Demand for rental properties during next year’s Olympics has increased by 131 times compared to this year, which will delight those with buy to let insurance.
According to Homeaway.co.uk, the unprecedented demand for holiday rentals during London 2012 is poised to result in demand far outweighing supply, meaning that rents for short-term lets can be increased.
It’s expected that this could result in an average price of £2,000 a week being charged by those with landlord insurance during the event, according to the holiday rental website. This could amount to £4,500 for the 16-day event.
The boost to buy to let insurance holders won’t just be restricted to London though, as many competing teams are choosing to base themselves outside of the capital, with Leeds enjoying the economic boost from hosting the Chinese, American, Serbian, Canadian and Dutch teams during the period of the Games.
After the West Yorkshire city was named as the base for the Chinese, council leader Keith Wakefield remarked that “for China to choose Leeds as their official pre-Games European base is a phenomenal honour and its effect will go way beyond the financial benefit or simply raising the profile of our city.”
By that, the councillor suggests that Leeds will become a bigger go-to destination for Chinese tourists in the future, meaning that people with buy to let insurance could benefit from short-term lets to people who decide to eschew hotel living for the period of their stay. It could also lead to an increased number of students coming to study at the city’s universities, which will provide longer-term financial boosts to those with landlord insurance who primarily rent to the city’s student population.
The Olympics may result in more people renting out spare rooms to lodgers for the period of the Games, but they need to be careful that they’re not in breach of their mortgage or letting agreement.
Most domestic mortgages have clauses that prevent properties being rented out, so owners would need to get permission, whilst their home insurance may not cover them, so they may need to get landlord insurance to provide extra cover.
If you plan on renting out your home, you may also need to get permission from your local authority, which Tony Lam from West End agency LDG notes can be “notoriously difficult to obtain”.
Landlords should always consider getting comprehensive cover from specialist in landlord insurance like Rentguard.
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