As a landlord or property owner, you want the best return on your investment for the least effort. Letting to individuals, and carrying out all the work yourself, can soon turn into a full-time job. If you’ve got an apartment in a sought-after area, however, letting it to a company can prove to be quite advantageous. In this article, UpperKey looks at some of the considerations, good and bad, and the best way to take advantage of this unique type of client.
Key considerations for a company let
Location, location, location
Picking the area where we want to call home, for however long, has got to be the most important consideration for any property search. It certainly tops the list for corporate lets.
Central location: As a temporary home, employees, consultants, partners or clients aren’t going to want to face a huge commute, so having an apartment within the immediate vicinity of the business headquarters or operation centre is vastly advantageous.
Transport links: Alternatively, your property needs to be ideally situated to take full advantage of transport links. If your property isn’t near to a train station, tube/underground rail system, or another suitable transport link, then you better hope your tenant has their own chauffeur or is happy to drive a hire car.
Schools and conveniences: If the business regularly relocates families, then schools and local conveniences will also factor into their decision. A standard company let isn’t always short-term. A lease can run up to 3 years plus renewals, so your tenant could be bringing their family with them for the duration of whatever their project may be.
Decoration and furnishings must be of a high standard
Given the standard of operators that entertain company lets, you should expect your tenant to be of a far higher standard and with expectations to match. If your contract keeps you informed of changeovers and new guest arrivals, your welcome basket should reflect the level of stay your corporate tenant is paying for. No more fruit baskets and tea selections—you’ll need champagne and luxury chocolates, or at the very least, a bunch of flowers large enough to be seen from space…
Designer fittings and furniture: Your property will have to attain far higher standards than a more typical short-term holiday apartment. No more Ikea fixtures and fittings. Your tenants will expect high-end throughout. Your rent will reflect this, so be sure to iron out any cut-corners and create the high-class home-from-home your tenant expects.
Creature comforts and hi-tech extras: The extra mile must come as standard. Your business tenant will expect all the creature comforts they have at home. You should make sure yours has all the coffee machines, high-end fridges and freezers, cookers, food-blenders, smoothie machines, and hi-tech appliances your tenant expects.
Digital connections
In a world where business operates on the fly as much as in the office, you must offer hi-speed, efficient WiFi. Making sure you choose a reliable broadband provider that offers premium connectivity is a must. The same goes for your tenant’s lifestyle elements. You’ll be expected to reach the opposite end of the scale from a hotel’s tiny TV set mounted in the corner of a room. Home entertainment facilities should be plentiful and up-to-date. Bluetooth speakers, Smart TVs, access to Netflix, Prime, and pay-per-view movies must achieve the same standards as we all expect from home these days. If you have a voice-controlled assistant (think: Alexa or similar) that takes care of your audio, lighting or other facilities, it all adds to what your business tenant expects.
Superior service and efficiency
Your tenants expect a high level of service, so if they have problems with anything in the property, you must resolve issues efficiently and immediately. You could even be expected to act as a middleman where there are translation issues for foreign-speaking guests.
Advantages to company letting
Higher rates and better tenants
So far, we’ve made letting to a company sound like a lot of extra work and responsibility, but the payback comes with the rent you can charge. There are tax perks available for many of the businesses buying into these lets, making them more advantageous to these companies than you might think. International businesses will pay a premium for the right property in just the right area. You know how much rent your beautifully presented property can acquire. A company buying into any term of let will add a premium on top of anything you’d have expected so far. You should also be able to expect a premium level of guest too.
Company let hurdles
Finding tenants
Finding a company to lease your apartment isn’t as straightforward as it would be securing short-term holiday lets or tourism type tenants. Your premium options are to approach agencies or specialist business letting agents. Phoning around businesses’ human resources departments hoping for a lucky break can take forever and get you nowhere. Finding an agent or relocation experts with a list of corporate tenants ready to go offers huge advantages over trying to market your property yourself.
Organizing the legal work
Company lets don’t conform to traditional individual’s rental contracts. Your tenancy agreement needs to be professionally organized and written to protect all parties from any issues. You must employ an appropriate solicitor to draw up your contracts.
Credit checks and rent
As you would with an individual or joint tenancy, you should also carry out the correct research on your new client. That includes credit checks. Make sure they’re solvent, healthy, and a good fit for your new arrangement. Collecting rent from a business can be a little more problematic than from private tenants. Payments and checks are signed by departments or company accountants, who have a host of methods to make their cashflow work in the best way for them. Their processes won’t always be ideal for you.
We create your company lets the easiest way imaginable
Many of our guests come from international businesses, looking for the superior city centre apartments discussed in this article. We vet all of the guests we home in your properties to make sure they’re exactly who you’d choose to occupy your apartments, and that we’d be proud to work with.
On top of that, we don’t just take the best care of your property; we also take care of all the paperwork, any emergencies, questions, and requirements made by your guests.
In fact, you don’t have to lift a finger. All you have to do is check your guaranteed rent payments are hitting your account every month—and wonder how you got away with doing so little for so much.