Let’s start by defining a corporate let. A corporate let is when a company, rather than an individual, rents the property directly from the landlord. The company can then use the property for their relocated employees, say if an employee has to move for a specific project on a short or long term basis.
In previous years, companies have relied on hotels in London to accommodate their overseas staff but with the rise in popularity of short letting in recent years, more and more companies are now transitioning towards offering a ‘home away from home’. The London properties that attract corporate clients are often high end and well styled, have all the required amenities, and are centrally located within the City.
3 things to consider before entering a corporate let agreement:
1. Check out the company first
It’s important that you research the company that has approached you thoroughly. Ensure the company is well-known, with secure financial backing, so there is minimal risk that they will enter insolvency and be unable to pay your agreed rent. It’s also important to make sure you agree prior to signing any contracts, that the company will provide you with detailed information about who is moving into the property and gather reference details for you
Make sure that you think about a deposit to cover any damage to the property, above normal wear and tear, as you would for any other tenancy. Ask the company to provide this deposit upfront or ask for a ‘Letter of Indemnity’ which agrees that the company are liable for any outstanding costs such as unpaid council tax, utility bills etc at the end of the tenancy.
2. Your property will be well looked after
Landlords who corporate let often have very good experiences with their tenants. The tenants have an obligation to represent their company in the best possible way, and as a result landlords often find that the tenants take extra special care of the property – everything from keeping furniture in good condition, small maintenance needs and security of the property.
3. You will get premium rates
Companies are more likely to pay higher rents than normal tenancies providing the property is of a certain quality and in close proximity to either the City or their office space. So you as the landlord can be rest assured that you are maximising the income from your rental property through corporate lettings.
If the company has a large number of employees and a constant need for rental properties, you may find you have limited void periods, if at all. This is one to watch for, however. Some companies will try to negotiate minimal notice periods, to provide extra flexibility for any changes to their business needs.
If you are interested in renting your property whether for corporate, long or short term lettings, CIty Relay can help you with our wide range of services – everything from contract negotiation, property compliance, guest relations, housekeeping and maintenance. Get in contact with us today to find out more, or use our rental estimation tool to find out how much you could be earning.