Corporate lets - any pointers?

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  • Corporate lets - any pointers?

    I did one ten years ago and it was problematic (2 month short let through a "reputable" agent, the company originally wanted 4no. two bed flats in my block, in the end they took 1no. two bed and then surprisingly moved six or more young dope smoking IT temps in on mattresses).

    This time is long let, one main occupant with occasional company use of the second room. This company is a 500 person financial firm. They have asked for all utilities, including council tax, to be included (for a separate cost).

    Has anyone used the company let agreement on this site? Is it good? Any pit falls to look out for when going corporate?

    Thanks.
    Assume I know nothing.

  • #2
    Best advice I can give you is to use a solicitor when agreeing a commercial lease.

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    • #3
      Originally posted by Hooper View Post
      Has anyone used the company let agreement on this site? Is it good? Any pit falls to look out for when going corporate?
      Yes, don't do it.

      Rent to people not organisations.

      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      • #4
        Renting to a Corporate entiy will not be an AST but a commercial Let.

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        • #5
          Originally posted by mariner View Post
          Renting to a Corporate entiy will not be an AST but a commercial Let.
          Indeed. Hence my question about the LLZ company let contract.
          Assume I know nothing.

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          • #6
            Originally posted by jpkeates View Post
            Yes, don't do it.

            Rent to people not organisations.
            (Just reposting without link requiring approval).

            Why?

            LLZ advice:
            The company is not a protected tenant, so you are in far stronger control than under an AST. The landlord has no obligation whatever to the occupier. Conversely, it is for the company to satisfy all the usual tenant’s covenants.

            Of course you must stick to your contracted deal. What is more, you cannot push out a residential occupier ruthlessly, but if things go wrong it is easier to obtain possession that for a letting direct to the human occupier.


            Sounds positive, no? And it is what the tenant is asking for.
            Assume I know nothing.

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            • #7
              Originally posted by Hooper View Post
              Why?

              LLZ advice:
              The company is not a protected tenant, so you are in far stronger control than under an AST. The landlord has no obligation whatever to the occupier. Conversely, it is for the company to satisfy all the usual tenant’s covenants.

              Of course you must stick to your contracted deal. What is more, you cannot push out a residential occupier ruthlessly, but if things go wrong it is easier to obtain possession that for a letting direct to the human occupier.
              Two reasons (and a third "thought).

              Letting to a company isn't an AST. In many cases, the company then relets the property to people, which is an AST. You can't end the contract with the company without you or the company resolving the mismatch of rights that arises. If the company ends their tenancy without the tenants leaving they become your issue to resolve (and while you can take action against the company or try and enforce a condition about vacant possession, it can be really messy).

              The LLZ advice is a little simplistic. One characteristic that people have that companies don't is that a person can't simply close down and vanish, which companies can.

              If the tenant wants it, there's probably a reason.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


              • #8
                Your T is not the Occupier

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