Enquiry from a company via letting agent

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    Enquiry from a company via letting agent

    Hi all

    We have an exclusivity agreement for our four properties in London with a local agent.

    The local agent has been approached by a company called [Mod - name removed], who wish to let the property to their own (they say) corporate tenants.

    They have offered to redecorate our property at their cost, and remove our furniture and bring their own furniture. They would also require us to be landlord registered, as they would convert the living room to a bedroom, making it an HMO. They have offered to pay for this licence too.

    They are offering under market rate to us, but have offered a 3 year contract, with a guaranteed rise for years 2-3.

    I have never dealt with this sort of thing before - my biggest concern I think would be if [Mod - name removed] were to go bankrupt - what would our legal position be with the tenants?

    Does anyone have any experience with this?

    Thanks in advance.

    #2
    Have you googled that company name? You may be surprised.

    If you think that 'corporate tenants' means their own employees then think again
    They are a letting/management agency who rent properties from landlords on a commercial agreement and then let them out to tenants.

    I would have though that in such a situation it is they who would need to get the HMO licence? The people in there would be their tenants not yours.

    (I also note that their website says they charge tenant 'fees', although it may actually be a service charge?)

    Comment


      #3
      Yes - I have googled it, but it's new to me. We wouldn't pay any fees to [company redacted] directly - we would pay our usual fees to our local lettings agent.

      They have said that their tenants are usually for 12 months, but I imagine I will have no influence on this once I've signed it over.

      I'm confident there will be no additional fees for us, as our relationship remains with our letting agent, rather than with this company, but I am concerned legally about what would happen if they were to go bust.

      You may be right about the HMO licence - I will investigate this. Also, at the end of the period, can you revert back to a non-HMO status, or are you stuck paying it forever?

      Comment


        #4
        Generally this forum always advises against rent to rent arrangements.

        Also please remove the company name.

        Comment


          #5
          I have edited my second post to remove company name, but can't seem to do it for the initial one. I'm not saying anything libellous though!

          Why does this forum advise against rent to rent arrangements?

          Comment


            #6
            Originally posted by Laurasplog View Post
            Why does this forum advise against rent to rent arrangements?
            Among ither things:

            You have no control over what tenants they put in there.
            You can't even evict if necessary (canibis form, brothel, drug dealing, etc.) they are not your tenants.

            They advertise that they will be renting to 'corporate' working tenants but you have no guarantee of that, they could change their business model to take in a batch of council referals, which are often undesiribles who can't get a rental anywhere else.

            If you are considering this then I also don't see what you gain by keeping your existing agents?
            You would simply be paying them for doing nothing.

            Comment

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