Anticipating challenges in the 2024 rental market
In recent times, owners and renters alike have been bombarded with information about furnished rentals during the upcoming Olympic Games scheduled in 2024. Optimistic attendance forecasts estimate that as many as 41 million tourists will visit the games, including 15 million from July to August. This represents a potential increase of 25% in rental demand specifically related to the event. However, it is essential for property owners to evaluate these figures and look beyond the projections.
Olivier Maréchal, co-manager of an agency specializing in the management and rental of furnished apartments, sheds light on the situation by analyzing current trends and anticipated developments for owners navigating the rental landscape during the Olympics.
The impact of dwindling supply on rental prices
Market speculation often overlooks one crucial factor when discussing the Olympic Games’ real estate landscape – the rental supply. Property owners considering renting their furnished apartments out must remember they are not alone and stand to face heavy competition. Seasonal tourist accommodations, primarily listed on Airbnb, are expected to surge from 45,000 to a staggering 200,000 units, resulting in a 400% increase in available properties.
This abundance of supply could lead to lower-than-anticipated rent increases, making it important for owners to adjust their expectations accordingly. As Olivier Maréchal explains, so far, rents offered to staff involved in preparing for the games in Paris remain reasonable without significant spikes.
- The boom in seasonal rentals could seriously affect the traditional rental market.
- Renting at a price range that aligns with market trends may give owners a better chance of targeting Olympic staff.
- Olympic teams looking for housing during the event might sign leases sooner than anticipated and rent for extended periods, making it essential to capture these opportunities early.
Regulatory compliance is non-negotiable
Before embarking on short-term rentals during the Olympic Games, property owners need to be aware of and adhere to all relevant regulations. Deputy Mayor of Paris Ian Brossat has warned landlords that no exceptions will be allowed, with inspections in place to penalize illegal renting.
In practice, this means getting a registration number from the Paris City Hall if you plan to rent a furnished apartment for less than 30 days. Aspiring landlords must remember that proper preparation remains crucial.
Tips for preparing your rental project for the Olympics:
- Get your property up to standard by addressing any urgent plumbing, electrical or safety concerns well in advance.
- Secure the necessary permits and documentation required for legal rental use.
- Create a clear and accurate listing attracting target renters such as Olympic staff or tourists.
Averting potential mishaps
The last thing property owners want when renting their units during the Olympics is dealing with issues like vandalism or unexpected repairs. To avoid such challenges, especially for first-time landlords, it’s vital to invest time and effort into preparing the rental property before the games begin.
Evaluating the existing supply trend, understanding necessary regulations, and having contingency plans for potential problems arising with tenants are just some of the steps owners can take towards avoiding missteps while maximizing gains during the upcoming mega-event.