When London was confirmed as the host for the 2012 Olympic Games, hoteliers and landlords across the city rubbed their hands together with glee. The gilded promise of an influx of tens of thousands of visitors over the summer would surely signal untold riches and a fabulous profit on accommodation across the city, right?
Sadly an altogether different picture is beginning to emerge and according to many landlords in London, the much-anticipated demand for accommodation during the Games has failed to materialise and a lot have been left with empty rooms and little prospect of short-term tenants for the summer Games.
Across the city, rents are beginning to fall, but there are still a few landlords hoping to cash in on those seeking last minute accommodation for the summer—many are refusing reasonable rental offers in the hope that someone else will come along with deeper pockets. Unfortunately, they may find that their greed backfires on them when they end up with no rental income for the foreseeable.
Other potential problems also exist and have been highlighted by at least one landlord blogger on his website. As he commented, what happens if your existing tenant refuses to move out despite the fact you have accepted a large amount of money upfront for the property—the new tenants will show up and have nowhere to stay!
Most landlords would be better off keeping their existing tenants and enjoying the safety of a regular income for the summer. Short-term rentals can and do work very well, but not if you price yourself out of the market!
