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Company Let Arrangement - how does this work?

Started by leicester_boy, October 24, 2024, 05:42:56 PM

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leicester_boy

Hi all,

I have advertised my property on leading portals. Someone has got in touch saying they are a company and interested in renting the property. Does anyone have experience of such arrangements? I am trying to understand how this works (pros and cons) and if this works better than renting out to private individuals? Any advice/guidance will be appreciated, thanks.

Below is what they said.

We are a company seeking long-term leases on properties in the area to accommodate our clients, Primarily contractors on temporary assignments. Our offer includes a 3-5 year contract, Professional bi-weekly cleaning (minimum), And comprehensive maintenance coverage.

We wanted to highlight how our services can significantly benefit you as a landlord.

We offer:

•Fixed rental income, So you know you are being paid regardless of vacancy.
•Expert tenant selection, We reliably screen for mid-long term guests.
•Full property management, We handle everything from maintenance to occupancy, Offering a hands off experience for landlords.
•Zero management fees.

This means you could enjoy a truly passive income stream and complete peace of mind.

jpkeates

This forum and others are full of posts from people experiencing problems with these companies.

Google rent to rent problems or search landlord forums for "company let" or "getting my property back from a company".


South-West

Nothing wrong with letting DIRECT to people working away from home - in fact, there are advantages to it as the Contractual Tenancy falls outside of the Housing Act so no requirement to register a deposit, issue mountains of booklets/forms or other such AST-related rules. You will need to let furnished but can obtain much higher rents as a result.

Just don't do it via a Company.

David

This looks like a "rent to rent" outfit, unless you want to be embroiled in anything from illegal use to breach of legislation I would steer well clear.

If you are approached by an individual who works for known Corporate who asks for a company let, then maybe consider it.

Some just use those sites to con Landlords, even replying shows you are gullible, if you ask for the name of the company and then search on companies house you can look up the company filings but still you have no idea if they really represent that company or whether they have formed a company which they will let get struck off.

If you verified the person contacting you was an officer of a legit company with years of filings, you searched the address and found it was bona fide, not an accountant or whatever, then maybe dig further. Personally, any unsolicited approach like that is spam and should be reported to the platform as spam.

Another scam that is happening at the moment is people taking rent and deposit from a dozen people as a scam and using your property for the viewings.



Hippogriff

#4
Quote from: leicester_boy on October 24, 2024, 05:42:56 PMI have advertised my property on leading portals. Someone has got in touch...

This is basically all you need to know. I navigated through this recently myself, even getting to the point of a viewing and price negotiation. There are some people who will truly want to operate like this, but it is fraught with risk and I prefer simple(r) ASTs and my own Tenants. Sure, there was a premium offered to me, but it wasn't eye-wateringly tempting. Let's just say these folk likely aren't doing it with their own capital and assets. I'm not implying the person I had some dealings with was a scammer, I met them and they seemed genuine enough, but it's just another parasite-like business model where you take on the risk of something you have little to no control over.

leicester_boy

Many thanks all for your input which is greatly appreciated. I have come to the conclusion of not getting involved with this approach.

HavenHomes

It really depends who it is you would be letting to. I work in supported living and we use company lets quite often for our people with learning disabilities to live in as they cannot sign up for their own tenancy due to lack of capacity. You get no void periods as we cover those and the house is returned to you in the same condition as let, minus wear and tear. If clients have caused any damage we rectify it before handing it back. Our company let landlords still do the usual certification and landlord responsibility repairs. With us you know the house is being looked after and any damaged are put right. I'm totally aware not all companies are like ours.