Reverse Olympic effect on property after the Games
by Sarah Ashcroft
Landlords who have tried to cash in on the Olympics could face void periods or falls in rent after the Games.
Many landlords have used the Games as an opportunity to let out their property to visitors and tourists for as much as six times the normal rate due to their proximity to the Olympic venues.
Graham Kinnear, managing director at Landlord Assist, said that when all of the tourists go home, a huge number of properties will be returning to the standard tenancy market.
This will create a huge upturn in competition as landlords are forced to compete with each other for new tenants in order to avoid empty periods.
However, this could lead to a drop in rents in order to attract the best tenants.
"We are concerned that following the event the rental market in London will be swamped with vacant properties, leaving landlords with no choice but to reduce rents as they try to find replacement tenants and avoid having a void period on their hands," said Mr Kinnear.
He warned that it could be as much as six to 12 months for the equilibrium to return to the rental market surrounding the Olympic park.
The company said it was an unprecedented situation, especially given the huge demand and acute shortfall of rental property across the UK.
Landlords may want to update their property to make it more appealing to tenants in the area.
Freshly painted walls and clean carpets are always key ways to attract prospective tenants, as it suggests landlords take good care of the property and will make timely repairs.
However, James Davis, chief executive officer of Upad, suggested that some landlords may want to give themselves a unique selling point so their property stands out.
Depending on the type of tenant the landlord is looking for this could be anything from a regular cleaner to free phone and Wi-Fi.
Published on: July 27, 2012
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