America’s Cup Property Rental Drop Coming

June 29, 2017 | 22 Comments

[Written by Don Burgess]

Homeowners in the west end that were getting a premium for renting their properties due the America’s Cup have been advised to lower their prices.

Johnettte McNeil, broker at JBM Realty and Associates, said it was advisable for them to have their homes rented rather than holding out for a higher income that may never come.

She added homes in Southampton and Sandys were able to get a 30% or more premium because of the America’s Cup.

Ms. McNeil said some of the three-bedroom homes in the west end were able to get $6,500 per month or more for the America’s Cup.

“In the west end, it’s usually very hard to get those higher rents. Usually that three-bedroom, two bathroom is about $5,000.”

Ms. McNeil said many people who were working for the America’s Cup desired properties in Southampton and Sandys and as a result, rental prices went up to meet higher demand.

“They were hard areas to get a good rent because normally everyone who comes here wants to be more centrally located.

“Now that the America’s Cup is finished it is definitely going to change as far as higher rentals, rents will have to be reduced.”

Ms. McNeil added some people did renovations to upgrade their homes to take advantage of the AC

“They have transformed their homes into vacation rentals as well,” she said. “They may be able to continue renting their homes as vacation homes throughout the summer season but once the season dies down and they consider going back to a long-term rental, that’s going to effect” prices.

She added: “We’ve gotten some of our homeowners to adjust their prices now based on that fact rather than just holding out on what they were getting. If they hold out for the higher price, each month they’re losing money. It is better to put it out at a fair amount now to give them the opportunity to get it rented rather than let it sit on the market for now.”

Ms. McNeil said this would most likely affect the upper end of the market just based on the type of properties that were being rented out.

Two other real estate firms declined to speculate on what the market might do over the next few months.

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Comments (22)

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  1. Politricks says:

    Even $5k for a 3 bedroom in Somerset is too much…

  2. puzzled says:

    Does not make sense.
    Were they empty prior?

    This is bullsheet and you wonder why Bermuda is so messed up and divided by status.

    • Enough says:

      Huh? These were rental properties and they jacked up rents for AC. So yeah, they made some money out of the AC, do you have an issue with that?

      These are rental properties that Bermudians own. What are you talking about with this ‘divided by status’ bullsheet?

  3. aceboy says:

    Anyone who needs to be told when to lower their prices should not be in the vacation rental market at all.

    If they are relying on being told these things I would suggest they find a new line of work.

    • Rada Gast says:

      The article is not talking about vacation rentals.

      • aceboy says:

        “They have transformed their homes into vacation rentals as well,” she said. “They may be able to continue renting their homes as vacation homes throughout the summer season but once the season dies down and they consider going back to a long-term rental, that’s going to effect” prices.

      • shakinerah says:

        Now I understand why reading comprehension was a test subject.

    • A Chap called Vanz says:

      Have no sympathy for greedy landlords.

  4. Toodle-oo says:

    Ahh , real estate agents . You gotta love ‘em .

    I know of 3 people who happened to have empty units just at the time that the AC was really building momentum .
    The agents wanted to rent out their units to people directly associated with the event for more than 3x’s their actual rental value .
    Not because there as any shortage of housing (and there won’t be for a very longtime either) not for the benefit of the landlords but for the fact that they could bolster their commissions !

    Now they’re telling the same people that they’re going to have to settle for less (which is still too much) again .

    And we wonder why everything is so damn expensive here .

  5. Truth is killin' me... says:

    The price will adjust to market demands. If they don’t see they will feel!

    • wahoo says:

      Zackly what I was thinking, we did not need a real estate insider to point this out to us. The thing is we will need a smart person to explain to service providers why landlords cannot afford to pay $40 ph to painters and $75 ph to plumbers and electricians.

      In 2025 things will be better.

      • sage says:

        Landlords can always do their own work for free.

      • Toodle-oo says:

        * The thing is we will need a smart person to explain to service providers why landlords cannot afford to pay $40 ph to painters and $75 ph to plumbers and electricians. *

        And maybe it’s the other way around ? Perhaps the people who work for those painters and electricians (and all other service people as well) have to demand high wages because their damn rents are so outrageously high .

        The very first thing on a person’s mind when they’re job hunting is , is the wage enough to cover my rent . Everything else pales in comparison . And therein is where the vicious circle begins .

  6. Rasta says:

    PLP get in rents will come down 75%

  7. Kathy says:

    I think we will encounter another mini-recession now that the AC is leaving. The going was good, but it sure didn’t last for long!

  8. Alvin Williams says:

    They believe the hype now the bubble has burst it happens all the time.

  9. Kim S says:

    Oh for goodness sake, stop! Everyone knew the AC was only for a fixed time. Sorry to be the one to remind us but there is no gravy train! It’s up to us to create opportunities and as those opportunities come and go (as they will) we must do it again… and again. If only life were that easy… minimum effort = maximum return!!

  10. Real Onion says:

    Bermuda boosts some of the most GREEDY and SELFISH property owners in the World.

    Stay Empty!

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