Airbnb & VRBO Performance in Southampton New York.

Short-Term Rental Regulations in Southampton, New York for 2024

General Requirements

• Rental Permits: Any home being rented for any period must obtain a rental permit from the town.

Minimum Stay Requirements

• Minimum Stay: The minimum length of stay is 14 days. Rentals shorter than this are considered "transient" and are not allowed.

Permit Application Process

• Application Components: The rental permit application must include floor plans, property survey/site plan, certificates of occupancy, Residential Smoke Detector Affidavit, Designation of Agent for Service form, and proof of ownership.
• Inspection: A safety inspection by the town or a certified professional is required.

Permit Validity and Fees

• Permit Validity: Rental permits are valid for two years.
• Fees: The permit fee ranges from $150 to $750 based on the property type and owner.

Occupancy Limits

• Owner-Occupied Rentals: Owners can rent out up to two bedrooms in their house to a maximum of two renters, provided the owner continues to reside there and all occupants share common kitchen, living, and entrance facilities. No permit is required for this scenario.
• Full House Rentals: Full house rentals require a rental permit and must adhere to the 14-day minimum stay.

Enforcement and Penalties

• Compliance: Local authorities actively enforce the regulations, using listings on websites like Airbnb to identify illegal rentals. Fines can be as high as $30,000 for violations, and chronic violators may face fines up to $100,000.
• Advertising Restrictions: Advertising or listing a house for rent without a permit can result in violations, suspension or revocation of permits, and additional fees.

Future Considerations

• Potential Changes: There is consideration for reviewing and potentially loosening the rental codes to allow for more flexible short-term rentals, particularly in remote locations where they would not impact the surrounding community.

Top Neighborhoods Generating Airbnb Revenue in Southampton, New York

Main Street and Jobs Lane

• Appeal: This area is the heart of Southampton's retail and culinary scene, featuring high-end boutiques, gourmet eateries, and a vibrant cultural atmosphere. Guests are drawn to its central location, upscale amenities, and the ease of accessing shops, restaurants, and transportation hubs like the train station and jitney.
• Revenue Potential: Properties here attract a high-end clientele, ensuring strong rental yields due to their desirable location and luxurious amenities.

Southampton Village

• Appeal: Southampton Village offers a quintessential Hamptons experience with its historic charm, beautiful beaches, and proximity to premier shopping and dining. Guests appreciate the walkability to main attractions, the presence of wineries, museums, and the overall peaceful yet vibrant atmosphere.
• Revenue Potential: The village's mix of historic homes, modern amenities, and beach access makes it highly attractive to guests, leading to consistent and high-demand rentals.

Bridgehampton

• Appeal: Bridgehampton combines luxury living with a country charm, offering easy access to golf courses, beaches, and the amenities of Southampton Village. Guests enjoy the blend of rural tranquility and high-end living.
• Revenue Potential: The area's appeal to families and luxury seekers ensures a steady stream of high-paying rentals, particularly during peak seasons.

East Hampton (adjacent to Southampton)

• Appeal: Although technically part of East Hampton, areas near the Southampton border offer tranquility, privacy, and easy access to Southampton’s amenities. Guests are attracted to the historic picturesque neighborhoods and the proximity to beaches and cultural events.
• Revenue Potential: The unique blend of privacy and access to luxury amenities makes these properties highly desirable, generating significant revenue through Airbnb rentals.

Oceanfront and Beachside Areas

• Appeal: Properties located near or on the beach, such as those in areas like Cooper's Beach, offer exclusive access to pristine beaches and picturesque views. Guests are drawn to the luxury and leisure these locations provide.
• Revenue Potential: Oceanfront properties are highly sought after, commanding premium prices and ensuring high rental revenue due to their unique and desirable locations.

These neighborhoods stand out for their unique combination of luxury, convenience, and natural beauty, making them highly appealing to guests and generating significant revenue through Airbnb rentals.

Tips for Furnishing and Designing an Inviting Airbnb in Southampton, New York

Define Your Property's Aesthetic

• Align your property's aesthetic with the local market and price tier. Southampton is known for its luxurious and coastal vibe, so incorporate elements like natural palettes, textured accent rugs, and soft wooden décor.

Choose Functional and Comfortable Furniture

• Ensure that each piece of furniture serves a purpose and is useful to guests. Avoid unnecessary decor and focus on items that enhance the functionality of the space.

Opt for Easy-to-Clean Furniture

• Select furniture that is easy to clean, such as leather upholstered chairs and wooden headboards. Use ScotchGuard on fabrics and invest in a spot cleaner for regular maintenance.

Select Solid and Durable Pieces

• Prefer solid wood over particle board for durability. Choose dressers with easy-to-open drawers and ensure that main furniture pieces fill the room appropriately.

Consider the Space and Layout

• Measure your space carefully to select furniture that fits well. For high ceilings, use taller pieces and mirrors to fill walls and create additional space for guests to get ready.

Enhance Safety and Security

• Mount TVs and secure large mirrors to the wall to prevent accidents and maintain a clean look. Ensure that any furniture that needs to be moved (like a coffee table) is light and easy to lift.

Incorporate Local and Coastal Elements

• Reflect Southampton's coastal style by incorporating elements such as nautical colors, natural textiles, and outdoor features like a BBQ area, fire pit, or heated pool if possible.

Pay Attention to Lighting and Ambiance

• Use lighting to create a welcoming ambiance. Consider the use of sliding glass doors to connect indoor and outdoor spaces, and ensure ample natural light during the day.

Add Personal Touches

• Include personal touches that make the space feel homey and inviting. This could include local artwork, cozy throw blankets (stored safely), and a well-equipped kitchen with modern appliances.

Ensure Family-Friendly and Guest-Centric Amenities

• If your property is family-friendly, include amenities like high chairs, travel cribs, and strollers. Also, provide amenities such as WiFi, air conditioning, and free parking to enhance guest comfort.

Practical Tips to Run a Successful Short-Term Rental Business in Southampton, New York

To ensure a smooth and successful short-term rental business in Southampton, New York, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about the local noise regulations and quiet hours to avoid any potential issues. Include a section in your house manual or welcome message that clearly outlines the noise restrictions and the consequences of violating them.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should also cover house rules, including noise regulations, to ensure guests are well-informed and respectful of the property and neighborhood.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to access the property, along with photos or videos to help them navigate any specific steps.

Parking Instructions

Include detailed parking instructions in your house manual, accompanied by photos to help guests identify the correct parking areas. This can prevent confusion and potential parking violations, ensuring a hassle-free stay for your guests.

By following these tips, you can enhance the guest experience, reduce the risk of compliance issues, and maintain a positive reputation for your short-term rental business in Southampton, New York.

Here is a brief list of house cleaning, repair, and maintenance providers in Southampton, New York:

House Cleaning and Maintenance Providers

Long Island Maids

• Offers house cleaning, deep cleaning, move-in/move-out cleaning, and post-construction cleaning services.
• Serves Southampton, East Hampton, Bridgehampton, Sag Harbor, and Montauk.

A Votre Service!

• Provides house cleaning, spring cleaning, post-renovation cleanup, rental turnover cleaning, window washing, gutter cleaning, home organization, handyman services, and property management.
• Services include house watching and errands.
• Covers areas including Southampton, Water Mill, Bridgehampton, Sag Harbor, and other Hamptons communities.

Catherine's Cleaning

• Offers general maintenance cleaning, deep cleaning, and dedicated maid services for homes and businesses.
• Licensed, bonded, and insured with highly trained staff.
• Serves Long Island and the Hamptons, including Southampton.

MaidPro

• Provides maid services for the entire Southampton area.
• Focuses on customized cleaning plans to fit individual needs.

Short-Term Rental Management Fees in Southampton, New York: A Comprehensive Guide

In Southampton, New York, managing a short-term rental property can incur management fees that typically range from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, which handle everything from guest communication and marketing to maintenance and price optimization, usually charge fees at the higher end of this spectrum, often between 20% to 30% of the rental income.

Basic services, such as listing creation and calendar management, may be available at lower rates, starting from around 10% per booking. Additionally, hosts may need to consider extra fees for services like cleaning, repairs, and design, which can further impact the overall cost of managing their short-term rental properties.

Understanding these fees is crucial for hosts to ensure they can maximize their profits while complying with the stringent local regulations in Southampton.