Let's Be Realistic On Rental Housing

Wednesday, August 29, 2012

Let's get right to it. There is no miracle cure for baldness. There is no long-lost, recently deceased uncle who left you millions in a Nigerian bank, awaiting your email confirmation. And no, you are not likely going to make $150,000 renting your home for two weeks during the 2014 back-to-back U.S. Opens in Pinehurst.

Regardless, that's not going to stop some folks from trying, and it's gotten the attention of the United States Golf Association.

"We view our rental market as an asset, but people need to be realistic," said Reg Jones, senior director of U.S. Open Championships for the USGA and a Pinehurst resident. "We just want to make sure that when the last putt drops, people won't be disappointed that their home didn't rent because they had unrealistic expectations."

'A Different Market' This Time

Some local real estate agents believe in the early-bird-gets-the-worm strategy. They already represent a couple of hundred homes for rent during the championship weeks, and they think aggressive pricing for premier homes this early could net their owners a sizable sum.

One of those agents, Marcus Larose, told Pilot writer Ted M. Natt Jr. recently that he had already shown one of the pricey homes to a corporate hospitality firm and that "it's on the top of their list. ... These are corporate retreats that have amenities you can't find elsewhere."

The last time the men's U.S. Open played No. 2, in 2005, some homes in prime locations netted $50,000, Jones said. Depending on their locations, most homes rented for between $4,000 and $9,000. And prices for the U.S. Women's Open were lower than that.

"I would not expect that to happen this time," Jones said. "It's a different market given the recent economic downturn and its effect on corporate entertainment."

Don't Scare Them Away

You don't need to read quarterly earnings reports to know that corporations are operating on thinner profit margins made possible primarily from cutting costs. And if that's not reason enough, companies don't want to lay off workers while also dishing out hundreds of thousands of dollars for a week or two in Pinehurst. Last time we checked, shareholders were throwing corporate officers overboard for those kinds of sins.

The novelty of back-to-back U.S. Opens is a huge vote of confidence for Moore County. It represents a significant economic boost for the community. The last thing we want is to drive visitors to seek cheaper accommodations in Raleigh or Greensboro - and their related entertainment spending - at our expense.

Seven years ago, homes for rent went wanting because, local officials said, "their pricing structure was too high."

We appreciate the faith the USGA has placed in us - all of us - by taking this first-ever leap of faith and hosting its prestigious golf events here in consecutive weeks. And we're glad our citizens have a chance to profit financially from the opportunity.

But here, we are reminded of this truism: If it's too good to be true, it probably is. If you want to rent your home, then by all means get what you think you can get. But be realistic.

More like this story

alladat1 8 months, 3 weeks ago

This is none of the Pilot's business. There are people who think the Pilot should not charge 50 cents and that is not their business.

Courseaire 8 months, 3 weeks ago

The rents will be what the market will bare. For the '05 Open, we rented one home for $12,000 & the other for $15,000 (this was a block from the course) for 8 days - they were to corporate sponsors. The $150,000 rental is most likely on #2 and all I can say is "Location, Location, Location!" The'14 Open rentals may be more, may be less - it will be what the market will bare. No one will be scared away as housing availability will be limited and will adjust accordingly. Just as a house in Pinehurst will sell for $300K, that same house will sell for $1,300M in NY, SF or DC.

JimL 8 months, 3 weeks ago

The first two comments are exactly correct. The editorial writer displays an Obama-like ignorance of the way the private markets work. The price will adjust - up or down - so that the balance between supply and demand brings it to the right level. Or a transaction (rental) will not take place.

Hembloche 8 months, 3 weeks ago

It's a local story with local interest which is exactly what the Pilot's business is... Good job JimL, you only have 3 more completely nonsensical Obama bashes left to meet your daily quota.

bubbasmith 8 months, 3 weeks ago

The USGA needs to set a pricing structure for the vendor's six dollar hot dogs and five dollar soft drinks.

clarabelle 8 months, 3 weeks ago

" JimL - The first two comments are exactly correct. The editorial writer displays an Obama-like ignorance of the way the private markets work."

and you............ display an ignorance of the current admin - probably due to an overexposure of limbaugh! Besides - why comment here about that anyhow ............

and - I don't agree with the article either.........

JimRussell44 8 months, 3 weeks ago

When I read of stuff like this, what comes to mind is the old saying: "A fool and his money are soon parted". Makes you wonder how so many fools have so much money. The other saying that might also fit goes back a long time ago when I first came to North Carolina. A local told me then that every "Yankee" tourist was worth a bale of cotton.....and twice as easy to pick.

cooldaddy 8 months, 3 weeks ago

Good government will step in ONLY when absoultly needed. The free market does not need anymore government. Restrictions on gouging after a disaster...ok. Zoning and permits relating to safety...sure. Otherwise, stay out! My God man...the 150 k might buy your house, but the pool on the property being rented may have cost that. That is none of the writers business. I am free to put 2 million on a 150 k piece of property I am selling if I want to do so. No, it won't sell, but if some nut comes along and wants to give me that...well, cool daddy. I will accept. That's not gouging,it is weeding out the stupid.