I'm looking to build a rental on a lot I own in The Springs. What type of house will bring the best ROI?

Asked by ross, 11937 Mon Jun 18, 2012

Should I go for luxury home? How many BR? BA? What amenities are most sought after?

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Mary Ludlow, Renter, East Hampton, NY
Tue Feb 19, 2013
Hi. Having just moved here, I can give you some information on what renters are looking for. In The Springs area, there are more year-round residents and family homes. There aren't really any "beaches" to go to, unless you buy property on the water and make a beach. With that being said, as a family of 4 we needed 3 bedrooms, 2 bathrooms, a family room, dining room and either a den or an office. It is very difficult to find an affordable rental that is spacious and updated (more modern). I wouldn't say you need to build a "luxury" home, but a tenant will definitely appreciate space and some upgrades. Most properties have nice size yards, but if the yard is fenced in that's a big bonus.
I hope this helps.
If you provide a year-round rental then you don't have to worry about furnishing the house. Another thing you don't have to bother with is utilities - the tenants will assume responsibility for all utilities. One thing I would like to mention is the rental rates around here are ridiculous! If you're going to build a year-round rental, please charge a reasonable monthly rate - $2000 to $3000 a month. Unfortunately, for renters, there aren't a lot of year-round rentals available here, but as a home owner (builder) it would be a great business.
Best wishes!
0 votes
Atlantic Team, Agent, East Hampton, NY
Wed Sep 26, 2012
The rental market has been very strong for the past two summers. Also building in East Hampton right now is very reasonable compared to past years.

Before you ask about bedrooms and amenities, you should ask yourself if you are in a good location because that is one of the major factors that influence ROI.

I understand that you are in the Springs but are you close to water, close to village or on large acreage and private? Some homes are close to the ocean beaches in Amagansett and others have their own marina rights and private beaches. With those benefits, It would be ideal and worth the investment to build a house with more bedrooms.

A four to six bedroom with equal number of baths and a heated pool would be ideal but you should consult with us over the phone (631-267-7335) or via email (hkang@elliman.com) to discuss exactly where the lot is located and your best options to make this property the number one choice for renters and provide the best ROI.
0 votes
JONATHAN LER…, Agent, Scarsdale, NY
Mon Jun 18, 2012
The Springs is not a Luxury area, your best best would be to build a simple unit with lots of bedrooms and a pool.
0 votes
Thanks.What about the interior (fixtuers, tile, appliances, etc.) would it be advisable to go with higher end fixtures (not necessarily the highest) inside or just keep it simple?
Flag Mon Jun 18, 2012
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