PDA

View Full Version : Renting to a Polish company



frednick
18-05-2007, 06:23 AM
I am considering renting a 3 bed house to 3 polish steel workers. I have heard they are ok tenants. The company that the men work for will pay the rent directly etc. How would I word the tenancy agreement in this case, do I list the 3 individuals or is it the company name I put down?

As I was planning on renting to a family this is a totally different scenario, would it be fair to charge a slightly higher rent to 3 separate adults than to a family?
Thanks you.

J4L
18-05-2007, 07:16 AM
AST's can only be granted to individuals thus companies fall outside the scope of the housing act.
Instead of the individuals being the tenants it is the company that rents the property. Effectively the employees have a license to use the property as a dwelling place.

J4L
18-05-2007, 07:57 AM
As I was planning on renting to a family this is a totally different scenario, would it be fair to charge a slightly higher rent to 3 separate adults than to a family?
Thanks you.

With regards to the above if it's the company your letting to then you decide what price they are going to pay.
Personally I wouldn't get too greedy though or they'll find somewhere else.

frednick
18-05-2007, 14:33 PM
ok thanks, but still confused.
What name (s) do I actually put on the tenancy agreement.
Thanks

jeffrey
18-05-2007, 14:38 PM
ok thanks, but still confused.
What name (s) do I actually put on the tenancy agreement.
Thanks

If you let to a Company, it is your tenant named as such on the (common-law contractual, not AST) Letting Agreement.

P.Pilcher
18-05-2007, 18:34 PM
Maybe a little further clarification would help: As has been stated earlier, you cannot use an assured shorthold tenancy agreement to let your property to a company - a "common law one" is required. What you can do is to put the names of each polish worker on an assured shorthold tenancy agreement as a joint tenant, which makes them personally responsible for paying the rent. Now, the company pays this on their behalf O.K. but if it fails to pay or you want the tenants out for any other reason, then you take court action against the tenants. Your only other problem is to be absolutely certain that said tenants, being Polish, understand the tenancy agreement!

P.P.

frednick
19-05-2007, 07:55 AM
Thanks P.pilcher.
Clear now.

jeffrey
20-05-2007, 12:29 PM
Maybe a little further clarification would help: As has been stated earlier, you cannot use an assured shorthold tenancy agreement to let your property to a company - a "common law one" is required. What you can do is to put the names of each polish worker on an assured shorthold tenancy agreement as a joint tenant, which makes them personally responsible for paying the rent. Now, the company pays this on their behalf O.K. but if it fails to pay or you want the tenants out for any other reason, then you take court action against the tenants. Your only other problem is to be absolutely certain that said tenants, being Polish, understand the tenancy agreement!

P.P.

Not sure that I agree, PP.
I thought that:
i. Frednick lets to Co. which pays rent to Frednick; then
ii. Co. sublets to Poles. On this sub-let, Co. shows Poles as tenants. They pay rent to Co.

P.Pilcher
20-05-2007, 20:12 PM
If that is the case, then as you say the property can only be let using a common law tenancy - you will know much more about those than I! If however frednick wishes to use an AST then the only way is to let his property directly to the Polish workers. The company can then pay the workers the agreed rent which they pass on to frednick, or the company can pay him direct.

P.P.

jeffrey
21-05-2007, 08:59 AM
If that is the case, then as you say the property can only be let using a common law tenancy - you will know much more about those than I! If however frednick wishes to use an AST then the only way is to let his property directly to the Polish workers. The company can then pay the workers the agreed rent which they pass on to frednick, or the company can pay him direct.

P.P.

This time I agree, but Frednick then cannot force Co. to pay rent unless:
a. Co. is his tenant; or
b. Co. guarantees (by Deed of Covenant, under seal) payment of rent by Poles if they personally are his AST tenants.

P.Pilcher
21-05-2007, 15:07 PM
Absolutely - the only redress frednick has is against the Polish workers themselves in the form of eviction and other county court action to recover owed rent. What the said workers do to attempt to obtain the rent from their company is entirely their problem.

P.P.

jeffrey
21-05-2007, 15:09 PM
So, Frednick, who is going to be your tenant?

(jeffrey's 2000th post)

frednick
21-05-2007, 21:23 PM
Well, I am tempted to put the 3 tenants names on an AST, leave the company out of it (although they will be paying), and hope all goes well (in a burying head in sand manner).
Alternatively I can ask a local solicitor to draft up the agreement and leave it to them. Any idea of likely costs if I chose this option?
Thank you.