Are Olympic Lettings Worth the Risk?

13 February 2012 Categories: News

Homeowners in Central London are currently swamping their local letting agents in a bid to let their prized investment properties out for more than 4 times the normal asking price during the long awaited Olympic Games. As a result of this, Upad, the online self-service letting website, has launched a new service aimed specifically at those who are happy to let their properties to tourists, and for just £250 +VAT interested homeowners can advertise their properties on many of the big online portals until a suitable tenant is found.

But what are the risks of letting a property to a complete stranger, and are these risks heightened if it is done online where fake I.Ds and such are so much easier to use?

Obviously the risks are quite high, and as a consequence a lot of London letting agencies that are being approached by hopeful homeowners are warning of the potential dangers. When asked about the risks involved Lucy Morton, head of lettings at the London based company WA Ellis, said “Landlords can’t be sure that the tenant will treat their property as their home during this short period. No deposit will cover the replacement value of furniture and fixtures and fittings, let alone any replacement of carpets or redecorations.”

And then on course there are the tax implications of letting a property for money, the planning permission issue because the tenancy is less than 90 days, the home insurance changes and the risk that the short term tenant may not want to leave following the Games.

So before embarking on the money earning potential of the Games every landlord and homeowner needs to consider ‘is it worth the risks?’