Northfork Properties

The Case Against Exclusive Rentals

Posted on Wednesday July 15, 2015 7:16 PM
by Joseph Kazickas No Comments »

An exclusive rental offering the renting agent a 5% commission...

An exclusive rental offering the renting agent a 5% commission…

...or an open listing offering the renting agent 10%. As a real estate agent which would you rather show?

…or an open listing offering the renting agent 10%. As a real estate agent which would you rather show?

In the last year or so we have seen a smattering of “exclusive rentals.” Exactly as the term implies, an exclusive rental is a rental property wherein the owner has designated a real estate agent to act as his exclusive representative in any negotiations surrounding a possible rental transaction. In essence, a real estate agent with a potential rental customer must now work through the exclusive agent rather than deal with the owner directly, as is more commonly the case.
In addition the prevailing 10% rental commission is now to be shared between the exclusive listing agent and the renting agent. Usually there is a pretty generous split of as much as 90% to the renting agent, but oftentimes the split is 50/50.
Giving a real estate agent the exclusive right to rent one’s property may not be such a good idea. Here’s why.
In a market such as the Hamptons, which suffers from an oversupply of rental properties, dis-incentivizing real estate agents because the commission is shared creates a real reason for not showing a property. But even if a landlord offers the renting agent a full 10% there is another reason why an agent might decide not to show an exclusive rental, and that is surrendering the name and contact information of his customer to the exclusive listor. Who would want to do that?
Not all real estate agents in our market will work with rental customers. Those who don’t have real estate businesses which are likely mature and they derive most of their leads by way of referral.
The vast body of real estate agents, however, understands that even though rental commissions are small compared to commissions earned in the resale market, the rental business can serve as an incubator for future resale business. In short rentals often lead to sales.
Of course, there might be circumstances where a homeowner feels more comfortable with a single point of contact, either because of the uniqueness of the property or because they just don’t want to deal with unknown real estate agents. We hear of agents who have been instructed by their broker/managers to actively solicit rental exclusives and they will pitch the benefits of an exclusive, without ever mentioning why it may not be in the best interest of the owner.
Success in bringing about real estate transactions lies in aligning the interests of all stakeholders. An exclusive rental tends to corrupt the process.

Hamptons Rentals – Market Recap

Posted on Wednesday June 10, 2015 8:45 PM
by Joseph Kazickas No Comments »

Cove Road

As we move through June and rental enquiries begin to ebb we can pretty much come to the same conclusions about the Hamptons rental market as we usually do this time of year: we are in a market which is chronically over-supplied, relative to demand. For our part our rental volume has increased year over year following what was universally regarded as a dismal 2014.
So it is pretty hard to characterize the market as strong or weak. As an owner if you were successful in finding a tenant it was a great rental season. If your house, which always has rented by February, still lacks a tenant then it’s a bad rental year.
But here’s a hard fact…there is still a lot of inventory available, including this interesting situation in Sag Harbor pictured (above),
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2015 Hamptons Rental Market Turns Uneven

Posted on Saturday April 25, 2015 5:03 PM
by Joseph Kazickas No Comments »

3+ acres, 4 bedrooms, pool and tennis in East Hampton. Memorial Day to Labor Day Asking $55,000

3+ acres, 4 bedrooms, pool and tennis in East Hampton.
Memorial Day to Labor Day Asking $55,000

As we move deeper into the 2015 rental season in the Hamptons, the market seems off balance, with many properties still unrented. Top producing agent Diane Shiffman of Rosehip Partners, feels the market may have overpriced itself, as opposed to suffering from slack demand.
Unfortunately there is no centralized data management of the Hamptons rental pool (which helps explain why often times prices for the same property differ from one realtor to the next.) The hard evidence supporting either a strong , or weak, rental season is elusive, especially in a market where supply has always been greater than demand.
One good measure? Calls from landlords voicing their concern that they haven’t rented yet, when in years past deals were in place by mid March.
Another one? The circulation among real estate agents of “courtesy rentals” and emailed “Still Available” reminders. The flow seems to be heavier this year than last.

Hamptons Rentals Unaffected By Snow And Ice

Posted on Wednesday February 18, 2015 5:26 PM
by Joseph Kazickas No Comments »

Snow drifts on Town Lane in Amagansett

Snow drifts on Town Lane in Amagansett

Heavy snowfall on the East End of Long Island doesn’t appear to have affected the strong momentum evident in the 2015 Hamptons summer rental market. Despite the bitterly cold weather and drifting snow, rental customers are still making the trek out east to choose a rental property for the coming summer season.
As has been the case over the last several years properties in Montauk are most in demand, especially those willing to accommodate a younger clientele. There also appears to have been a backlash from homeowners, who, for one reason or another are holding out for more mature tenants.
One way or another it looks like Montauk will be hopping this summer.
We are posting a photo of Town Lane in Amagansett to give you an idea of how things look mid-winter.
Oftentimes the biggest problem agents face in showing rentals is getting to the front door, so a snow shovel, at least for now, is a good tool for agents to carry.

Hamptons Real Estate – Hook Mill Court – 12 Lot Subdivision in the Heart of East Hampton Village Moves Closer to Approvals

Posted on Sunday February 1, 2015 4:52 PM
by Broker Comments Off

28 Accabonac Map

The proposed sub-division, to be known as Hook Mill Court, located on 10 acres at 28 Accabonac Road in East Hampton Village, passed two important milestones in early December: a negative declaration on the SEQRA determination, and preliminary approval from the East Hampton Village Planning Board.

An application for the sub-division was submitted in the fall of 2012.

The project has been shepherded through the sub-division process by Joseph Kazickas, a principal of Rosehip Partners, who will also be representing the property for sale.

The project, zoned R-20, will consist of 11 build able parcels of between approximately 20,000 to 25,000 sq. ft. together with a 1.1 acre developed parcel, located within the Hook Mill Historic District, site of the historic Stephen Hedges House which dates to 1864. Reserve areas total approximately 3 acres. More information is available at

The project is within sight of East Hampton’s Hook Mill and just a quarter mile from downtown East Hampton Village.

The Hamptons Summer Rental Season (v.2015) Is Upon Us

Posted on Saturday January 17, 2015 8:25 PM
by Joseph Kazickas Comments Off
Poolside in Montauk - 6 Bedrooms/4 Baths $80,000 Memorial Day to Labor Day

Poolside in Montauk – 6 Bedrooms/4 Baths $80,000 Memorial Day to Labor Day

It’s January, and we all know what that means: Montauk is sizzling.
The Hamptons summer rental season is upon us, and, just as in years passed, the early action is in Montauk.
While it’s way to early to make a call on how the rental market will fare this season, the data is promising. As usual we look at traffic to to give us a hint. A 15% increase in user sessions, a 17% increase in users, 25% more page views, and a 35% increase in session duration compared to the like period (Jan.1-16) in 2014.
By contrast 2014 compared negatively to 2013 in each category.
In 2014 the Hamptons real estate industry experienced a significant contraction in rental activity with some agencies experiencing as much as a 40% drop in commission income attributable to rentals.
For the moment the data signal strength, the weather has been pretty nice, gas prices are down, so we are expecting 2015 to be relatively strong.

774 Montauk Highway, Montauk – The Shagwong Restaurant- Montauk’s Legendary Tavern

Posted on Monday December 8, 2014 9:27 PM
by Broker No Comments »

Shagwong Restaurant copy

Montauk’s legendary Shagwong Restaurant, one of our favorite hangouts for a mid – winter Bloody Mary, with a dozen cherrystones on the side, is for sale at a newly reduced price of $2,995,000.

The 90 seat restaurant, bar, and apartment with ocean views, combine to create a Montauk classic. Call Rosehip Partners for details. 631-495-3404

East Hampton Town Board Addresses the Proposed New Rental Registry Law – How to Grow Government While Creating A New Class of Lawbreakers: Non-compliant Landlords

Posted on Tuesday October 21, 2014 8:02 PM
by Joseph Kazickas No Comments »

The East Hampton Town Board opened discussion to the public about a proposed new Rental Registry Law that fails miserably in achieving its goals.

Over the last couple of years there have been a growing number of complaints from residents of overcrowding of single family homes that had been rented out during the summer season. These complaints are generally in response to loud, late night parties which tend to occur in houses that are rented, and then re-rented as share houses by a younger aged subset of tenants. Local law forbids the selling of shares, or partial rentals, of single family homes. In addition there are limitations as to how many unrelated people can occupy a home as well as the absolute number of occupants based upon the number of bedrooms.

The Town Board was called upon to address the issue and now a proposed new law is being discussed. In our view the proposed law does nothing to address the issue of share houses and overcrowding, much less disturbing the peace. What it does manage to do is create an entire new set of burdens on Landlords, who, in the event of non-compliance with the proposed Registry requirements could expose them to fines, or worse.

Here is the basic idea behind the proposal…Landlords would be required to register their rental business with the Town, which in turn would give the Landlord a registration number. This registration number would be required to be included in any advertising of the property (which on the surface doesn’t make any sense, as properties that are available for rent are generally advertised before they are rented, that is before they are even eligible for a registration number.) Here’s what’s included on the application:


This information would provide an as of now yet to be created new level of bureaucracy in local government the core information required to monitor the frequency at which homes are rented. Current law permits not more than two rentals of 14 days or less twice during a 6 month period. In addition Landlords would be required to submit affidavits attesting to their compliance with all codes. On top of all this there may be a fee for the registration. In addition any subsequent rental will require obtaining a new registration number. It’s all silly and a waste of time and energy and does nothing to solve the problems meant to be addressed.

The proper way to handle late night parties and over crowding is to call the police and code enforcement. The rules are already on the books, they just need to be enforced, there is no reason to create a whole new level of regulations and record keeping.

There is one thing that we have always felt and that is the limitations on short term rentals should be eased. Our season is short and the trend over the last few years has been toward shorter term rentals, there is a lot greater demand for weekly rentals than there is for the more traditional Memorial Day to Labor Day. Allowing shorter term rentals does not increase congestion. What it would do is bring fresh wallets to our economy, more frequently. This is something that would be of tremendous benefit to local merchants who need to make all they can during the summer months in order to survive the lean off season.

Something Off Topic – We think we understand what the message is…

Posted on Tuesday October 21, 2014 5:13 PM
by Joseph Kazickas No Comments »

…but perhaps there’s a better way to say it.


Time Capsule Document – The Original Contractors Reconciliation For The Construction of 140 Egypt Lane

Posted on Tuesday September 16, 2014 8:11 PM
by Broker 1 Comment »

We were provided the following interesting document regarding the construction costs for 140 Egypt Lane a house that is currently for sale. It is pretty fascinating.

Here it is:

140 Egypt Lane - Construction Cost Reconciliation-1

140 Egypt Lane - Construction Cost Reconciliation-2

The first thing that impressed us was that it was prepared with a manual typewriter and it is basically flawless. We know that sounds trite, but all you have to do is think about it for a few seconds as you sit in front of your computer.
Beyond that we can note the start and end dates, the house was completed in 11 months. The contract estimate was $34,848.00 and the total job cost, after adjustments came to $35,793.20. Just for the record that is equal to $476,409.49 in today’s dollar. The house is about 5,485 square feet in size so that equates to a cost of about $86/sq.ft. Try getting anything done today at $86/sq.ft.

We were wondering about the substitution of kalsomine for paint. In fact we hate to admit it but had never heard of kalsomine, which shouldn’t be a surprise as its general use in home construction, we learned, ended in the 1930′s. Here are two links to some information about it, in case you care.