View Full Version : Company Lets
01-06-2005, 11:10 AM
We have a house available for rent a company has shown interest in it. Can anyone advise if it is a good or bad idea to let to a company that will use it to house employees working in the area.
01-06-2005, 18:18 PM
This is a difficult Q to answer as it has both advantages and disadvantages, but.......
You can't use an AST for a company let, it is a tenancy at common law.
A common law tenancy is what has been agreed between the two parties and is not bound to be written in plain English and does not come under the scrutiny of the unfair contract terms.
You won't be able to use the Section 21 Notice of Possession route, where you are guaranteed to regain possession of the property.
You have little or no control over the occupants of the property.
You have no protection from the Housing Act 1988, but neither does the tenant or occupants.
You will normally find that the rent can be guaranteed by the company, but if it is limited you need to do a company search, and you might want to get an individual director or two to guarantee the rent and dilapidations instead!
There is no limit on the amount of deposit you can retain.
You need to make sure your tenancy agreement is watertight and you will need a specilist solicitor to do this (Don't use your local retained firm unless they have considerable experience in this field - unfortunately they often tell you they have this but when you want your property back, they make a simple error when drafting it and just say "sorry").
There's lots more to consider and I'm sure more posters can add to my list.
Powered by vBulletin® Version 4.2.1 Copyright © 2014 vBulletin Solutions, Inc. All rights reserved.