Q. I’ve heard lots on the grapevine about renting out my property for the Olympics, but wondering first of all how to go about it and how safe it is to get involved in this type of short let.
A. The areas surrounding the Olympic arena are quite simply gripped with excitement about the potential to make a quick buck from handing over the keys to their home for a few weeks whilst the games are on. It’s true that demand for accommodation during the 2012 Olympics is likely to be colossal and rents are expected to be lucrative. The possible Letting of your home must be considered carefully and handled correctly otherwise the venture could end in tears instead of producing the pot of gold you had hoped for. Here are some useful guidelines:
Finding a Tenant
You can do this by advertising yourself on one of the many websites that have been set up, or by using an agent to do this on your behalf. Do take professional advice if you decide to do this yourself and if you decide to take the easier root and use an agent make sure they are trustworthy and preferably well established and have a track record in dealing with lettings and members of the ARLA or the NAEA. As with any letting the key to minimising problems is finding a suitable tenant. If you are letting your home rather than an investment property more care needs to be taken since your home will contain your personal belongings and furniture. Whilst you can, protect your position by taking a security deposit – this is unlikely to be enough to fully compensate you either in monetary terms or emotionally if your home is trashed. Most overseas visitors will simply to want to return home at the end of the games and are unlikely to want to stay in the property. From a legal perspective a tenant should have no right to stay in the property or have security of tenure as long as the letting is a short term one for a genuine purpose of a holiday.
Deposits
It is vital that a security deposit be taken which would be refunded to the tenant at the end of their stay assuming they cause no damage. On standard residential lettings there are special rules which have to be followed to protect a deposit paid by a tenant in a regulated tenancy deposit scheme but these do not apply to holiday lettings.
Inventory
An inventory of the contents of the property should be made. This should be agreed and signed by the tenant on their arrival and any damage following their departure noted.
Tax
When you receive income from UK property this is taxable. This must be declared to HMRC on a self-assessment return.
Restrictions
Finally, if you have a leasehold property, you will need to get permission from your freeholder to allow a short let as this is usually in breach of lease, although I am sure given the circumstance of this one off opportunity most freeholders would consider granting permission. Also, London Boroughs are entitled to impose and enforce regulations which require a property owner to obtain planning consent should they wish to let their property for periods of less than 90 days. A breach of the regulations could lead to a fine of up to £20,000, the chance of enforcement for a one off occasion such as this are pretty slim but still worth noting.