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Accommodation for Corporate Lets


Is letting to a company or multinational much different than the conventional professional tenant? Can you get higher rents, are your tenants more tidy and do they take more care of the furniture  for instance?

There are advantages and disadvantages depending on your perspective and corporate letting is still dependent on the human factor.  For example your tenants may have a poor grasp of English and a complete inability to switch on the central heating, while the company they work for may make demands that you simply cannot meet.

The property, at the very least, normally has to be positively pristine with high-quality furnishings and decor, plus add-ons like fan-assisted microwaves, tumble-dryers and in some cases two or more bathrooms. Letting periods tend to be shorter, too, and this can mean more frequent voids.

So how do you become a company landlord? Ringing around the human resources departments of corporations to find out if they need accommodation for their employees or visiting companies is one way, another is approaching estate agents and lettings agents direct.  However most specialist letting agents already have numerous corporate clients on their books with regular supplies of suitable applicants.

Another way is to speak to a specialist where quite often clients are employees who are relocated for two to three years or engineers, IT personnel and management consultants on secondment to other companies.  Many are from overseas, but corporate lets don't have a typical company profile.

Quite often many British companies prefer economy to elegance. Corporations looking for two-week to three-month lets often opt for a serviced apartment with a concierge service attached.

The maximum lease for a corporate let is three years; the same period an expatriate visa runs for. Most are for a year with a break clause of 60 days' notice to cover last-minute changes of circumstance. They are then renewed annually with similar break clauses. Some companies choose a lease-premium, paying in advance for 18 months to two years. The scheme gives the company - but not the landlord - tax benefits.

Canny companies have found another way to save cash with the company-sponsored let. Employees are asked to rent as private tenants, signing shorthold tenancy agreements, similar to residential ones. They are then protected by the 1996 Housing Act and cannot be thrown out, while the company, which pays the employee's rent and bills, cannot be held responsible for damage.

The Company Way – Our Top 7 Hints

1 If you want to let to a company or multinational, your property must be near a rail station, Tube and/or buses and handy for food and utility shops.

2 Decorate, furnish and fit your property to a high standard to match your larger rent instalments. A bottle of champagne and flowers wouldn't go amiss as a welcoming gesture.

3 It's better to approach a lettings agent than a firm directly, as most companies will want to place their employees via a good agent.

4 The three types of corporate tenancy are: the company let - a 12-month agreement with a break clause that can be renewed annually; the lease-premium let when a company pays 18 months to two years' rent in advance and the amount cannot vary - handy if you need the money; the company-sponsored let, where the employee signs the same shorthold tenancy agreement as a residential tenant, giving him and the company more legal protection.

5 Respond quickly to problems and emergencies as your tenants will expect good service and be prepared to lend an understanding ear to any practical or translation problems.

6 Broadband connections are a must for corporate tenants as most are linked to their company's network.

7 Like British homebuyers, companies or corporations pay 1 per cent stamp duty on rents of £60,000 or over a year

 

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