Rent-Your-Home Hype
3 June 1997Sydneysiders could charge Olympic visitors up to four times the normal rent for their homes during the 2000 Games under the Homestay program. A home fetching $350 a week under normal, long-term lease arrangements would attract $1,400 a week, or $200 a night, and a property normally worth $700 a week might return $2,800. Prices would depend on whether a property is graded standard, superior or luxurious. Property sources confirm that pricing is expected to be based on "industry rule of thumb" for short-stay leasing rentals - usually four times the rent charged under longer leases.
With only 35,000 hotel rooms available in the greater Sydney area to cater for between 300,000 and 650,000 Games visitors, at least 4,000 furnished homes will be sought for listing under the Homestay program to help ease the crush. The separate bed-and-breakfast Homehost scheme might involve another 2,000 homes.
The International Olympic Committee (IOC) supervisor for Sydney's Olympic progress, Dr Jacques Rogge, has expressed concern about the number of hotel rooms compared with the 65,000 in Atlanta for last year's Olympics. He said he hopes Homestay and Homehost can together house 30,000 visitors. As many as 15 cruise ships moored in the harbour will provide additional accommodation.
Inspectors from Ray White Real Estate, which has been appointed by the Sydney Olympic committee (SOCOG) to manage Homestay, will grade homes based on size, views, facilities and proximity to Games venues. A rent will then be recommend, but the owner will be able to ask for more. Mr Sam White, a director of Ray White who will be in charge of Homestay, said the program would involve "all sorts of accommodation, from the Vaucluse mansion to modest two-bedroom homes". Asked whether people would make a killing from the program, he replied: "What do you mean by a killing? Put it this way - we have had people say that they want to pay off their mortgages by renting their house out during the Games, but that isn't going to happen, not unless they've got a very small mortgage, anyway. "It is a chance to make some money, but the broader opportunity is there to help Sydney host a successful Olympic Games by providing accommodation."
In Atlanta, agents' fees and other "middle man" costs were blamed for adding 50 per cent to Homestay rents, causing the scheme to fail. Mr White said it was hoped that fees and commission rates could be capped at 12 per cent in Sydney.
