Renting a Hamptons house for the summer

The one-month deposit cap and the seasonal exception

New York limits what a landlord can take up front. The General Obligations Law says: "No deposit or advance shall exceed the amount of one month's rent, unless the deposit or advance is for a seasonal use dwelling unit as provided for in subdivisions four and five of this section, or unless the deposit or advance is for an owner-occupied cooperative apartment as provided for in subdivision six of this section" (General Obligations Law §7-108(1-a)(a)). "Advance" matters: it covers rent paid ahead, not only the security deposit.

A house counts as a seasonal use dwelling unit only if all of these are true (GOL §7-108(4) and (5)):

• The lease expressly says the house is registered as a seasonal use dwelling unit, and names the local or county agency it is registered with.
• The lease says the tenancy is only for seasonal use, for no more than 120 days or a shorter period in the lease.
• The lease says the tenant has a primary residence to return to, and gives its address.
• The house is actually registered with a local or county seasonal use registry, by filing a copy of the lease and whatever else the registry asks for. The exception works only where the local government with building jurisdiction, or the county, has set up such a registry.
• The house isn't rented as a seasonal unit for more than 120 days in the calendar year.

If any of those fails, the one-month limit applies, whatever the lease says. Tenants: before paying more than a month up front, ask the owner or broker which registry the house is on, and check the lease names it. Owners: register first, and write the required statements into the lease.

Town permits and village registries

The Hamptons lie in the towns of Southampton and East Hampton, which contain incorporated villages with their own codes. Which rules apply depends on whether the house is inside a village. Check with both the town and, where relevant, the village before you sign or advertise.

Village of Southampton. The village runs a Seasonal Rental Registry. Its checklist asks for an application, affidavits from each owner and each tenant, a smoke and carbon monoxide detector affidavit, a $125 filing fee and a copy of the signed lease, which must say the unit is registered as a Seasonal Use Dwelling Unit and give the tenant's primary address. The village warns that a seasonal rental not on the registry is subject to the 2019 Housing Stability and Tenant Protection Act, and that no seasonal unit may be rented for more than 120 days a year (Village of Southampton).

Town of Southampton. Outside the villages, any rental needs a town rental permit, valid for two years; the minimum stay is 14 days, and shorter rentals aren't allowed. Permits don't transfer to a new owner. Advertising or showing a house for rent without one can lead to violations and a two-year bar on renting (Town of Southampton rental FAQ). The standard fee is $400 for two years, the application needs floor plans, a survey and certificates of occupancy, and the house must pass a safety inspection; the town's checklist also limits a rental to four vehicles overnight (Town of Southampton permit application). The town estimates one to three weeks for a complete application, two to four in summer (rental FAQ). We couldn't confirm whether the town permit counts as a seasonal use registry under the deposit law, so ask the town before relying on it.

East Hampton and the other villages. East Hampton Town and the villages, such as East Hampton Village and Sag Harbor, may have rules of their own. Their websites wouldn't let us check the details, so ask the relevant building department directly.

As a tenant, you can ask to see the permit or registration before you sign. It is a quick way to tell a careful owner from one who may have the rental stopped mid-season.

Fees you can and can't be charged

New York's limits on application fees apply statewide, including to summer rentals: a landlord can't charge for processing or accepting an application, and may charge only for a background or credit check, at cost and no more than $20, with a copy of the report and the invoice (Real Property Law §238-a). Late fees are capped at $50 or 5% of the monthly rent, whichever is less.

The FARE Act, which stops a landlord's broker from charging the tenant, is a New York City law; it doesn't apply in the Hamptons (NYC Department of Consumer and Worker Protection). Out east, who pays a broker is a matter of agreement, so ask at the start and get it in writing.

What a seasonal lease usually covers

There is no standard Hamptons lease, and the points below are common practice rather than law. Read the whole lease, and have an attorney look at it if the sums are large. A seasonal lease commonly sets out:

• The exact dates, including check-in and check-out times.
• The rent, how it is split into payments and when each is due (see below), and the security deposit.
• Which utilities are included: electricity, heating or air conditioning, internet, water.
• Who maintains the pool, garden and lawn, and who pays for cleaning during and after the stay.
• The maximum number of people and cars, and any limits on guests, parties and noise. Town and village rules may be stricter than the lease.
• Pets, smoking and use of outbuildings.
• What happens if the house becomes unusable, and whether either side can cancel.
• An inventory of furniture and equipment, and how damage is assessed.

Take dated photos when you arrive and when you leave. It is the simplest way to settle a dispute over the deposit.

How the rent is paid

Seasonal rents are often paid in a few large instalments, with much of the total due before the season starts. How much can lawfully be taken ahead depends on the deposit rule above: if the house isn't a registered seasonal unit, no deposit or advance may exceed one month's rent. Ask for the payment schedule in the lease itself, with dates and amounts, and pay by a traceable method. Don't pay a large sum to someone you haven't confirmed is the owner or the owner's agent.

Flood zones and the lease

Every residential lease in New York must say whether the property is in a FEMA flood zone (the 100-year or 500-year floodplain), disclose flood damage the landlord knows or should know of, and tell the tenant that flood insurance for renters is available through the federal flood insurance programme and that ordinary renters' insurance usually doesn't cover flood (Real Property Law §231-b). A seasonal lease is a residential lease, so look for that clause. You can check the address yourself on FEMA's flood maps (FEMA Flood Map Service Center).

If you own the house

Before you list, get the permit or registration in your own name; if you have just bought the house, the previous owner's permit doesn't carry over. Then write the lease to match: the registration statements the deposit law requires, the flood disclosure, and limits that match the town's. Keep track of the days rented, because the seasonal exception and the village registry both stop at 120 days in a year.

To see whether summer rent covers the costs of owning, test the house's numbers in our property analysis, which takes rental income, and read our guide to buying in the Hamptons for the Peconic Bay tax and the rest of the purchase.