Over the weekend I was talking to some friends living in the Washington DC metro area, who told me that they are planning to rent out their place during the week of President-Elect’s Obama’s inauguration (Jan 18 to Jan 24, with the big day on Tuesday Jan 20th 2009). I had heard that this is pretty normal for DC residents around inauguration time, but what really stunned me was how much they were planning to charge for the weekly rental of their furnished 2 bedroom place - $10,000! They have a nice place and all for which they probably pay about $2500 a month in rent, but I was astounded when they stated how much they had advertised their place for. As we discussed this further they said they this was on the low side and that on the most popular site for these types of rentals, Craigslist.com, places similar to theirs and in the DC metro area were going for close to $20,000 during inauguration week, with some fancy town homes in downtown DC going for over $50,000. Sure enough, when I got home I checked out Craigslist and looks like my friends were spot on. There are over 1000 rental ads just for inauguration week and with the big money on offer to attend such a historical occasion, I am sure more and more folks will think about listing their place.

I would be hesitant in renting out my place out to a group of strangers but I can see how this would be appealing for a lot of people looking for some quick cash in a short period of time. Using the example of my friends above, if they get the $10,000 asking price – they will have covered 4 months of rent in one week. Hard to argue with the economics of that. Further, during the week of the inauguration they are planning to take a (summer) holiday to the west coast for 1 week – double bonus.

If you are thinking of pursuing this option and live in the local area (I have seen ads for apartments up to 100 miles from DC) make sure you keep the following tips in mind if renting your place:

- Written Contract, Clear payment terms and Security deposit. These 3 criteria are a must to avoid legal or financial troubles down the road.

- Given the competition make your place more appealing by offering a fully stocked fridge or an early payment discount. Also, make sure you mention that your place has Wi-fi, close to amenities, metro, clubs etc. If people are staying in your place for a week they will want to be able to do stuff.

- Limit group numbers. With rentals going for thousands of dollars a week, you will most likely get groups rather than individuals going for these apartments. So set a limit to the number of people you can have in your place. Using the $10,000 a week example, I would set the limit to 6 people. Also make sure you state NO PETS. You do want to be cleaning up after someone else's pet.

- Get your place professionally cleaned afterwards for about $100. Better to be safe and the cost for cleaning is only a fraction of the potential rent you will be getting.

On the flip side, consider the following if you are looking to rent a place in the DC area.

- Once again just like the landlord should, make sure you (the renter) get everything in writing and verify the place you are staying is actually legitimate (ask for proof of residence, like a utility bill). There will be lots of fraudulent advertisers trying to ripoff out-of-towners. Do not pay the entire rental upfront, without at least seeing the place once.

- Don’t pay exorbitant rates just to live right in the downtown of DC. The DC area metro train system is very good and by staying a few miles out you can save thousands of dollars in rent. The only inconvenience is a 10 minute train trip into downtown DC.

- Look to only stay in the North western area of downtown DC. Other parts of DC are not very savory. Which every place you pick do some online research on the local neighborhood. There is no point staying in a great place if there is nothing to do, and remember it is below freezing during January in DC, so walking around is not the best option.

- Organize a group and collect the monies beforehand. Most likely you will be living as part of a group during the week in order to afford some of the places closer to the White House and Capitol buildings. If you are the organizer get the money upfront so you don't have hassles when it comes to payment, which will most likely have to be made in advance the first day you get to the apartment.

- Negotiate for a discount or to get free food/groceries thrown in. With the plethora of properties on rent you can afford to bargain a little bit. With the landlord or owner getting such huge sums for their place in one week, they will be more than happy to throw in a few "freebies".

- Ask for a cash back if you leave the place clean afterwards. Most owners would gladly give back a few bucks to have peace of mind that their place will be left neat and tidy after you and your group leaves.

Before you choose a place or decide to rent out yours, browse the various inauguration rental ads to see what features you should include/look for. Also, don't forget to contact your state's congressional representative to try and get inauguration tickets (they are free) for the big event. If you can't get tickets, you can still watch the whole event on the big screens around the "Mall" area, just plan ahead to get good vantage points. Wherever you find yourself that day, it should be a great event and one that will be long remembered in history.

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