Householders’ Golden Touch (Press, 19 January 1984)

As the 1984 Olympic Games approach, Los Angeles is bracing for an influx of visitors, with estimates suggesting an additional 200,000 to 325,000 tourists daily, and a total of 650,000 to 1 million throughout the event from July 28 to August 12. This surge in demand for accommodation is prompting many local homeowners to consider renting out their properties, hoping to cash in on the expected boom. Rental options advertised include a French country coach house for $3,748 a week, a Beverly Hills home for $12,852 a week, and even a 26-room castle for $32,130 a week. However, the excitement has attracted con artists and led to numerous complications. Fred Sands, president of a prominent real estate company, warns that many homeowners are overestimating the potential income from renting their homes. A range of companies have emerged, offering to connect homeowners with potential renters, often charging listing fees of between $50 and $75. Some firms are specifically targeting niche markets, including the homosexual community, with a sales pitch that highlights the likely availability of discretionary income within that demographic. City officials, including those from the Mayor's office, are attempting to regulate this burgeoning rental market to ensure compliance with the law. Many rental firms have been found to be operating illegally, either by charging upfront fees without proper licensing or through misleading advertising. The Californian Department of Real Estate has ordered several companies to shut down, while others have voluntarily ceased operations until they comply with regulations. One firm, Vacation Rental Systems, has faced a lawsuit from the state Attorney General for allegedly using false advertising, reportedly convincing thousands of homeowners to pay $50 for property listings. Despite concerns from authorities, there remains a strong belief in the demand for private rentals during the Olympics. The Los Angeles Visitors Convention Bureau insists that the area has enough hotel capacity, with 149,000 rooms available. However, many potential visitors may prefer the appeal of private residences located closer to Olympic events rather than standard hotel accommodations. Realtors are capitalising on the situation, with listings offered at varying rates. For instance, Sands includes a four-bedroom home in Westwood starting at $9,180 a week but charges a 20 percent commission for successful rentals, without requiring an upfront fee. Others, like Merrill-Lynch, are marketing properties such as a castle in Flintridge and a beach house in Malibu at premium rates. There are concerns that homeowners with more modest properties may be taken advantage of, particularly by exaggerated promises of rental income. As a result, there have been efforts to ensure advertising does not mislead homeowners about potential earnings, with city officials noting that claims of income as high as $30,600 in two weeks are unrealistic for average properties. Ultimately, while the Olympic Games provide an opportunity for additional income, consumers are being warned to navigate this rental landscape carefully to avoid scams and unrealistic expectations.

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