Letting to a Company and Company Lets - Things to look out for by Lawrenson of Letting Focus
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 at all 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.
Company Lets Pros
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.
Letting to a Company - Cons
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.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property experts and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property book for the last 3 years.
What’s unique about LettingFocus is that I offer independent unbiased
property seminars and one to one advice covering all aspects of being a landlord and investing in property.
Unlike most people in the buy to let and property “advice” business I'm not linked to a property company, developer, agent or bridging loan financier.
I can advise where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to eliminate the risk of getting a bad tenant and more. I have been a landlord and property investor myself for over 25 years.
LINKS
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG!
Our Events only take place twice a year. For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Seminar Event
Find out about GREAT DEALS we have arranged for landlords by clicking here: Services and Products for Landlords and seeing our Landlords’ Resources (Useful Links) page.
If you sell products to landlords and property investors and you have national coverage and would like to be on this page, please get in touch!
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
For ONE TO ONE CONSULTING click here: Property Consulting
For TESTIMONIALS from past customers click here: Testimonials
To BUY THE BOOK click here: Buy the Book at Amazon
For THE HOME PAGE OF THIS BLOG click here: Blog
For THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
Copyright of Blog: David Lawrenson 2009. This blog is updated roughly once a week usually on a Monday or Tuesday.
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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 at all 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.
Company Lets Pros
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.
Letting to a Company - Cons
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.
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the property experts and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property book for the last 3 years.
What’s unique about LettingFocus is that I offer independent unbiased
property seminars and one to one advice covering all aspects of being a landlord and investing in property.
Unlike most people in the buy to let and property “advice” business I'm not linked to a property company, developer, agent or bridging loan financier.
I can advise where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to eliminate the risk of getting a bad tenant and more. I have been a landlord and property investor myself for over 25 years.
LINKS
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG!
Our Events only take place twice a year. For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Seminar Event
Find out about GREAT DEALS we have arranged for landlords by clicking here: Services and Products for Landlords and seeing our Landlords’ Resources (Useful Links) page.
If you sell products to landlords and property investors and you have national coverage and would like to be on this page, please get in touch!
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
For ONE TO ONE CONSULTING click here: Property Consulting
For TESTIMONIALS from past customers click here: Testimonials
To BUY THE BOOK click here: Buy the Book at Amazon
For THE HOME PAGE OF THIS BLOG click here: Blog
For THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
Copyright of Blog: David Lawrenson 2009. This blog is updated roughly once a week usually on a Monday or Tuesday.
WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?
Over on the right hand side under all the previous blog entries you will find a button which says “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator.
If you have a website & are thinking of reproducing material here, that’s fine but we DO require a link to the blog to be included, including also all the links in this section. (The full article including all links must be available to ALL VIEWERS of your site and not restricted.)
To view posts on related topics select a “Category” at the bottom of this page.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment to this post, simply click on “link to this post” then add your comment and view past comments.
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: buying to let, Company lets, company lettings, corporate lets, letting to companies
This entry was posted by lettingfocus, on
Wednesday, November 28, 2007.
