommer.

The $110,000,000 flip.

The $110,000,000 flip.


Compass’ aggressive staff and agent recruitment efforts have caused a nervous stir among the large incumbent agencies, if not outright legal action by both Brown Harris Stevens and Saunders Associates alleging breach of contract and theft of data.
Another development whose impact may be significant is East Hampton Town’s new Rental Registry Law, opposition to which was vehement prior to being enacted mid January. The law makes it illegal for a landlord to advertise or rent out, and a tenant to rent, a property in East Hampton Town that has not been registered with the Town as a rental property. Applications for a rental registration number are being processed by the Town’s Building Department and cost $100 for a two year permit. While I’ve expressed support for a rental registry, many feel that the new law goes too far, criminalizing what could be innocent behavior with hefty fines, including possible jail time.
The biggest impact, however, has to do with the advertising restriction. Ads will require the RR# be displayed in order to comply with the law. This spells disconcerting news to everyone, but especially to real estate agencies who will be forced to drop unregistered properties from public display on the internet.
No doubt this will cause a general contraction in the volume of rentals this coming summer season, the economic impact on East Hampton Town as yet unpredictable. But probably not good

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A Showdown Over The Proposed Rental Registry Law Looms In East Hampton Town

 
Posted on Sunday October 25, 2015 5:57 PM
by Joseph Kazickas No Comments »

East Hampton Town’s proposed Rental Registry Law is hanging over the local economy, homeowners who rent, tenants, and the real estate industry, with a showdown in the works among disparate interests.
The next public hearing is scheduled for November and rest assured that the people will speak. An already large constituency of rental home owners and real estate interests are organizing against the proposed rental registry.
Violation of the rules governing the registration and use of rental properties could result in fines measured in the tens of thousands, possibly imposed upon un-suspecting tenants as well as landlords. A proposed prohibition on advertising rental properties without displaying a registration number will likely empty a lot of websites.
The purpose of the Rental Registry, it would appear, is for the Town of East Hampton to get a better handle on what is rented to how many; to more easily pursue non-compliant landlords; and to have stronger teeth in cases that move toward prosecution. Not to mention, raising revenue for the Town.
Make no mistake, there exists disregard for the statutes on the books governing number of occupants, frequency of rentals and the selling of shares. Some of it is innocent, some not, and it’s pretty easy to be sympathetic to the neighbor who ends of next to a party house rental. However it is a matter of code enforcement, not more government intrusion.
A website, www.stoptherentalregistry.com, has been set up to explain why (at least from one perspective) the law is a bad idea. You can register your opinion as well.


The Case Against Exclusive Rentals

 
Posted on Wednesday July 15, 2015 7:16 PM
by Joseph Kazickas No Comments »

An exclusive rental offering the renting agent a 5% commission...

An exclusive rental offering the renting agent a 5% commission…

...or an open listing offering the renting agent 10%. As a real estate agent which would you rather show?

…or an open listing offering the renting agent 10%. As a real estate agent which would you rather show?


In the last year or so we have seen a smattering of “exclusive rentals.” Exactly as the term implies, an exclusive rental is a rental property wherein the owner has designated a real estate agent to act as his exclusive representative in any negotiations surrounding a possible rental transaction. In essence, a real estate agent with a potential rental customer must now work through the exclusive agent rather than deal with the owner directly, as is more commonly the case.
In addition the prevailing 10% rental commission is now to be shared between the exclusive listing agent and the renting agent. Usually there is a pretty generous split of as much as 90% to the renting agent, but oftentimes the split is 50/50.
Giving a real estate agent the exclusive right to rent one’s property may not be such a good idea. Here’s why.
In a market such as the Hamptons, which suffers from an oversupply of rental properties, dis-incentivizing real estate agents because the commission is shared creates a real reason for not showing a property. But even if a landlord offers the renting agent a full 10% there is another reason why an agent might decide not to show an exclusive rental, and that is surrendering the name and contact information of his customer to the exclusive listor. Who would want to do that?
Not all real estate agents in our market will work with rental customers. Those who don’t have real estate businesses which are likely mature and they derive most of their leads by way of referral.
The vast body of real estate agents, however, understands that even though rental commissions are small compared to commissions earned in the resale market, the rental business can serve as an incubator for future resale business. In short rentals often lead to sales.
Of course, there might be circumstances where a homeowner feels more comfortable with a single point of contact, either because of the uniqueness of the property or because they just don’t want to deal with unknown real estate agents. We hear of agents who have been instructed by their broker/managers to actively solicit rental exclusives and they will pitch the benefits of an exclusive, without ever mentioning why it may not be in the best interest of the owner.
Success in bringing about real estate transactions lies in aligning the interests of all stakeholders. An exclusive rental tends to corrupt the process.


Hamptons Rentals – Market Recap

 
Posted on Wednesday June 10, 2015 8:45 PM
by Joseph Kazickas No Comments »

Cove Road

As we move through June and rental enquiries begin to ebb we can pretty much come to the same conclusions about the Hamptons rental market as we usually do this time of year: we are in a market which is chronically over-supplied, relative to demand. For our part our rental volume has increased year over year following what was universally regarded as a dismal 2014.
So it is pretty hard to characterize the market as strong or weak. As an owner if you were successful in finding a tenant it was a great rental season. If your house, which always has rented by February, still lacks a tenant then it’s a bad rental year.
But here’s a hard fact…there is still a lot of inventory available, including this interesting situation in Sag Harbor pictured (above),
Read More


2015 Hamptons Rental Market Turns Uneven

 
Posted on Saturday April 25, 2015 5:03 PM
by Joseph Kazickas No Comments »

3+ acres, 4 bedrooms, pool and tennis in East Hampton. Memorial Day to Labor Day Asking $55,000

3+ acres, 4 bedrooms, pool and tennis in East Hampton.
Memorial Day to Labor Day Asking $55,000


As we move deeper into the 2015 rental season in the Hamptons, the market seems off balance, with many properties still unrented. Top producing agent Diane Shiffman of Rosehip Partners, feels the market may have overpriced itself, as opposed to suffering from slack demand.
Unfortunately there is no centralized data management of the Hamptons rental pool (which helps explain why often times prices for the same property differ from one realtor to the next.) The hard evidence supporting either a strong , or weak, rental season is elusive, especially in a market where supply has always been greater than demand.
One good measure? Calls from landlords voicing their concern that they haven’t rented yet, when in years past deals were in place by mid March.
Another one? The circulation among real estate agents of “courtesy rentals” and emailed “Still Available” reminders. The flow seems to be heavier this year than last.


Hamptons Rentals Unaffected By Snow And Ice

 
Posted on Wednesday February 18, 2015 5:26 PM
by Joseph Kazickas No Comments »

Snow drifts on Town Lane in Amagansett

Snow drifts on Town Lane in Amagansett


Heavy snowfall on the East End of Long Island doesn’t appear to have affected the strong momentum evident in the 2015 Hamptons summer rental market. Despite the bitterly cold weather and drifting snow, rental customers are still making the trek out east to choose a rental property for the coming summer season.
As has been the case over the last several years properties in Montauk are most in demand, especially those willing to accommodate a younger clientele. There also appears to have been a backlash from homeowners, who, for one reason or another are holding out for more mature tenants.
One way or another it looks like Montauk will be hopping this summer.
We are posting a photo of Town Lane in Amagansett to give you an idea of how things look mid-winter.
Oftentimes the biggest problem agents face in showing rentals is getting to the front door, so a snow shovel, at least for now, is a good tool for agents to carry.


Hamptons Real Estate – Hook Mill Court – 12 Lot Subdivision in the Heart of East Hampton Village Moves Closer to Approvals

 
Posted on Sunday February 1, 2015 4:52 PM
by Broker Comments Off

28 Accabonac Map

The proposed sub-division, to be known as Hook Mill Court, located on 10 acres at 28 Accabonac Road in East Hampton Village, passed two important milestones in early December: a negative declaration on the SEQRA determination, and preliminary approval from the East Hampton Village Planning Board.

An application for the sub-division was submitted in the fall of 2012.

The project has been shepherded through the sub-division process by Joseph Kazickas, a principal of Rosehip Partners, who will also be representing the property for sale.

The project, zoned R-20, will consist of 11 build able parcels of between approximately 20,000 to 25,000 sq. ft. together with a 1.1 acre developed parcel, located within the Hook Mill Historic District, site of the historic Stephen Hedges House which dates to 1864. Reserve areas total approximately 3 acres. More information is available at http://www.hookmillcourt.com.

The project is within sight of East Hampton’s Hook Mill and just a quarter mile from downtown East Hampton Village.


The Hamptons Summer Rental Season (v.2015) Is Upon Us

 
Posted on Saturday January 17, 2015 8:25 PM
by Joseph Kazickas Comments Off
Poolside in Montauk - 6 Bedrooms/4 Baths $80,000 Memorial Day to Labor Day

Poolside in Montauk – 6 Bedrooms/4 Baths $80,000 Memorial Day to Labor Day

It’s January, and we all know what that means: Montauk is sizzling.
The Hamptons summer rental season is upon us, and, just as in years passed, the early action is in Montauk.
While it’s way to early to make a call on how the rental market will fare this season, the data is promising. As usual we look at traffic to www.hamptonsrentals.com to give us a hint. A 15% increase in user sessions, a 17% increase in users, 25% more page views, and a 35% increase in session duration compared to the like period (Jan.1-16) in 2014.
By contrast 2014 compared negatively to 2013 in each category.
In 2014 the Hamptons real estate industry experienced a significant contraction in rental activity with some agencies experiencing as much as a 40% drop in commission income attributable to rentals.
For the moment the data signal strength, the weather has been pretty nice, gas prices are down, so we are expecting 2015 to be relatively strong.