Could you make money from corporate rentals?
Does your rental property have the wow factor?
Have you ever thought about company lets? If not, maybe you should. Corporate tenants work for companies which have agreed to cover the costs of renting a home for their employees. This is usually because they are relocating to a new part of the country or are on secondment to a different part of the business. Major cities attract the most corporate renters but even in rural areas, major employers often need rental property for temporary staff or new employees. Rather than renting through the company, businesses are likely to give staff an accommodation allowance and let them find a suitable home themselves.
For landlords the advantages are clear. Corporate tenants come with the security of regular rental payments from a reliable source and a reduced risk of arrears and – hopefully - disputes. They are likely to be on a fixed-term contract so will be able to sign up for a tenancy agreement of two to three years, depending on their employment arrangements. And as most are highly paid professionals, they will be happy to pay a higher monthly rent if they find the right property.
Happy days we hear you say! But it’s important to appreciate that as well as coming with great credentials as renters, corporate tenants have extremely high expectations. They demand excellent value for money – even though they’re not the ones paying the rent! Furnished property is favourite and quality is key. As one expert in the sector says: “If you want to attract top corporate professionals, then you have to provide the wow factor that makes your property more attractive than anything else being offered in the same building.
So, what are these tenants looking for? High quality décor, fixtures and fittings goes without saying. Families moving to the UK from overseas will be looking for fast, accessible local transport links, excellent amenities and good schools if they have children. Corporate tenants also expect properties to be well-maintained and they will expect to have a reliable point of contact to quickly resolve any problems. That makes excellent property management a must. A dedicated property manager and the reassurance of either an on-site concierge or a 24/7 service will give your corporate let the edge.
So if you are a landlord thinking of going down this route, contact us for advice. Our property managers will be happy to advise you.