BERMUDIAN homeowners are getting rich off the island's expatriate community, charging exorbitant rents for relatively moderate properties, according to a British daily.

London's Financial Times said locals are taking advantage of stringent regulations which prevent foreigners from buying their own homes.

In response, companies are forking out huge housing allowances to keep executives happy because they are intent on maintaining a presence in "one of the world's most important centres for reinsurance".

The island was described as a known "tax haven", said to attract well-paid executives whose rental homes come with a monthly price tag of $24,000. According to Heather Botelli, a real estate agent with The Property Group, foreign workers typically receive a monthly allowance in the region of $5,000 and $10,000.

"For the lower sum, you can get a two-bedroom, two-bathroom condo, but this would have no frills, probably no view, and the closer you get to Hamilton, the more you pay."

She told the Financial Times that many foreigners come to the island with specific requirements.

"They want views of the ocean, a swimming pool, an old traditional house or a modern place. And, more often than not, they want something with easy access to Hamilton, near schools for their children."

A second agent, Gail Aruda of Coldwell Banker Bermuda Realty, agreed it is rare to find a place that matches every expectation.

"Bermuda is sophisticated but it's small and what many people don't understand when they arrive is that means there is not a large choice and therefore they have to be flexible," she said.

There is no doubt, however, that Bermudians are benefiting from the influx. The Financial Times spoke with one local who said many homeowners use their property today for additional income instead of investing in the stock market.

"The pirate in Bermudians came out," the relocation specialist said. "These companies were so keen for a part of the reinsurance pie, so the locals saw they could make money by renting out their homes at pretty much whatever price they wanted.

"Now everyone is trying to build or buy something so they can get on this bandwagon of rentals. People used to trade in stocks. Now this is the way for Bermudians to make money."

At least one expatriate appears mindful of that fact.

The Financial Times spoke with Anna Smith, who moved to the island with her reinsurance executive husband and their children four years ago.

"It was very hard when we first arrived," she said. "There was very little on the market and even though we knew the island, the house we went for was the only one on offer.

"I think the company was a little horrified that it was going to be $11,000 a month. (But) it's getting more and more difficult for the tenants. There are not enough properties and often Bermudians are taking advantage of the situation to inflate the prices.

"There are a lot of great things about moving here: it's a very beautiful place, you have great weather, the sea. And for the men (typically the ones working), it can be fantastic, with no commuting like in London but for the women it can be a big shock.

"Here they are in a strange, expensive place, on a small island and often immigration laws mean they cannot work. There is a serious lack of schooling for boys and then if they have trouble with their landlords that's an additional worry."