Five Questions With: Cecile Cohen

Cecile Cohen is director of vacation rentals for The Randall Family of Cos., which specializes in southern New England coastal property. The vacation rental division supervises short-term rentals in five offices for Randall Realtors in Rhode Island, as well as 19 Kinlin Grover Real Estate offices on Cape Cod. Cohen responded this week to questions relating to the 2015 summer market.

PBN: How was the market for short-term rentals on both the Cape and coastal Rhode Island this summer, compared to last year?
COHEN:
Business has been booming in the vacation rental market. We’ve seen a 25 percent increase in bookings since last year in Rhode Island and a 19 percent increase on Cape Cod. Between the Randall, Realtors offices in Rhode Island and Kinlin Grover, our sister company on Cape Cod, we signed nearly 3,400 contracts for summer rentals. What’s interesting is that most of these reservations took place last winter and it definitely seems like the economy has picked up even more steam since then.

PBN: Is there more interest in Massachusetts, versus Rhode Island because of the new tax on short-term rentals, or has that not really become a factor yet?
COHEN:
The new tax on private home rentals of 30 days of less hasn’t really become a factor yet because most of our reservations take place from November through April for the following summer. This year, the tax won’t apply to anyone who signed contracts before its July 1 implementation date, provided that the rental takes place in 2015. Thanks to this clause, our clients were spared the extra expense this year. It’s hard to tell what the impact will be next year. We have a lot of repeat customers so we’ve been putting our efforts into making sure they know about the tax and the steps they have to take to comply with it. We’re particularly concerned about educating our out-of-state landlords so that they don’t end up being penalized for something they weren’t even aware of.

PBN: What are people looking for when they rent a house for the summer, or for a few weeks? Is proximity to the beach, or the center of town, more important?
COHEN:
Just like when you’re buying or selling a home, vacation rentals are all about location, location, location. When people choose to vacation in the Ocean State, being near the water is key. In addition to wanting a waterfront home, or one that is at least within walking distance or a short drive, many people are also looking for a place to keep their boat. Proximity to a mooring or marina is a definite plus. Since Rhode Island is so small, people can easily take a day trip to Newport, Providence or any of our other cities or attractions if they want a day away from the beach, but they definitely want to wake up in the morning by the water.

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PBN: What was the summer like for sales in both the Cape and Rhode Island markets?
COHEN:
The summer housing market was better than we’ve seen in years. Our winter stalled sales a bit but that only made activity in the spring and summer busier. The best part is that all ends of the market are moving, from $70,000 cottages on rented land to multi-million dollar waterfront homes. Interest rates are still unbelievably low so people at all price points are taking advantage of that.
PBN: Have any areas of Rhode Island become an emerging market for rentals? Not sure if there is an “overlooked” place that is starting to heat up?
COHEN:
The places that have always been popular are still the places that people flock to. I’m not seeing any specific areas within Rhode Island that were previously undiscovered, but are now up and coming vacation spots. I think the entire state however, is an emerging vacation market. Historically, when people thought of vacationing by the beach in the northeast, Cape Cod and the Hamptons were top-of-mind. Now, more and more people are discovering that Rhode Island can be less expensive, less crowded and easier to get to. We have something for everyone from the posh appeal of Watch Hill to the slower life style of Charlestown. Each year our beaches and roads in South County seem to get a little bit busier and our rental business has confirmed that trend.

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