Letting to LTD (Serviced apartments)

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    #1

    Letting to LTD (Serviced apartments)

    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.
    Tags: None
    #2
    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.

    Comment

      #3
      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.
      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).
      • 1 like

      Comment

        #4
        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.

        Comment

          #5
          Also have a look at this video by the housing lawyer, David Smith: https://www.youtube.com/watch?v=6vLf...0jkclQ&index=3

          Comment

            #6
            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.

            Comment

              #7
              Watch that video

              Comment

                #8
                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.

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