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Hamptons rentals suffer as tenants head to global hotspots

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The Hamptons are hot — until otherwise.

Anthony Berklich was trying to rent a simple three-bedroom house without a pool near Sag Harbor for $ 25,000 in July. A 37-year-old Archetypal Old West resident who runs the luxury travel platform Inspired Citizen found the perfect summer rental and traded with the owner. But by the next day, someone else had already arrived and offered a price that was $ 5,000 higher than the agreed price, and the owner accepted it without even checking if Berklich matched that offer. rice field.

“Before the deal was closed, someone did the same to the next man and paid $ 10,000 for what they asked for, so the house went for $ 40,000,” he sighs. I did. “Frankly, it wasn’t worth it, so I gave up the Hamptons this year.”

Instead, Berkrich ventured further — to Croatia, where he won a three-bedroom retreat for only $ 5,500 that month.

“I thought out of the box, and found something with views of the Adriatic Sea and the pool for just a few of what I was planning to pay for,” he said.

In Croatia, Berkrich offers views of the pool and the Adriatic Sea for a fraction of the amount he would have paid for the Hamptons.
Anthony Berkrich
This Croatian crib will cost $ 5,500 in July.
This Croatian crib will cost Berklich $ 5,500 in July.
Anthony Berkrich

He’s a common story in the East End this summer, as many Hamptons homeowners endure soaring prices.

Over the last two years during the pandemic, the Hamptons summer rent has skyrocketed by 73.6%. And brokers and house hunters complain that instead of letting steam escape, homeowners have doubled their ridiculous questions.

Earlier this year, builder and designer Robert Lafon, who lives in the Boston area, planned to spend some summer with his girlfriend in New York. After seeing the eight dwellings in the east where he felt in a shabby and bad place, they found a nice Southampton home that was a bit outdated — but there were lush grounds and a nice pool. It was demanding $ 60,000 and they agreed on the price.

The next day, when they gave the broker details of the rent, she called and explained that the owner had determined that the value of the house for that period was actually $ 80,000. The list was quickly adjusted to reflect the new price.

“I was so marginalized that I decided to find something in New England instead,” La Fond said.

But out of curiosity, he followed the list and saw the owner gradually reduce the list to $ 75,000, $ 65,000, and finally $ 60,000.

Instead of the Hamptons, this summer's hotspots include Lake Como and the new Villa Passaraqua.
Instead of the Hamptons, this summer’s hotspots include Lake Como and the new Villa Passaraqua.
Ricky Monty

Not surprisingly, Compass agent Diane Schiffman said the Hamptons rental market is late this season.

“I usually rent about 50 every summer, but only 20 this year,” she told Post, uncertain stock markets and soaring petrol prices also contributed to the lack of rents. I said that it became. “Tenants seemed dissatisfied with the high rents, and landlords who have been successful in the last few years have not been ready to lower those levels. They need to find a balance to get the market back on track, We started seeing a few gives. “

According to Douglas Elliman, prices have begun to ease and rents have fallen by about 30% since Memorial Day, according to a recent report.

“The rental market is getting out of the price hike we saw last year, but on a pre-pandemic basis, rents are still up 36%, showing what the slump has been like in the last few years. From a sustainable level. ” Jonathan Miller, CEO of Miller Samuel Inc., author of the Douglas Elliman market report, said. “Trading volume is only half of last season.”

Villa Passalacqua has suites for less than $ 1,000 per night.
Villa Passalacqua has suites for less than $ 1,000 per night.
Stephen Gift Thaler

Raymond Smith, manager of Douglas Elliman’s Southampton office, agrees that the landlord must face a new reality.

“People became greedy for COVID and raised prices too much, so the lessee said we weren’t willing to pay,” he said. “In the village of Southampton, there was a property whose owner was listed for $ 350,000 this season, but it was probably worth $ 150,000 before COVID. Many landlords were doing very well at the time. But the real time has come and all the right-priced homes are rented. “

Now that the European Union and the United States have withdrawn their travel testing requirements, the Hamptons are facing real competition with overseas destinations. According to brokers, destinations in Europe and the Caribbean are the most popular Hamptons choices this summer.

Both the US and the EU have withdrawn the requirements for COVID testing, making it easier to travel to places such as Villa Passa Laqua in Italy.
Both the US and the EU have withdrawn the requirements for COVID testing, making it easier to travel to places such as Villa Passa Laqua in Italy.
Ricky Monty

“My agents say that experienced clients are asking about renting Russian-owned homes on Lake Como and Forte dei Marmi. They are not used by the owners of the European Union. Because we know we can’t sell them right now because of the crackdown, “said Lee Somers of Compass.

One of the hotspots is Passalacqua, a historic home that opened on Lake Como this month, with a 60-foot pool, water views, and 24 suites starting at less than $ 1,000 per night.

Rosewood Bermuda.
Rosewood Bermuda, another popular Hamptons alternative.
Photo by Ken Hayden
Beyond the benefits of a home-based vacation, Rosewood Bermuda has a pool with waterfront views.
Beyond the benefits of a home-based vacation, Rosewood Bermuda has a pool with waterfront views.
Resort photo by Ken Hayden
Another shot of Rosewood Bermuda.
Another shot of Rosewood Bermuda.
Photo by Ken Hayden

Ritzy islands like Bermuda are also popular. In Rosewood Bermuda, two-bedroom suites cost $ 88,000 in both July and August.

With access to the pool, spa and golf, St. Regis Bermuda offers two bedrooms starting at $ 1,000 per night and three bedrooms for $ 1,600. Find something extravagant at the Hamptons at that price and do your best.

Sommers recently said he was asked to list real estate owned by Hamptons’ international customers and declined.

“It was a $ 1 million summer rental, and I refused,” she said. “But I agreed to list his home in Provence!”

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