WHEN LOCAL GOVERNMENTS START MAKING DEMANDS...Just Try To Accommodate them!
A fellow agent just emailed me asking for my guidance as she is attempting to advise a homeowner in how to get approval for renting out her new home in the Town of Southampton. I have not had the bad fortune yet in taking a rental listing in the Town, especially since I do most of my real estate business in the Village of Southampton and the law does not apply here----yet!
It is mind boggling as to the requirements of the new law and most homeowners are stumped by the information, the required zoning and fire codes that they need to meet to make their homes rent able.
EVEN MORE MIND-NUMBING to me is the idea that we as agents are obligated, by law to tell the homeowner what to do--how to fill out the 10 page application and to make sure they have fulfilled all of the required zoning and fire code requirements! If we cannot be sure they are going to fill it out then we have to get them to sign a letter, releasing us from the obligation of informing the owner and literally telling the Town that they do not want to comply---Now, that is a long shot!
THEY NEED: "a drawing of the premises in quarter inch scale with outline of closets in each bedroom, how the doors open to each room, where the smoke and CO detectors are located and a sketch of the basement."
This is just a small part of the new 10 page Town of Southampton rental application that each and every homeowner must fill out if they decide they want to rent out their homes for the summer or part of the summer. This new law is crippling homeowners who, in the past have relied on a certain amount of money that they can realize from their homes.
This is a resort area, and so of course the demands for rental properties is always a key selling point when one buys a home here. Of course one can not buy a home just to rent it out unless they make arrangements with their bank if they go for a loan. They will need to identify it as a rental property and therefore an investment loan is required. But most deals here are done in all cash transactions and so many times that does not enter into the equation.
THE RATIONAL REASON BEHIND THE NEW LAW:
Also there is the fact of the overcrowding of year round rentals---the sort of "slum" landlord who just packs in the bodies to make room for 15-20 people in a home that is not up to code in any way, much less big enough to accommodate the huge number of people. Because rents are un-affordable by most local workers here, they move into these "slum" rentals just to have a roof over their heads.
These are the obvious targets of this law--yet the legitimate homeowner who wants to earn a few extra bucks for a summer rental is the one who is being made to fill in the 10 page application on the long shot that they will even get a summer tenant!
These summer rentals are very expensive and limited to the city dweller who needs a three month weekend respite from the intense summer heat of the concrete oven of Manhattan! So, for now we need to comply--either that or choose not to take any rental listings in the Town of Southampton for the foreseeable future~~~
IF YOU HAVE FOUND NEW, OBSTRUCTIVE LAWS IN YOUR TOWN, LET US KNOW WHAT THEY ARE...
**ALL INFORMATION AND CONTENT IN THIS BLOG IS ORIGINAL TO PAULA I. HATHAWAY. The views expressed herein are my personal views and do not reflect the views of Douglas Elliman Real Estate
Paula I. Hathaway, Senior Broker Associate, Douglas Elliman Real Estate
Southamtpon Village Real Estate Specialist since 1995; Also Specializes in North Sea, Noyac, Water Mill and Bridgehampton, New York
Diamond , Gold and Chairman's Circle Awards; Top Producer since 2005
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