How to crack the Hamptons market

Pristine beaches. Posh clientele. The Hamptons, a group of towns on the eastern end of Long Island, has earned its reputation as New York’s swankiest summer escape. But Blythe Graham-Jones, who has bought seven properties in the area and documents her renovations on her Instagram account, blythebuilds, swears the market is less intimidating than it seems.

Median sale price: $1,675,000 (+13.6% YoY according to Redfin)
Median time on market: 116 days (+19 days YoY)
Homes sold above list price: 14%
Median rent: $35,000/month (East Hampton only, per Zillow)

The pros: The Hamptons command insane rents from Memorial Day through Labor Day, which can zero out a full year’s carrying costs. “If you’re looking for a hybrid second home/rental property, the Hamptons is uniquely great because you can use it personally for nine months without losing out on much rental income,” Graham-Jones explains.

The cons: For rents this high, guests have zero tolerance for ants in the kitchen or a lukewarm pool. “You can’t charge $20k+ a week and expect no complaints,” Graham-Jones points out. This means your housekeepers, pool vendors, pest control, and plumbers had better be happy to pick up the phone and make house calls on the Fourth of July. Plus, most Hamptons townships enforce strict rules on minimum stay requirements (typically two weeks), occupancy, and parking and impose harsh penalties for noncompliance (think: $15,000 fines and even prison time).

Her advice: Choose your area carefully, as this can affect what’s allowed in your rental. South Hampton (which includes Hampton Bays and Sag Harbor) doesn’t allow rentals of under two weeks. But East Hampton (Amagansett, Wainscott, Springs, and Montauk) allows two rentals of under two weeks every six months. “This can drive up rental income significantly,” explains Graham-Jones, who sticks to homes in this area.

And for the record, “The Hamptons” is considered anything on the South Fork of Long Island from Westhampton to Montauk. For deals, there is a back door: the North Fork, where comparable properties can be found for 20% less. Just know that this is not technically the Hamptons, and it will rent for about half the rate.

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