Historically, back in the age of single wage earner families, the rental season meant Memorial Day to Labor Day, the “full season” rental. But things have definitely changed over the years.
First the season contracted to July through Labor Day. In the last ten years it seemed that the norm had become renting for a month, either July or August. In terms of enquiries the most popular rental period now may be weekly.
These changes may be a reflection of our less affluent times, or just plain lack of time to enjoy a full season of leisure.
As the market demand shifted the question of how to price rentals became more important and a neat rule of thumb developed. A full season rental priced at $100,000 would be parsed into two halves with August alone asking $50,000 and June and July the other $50,000. And then to split the hair again June would be priced at a sixth of the season value (or $17,000) with July claiming a third, or roughly $35,000. All nice and logical.
Except for when the market shifts again.
I am referring to a market shift which places a July rental in higher demand than an August rental. Pricing should adjust accordingly.
The reason this is a topic worth commenting on is that in the Hamptons, at least, we may be seeing a shift to July as our most desired month. More than one customer has made the comment to us that the weather is better, the traffic lighter, the crowds are thinner in July and that August in the Hamptons is a nightmare (with the added risk of hurricanes thrown in.)
If all this is, in fact, the case then we will eventually see a re-pricing of July rentals, closer to those of August.
This is something we’ll be discussing with Landlords prior to next season.