dramatic increase in the rental price of executive homes on the Island.

Several Bermudians are asking -- and getting -- as much as $25,000 per month from international businessmen.

And executive rents are now so high that some prominent Bermudians have vacated their homes so they can cash in on the bonanza by renting them out.

"They are either moving into lesser, second homes or are renting another property at a much cheaper price,'' said Mr. J.J. (Jack) Outerbridge, president of real estate firm LP Gutteridge.

But he warned: "It's not all good news. In some ways, these astronomical rents might be detrimental to Bermuda.

"Rents might be driven up to such a degree that Bermuda is no longer a desirable location for international businesses because it costs too much.'' He added: "Some of these executives for international companies are paying exceptionally high prices, well above the market value.

"I've heard of some rents as high as $25,000 a month. And these are not just holiday rents, which tend to be high anyway. They are long-term tenants.'' All realtors interviewed said that demand for luxury properties, especially those with water views, far exceeded supply.

"It's virtually impossible to get a first class rental today,'' said Mr.

Outerbridge. "They are virtually non-existent, which is why some Bermudians are choosing to move out of their homes.

Ms Brenda Spearing, real estate manager for Kitson & Co., said the most expensive property her company rents is for $12,000 a month.

"We've rented some little ones but even these have been at ridiculous prices in the region of $4,500,'' she said. "Prices are well above what we were getting before.'' Rents of some properties have doubled over the last few months, she said.

"International businessmen who move here are used to only the best wherever they live and they have no intention of downgrading when they arrive in Bermuda,'' said Ms Spearing.

"They stipulate that the property must have a water view, must be close to town and must have an immaculate, modern kitchen. They are not so concerned with a swimming pool.

"We have a few people on our books, many of them young executives, who are looking for $10,000 a month houses.'' An influx of money managers who arrived on the Island a few months ago to take care of the finances of Austrian millionaire businessman Mr. Wolfgang Flottl had helped fuel the price increases, she said.

"He brought in a lot of people and they were prepared to pay huge bucks for the right place,'' said Ms Spearing.

Mr. Arthur Jones, of Jones Waddington, said: "I think the trend towards higher prices for larger, detached homes in good locations will continue for some time with all these new international insurance firms coming to Bermuda.

"I've heard some outlandish figures being quoted but maybe they are not so outlandish when you consider the capital value of the properties.'' He estimated that executive rents have gone up by between 30 and 40 percent over the last few months.

Despite high rents, he said it was still not worth international companies buying properties here for their top people.

"Apart from the purchase price, there's the tax, maintenance fees, the cost of furnishing it, and other items of expenditure,'' said Mr. Jones.

Ms Elaine Darling, of Darling and Dapena, said property owners were in a strong position to negotiate rental prices.

"We don't advertise houses at any specific price,'' she said. "If someone likes a property it's up to them to negotiate a price with the owner.

"But everything is wide open in terms of what an owner can get because there are not enough top quality houses to go around.

"We're actually advertising for people to call us if they have a house which they want to rent.''