Company Let: Required Documents

[LZBash]

About to rent a property to a company using a company letting agreement.

As such, I have a couple of questions I hope someone could advise on as I don't seem to be having much luck via Google.

A deposit will be taken which, as it is a company let, does not need to be registered with the TDS. Correct?
(However, I do plan to give the company a receipt for their deposit).

As it is a company let, do I still need to provide copies of the following documentation at the start of the tenancy:
- How to Rent Guide
- EPC
- Gas Safety Certificate
- EICR

TIA.

[jpkeates]

Letting to a company looks simple but is actually quite a complex undertaking.
The normal regulations applying to letting to a person don't exist in the same way, so the rules for the tenancy are contained in the lease itself.

So, there's no need to protect the deposit and there's no need to have those documents.
If the company is going to rent to people itself, it may need to have the electrical and gas tests carried out and may need to ensure that you would complete any remedial work arising from them.

I'm sure you know what you're doing, but many landlords would not rent a residential property to a company (I am one of them).

[LZBash]

Appreciate the reply.

Am beginning to see it is very different to renting to individuals.

Another question - would I still need to test the smoke alarms etc in front of the tenants representative when I handover the keys?

[AndrewDod]

About to rent a property to a company using a company letting agreement.

No. Don't do it.

[flyingfreehold]

If you are going to let to a company, it is important to check the company's creditworthiness.. I quite often let to companies who take accommodation for executives coming to London. It is a specialism. The company if well advised will require a break clause should the executive be redeployed elsewhere or made redundant. Don't be bullied however big the tenant company. The bigger they are, the more likely it is that they will try it on! When some US companies send executives to London they are allotted a certain amount in housing allowance and the letting is in favour of the US executive and family. They expect US style service. But that's OK; if you provide it, you will be recommended.

[jpkeates]

Another question - would I still need to test the smoke alarms etc in front of the tenants representative when I handover the keys?

Not unless the contract requires that.

That's not a requirement for a residential let in England either, though.
You have to test them, but there's no requirement for anyone else to be there.

[DPT57]

What is the basis of this let? Are they an intermediary looking to sublet your property to others? If so you should read all you can about rent to rent, which most experienced landlords would steer well clear of.

[LZBash]

Letting to a company who hire seasonal staff from overseas during the spring/summer months and also provide them with accommodation.

The staff have specific skills to do with their roles hence, why they are brought in from overseas.

Term is only six months but paid in advance.

[DPT57]

Your problem is that you don't know how much knowledge this company has of landlord and tenant law and in particular, HMO legislation. You may well still be liable if they breach the legislation as you are aware of what they're doing.

[LZBash]

Is that any different to tenants under an AST? How many of them are clued up on this legislation or care about it?

In both situations, how effective would any policing by the landlord be?

[DPT57]

I think its likely that the occupants would be licensees as they are temporary employees of the tenant. Your tenant, the company wouldn't be an AST tenant either. However, some landlord legislation still applies, such as Gas Safety Regulations, Right to Rent legislation, Health and Safety legislation, landlord repairing obligations etc. Some of these things will be down to you as the superior landlord.

HMO legislation runs alongside this and is usually strictly enforced by Councils if they discover that the property is in breach. They will write to you in the first instance and probably threaten a fine. You may have no defence to this, particularly if the tenant company folds and it becomes easier for the Council to go after you.

You should also check with your insurer whether your landlord insurance covers you for an HMO. You may find it doesn't. If it became a licensable but unlicensed HMO then any insurance policy would be void anyway. You may also find that there are mortgage restrictions on HMOs if that applies to you.

[LZBash]

A poster said earlier there is no need to have the following documents in this scenario: Gas Safety Regulations, EICR, EPC.

Is that not correct?

With regards the Right to Rent, according to the govt website, these checks are not required in this situation.

As for HMO, not a problem as it is only a couple of individuals - also, there is no mortgage on the property.

[DPT57]

I think that the requirement for a Gas Safety Cert applies to licensees as well as tenants.

As far as I am aware, Right to Rent applies to all occupants, not just tenants, but I think it would be your tenant's responsibility not yours. Whether it could become your problem if you knew that the occupants were for example, illegal migrant workers, I don't know.

How do you know that your tenant will limit it to two occupants? I would want something to this effect written into any contract to that you have a valid excuse if your tenant breaches the HMO legislation.

I would also want some contractual prohibition on the company establishing an office in the property or you could find that they later argue its a LTA 1954 commercial tenancy with an automatic right to renew.

Who is supplying the contract with you and your tenant? You need to check things like the forfeiture clause to make sure its not struck out or amended or a penalty imposed if you cancel. Don't forget that you would not be covered by consumer rights legislation for this contract so its buyer beware.

What about repairs. You will need to sort out exactly who is liable for what or you will find they all come back to you.

Have you checked with the Council whether they would regard this as a commercial business requiring any sort of registration or planning change of use? They may impose business rates or charge extra for some residential services such as bin collection.

[LZBash]

Source: https://www.gov.uk/check-tenant-right-to-rent-documents

[DPT57]

Source: https://www.gov.uk/check-tenant-right-to-rent-documents

Ok good, so you can cross that one off the list