Stage is set for Festival lettings bonanza

Published on Saturday 15 August 2009 19:25

THE August Festival season has presented Edinburgh families with valuable money-making opportunities, helping boost their coffers as the credit crunch continues to tighten purse strings.

The rent on a prime city centre location can more than quadruple while the festivals are running, and demand for accommodation this weekend will be almost insatiable. On top of this, a private parking space can be like gold dust.

Craig Douglas has let out his home to Festival visitors for four years running, and describes it as an enjoyable experience.

He said: "I began by accident. I was selling my home and buying another, but the sale stalled so I was left with a vacant property over August. Someone suggested I rent it out, and it just went from there.

"I would describe the experience as a wonderful opportunity to get to know some unusually interesting and nice people who are extremely appreciative to be in Edinburgh and grateful to stay in your property."

That first year Craig let to performers, but he soon discovered that visitors pay more, so now he concentrates his efforts on those coming to enjoy the festival.

Nick Evan-Wong, of Edlets, said about a third of the property which came onto his books for August was from homeowners looking for short lets.

He said: "This year we had a huge rush over the last week or so, as many property owners suddenly decided to give it a go for the first time."

Many are Edinburgh residents who chose to go away for August. Some are students who own their own flat, which they vacate over the summer.

One major difference this year is a big proportion of flats becoming available for rent are properties which the owners have been unable to sell.

"Renting them out for the Festival is an ideal way of making money out of them while they are empty. It allows the owners to keep the property on the market, which is more difficult with long lets, but still get an income," he explains.

The way to make most money is with short lets of between one and three nights, according to Gareth Thomas of the letinedinburgh.co.uk website.

He said: "Edinburgh in August is the best rental market in the UK outside London. Possibly even better than London. And the short lets of one or two nights are the most profitable of all.

"However, these will include more changeovers, cleans, advertising and agency costs, so property owners need to think carefully about the bottom line."

This mirrors Craig's experience. He said: "My first year I let to performers for a month, and that was good because it gave me security and you have low advertising and other costs associated with repeated changeovers. But I have found, despite those costs, you can still make more money with shorter lets, and in many ways the shorter the better."

Edlets estimates the nightly cost of accommodation for one person during August is 80, although the nightly cost depends on how many individuals can be crammed into one flat. The nightly cost for two, for example, is typically 113, for four 163, for six 210.

Large, beautiful homes will command a premium, as will car parking. Evan-Wong said: "I've currently got a property in Palmerston Place. It comes with a large private garage, which is also available to rent, but at a cost of 400 weekly."

The most popular locations are flats within walking distance of either the Royal Mile or Princes Street, although two-thirds of visitors actually end up making bookings further afield, says Evan-Wong, because these are cheaper.

The average nightly cost of renting a two-bedroom flat which could accommodate between two and four people is 202 in EH1, 206 in EH2, 177 in EH3 and 159.48 in EH4.

The average price charged for letting a two-bedroom flat across the city for the whole month of August is 1,843.00

But the process is not always problem-free. Craig says: "Most people are delightful and a joy to deal with. But some come expecting hotel service, which you are not geared up to if you are letting your home.

"And you always have the odd bad experience. I have a strict 'no pets' rule. But one year I found my furniture covered with cat hair, and a cat toy under the sofa. But when I tackled the tenant, she denied there had been a cat in the house.

"But most people are appreciative and accept that despite the high rents, when you take the square footage into account and compare it with a hotel, they are getting a good deal."

Property owners are encouraged to take security deposits to cover damage, and inspect their homes after each let.