To let for the Games: seven beds, bargain at £24,000 a week...

Some Londoners clearly think so. A seven-bedroom detached house near Greenwich Park, the venue for the equestrian events, is advertised on property site Zoopla for £24,000 a week during the Games. A three-bedroom flat ("with separate audio studio") in Canary Wharf is available to rent for £12,000 a week at the same time.

Of course, the wannabe landlords may not secure those prices, but demand for London homes is expected to be strong. Only athletes live in the Olympic Village, so their entourage - plus close to a million visitors a day who are expected to pile into the capital - will need places to stay, and not all will want to check into hotels.

"Homeowners looking to let properties during the Olympic period need to strike a balance between trying to achieve an early let and leaving it till the last minute," says Nick Leeming of Zoopla. "During the run-up to the Millennium, some very speculative prices were asked, demand didn't live up to expectation and many properties were never let. First-time short-let landlords should work out what their target tenant is likely to be - corporate, family or someone linked to an athlete - and prepare for that market."

How much can I get?

Prices vary wildly according to location and size. Agent Knight Frank has already had approaches from wealthy families looking for prime central London "ambassadorial" homes for the Olympics. Their requirements include 10 or more bedrooms, industrial serving kitchens and staff quarters in locations such as Mayfair, Kensington, Knightsbridge and Belgravia. The agent says budgets are limitless. But if your pad is modest, there are still rental opportunities. With Olympic events spread out around the capital, it's not just east London that's in focus.

Joanna Doniger, who has let Wimbledon homes to tennis players for two decades and is doing the same for 2012 with her agency Accommodate London, estimates a 20% premium on short-term lets during the Games. "A studio flat in Pimlico will fetch around £1200 a week, a fifth more than any other time. A three-bedroom family house very close to the stadium will be nearer to £4500," she says. "We've let out a four-bedroom, refurbished property near Victoria Park for more than £5000 a week."

Doniger values each double bedroom with its own bathroom in a good-quality house within walking distance of the stadium at £200 a night. Homes further out, say in Dulwich, would be worth nearer £100 per bedroom a night, she adds. There is currently particular interest wherever several properties are available in the same area, as groups of media visitors like to cluster together.

How can I cash in on an Olympic rental?

Rent out your home or spare room independently, or opt for an agent. The solo route will be cheaper, but more hassle. You will have to draw up a formal tenancy agreement, provide a gas safety and energy performance certificate, and protect the deposit through a government-approved scheme. You may need a property licence if your home has three or more storeys. Before tenants arrive, you'll have to take an inventory, and clean and photograph the property. Then you will need to meet the tenants to hand over keys, and be on hand for repairs. You'll have to inform your insurer and mortgage provider, or check your lease if you're considering sub-letting.

Responsible agents will carry out some or all of these tasks on your behalf. How much they do will depend on the fee - usually 15% of the rental income, which will include management and rent collection. Speak to at least three local agents before choosing, and go for members of the Royal Institution of Chartered Surveyors or Association of Residential Letting Agents. Visit London also has a list of recommended agents on its website (tinyurl.com/OlympicRent).

What are the tax implications?

If you're letting your spare room while living at home, rent-a-room relief means the first £4250 of income is tax-free. But that doesn't apply to homeowners who also provide services such as cooking dinners to the resident - that is classed as running a business.

For those who expect to earn more, or are planning on moving out, wealth management advisers say there are other ways to save tax - but they must be legal.

"There is always the potential to make serious amounts of money from a big-ticket event like the Olympics, but potential renters should be sure to declare any rental income in their tax returns," says Ronnie Ludwig, partner at accountancy firm Saffery Champness. "Lucrative opportunities like these always attract the eye of the Revenue, which is constantly scouring the web and press - you shouldn't put anything on Gumtree if you're not going to put it on your tax return.

"For those moving out of their property, or renting an empty second home, some of the money spent on wear and tear, advertising, decorating, legal and financial advice and insurance is likely to qualify for relief."

What about professional landlords?

Agents say some landlords are kicking out long-term tenants in favour of lucrative Olympic lets. But that can be risky.

"One factor that needs to be considered is what happens when the Olympics finish and everyone leaves London," says Gary Hall, partner at Knight Frank. He points out that the influx of "accidental landlords", who rented out homes to avoid selling at a loss, in 2009 saw stock levels doubling and rental prices dropping by 20%.

"For a month or so following the Olympics, I can see a similar thing happening," he says. "If you can find a short-term tenant for the whole six-week period at a silly weekly rate, you will probably be able to afford to have the property empty for a month or so after the Games, but if not it may be better to avoid a short-term rental."