Summer in Sagaponack #RidiculousRent

Credit: Zillow.com

Credit: Zillow.com

Sagaponack, New York, is one of the most expensive zip codes in the United States, and we can see why. At just $175,000/month, you can rent this luxurious 7 bedroom, 7.5 bath mansion. However, this private getaway is only available for the summer months, making this investment all the more worth it. I guess the cost of rent will leave room in your pocket for all of the summer barbeques that you’ll be hosting by your heated gunite pool!

This masterpiece of a home includes everything you could ever want, making it virtually impossible to rent for just the short interval of August through Labor Day. With a billiards room, bar, private wine cellar and tasting room, home theatre, and gym, no one will ever want to leave. Those amenities are just a few of what’s available, not including your own private address. I would hope that you are renting this property out with a few of your friends, because 7 bedrooms for 1 person is a little ridiculous!

So if you get that bonus at work you’ve been dreaming of or you finally win the Powerball Jackpot in the near future, let me know and we can venture to Sagaponack this summer before we have to return to our normal lives and empty wallets.

 

See table below for more info:

Neighborhood Sagaponack
Bedrooms 7
Bathrooms 6 full, 3 half
Square feet 7,000
Rent/ month $175,000
Rent/square feet $25.00
Rent period Month
Lot 1.56 acres
Year built 2007
Structure type Modern
Pets allowed N/A
Garage 2 garage bays
Air conditioning Central
Basement Finished
View type Pond, yard
Design features 4 fireplaces, hardwood flooring
Appliances Dishwasher
Features

Spa/hot tub, hi-speed internet, heated/inground pool, master bedroom suite with summetrical sun room, zen rock garden, patio, pond, private terraces, billiard room, bar, private wine celler, tasting room, home theatre, gym

Amenities All

Tips For Drafting a Lease

Writing Pencil

Completely clueless when it comes to drafting a lease? Don’t be! With our guide, you’ll have a clear and concise lease in no time.  Remember—states’ laws differ greatly, so be sure and check on your local laws. What is legal in one state could be unconscionable in another.

A “strong” lease:

It is a known fact that courts will refuse to enforce agreements that are made in bad faith, meaning that the lease terms are outrageous and unreasonable. Furthermore, a lease should be strong, but not so restrictive that it will be held invalid by the court. Each state is different in regards to documenting a lease, so it is recommended to check your state’s regulations prior to drafting your agreement.

What is a severability clause?:

Under the severability clause, the terms of the contract are independent.  Therefore, if just one term in the contract is seen as unenforceable, the contract as a whole cannot be deemed unenforceable (this can come in handy).  Make sure to include this clause, or else your entire lease could be impossible to implement!

Security deposit:

It is important to include the amount of the security deposit in the lease, otherwise it can be difficult (or impossible) to impose later. Additionally, if you do not collect the security deposit because you “trust their character” or some other reason, the tenant could start to take advantage of the situation and fail to pay rent, damage the property, or some other unfortunate consequence.

What should I include?:

Here are some of the articles that we believe would be beneficial to include in your lease. Keep in mind that this is not by any means the entire list, but will give you a good head start on the process. Furthermore, each point can differ depending on the state that the lease is drafted in, so keep that in mind:

  • Will you allow subletting?
  • Is there limit on the number of occupants and animals that are allowed to live on the property?
  • What is your state’s definition (and remedy) for default (when one party to the contract fails to fulfill the terms of the agreement)?
  • Who are the parties to the lease? (This is important for numerous reasons.  One example is that if two people, such as a couple, are renting a unit, then both signatures should be included on the lease, or else this could become a complication later on).
  • When is rent due? When is rent considered to be late?
  • What repairs are the responsibility of the landlord? What about the tenant?
  • What will happen if the tenant breaches the lease agreement?

Do you have any other important items to include while drafting a lease?

Top Legal Mistakes For Landlords to Avoid

Being a landlord can be tough, but at the same time very rewarding.  There are numerous things to keep in mind, but not all are self-explanatory.  To help direct you along the way, we’ve compiled a list of our top legal mistakes steer clear of, because a liability issue is probably the last thing you need on top of everything else. 

Do not be discriminatory. 

There is a difference between asking meaningful and discriminatory questions.  The Fair Housing Act of 1968 protects individuals from discrimination, particularly of race, color, religion, national origin, sex, disability, or presence of children, while renting, purchasing, or financing a home.  Therefore, we advise landlords to use unbiased tenant screening methods, such as questions about criminal record and credit score, in order to find the best tenants to fill your property. 

You must disclose all information about your property, whether you like it or not.  

Some common examples of disclosures include information on the installation and maintenance process of smoke detectors and alarms and the presence of environmental or health hazards on the property.  If you do not disclose important information, it will come up sooner or later, and tenants may be able to file a lawsuit against you.

Landlords are legally responsible to keep tenants safe from harm.  

This can be anywhere from installing full-fledged alarm systems to the removal of carbon monoxide.  If any tenant suffers from property or physical loss, he or she may be able to sue the landlord and recover compensation.  This can turn into a very expensive situation, and can also lead to complications in the (potential) eviction process.  

When creating the rental agreement, it is wise to specify whether the tenant or the landlord must make each type of repair.

 Each landlord has the responsibility to furnish a rental unit that is sufficient to live in, meaning that each rental unit must have heating, plumbing, and clean water, amongst other commodities.  If repairs are never made or if the landlord does not provide an acceptable place to live, this may result in a lawsuit against the landlord.

While the landlord does have responsibility to make frequent inspections of their property, this includes certain restrictions. 

The landlord must provide verbal or written 24-hour notice before entering a tenant’s rental unit, or else the tenant can sue the landlord for breaking and entering.  After providing notice, a landlord may enter the rental unit to inspect the property or make a repair.

Eviction is the removal of a tenant from a rental property by the landlord.

 A tenant may be evicted for a number of reasons, like if the tenant fails to pay rent by the due date specified, or if the rental property is being used for something other than its intended purpose.  The eviction process differs between states, but usually follows the same steps.  If the landlord tries to evict the tenant without a court order or notice (the first step of the eviction process), then the tenant may recover damages.

A tenant must pay a security deposit to cover damage that they have contributed to, which is specified in the rental agreement.  

The security deposit should only be used to cover damage that is on a list provided by the landlord and the landlord must pay the balance of the security deposit to the tenant once the process is completed. Unfortunately, some landlords use the security deposit for unnecessary refurbishing for the property, or keep it for their own personal use.  This can result in the tenant pursuing legal action against the landlord to reclaim the deposit.

Do not use generic lease forms.  

If you were to use a “standard” form to create a lease, it could be considered unenforceable, and it might even include greater obligations and restrictions than your own state’s laws. Also make sure to include everything necessary in your written lease so later on if there is an issue, it is clearly stated in writing.  Some important articles to include in a rental agreement would be the length of the tenancy, the amount of the security deposit, and the amount of the rent and when it is due each month.  

Landlords should consider purchasing a landlord insurance policy in order to protect themselves from financial loss.  

This particular policy includes coverage against household accidents or disasters such as fire and water damage.  Additionally, this policy covers all other important structures listed on the property, like swimming pools and garages.  This coverage also includes a landlord’s personal belongings that could be used by tenants, such as appliances and furniture.  Without this policy, the landlords could be unable to be fully compensated in the event of a loss.   

Don’t make a promise that you can’t keep, because it will come back to hurt you.  

For example, if you agree to replace your tenant’s broken refrigerator within two weeks, the tenant will most likely hold you to your word.  Thus, make sure that your promises aren’t unrealistic, and keep all of your promises in writing.  An unsatisfied tenant is able to legally break the lease and potentially sue the landlord for the difference between the value of what the tenant was promised and what was actually delivered.