Letting to LTD (Serviced apartments)

[IanP19]

Hi,

I've been approached by a local serviced apartment company with regards to letting my property out to them.

My property is located next to some rather large companies HQ so I can see why it's desirable. I've only ever rented to private individuals before is this something I should be weary of?

What are the major pitfalls or things I need to look out for of I go the route?

Thanks in advance.

[ash72]

You should search this forum for company lets, there's a whole raft on this topic. You need to search the company proposing to take over your property, how long they have been working (companies house) turnover etc.

You may need a lease agreement rather than a standard AST. Get advice from a lawyer who specialise in property, rather than any lawyer.

[jpkeates]

You can't use a standard AST - a company can't rent on an AST at all.

The issue is that it's very easy for someone to close down a company and walk away from an agreement.
So the landlord is always at risk of that happening.

If that does happen - the lease comes to an end - and there are people still in the property, they become the landlord's tenants, which can be a big problem - you'd have no way of knowing if all the mandatory things a landlord needs to do at the start of the tenancy had been done.

It's also common for a company letting a property to let it to a second, shell company who then re-let to someone else.
The shell company is nice and disposable should that become necessary.

Have google of rent to rent and see what comes up.

[Section20z]

Be very wary - "serviced apartment" in London is euphemism for a brothel shared by many hard working girls , or simply air BnB , illegal in London after 90 days.

[DPT57]

Also have a look at this video by the housing lawyer, David Smith: https://www.youtube.com/watch?v=6vLf...0jkclQ&index=3

[IanP19]

Thank you for your replies. I did look at the companies House and see they've been trading for around 5 years. Not great numbers but I can see they have year on year growth.

They currently have around 10 apartments they use in my block, I was luckily enough to speak to one of the members of the resident's association and he currently let's 3 properties to them and gave me a tour of the setup.

I'm in no doubt they're a legit company, I just have to weigh up the pros and cons. Company let's are new to me, so will have to do a bit more research.

[DPT57]

Watch that video

[Berlingogirl]

No. Don't do it. How do you know the ltd co hasn't gone into letting to the homeless? They could let to anyone.