by Susan Thompson
When someone thinks of real estate, they naturally think of working as a real estate agent, but there are other careers in real estate as well …. appraisers and property managers for instance. 

In Bermuda to qualify as an appraiser you need to be RICS (Royal Institution of Chartered Surveyors) certified which requires an undergraduate degree or postgraduate degree, joining a firm as a trainee surveyor, getting experience and taking your APC (Assessment of Professional Competence) structured training.

You don’t need a college degree to become a real estate agent or property manager, although education is typically helpful in any career you pursue. Starting out, you’ll have to pass a government-set exam that is offered monthly at the Bermuda College. The exam itself can be challenging, so make sure you study.

Imagine working in a flexible career where you can set your own schedule with annual earning potential of $100,000-plus. There are so many reasons to choose real estate as your career. But there are always two sides to every story, and a real estate career is no different.

At first, your cashflow direction will be mostly out. You will need a good cell phone data plan, reliable transportation and funds for marketing yourself. Most new real estate agents need a nest egg to begin their careers.

Getting your first sale to come in will take some time, and it will likely be a couple months or more before you get paid. Depending on the market you cover and existing relationships you can farm, it can be a feast or famine situation.

Having a flexible schedule in real estate means you have to be flexible to the customer/client’s needs. In real estate, you tend to work when everyone else is not and that includes weekends.

You aren’t going to become a top agent at a top real estate company immediately. You really have to pay your dues, and prove that you have what it takes to be successful, which can take years.

As a realtor, you will be taking on a lot of jobs and wearing many different hats. This means that your work is never going to get boring. The job involves showing property, negotiating terms, working with attorneys and bankers, holding open houses, marketing yourself, following up and lots of networking.

Real estate can also be extremely emotional as we are dealing with people’s home and finances and the reason for selling is not always a happy one.

When it is all said and done, a job in real estate is not easy, it is a lot of hard work, but it can be fulfilling and the people that work in this industry love it.

If you have been considering a career in real estate, don’t believe what you have seen on TV, do some research on the topic the same as you would with any career move.

This article was originally featured in the TOP TEN 2019 edition of the RG Business Magazine.

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By Penny MacIntyre

Look up more. The commercial building landscape throughout the City of Hamilton in Bermuda is changing beyond just its bricks and mortar. Art is actively taking shape two- and three-dimensionally on the façade of an increasing number of offices, retail locations and prominent hotel properties. As more structures are undergoing renovations or complete knock-downs and rebuilds take place, the exterior “skin” of commercial buildings (also referred to technically as the “cladding”) are integrating grand scale art walls, 3-D structures and designs in a wide array from a growing number of international and local artists.    

Now look deeper. The impact of art on the exterior of commercial real estate is more than meets the eye, the art itself, or the building alone. All three elements combined generate greater qualitative and quantitative value to the structures, their cityscape and a burgeoning art medium. Statement pieces placed prominently offer public access, tend to improve the aesthetic appeal of a property’s otherwise repetitive brick or cement or glass siding.

Some commercial, sub-prime areas and industrial communities thorough Bermuda, just as in other islands and cities, are visibly the backdrop of one form of art one may perceive in its crudest form as graffiti. Unauthorised graffiti, generally attributed as the outcome of adolescent rebellion or gang-related activities, have signified one’s presence or memorialised love or hate of someone or something using symbols or tags.   

In stark contrast, perhaps by evolution of a former graffitist, muralists are creating art-for-hire with elaborate painted images in large scales to cover even full sides of commercial properties. Coupled with the proliferation of social media posts by owners, tenants, onlookers and tourists, the visuals created draw attention to the art itself, the building, neighbourhood, town, city, state or country.  

Bermuda’s newest example is the arrival of the Greetings Tour with the Greetings from Bermuda postcard colour mural strategically placed for high visibility over the parking lot on the side of the newly renovated office building, Dorchester House, on Church Street. Our company, Rego Sotheby’s International Realty, has had Dorchester House on the commercial rental market in recent months and seen the number of rental inquiries increase since the art installation occurred.  

The building has also captured more attention from the public and tourists who snap selfies and pictures, and post them to their social media platforms. An otherwise ordinary white side of a four-storey office building is attracting a wider audience.  

The creators, muralist Victor Ving and photographer Lisa Beggs, packed up their lives into an RV and have thus far created over 35 murals and counting in numerous states across the United States and crossing borders into international waters.  

Mr Ving said his first impression of Bermuda was that “the island felt very clean and calm. We pulled the colour scheme from all the buildings and the imagery sums up the entire place.” Mr Ving said their large-scale murals have generated tremendous positive reactions “creating destinations bringing business to local businesses”. 

As another form of art, sculptures are noticeably also taking up positions of prominence such as the gigantic Mickey Mouse statue called “At This Time” by New York-based artist KAWS (also known as Brian Donnelly) outside the Hamilton Princess Hotel. KAWS got his start doing graffiti.  

As E.A. Bucchianeri put it best: “Art is in the eye of the beholder, and everyone will have their own interpretation.” But the positive effect of art on commercial properties is undeniable. Proponents and effectors of this emphasis of exterior building and grounds art are the Green family. Through their real estate acquisitions and redevelopments cited above, the Greens have improved the public, tenants’ and visitors’ experiences, whether at the Hamilton Princess and Beach Club they acquired back in 2014 to their latest office redevelopment at Dorchester House where they commissioned the Greetings Tour. 

Their latest project is under way at Point House on Front Street in Albuoy’s Point area. Art — yet to be selected — is conceptually expected to vertically grace the new seven-storey building, further elevating the location with an iconic property visible from the harbour and down Front Street and Pitts Bay Road.

“The modern-day postcard is eye candy,” according to Mr Ving. The qualitative effects of art on commercial real estate are priceless, creating visually pleasing cityscapes. As Mr Ving observed: “Art feels safer. Knowing someone was there doing it. You’d be surprised how art transforms communities.”

Penny MacIntyre is a
Partner at Rego Sotheby’s International Realty
regosothebysrealty.com 

This article was originally published in the May 2019 edition of the RG Business Magazine.

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We all know someone who has become a successful entrepreneur thanks to modern accommodation booking websites such as Airbnb. As popularity for vacation rental properties continues to increase more homeowners are starting to ask themselves whether this a worthwhile income option.

As a rental associate at Rego Sotheby’s International Realty, one of the most common conversations I have with homeowners is advising them of the pros and cons of entering the market with a long-term rental versus a short-term/vacation rental. People often want to know which option will generate a higher revenue opportunity, what will work best for their lifestyle, and whether renting their property or apartment on Airbnb is truly worth it. The answer to these questions is yes! Renting your home on the vacation rental market can be worth it if you have the time, resources and a property that can exceed the average vacation rental market statistics.

What do the average market statistics look like in Bermuda?

First, let’s take a look at the short-term/vacation rental market. The average daily rate is $160 BMD per night and the average number of nights that a property is booked is 72 nights per year.  Therefore, the average annual revenue of vacation rental properties is $11,520. Of course, many exceptional properties in Bermuda will far exceed this number.

Now let’s compare that with the long-term rental market. An average one-bedroom apartment rents for $1,200-$1,500 per month. Therefore, the average annual revenue of one-bedroom properties on the long-term rental market is $14,400-$18,000.

It is important to consider that the operating costs of a vacation rental are higher than a long-term rental. For a long-term rental your operating costs are land tax, landscaping, appliance maintenance and general property maintenance. The operating costs of a vacation rental encompass all the costs of a long-term rental but have additional expenses such as utilities (electricity, internet, TV package, water), cleaning costs, maintaining supplies for guests (toilet paper, dish soap, salt, pepper etc.) and cost of replacing furniture or kitchenware due to normal wear and tear.

So how can a property owner create a vacation rental business that will be more profitable than renting their property on the long-term market? Maintaining a 5-star rating on the website which you use to advertise your property is critical. You get a five-star rating by providing an exceptional experience for your guests.

A quick response and being available to your guests 24/7 is crucial to achieving the profit you desire. The work involved in this could include things such as: answering all guests questions before their arrival, arranging airport transportation, facilitating grocery store deliveries, supplying basic toiletries and pantry items, check-in/out inspections and condition reports, professional standard cleaning and attending to property maintenance or internet issues without delay. There is also a requirement to report bookings to the Bermuda Tourism Authority and pay a 4.5% Vacation Rental Tax.

Ensuring that a vacation rental is ‘guest-ready’ for each booking requires a financial investment, as well as a time investment. Do not underestimate the value of your time. Many successful vacation rental property (VPR) owners will tell you that operating a successful VRP is a full-time job.

When you are deciding on a rental option for your property ask yourself if you have the time to properly commit. Are you prepared to work an on-call job on top of your full-time job? Or do you have the means to make VPR management your full-time job? If you have a passion for tourism, a property that will be in high demand and the drive to work for yourself, then you can absolutely create a VRP that will beat the vacation rental market average statistics.

If the time commitment is daunting, and you desire an easier revenue stream from your property then renting your property on the long-term market will most likely be better suited for your lifestyle, while still being profitable. Remember, there is also the option of hiring a property manager for a small fee to alleviate some of the responsibilities related to maintaining a vacation rental property.

There is no denying that websites such as Airbnb have had a significant impact on the tourism industry, and it is only growing. Every property and every owner is different. Take the time to reflect on which option is best for your lifestyle, and of course, do not hesitate to contact the professionals for advice!

Allison Settle-Smith is the Long-Term & Vacation Rental Advisor at Rego Sotheby’s International Realty.

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While out with the old is not always the case with real estate in Bermuda, it is certainly becoming prevalent for today’s discerning buyer. Dated kitchens and bathrooms are the death knell of hopeful sellers whether the property is a condominium or cottage.

Bermuda advocates have long sought out the quintessential Bermuda cottage with cedar beams and Dutch doors, at least until recently.  There has been a definitive move from the traditional aspirations of home buyers including second and third-time buyers who have exchanged charming and cute for contemporary and functional.

Mill workers will tell you that Bermuda (or Virginia) Cedar do not command the price it once did. Travel the island countryside and you will notice more demolition of traditional design being replaced by more contemporary shutter-free homes.

The idea that newer is better has been demonstrated by the lackluster performance of sales for dated condominiums and homes throughout the island in recent years. Newer or renovated properties stay on the market for a shorter period of time and achieve the best price.

Hence the resurgence of new developments that have been repurposed from their heyday as industry standard hotel/tourism properties. Not all are recognized as luxury, such as Wedco’s development in Dockyard. Additionally, the new rising standard is exemplified by luxury properties such as Caroline Bay in Southampton, Newstead and Belmont Hills and Azure in Warwick, The Wharf in Paget, Park Place on 10 Dundonald, Belvedere and Queen of the East in Hamilton. The redeveloped hotel properties in the East end of Bermuda now boast the gold standard of luxury condos in such properties as Ariel Sands, The Loren At Pink Beach, Hidden Cove, Rosewood Tucker’s Point and upcoming St. Regis Bermuda Resort and Residences.

With real estate sales prices holding firm over the last few years, property sellers are having to offer more value to buyers in order to hold those prices. Simply put, buyers get more for their money today compared to five, or even eight years ago. It might be time for “out with the old”.

So, what is the state of the market?

Average sales prices of homes under $126,000 ARV remain firm around $1.1 million. Condominiums with an ARV greater than $25,800 continue to sell at an average price of around $850,000 to $900,000. In every category of property, it still remains a buyers’ market where replacement costs exceed market value in 2018.

This article was originally published in the September 2018 edition of RG Business

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