Next summer (2012) London will host the Olympic and Paralympic games and every hotel, bed and breakfast and hostel is expected to be fully booked.
Throughout the duration of the Olympic Games places to stay will be in high demand as spectators look for a base that is close to the action.
In response to this many home owners in London are considering renting out their property and if you are one of them there are a few things you may want to take into consideration.
Firstly you will need to make sure you are covered if anything goes wrong, our own Main Home insurance policy will allow you to rent out your home for short term holiday lets. This means your home and contents will be covered whilst you have a tenant including accidental damage. Our Main home policy also comes with loss of rent cover. This means that should anything happen to your property which makes in inhabitable for your tenant the cost of finding alternative accommodation will be covered.
Your mortgage lender my also require to be notified in the event of the property being rented out. If you own the lease of your property then it is best to check that your lease allows you to rent the property out as well.
Remember that your property will be being used by members of the public and you could be held liable for any injury which your guests occur. Having a high level of Public Liability insurance will protect you from such events; our own Main Home policy includes £5 million public liability cover. Checking the property complies with gas and electricity regulations could help to avoid any unnecessary accidents.
Renting out your home for the Olympics and Paralympics will be an opportunity to earn a lot of money. During major events such as the Olympics the rates for property rentals generally increase and for some properties could even double.
There are many factors which contribute to the cost of renting out your home such as the proximity to the Games, the size of the property and the amenities available. A typical three bedroom family home within walking distance of the stadium could realistically cost between £3,000 -£4,000 per week. We advise that you go through a bona fide letting agent who will help you to properly cost the rate at which to rent your property. Having expert advice can be crucial especially if you are new to rental business. Please look at our partners page for a list of companies who can help you to market your property and assist in renting the property out.
Putting the financial benefits aside you do need to feel comfortable about renting out your property. We would advise that all your personal and valuable possessions are stored in a secure place. Wardrobes will need to be cleared for your guests and the house will need to be cleaned to the standards that you would expect in a hotel. The whole process may be stressful but if you have the right information and the right protection if things do go wrong then it could be a fantastic opportunity for you and your family.
Remember that this is not the only event which will draw hundreds of spectators and fans in from miles around. Events such as Wimbledon, the Edinburgh Fringe, Lytham St Anne's and the Ashes can also be an opportunity to rent out your house for a week or two. In 2014 the Ryder Cup comes to Scotland with 45,000 spectators expected to attending every day. We will be keeping track of these events and can cover your home in these circumstances, so keep us in mind for the next time you consider renting out your home.
Posted by Michal Lodej
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