What things do I need to look out for with company lets?
This article has some useful advice on company lettings and corporate lets.
Where the tenant is a company not an individual, the tenancy agreement document will look similar to one for a normal assured shorthold tenancy (AST), but ASTs cannot be granted to companies so the tenancy will be regulated under common law not under the Housing Act 1988. This means no rent control and the procedure for evicting tenants is also different.
You’ll need to use tenancy agreements which are appropriate for company lets, not the normal AST forms.
A common type of let is the 12 month company let when a lease is taken out in the name of the firm – with a break clause after 6 months.
However when letting to a company it’s sometimes a good idea to take a guarantee from one or more of the directors, just in case the company folds leaving no assets to pay rent or for damage to the property.
Some advantages of company lets are as follows…1) Company lets are always popular with companies as a cheaper option than putting an executive in a hotel and most executives prefer them to hotel living too! And for the company, dealing with a landlord is less hassle than maintaining a company flat 2) Company letting rents can be 10 to 40 per cent above what’s achievable on a longer term let 3) Many companies pay quarterly in advance 4) A big company should be more secure than an individual.
Some disadvantages are….
1) Company lets means more voids and frequent changes of tenant means more work finding new tenants and checking in and out 2) As company let rents are higher your client will expect high standards and for things to be fixed fast 3) Only quality property in up-market areas and close to business centres will rent - making entry costs high for company lets. Where furnishings are required, think expensive 4) To find tenants you’ll need up-market letting agents and relocation agents – again adding to your expenses.
If you need more advice on company lets or letting to companies, please ask me. I’m David Lawrenson from landlord experts http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.I
I’m an expert on buy to let and a well known property investment commentator and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investor mentoring service.
I also provide consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my buy-to-let blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com./
My next London property invesment networking meeting is in March. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog
Where the tenant is a company not an individual, the tenancy agreement document will look similar to one for a normal assured shorthold tenancy (AST), but ASTs cannot be granted to companies so the tenancy will be regulated under common law not under the Housing Act 1988. This means no rent control and the procedure for evicting tenants is also different.
You’ll need to use tenancy agreements which are appropriate for company lets, not the normal AST forms.
A common type of let is the 12 month company let when a lease is taken out in the name of the firm – with a break clause after 6 months.
However when letting to a company it’s sometimes a good idea to take a guarantee from one or more of the directors, just in case the company folds leaving no assets to pay rent or for damage to the property.
Some advantages of company lets are as follows…1) Company lets are always popular with companies as a cheaper option than putting an executive in a hotel and most executives prefer them to hotel living too! And for the company, dealing with a landlord is less hassle than maintaining a company flat 2) Company letting rents can be 10 to 40 per cent above what’s achievable on a longer term let 3) Many companies pay quarterly in advance 4) A big company should be more secure than an individual.
Some disadvantages are….
1) Company lets means more voids and frequent changes of tenant means more work finding new tenants and checking in and out 2) As company let rents are higher your client will expect high standards and for things to be fixed fast 3) Only quality property in up-market areas and close to business centres will rent - making entry costs high for company lets. Where furnishings are required, think expensive 4) To find tenants you’ll need up-market letting agents and relocation agents – again adding to your expenses.
If you need more advice on company lets or letting to companies, please ask me. I’m David Lawrenson from landlord experts http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.I
I’m an expert on buy to let and a well known property investment commentator and I contribute to newspapers and a host of property websites, write a property investment blog and run a property investor mentoring service.
I also provide consulting help to banks, building societies, housing associations and web portals to help them with their buy to let and property products and services.
You can read more of my buy-to-let blog and details of my networking, advice, property seminar programme at my website http://www.lettingfocus.com./
My next London property invesment networking meeting is in March. Click here for details: Property Investment Seminar
What’s unique about lettingfocus.com is that we offer independent property advice because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.
If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week. Permission must be sought before using the material in the blog
Labels: Company lets, company lettings, corporate lets
This entry was posted by lettingfocus, on
Wednesday, November 28, 2007.
