If you’re a landlord and haven’t considered renting your property to corporate tenants, then it may be time to do so.
London’s vibrant economy and the international nature of the businesses based here means there is always demand from companies for short and medium-term term rented properties.
And this is particularly true during the summer months, according to Sherard James, Acting Head of Corporate Services.
“A big slice of the corporate market comprises employees with families moving to London and needing to be established before the school year starts,” he says.
If you’re a landlord considering a move into corporate lets then here’s what to consider before taking the plunge.
Employees in London can be on relatively short contracts and have properties rented on their behalf. They therefore generally demand full, round-the-clock management of their home provided by a professional team.
Short term lets
Demand from corporate tenants tends to be for centrally-located, smart one or two bedroom apartments. Concierge services that will make their lives in London as easy as possible are often high on the list of priorities.
At the top end this can include full housekeeping services, particularly if the property has been sourced through a relocation agent offering a hotel-style rental package.
“These types of tenants usually seek cool, funky areas to live in and ideally with river views,” says Sherard.
The largest sector of the corporate let market is families. Sherard says these are often provided with tenancies that will last two to three years and are near the best private or international schools. These tend to be in West Central and outer west London, particularly in Kensington and Bayswater.
The corporate lettings market demands a different approach to tenancy contract length and clauses from landlords, when compared to standard rentals.
For example, if a company wants to rent a property for its employee for less than six months – let’s say three – then that’s how long their tenancy agreement will be. On the plus side, any tenancy under six months is usually paid for in advance. Contracts over six months usually include what’s called a ‘business break’ clause. This means that, should an employee suddenly have to return home for whatever reason, their employer can terminate the agreement at short notice. While some landlords may worry about potential void periods, the higher average rents for corporate lets tends to alleviate most concerns.
If you’re looking for corporate tenants, get in touch.