It's absolutely fabulous, darling!

Venues for wild parties or private havens? Ginetta Vedrickas looks into the world of celebrity lets

Seven thousand pounds per week doesn't just get you a rented property to die for, it also lets you sit at the very table where Bono ate, and even sleep in his bed. Scarsdale Villas, Kensington, W8 is a perfect example of the ultimate celebrity rental. Not only was it let to U2 for two months while they toured Europe, it is regularly used in "stars at home" features beloved by Hello! magazine.

Owner and developer Paul Davies, who previously worked for Manhattan Lofts, is carving out a reputation for transforming properties into the sorts of places where the rich and famous are happy to hang their Stetsons: "I now sell or rent to creative young people with an interest an style."

Scarsdale Villas would be wasted on anyone without a sense of style, as the cool and contemporary exterior illustrates. Inside, it features French limestone floors, Philippe Starck bathrooms, a Bang and Olufsen audio-video system, a roof terrace complete with fountain and, perhaps for the moodier celeb, a lighting system with 120 settings "for differing atmospheric moods".

The house wasn't always this chic, although its former owners were high profile: "It belonged to a Conservative MEP, was very chintzy and full of pictures of Margaret and Dennis Thatcher. So we gutted it," says Davies, who made some surprising discoveries while renovating: "They had already knocked walls down but without getting planning permission. They make the rules but they don't stick to them."

Renovation was costly. Does Davies worry that letting to rock stars might result in plasma screens being flung through windows? "U2 rented the house mainly so they could have a family set-up to stabilize the wife and kids while they toured," says Paul, who ascribes "bad boy antics" to the lower echelons of the fame ladder: "You simply don't get it at this level."

A former neighbour of Madonna, Davies is unfazed by the trappings of fame and never found himself having to bang on her wall: "She was very low key, not what you might imagine." He doesn't believe that high-profile tenants add value, but thinks they enhance his reputation for refurbishing properties for people in film or TV. He rents many of his Soho apartments to actors, including Jessica Lange, and film directors but finds: "Actors tend to be restricted by production companies' budgets and they never dip into their own pockets."

Davies is also uninterested in agents "trying to cut deals on the back of their clients' celebrity status", adding: "I'm only interested in covering costs and making a profit at the end of the day." In recent weeks he has noticed a lull in celebrity tenants: "They can get good deal at hotels and get suites for half of what they would have paid a few months ago."

One celebrity who stormed out of her rented property and checked into The Lanesborough Hotel never to return was Kathleen Turner, who rented while in London for The Graduate. According to Knight Frank's Robert Orr-Ewing, Ms Turner "promptly exited the flat" after discovering a pigeon nesting in a window-seat. "The pigeon was dealt with in 24 hours, but these types of people expect problems to be dealt with immediately. It's no good sending the odd-job man round next time he's in London."

Stars may be demanding, but in today's market, landlords may be grateful for them: "It's now a tenant's market so it's not as if landlords can pick and choose." But Orr-Ewing admits that, given a choice, most landlords prefer bankers: "They would like the Vice President of Goldmann Sachs. They are not keen on letting to rock stars, although we've had very good celebrity tenants who've looked after places well." Knight Frank recently let a studio house in Brittania Road to Diana Ross, who commuted daily from Fulham to Amsterdam with no hint of diva drama: "She got on very well with the landlord," says Orr-Ewing, who believes that ultimately a celebrity just wants privacy and security: "If they can arrive at their property without getting out of their car, then that's important."

Lettings agent Jilly Bland, of Robert Holmes in Wimbledon, finds rented homes for Fulham FC's players and often has to persuade landlords that footballers make good tenants: "Landlords are very, very wary, but footballers don't have wild parties. They are training all day and have games at the weekend, so there's no alcohol. These are mostly family men, here to do a serious job." Even celebrity landlords such as Eammon Holmes apparently remains unconvinced: "He's renting out his house but he won't have footballers, he'd rather stick with newsmen," laughs Bland.

According to Bland ,most footballers want "modern but without gyms, as they see enough of those in their working day". Discovering exactly what high-profile tenants want is key, according to Tim Hassell of Foxtons who are marketing Scarsdale Villas at £2.95 million. "There's no time to be fazed by celebrities, but you're very often dealing with people on behalf of a star and it's their neck on the chopping block, so you're constantly trying to keep more than one person happy." Hassell believes that Scarsdale Villas is "absolutely stunning": "It has a good mix of contemporary and quality which is difficult to balance in a large house." Foxtons' website has a subsection specifically aimed at media types and this is who Hassell ultimately sees living there whether they choose to rent or buy: "It's secluded and that's ideal."

Another secluded property just on the market is Stanhope Terrace, W2 which is available from the beginning of December at £2,500 per week unfurnished. Former home to Michael Barrymore and wife Cheryl, it has been refurbished and transformed from celebrity shrine into a family house. Knight Frank's Rebecca Hill saw the house before its make-over and wonders at its former owner's personality: "I think he must be a vain man from looking at the house. It had a huge dressing-room full of mirrors, a hair salon and tanning shop." The house still features a steam and tanning room, although Hill predicts that it will now let to "corporate ex-pats" who may have missed the many headlines featuring the comedian's exploits. Hill reflects: "They might not even know who he is."

Foxtons: 020-7616 7000; Robert Holmes: 020-8879 9669; Knight Frank: 020- 7937 8203