Q&A Should I rent my property to a company instead of an individual?
QMy agent has just contacted me with an offer on my rental flat but from a company not an individual. It has a lot of demands including an option to renew for three years as well as not paying a deposit but instead providing a letter of guarantee. It also wants to be in charge of rent increases. It’s a really large corporate company, but all the same I am feeling a little apprehensive about all these stipulations. Should I get involved with this type of tenancy?
ALetting to a company despite all the demands at the outset is often an extremely beneficial way of renting your property.
These arrangements usually occur when a large firm requires an individual to relocate for their work and offer them an all expenses paid home as part of their package. They generally offer complete protection ensuring the property meets extremely high standards and that all the fixtures and fittings are tested and safe to use.
They will usually request added extras that perhaps your usual tenant wouldn’t such as changing locks and adding extra fire safety protection such as extinguishers. In most cases they will also want to use their own rental contract too. It can seem a little daunting.
The option to renew can be tricky as it means you are tied in for three years if the tenant wishes to continue. The lack of deposit replaced by a letter of guarantee can seem a bit flaky on the surface but actually is usually satisfactory. Once moved in they are generally great tenants so I’d go for it after considering the terms.
Big companies sometimes rent out homes for their employees