
DATE: Saturday, August 16, 1997             TAG: 9708150596

SECTION: REAL ESTATE WEEKLY      PAGE: 12   EDITION: FINAL 

COLUMN: ABOUT THE OUTER BANKS 

SOURCE: Chris Kidder 

                                            LENGTH:  122 lines

PROPERTY MANAGEMENT AN INCREASINGLY COMPETITIVE FIELD

No one knows for sure how many cottages vie to sleep the 250,000 tourists who visit the Outer Banks each week during peak season. But the number may now exceed 25,000.

About 45 property managers are currently at work trying to get those cottages into their 1998 rental programs. Amid the puffery and profusion of ads, property managers are putting their programs and careers on the line.

Cottage owners, meanwhile, are still trying to figure out 1997.

There's no uncertainty about some things: Cottages today are larger and more luxurious than ever before - and their numbers keep increasing.

Once the stepchild of real estate agents who used rentals to feed sales, property management is now the area's golden goose, capable of delivering cash through growing shoulder seasons and years of sales slumps.

True to a healthy marketplace, the business of renting cottages is competitive and innovative. Most property management firms have made more changes in technology and services in the last couple years than they did in the last 20.

For vacationers, the benefits have been good. It's a renters' market. Even at the season's peak, even when every one of the islands' 4,000 hotel rooms are booked, there are vacation cottages sitting empty. Most real estate companies do all they can to see that the empty cottages aren't wearing their ``For Rent'' signs during the peak summer season.

At most companies, repeat customers with a favorite cottage can now make advance reservations for next year at the end of this year's stay. Credit cards are cheerfully accepted. Renters can get linen and mid-week cleaning services. They can book shorter stays.

A few companies have adopted the hotel approach, providing blanket amenities for all their renters. For companies specializing in subdivisions where amenities are few and far between, centrally located pools and tennis courts are being added.

Hatteras Realty, specializing in Avon, Buxton and Frisco properties, opened its Club Hatteras Resort for all its renters this year. It features a junior Olympic pool surrounded by 18,000 square feet of decking, tennis courts, a concession stand, showers and dressing rooms.

Not only do the added facilities provide recreation options, says Stewart Couch, president of Hatteras Realty, guests can extend their vacations by hanging out at the beach or pool before check-in or after check-out.

Couch says he's footing the bill for the recreational complex himself. There's no fee to owners or guests. He expects increased rentals generated by the facility will cover his costs.

Rental brochures, the staple of the vacation cottage industry, are going to press and mailing earlier. Many rental companies are on-line, augmenting and updating their printed catalogs with new listings, more information and more photos. Some on-line catalogs provide a real-time interface for checking date availability and making reservations.

Rental agencies are attempting to become more consumer-friendly with regard to the big ``H'' word. Hurricane evacuation and refund policies are being clearly spelled out. Trip insurance, which covers renter loss from a multitude of events in addition to hurricanes, is being encouraged. Although there are still bugs to be worked out with this product, it's a step in the right direction.

If you're a cottage owner, you may view all of these consumer services as a mixed bag. While most owners realize that happy renters should be every property manager's goal, you have the legal right to expect that you are their number-one priority.

You need cash flow. Whether or not you want to see an actual profit on the property, you probably don't want to spend money out-of-pocket. You need hassle-free rentals, dependable service and a property manager looking out for your interests.

And this is the time of year, you - and the 25,000 other cottage owners - consider whether your needs have been met.

In fact, owners with some companies have already been asked to make that decision. Laurie DeNunzio, property manager for R & R Resort Rental Properties, says her target cut-off date in July for next year's rental program was one of the earliest.

Most companies aim to have signed contracts in hand by late September or early October.

Timing, whether it be for a rental brochure or rent disbursements, plays a role in property management decisions. But the big questions for most owners are: ``How many weeks will my property rent?'' and ``How much rent will I receive?''

Property managers can only guess what the answers will be. Companies that can provide documented proof of such results with several comparable properties are most likely to be able to deliver on their predictions.

The two numbers have a symbiotic relationship: Push rent too high and the weeks rented will drop. Vacationers, whose loyalty lies with a rental company or a neighborhood more often than with a particular house, will jump ship to save a few bucks.

Property managers and owners are just as likely to part ways over rental policies and fees.

Owners should evaluate the complete cost of doing business, advises Dan Hardy, rental manager for Joe Lamb, Jr. & Associates, one of the oldest rental companies on the beach and one of the few left that works only for commissions. It's one of the reasons he thinks his rental program has increased over the last three years.

``We have no brochure fees, no cleaning fees. We don't mark up service calls. We don't charge extra for paying bills,'' says Hardy, ticking off the list of added charges often encountered with other property management companies. ``We're a small, family-run company. And we can do it that way.''

Coming to terms on rental contracts is a two-way street, says DeNunzio, who deals exclusively with upscale properties from Duck to Monteray Shores in Corolla. The process is not only about satisfied owners - but also about owners meeting property management standards. She culls cottage owners who refuse to make upgrades. ``We're after quality, not quantity,'' she says.

Joe Lamb offers a cross-section of accommodations from Duck to South Nags Head.

Best known for its older, more affordable properties, Hardy says he gives his owners more leeway - but has found that most owners want to make improvements once they understand the realities of the market. ``To compete, you have to offer nice accommodations,'' Hardy says. ``People want something nice, nicer than home sometimes. The days are gone when just being at the beach is enough.'' ILLUSTRATION: TO LEARN MORE

Property management companies listed in this article can be

reached at the following numbers:

Hatteras Realty, Avon, 986-2841 or 800-527-2903

Joe Lamb Jr. & Associates, Kitty Hawk, 261-4444 or 800-552-6257

R & R Resort Rentals, Duck, 261-1136 or 800-849-6189

There are dozens of other real estate companies serving the Outer

Banks. For a complete listing, request a free copy of the annual

Outer Banks Vacation Guide from the Dare County Tourist Bureau,

800-446-6262 or 473-2138.