London landlords are often interested in corporate lets, especially those who have a large property portfolio. You can anticipate a solid return on investment because corporate clients frequently provide excellent renters and firms have a considerable budget for rental properties. With corporate renters, landlords may have peace of mind knowing they will receive a steady rental revenue.
The idea that corporate clients are primarily interested in luxury residences in desirable central London locations is untrue according to experts including estate agents in Tooting. There is a wide variation in the searches we receive for properties, which range from £1,100 per month to £40,000 per month. Additionally, Wimbledon, outside of zone 3, is our top office for business negotiations.
What you must understand about corporate renting?
People who are renting out a home are referred to as having “guaranteed shorthold tenancies” (ASTs). However, since artificial creatures like firms are not covered by the Housing Act of 1988, which established the protective code that controls ASTs, companies are not regarded as ASTs.
This indicates that the legislation in place prior to the adoption of the Housing Act and the Rent Act, known as the common law, controls firm leases. Companies are not regarded as people; they are companies.
What are this regulation’s real-world repercussions?
This rule has the practical effect of requiring landlords of corporate lets to utilise tenancy agreements specifically created for company lets rather than the normal AST agreements available, for example, in internet shops. Additionally, you cannot evict tenants using the same process and documentation, and you cannot utilise section 8 or 21 possession notifications (instead, you must use the traditional “notice to quit” notice).
Regarding the tenants
Always be sure you trust the company and exercise extreme caution when dealing with renters of company rentals. Understand why someone is attempting to rent your property through a corporate let first. Here are a few potential causes for this:
- Some employees who would not be able to rent a residence or who would not pass regular
- Referencing otherwise are being accommodated by the corporation.
- They seek to receive tax advantages.
- On a temporary basis, they seek to accommodate a number of workers.
Company lets can be highly profitable, but you won’t be able to choose who lives in the house once it’s been rented out, so you should be concerned about property damage. Because of this, you must confirm that the company is reliable and that you are aware of the procedures for taking back the property.
Create a presence for your property in corporate searches.
Here are five trends that corporate clients are requesting:
Properties that welcome pets
We have seen a huge surge in demand for pet-friendly rentals among business clients since Covid. More and more landlords are setting up their properties to be pet-friendly with the help of our Premier Clients team. They are frequently asked to assist in including suitable pet clauses in tenancy agreements and to approach former landlords for references on their pet policies.
Working at home (WFH)
It goes without saying that Covid changed the workplace. To fully realise the promise of WFH, businesses had to set up the necessary infrastructure. Due to the widespread adoption of hybrid working by businesses, we now prioritise WFH space more frequently than we once did. If you have extra furniture you can move in and out of the apartment and a spare room or even just a vacant corner of the living room to set up a workstation for photography, this could help put you on the map.
Professional leadership
The lettings scene has undergone tremendous upheaval. Corporate clients must be able to rely on landlords to always be in compliance with the influx of new and updated legislation. This is the key justification for why some of the businesses and relocation specialists we work with will only look at homes with experienced property management. They need to be guaranteed a professional experience.
Fully, partially, or unfurnished
Furniture is a significant factor when working with moving agents. Companies occasionally relocate employees from outside the UK to London. It is doubtful that these tenants will move furniture like sofas and bed frames. Therefore, being willing to purchase furnishings might really enhance your corporate lease. Another option is for corporate tenants to look for partially furnished apartments or apartments with their own furnishings. Being adaptable will provide you access to various corporate searches.
Also Read: A Guide to Buying a Home With Flat Roof
