6 months ago
At Thursday's Press Sessions in East Hampton we heard firsthand how the recent imposition of the Housing Stability and Tenant Protection Act has already negatively impacted many members of the Hamptons community.
What it says:
This new law, passed by Governor Cuomo in July 2019, prohibits landlords from requiring advance payment or a deposit in excess of the equivalent of one month’s rent. This means that for a July through Labor Day rental, landlords can only collect July rent upfront and can't collect August rent until August 1.
In a market where the vast majority of rental revenue is generated between Memorial Day and Labor Day, landlords' inability to collect advanced pay presents substantial collection risk and can even foster tenant abuse.
What it means for you:
From a landlord’s perspective, it has simply become too risky to allow someone to stay at his/her home on a shorter-term basis without collecting payment in full prior to their arrival. The deposit limit pushes landlords to rent for stays of a month or less, but the local agents they've traditionally relied on don't focus on booking stays of this length.
As a result, many owners are turning to the “Wild West” of online channels to find tenants. But without a clear understanding of how the online market works (or how they should be pricing, vetting tenants, collecting for utilities, security deposits, among many other intricacies), frustration and inconsistency quickly arise.
What to do now:
With inconsistency comes opportunity and StayMarquis is perfectly positioned to help owners navigate these choppy waters.
If you or someone you know is affected by this recent law change, contact us immediately so we can right your ship. Even if you're ultimately not the right fit for our rental network, we would still be happy to steer you in the right direction to do what’s best for you and your home.
Maybe you’re in a position where the rental revenue that was once a “nice to have” is no longer worth fighting for. Or maybe you feel that your mortgage and carry costs are going to bleed you dry without that consistent rental income.
Either way, we feel your frustration. But before you put your property on the market and further contribute to the oversupply driving down housing pricing, consider engaging StayMarquis.
Who we are:
We are a professional rental management company that specializes in helping hundreds of owners throughout the Hamptons reach the same renters that you’ve always been renting to, but whom are now renting differently, through different channels.
Don’t go at this alone. We look forward to speaking with you. Fill out the form here to be contacted by one of our listing specialists.