Will your London Olympic rental run smoothly? It’s impossible to estimate how many amateur and professional landlords are breaking the law for the sake of extra Olympic cash.It’s easy to understand the lure of the Olympics. Average rent prices are over £2000 per week and even in outlying areas such as Newcross, close to the Equestrian venue, we have seen rents far higher.
It’s already been widely reported that landlords have been forcing tenants out of properties in order to make big gains. But few will know they may need a special license/planning permission to rent out their whole home for less than 90 days. It’s also likely that many will not be properly insured and won’t have their paperwork in order. Of course no one can force you to draw up a contract for a short term late but it’s highly advised.
Landlords don’t have to be in East London itself to be able to make gains from Olympic lets. Even homes near Wimbledon in the West or Greenwich and Newcross in the South East may be let for the Olympics. Of course it’s not too late to make sure that your as protected as possible if your letting your home for the Olympics. Don’t be one of the Olympic landlords that loses money or gets on the wrong side of the law.
Get your Olympic rental house in order
Speak to your mortgage lender
Many people don’t bother to speak to their lender but you could be in hot water if they found out you have let your home without asking permission
Contents and buildings insurance cover
Your home insurance policy may not cover paying guests. Although holiday lets are generally well looked after there is a higher risk of damage with “one time only” guests. You may think people paying £3000 a week for your house will look after it, but people paying high rents may think they “own the place” and treat it accordingly! You have been warned! You have two options here, buy neither is do nothing. Find out if your existing insurer will allow you to add paying guests to your policy. Or take out a separate holiday let policy.
Licenses
Speak to your local borough council to see if you need a license for a short term let. in London, section 25 of the Greater London Council (General Powers) Act 1973 (as amended by Section 4 of the Greater London Council (General Powers) Act 1983) prohibits use of a property for temporary sleeping accommodation for less than 90 days without planning permission. Some boroughs have indicated they won’t take action but others have said they may!
Contracts
It’s not too late to draw up official paperwork ie booking contract, but you should. If your guests don’t turn up you could be out of pocket by at least £2000. Don’t forget to take a deposit. With holiday lets often a holding deposit is paid to confirm the booking. You should take one.
Income Tax
If you let your whole home out it is classed as income from property. You can earn up to £4,250 a year tax free by letting furnished rooms in your home Under the Government Rent a Room Scheme. If you let out the whole house, or if you receive in excess of that sum, you have to declare the income to HMRC and you will be taxed on it if your total earnings go over the tax threshold.
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