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Hamptons.com
March 27, 2014

Hamptons Rentals: Does It Pay To Rep A Rental?

John A. Viterittiby John A. Viteritti
in Real Estate
Home Real Estate

The real estate industry across the Hamptons and North Fork is big business when it comes to rentals, especially when the price tag can be upwards of $500,000 for the Memorial Day to Labor Day summer season. That translates to nice commissions for brokers. We spoke to several East End real estate pros to find out how it all works out from listings, to commissions, to potentials sales.

“We charge a flat rate of 10%,” says Joseph Kazickas, Managing Broker, Rosehip Partners Real Estate, East Hampton. “The commission may be reduced in the event of renewals. We normally have the first rental payment deposited in our escrow account from which we deduct the fee and remit the balance to the landlord.”

Contrary to what may be presumed, who pays the broker’s commission, landlord or tenant, is not a matter of law. The broker may collect from either party as long as it made clear from whom the broker is collecting.

Alice Bell, Senior Vice President Brokerage Manager, Sotheby’s International Realty, told Hamptons.com, “We charge a 10% fee on short-term or long-term rentals. Either the landlord or the tenant may pay, but it is usually the landlord. There are more and more Exclusive Right to Rent Rental Agreements, especially when the house is on the market for sale or is a very high-end rental. Splits between the agencies range from 50/50 to 90/10.”

“We follow what has been the customary practice on the South Fork of a commission of 10% of the total rent for the season, payable by the landlord,” said Ed Reale, Senior Managing Director, Brown Harris Stevens, Southampton. Sarah Minardi, Associate Broker, Saunders, Southampton, concurred, “The landlords pay a commission to Saunders of 10% of the gross rental fee. We have a $500 minimum fee-for-service requirement.”

With the idea of a 10% fee on rentals considered standard practice among the East End pros we spoke to we wondered about re-rents. Turns out that if a broker rents a landlord’s house to a tenant for the season, and the tenant re-rents the same house from the landlord for the next season, the broker is not entitled to another commission unless there is an agreement between the landlord and the broker stating so. Further, if the tenant should buy the home from the landlord during the term of the lease or after, the broker is not entitled to a commission on the sale unless there is an agreement between the landlord and the broker stating so.

With a 10% fee as the norm and pretty clear rules about who pays what, we asked our experts about the challenges in the booming North Fork and Hamptons rental market.

“The fee structure I have established is 10% of the seasonal rental, paid by the landlord, and on year-round rentals, the fee is equivalent to one month’s rent, paid by the tenant,” explains Michael Herbert, Broker, Community Rentals, Mattituck. “All this is negotiable depending on the circumstances, but generally, this is the structure. With regards to an option for an additional term, that must be written in the Lease Agreement to the specifics between landlord and tenant. The greatest challenge I find in my business is establishing monthly rents to what I determine to fair and reasonable. It aches me to witness what tenants are currently paying in rent, simply to put a roof over their head. Very challenging times, but let’s do the best we can to help one another.”

“Landlords, please get the photos to us,” implores Barbara Lester, a Salesperson with Hamptons Realty Group in Amagansett. “We go out as much as possible to photograph but it is impossible to get everyone. We have hundreds of listings that don’t have any photos at all. I skip right over them. In this day and age of the Internet there is no reason for a ‘no photo’ listing. So if you call us and wonder why your house hasn’t rented, check the photos, they could be non-existent, outdated, or just bad photos. Working together makes all the difference. I [have] seen this first-hand. My input to tenants would be to start your search early in the year, give your agent time to prepare the file, and do your best to try to make a decision quickly.”

Considering the complexity of the practice of renting, landlords and tenants should seek legal counsel before entering into the rental market and be sure to work with a pro.

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San Gennaro Feast of the Hamptons

September 13 @ 10:00 AM - September 14 @ 10:00 PM
Good Ground Road Hampton Bays, N.Y. 11946
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Tour of the Beebe Windmill with Southampton Town Historian Julie Greene

September 13 @ 11:00 AM - September 13 @ 12:00 PM
Beebe Windmill, Hildreth Ave, Bridgehampton, NY 11932
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The Bridge IX

September 13 @ 02:00 PM - September 13 @ 07:00 PM
The Bridge, 1180 Millstone Rd Bridgehampton, NY 11932
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LongHouse Reserve: Conversation & Film Screening with Alice Hope

September 13 @ 06:00 PM - September 13 @ 08:00 PM
LongHouse Reserve, 133 Hands Creek Road, East Hampton, NY, 11937
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Seasonal Hamptons Restaurants Starting To Open For The 2014 Season

Seasonal Hamptons Restaurants Starting To Open For The 2014 Season

  • LVIS thrift shops are open Tuesdays through Saturdays 10 AM through 5 PM

donations are accepted Wednesday through Saturday 10 AM through 1 PM by appointment 

located at 95 Main St East Hampton
  • Check out the Top Hamptons Events This Weekend!⁠
⁠
🚗 The Bridge IX⁠
📅 Sat, Sept 13 | 2–7PM⁠
📍 The Bridge, Bridgehampton⁠
Over 300 rare automobiles showcased across stunning landscapes.⁠
⁠
🎬 23rd Annual Surf Movie Night⁠
📅 Fri, Sept 12 | 5:30–9PM⁠
📍 Southampton Arts Center⁠
Surfboard swap, live music & outdoor film screening. 🌊⁠
⁠
🍝 San Gennaro Feast of the Hamptons⁠
📅 Sat, Sept 13 – Sun, Sept 14 | 10AM⁠
📍 Hampton Bays⁠
Italian pastries, live entertainment & fireworks Sat @ 8:15PM 🎆⁠
⁠
🎭 In Process: Roderick George⁠
📅 Sat, Sept 13 | 7PM⁠
📍 Guild Hall, East Hampton⁠
A special in-process presentation of The Missing Fruit (Part I).⁠
⁠
🎤 Sheena Easton at WHBPAC⁠
📅 Sat, Sept 13 | 8PM⁠
📍 Westhampton Beach PAC⁠
Grammy-winning artist live on stage!⁠
⁠
☕ Cars & Coffee⁠
📅 Sun, Sept 14 | 9–11AM⁠
📍 Bridgehampton Museum⁠
Classic & exotic cars, food, drinks & live music.⁠
⁠
🛍 Hampton Vintage⁠
📅 Sun, Sept 14 | 10AM–5PM⁠
📍 Westhampton Beach Village Green⁠
Shop unique vintage finds!⁠
⁠
🎶 Hamptons Festival of Music Finale⁠
📅 Sun, Sept 14 | 4PM⁠
📍 St. Luke’s Church, East Hampton⁠
Featuring Cimarosa, Berlioz & Beethoven.⁠
⁠
🍷 Wine Dinner with Pradorey at R.AIRE⁠
📅 Tues, Sept 16 | 6:30PM⁠
📍 Hampton Bays⁠
Five-course tasting menu with exquisite wine pairings.⁠
⁠
🎥 Toy Story 30th Anniversary Screening⁠
📅 Sept 12–15 | Various Times⁠
📍 Southampton Playhouse⁠
Celebrate Woody & Buzz’s timeless adventure!⁠
⁠
Check out more events at Hamptons.com (Link in Bio)⁠
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#carshow #hamptons #sangennaro #sangennarofeast #winedinner #bridgeIX
  • The Animal Rescue Fund of the Hamptons (ARF Hamptons) hosted the Bow Wow Meow Ball in East Hampton. The evening’s honorees, Ellen and Chuck Scarborough, were presented with the Champion of Animals Award, recognizing their more than twenty-five years of support to ARF. ⁠
⁠
Over 400 guests celebrated ARF’s remarkable work with cocktails, followed by dinner catered by Olivier Cheng. Peter Marino, accompanied by his daughter and ARF Board Member Isabelle Trapnell Marino, presented the Scarboroughs with their award. ⁠
⁠
📸: Patrick McMullan/PMC⁠
⁠
Check out the full gallery at Hamptons.com (Link in Bio)⁠
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#arf #bowwowmeowball #hamptons #animalrescuefund #animalrescue
  • Make sure to add this event to your list for next summer
#Seafood #localeats #mtk #montaukgreen
  • I recently toured the new Rolex Boutique by London Jewelers in East Hampton, and it’s one of the most beautiful retail spaces I’ve ever stepped into. Located on Newtown Lane, the boutique is set inside a restored historic home that dates back to 1897, originally designed as a summer cottage.⁠
⁠
From the outside, it has that classic East Hampton charm, cedar shingles, white trim, and lush landscaping. But once you step inside, it’s all about quiet sophistication.⁠
⁠
The space is warm and welcoming, with walnut wood paneling, soft neutral tones, and beautiful textures throughout. There’s a fluted marble wall in a rich green Verdi Alpi stone that immediately catches your eye. It’s one of those details that’s understated but unmistakably Rolex.⁠
⁠
Read the full article at Hamptons.com (Link in Bio)⁠
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#rolex #easthampton #hamptons #luxury #watch⁠
  • 🎾 Men’s US Open Final Viewing Party⁠
📅 Sun, Sept 7 • 2–5PM⁠
📍 Canoe Place Inn, Hampton Bays⁠
Watch the riveting Men’s US Open Final with drinks, grilled classics & fellow tennis fanatics in the lush garden.⁠
⁠
🦞 Montauk Seafood Festival⁠
📅 Sat, Sept 6 – Sun, Sept 7 • 12–5PM⁠
📍 On the Green, Montauk⁠
The ultimate seafood event in the Hamptons! Lobster rolls, fish tacos, chowder, oysters & more 🐚🍤⁠
⁠
🩰 Master Class w/ Kat Wildish⁠
📅 Sat, Sept 6⁠
📍 Hamptons Ballet Theatre School, Bridgehampton⁠
Open-level adult ballet class with world-renowned former NYCB & ABT dancer Kat Wildish. One day only!⁠
⁠
🎶 Hamptons Festival of Music⁠
📅 Sat, Sept 6 • 7PM⁠
📍 St. Luke’s Episcopal Church, East Hampton⁠
THFM’s MainStage Festival Orchestra featuring The New American Sinfonietta 🎻✨⁠
⁠
🌾 Outstanding in the Field (Sagaponack)⁠
📅 Sun, Sept 7 • 3PM⁠
Dine where the food is grown! Guest chef Jason Weiner returns for his 19th year 🍽️🌱⁠
⁠
😂 Samantha Bee Live⁠
📅 Sat, Sept 6 • 8PM⁠
📍 WHBPAC, Westhampton Beach⁠
Award-winning comedian Samantha Bee brings her one-woman show to the Hamptons!⁠
⁠
🍴 Stirring The Pot: Andrew Carmellini⁠
📅 Sun, Sept 7 • 11AM⁠
📍 Guild Hall, East Hampton⁠
NYT’s Florence Fabricant interviews star chef Andrew Carmellini about his restaurant empire.⁠
⁠
🌕 Full Harvest Moon Hike⁠
📅 Sun, Sept 7 • 7:30PM⁠
📍 Meet at SOFO Museum, Bridgehampton/Sag Harbor Tpke⁠
Walk under the moonlight with Friends of the Long Pond Greenbelt 🌙✨⁠
⁠
🎨 Style Beading Workshop⁠
📅 Fri, Sept 5 • 1PM⁠
📍 Nathaniel Rogers House, Bridgehampton⁠
Join Indigenous artist Savannah LeCornu to learn traditional beading techniques.⁠
⁠
⛳ A Legendary Day at Sebonack!⁠
📅 Tues, Sept 9 • 8:30AM–5PM⁠
📍 Sebonack Golf Club, Southampton⁠
An unforgettable day of golf supporting Westhampton Beach PAC 🌟⁠
⁠
👉 Which event are you going to this weekend?⁠
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Check out more events at Hamptons.com (Link in Bio)⁠
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#community #entertainment #hamptons #usopen #golf #comedy #seafood #montauk
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