Ocean County: Summer rental rules changing for vacationers

Posted by the Ocean County Observer on 03/26/06

BY KAREN HAMMERDORFER
DELANCEY
AND EDDIE HOLLOWELL
STAFF WRITERS

Due to myriad factors, ranging from the downsizing of corporations to an upswing in family activities, vacationers are changing the rules when it comes to who is renting a house at the Jersey Shore — and for how long they plan on staying.

Several area Realtors say they’re seeing specific trends over the last couple of years: day-trippers are on the rise; group rentals are down; and people just don’t seem to want to rent a summer home for an entire season anymore.

“The complexion of the residential seasonal rental market has drastically changed in Point Pleasant Beach,” says Jack Breda, a Realtor at William H. Ball Agency in Point Pleasant Beach. He and his wife Maureen own the agency. “The complexion of the town has changed in terms of the type of person that rents.”

Summer rentals are slow this year; last year they were horrendously slow, said Breda.

Just a few years ago, group rentals in Point Pleasant Beach were about as common a sight as flip-flops on the boardwalk.

When Belmar inaugurated an “animal house” ordinance some five years ago, it had a ripple effect throughout other Jersey Shore towns, said Breda.

“Towns have discouraged group rentals. It’s not bad or unwarranted, but it seems excessive to those who are renting,” said Breda.

Many towns, including Point Beach, adopted similar laws. Nowadays there are fines and/or penalties dealing with issues ranging from parking to how loud someone plays their music, said Breda.

Breda said several complex issues come into play regarding summer rentals.

A lot of investors who paid very high prices for summer homes during the real estate boom a couple of years ago expected to pass those fees on to renters, but summer rental values have decreased.

Breda said that 2 1/2 years ago, a five-bedroom, two-bath summer rental with off-street parking would cost $25,000 for the season. Last year that same home rented for $20,000, he said.

“A lot has changed over the years,” said Breda. “The employment picture has changed. Jobs have been downsized. More people are working below their economic and educational status than they did 10 years ago. Point Pleasant Beach is a microcosm of the United States.”

In addition to a decrease in group rentals, several real estate agents say there is a decrease in the number of families who want to rent a home for the entire summer season.

Breda said that the number of people who rent a home for an entire season is off by some 50 to 60 percent.

Nowadays, however, 65 to 70 percent of the renters are families — but they are looking to rent for only one to two weeks, said Breda.

The reason is due, in part, to the change in the family dynamic. Years ago when children were off for summer vacation, they didn’t have as many pursuits as they do now.

Just about every college student has a summer job, takes extra college courses to get ahead or keep up, or, if they have the money, opt for travel. Teenagers in high school are busy, too. Many get summer jobs; football players begin practice in August, which eats into the summer vacation schedule. Children are occupied with traveling soccer programs, out-of-state camps and other pursuits.

“It’s nice to see families coming back, but they complain about parking and cost of goods and entertainment on the boardwalk,” he said. A family of four can easily spend $200 on a day trip that involves fees for parking, food and entertainment, he said. That’s excluding tolls and gas.

One-week stays are the choice of most renters, often because of affordability, several Realtors said.

“It’s expensive even in a modest household,” said Bob VanBuren, sales representative for Island Realty on Long Beach Island. “It’s a chunk of money to lay out for some families.”

VanBuren said rental rates on Long Beach Island can range from about $800 for a week in a small one-bedroom unit near the Bay, up to about $15,000 for a week’s stay in a much larger and newer oceanfront property. On average, people spend about $2,500 to rent for a week, VanBuren said.

With regard to home sales, Breda said that four years ago a house in Ocean County sold in approximately 47 days. Some, if they were the right price and near the water, sold in a day. Now houses are on the market for a much longer period of time, he said.

Carol Duffy, general manager of Childers Sotheby’s International Realty in Point Pleasant Beach, said she’s also noticed a trend in summer rentals. More families, she said, are waiting until the last minute to make a rental-related decision.

“Maybe people are putting their money into other programs for their kids. Or maybe their kids are so busy they can’t catch a week off,” she said.

Duffy said she’s noticed that more day-trippers are hitting the beach. It used to be that traffic would back up on Route 35, where Childers is located, on Fridays and Saturdays. Now it’s a daily occurrence in the summer, she said.

Pat Tallman, a Realtor associate at Coldwell Banker Riviera Realty in Point Pleasant, said that summer rentals are about the same as last year.

“And last year was slow,” she said.

Tallman said weekly and monthly rentals are steady, but season rentals are off.

Weekly rentals are more popular in Point Beach. Seasonal rentals are more conducive to areas such as Bay Head and Mantoloking, said Tallman.

“Rents are high because investors want to recoup,” said Tallman.

Tallman said many people want to rent during July. June and August are more difficult to rent. Investors are willing to break up the season and rent their home out for June and August, but they won’t break it up for less than a month, she said.

Like Duffy, Tallman said she’s noticed an increase in day-trippers, many of them families, she said.

Many area Realtors said so far the summer rental season seems to be busier than in recent years.

“It’s busier than it has been, but I don’t know why,” said Bob Schaffer, owner of Schaffer Real Estate in Seaside Heights. “I don’t know why it was slow the last two years.”

Schaffer said vacationers continue to look for one or two week rentals, which on average can cost about $1,500 per week.

“People do one-week rentals, it’s always been that way and it will remain that way,” said Jeff Serio, manager of Ocean Beach Rental Agency in Lavallette.

Serio said the unseasonably warm winter has helped this year’s summer rental season get an early head start.

“Most people will come down on the weekends to look at the houses, and the weather has been so nice this winter,” Serio said.

Mark Dietz of Ward Realty in Point Pleasant Beach said the summer rental season to date has been “hot.” Summer rentals have spiked 25 percent more than last year. Ward Realty books about 200 rental properties in the area.

“We’re getting bookings a lot earlier than last year and in years past,” said Dietz. “We’re getting flooded with calls.”

Dietz compared this year’s summer rental market to that of three to four years ago.

Dietz said the early interest in rentals, is due, in part, to the mild winter. The weather has been bringing people down to the Jersey Shore earlier than usual, he said.

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