The Olympics Rental Market – Are You Reaching Your Full Potential?
A Guest Blog – Written by Ben who works at AnyJunk – A National House Clearance Company.
Property owners across the UK are considering the potentially huge financial benefits that the London 2012 Olympics could bring, and for very good reason! Millions of people will be flocking to the nation’s capital not only to visit, or take part in the event, but also to work on the Olympic sports facilities and related properties. It’s also worth noting how many people are moving to London, from other parts of the UK. There are thousands of people in charge of organising the event and many have decided to move to London in an attempt to avoid horrendous commutes to work. This vast and unprecedented influx of professionals has led to a huge demand for short to mid-term rental properties, and landlords are looking for the best way to capitalise.
How much could I rent my property for during the Olympics?
It’s difficult to put an exact figure on rental property during the Games because it’s a one off event that has never happened before. However, using data from other major sporting and cultural events we can see that most property rentals are expected to increase by around 50% to 200%. Obviously, some individuals/families will be willing to pay more, depending on how urgent it is for them to find accommodation.
If you are considering renting out a property during the 2012 Olympics, these 5 helpful tips will give you a head start.
Tip 1 – Move Quickly
Although the Olympics don’t actually kick off until the end of July, 2012, the demand for rental property in London has already outstripped supply. If you are serious about maximising your ROI during the Olympics you’ll need to move quickly and assertively. Don’t leave it too late to get involved.
Tip 2 – Keep Your Standards High
Many property owners seem to think that because there is such high demand for rental property during the Games, they can rent out any old rubbish and people will still pay top money for it. The fact of the matter is, there will be other alternatives, and your property will be in direct competition with a variety of other quality rental properties and hotels.
If you want to increase the rentable value of your property you need to make sure it’s in tip-top condition. This includes carrying out any decoration/maintenance work and making sure that the prospective tenant has everything they need for the period they are living there. Alternatively, if you have decided to rent your property un-furnished, it’s important to make sure that that is what you provide. Clear out any grubby old furniture and carpets yourself or, for a quicker turnaround, hire a type service to get the job done as quickly as possible. Remember, Olympic rentals are time sensitive!
Tip 3 – Work with Specialists
Normal lettings agencies are used to working in much different circumstances and may not be equipped to rent out your property to people who may be looking for such a short term rental contract. Spend a little bit of time researching agencies that have developed a service which is dedicated to servicing this ‘different’ market. You may also find completely new agencies which have been set-up to focus completely on Olympic accommodation – don’t be afraid to use more than one service, you’ll soon see who’s best!
Tip 4 – Don’t be Greedy
As with all major events and ‘iconic’ celebrations, there is a lot of hype surrounding the Olympics. There’s no doubting that the Games will bring the UK a huge financial injection, but we mustn’t forget just how many people are involved in the event and how far the extra cash will have to stretch. Likewise, you shouldn’t forget that you aren’t the only person renting out a property during this busy time. Of course it would be great if reality lived up to the hype, and your property’s rental value increased by 200%, but you must also keep firm grasp on reality. Any increase in rentable value should be viewed as a bonus, don’t turn down good offers in the hope that something better will come your way – you could be left with an empty property!
Tip 5 – Sprint or Marathon? Keep your options open.
The people moving to London to work on the Olympics have a far more work to do than you may initially realise. Although the Games will be done and dusted by the end of August, there will still be a great deal of work for those involved, which may easily carry over for many months after. Don’t get carried away by the tenant willing to pay mega bucks for a 2 month rental, when you could potentially make more money by renting it out at a slightly lower monthly rent, but over a longer period of time. The landlords that make most money during the Olympics will be the ones that realise the time-scale of this epic global event. Make sure you are one of them.
If you are visiting London this summer, why not pop along to Wood Green N22 and see the latest London ‘Banksy’