Frequently Asked Questions – Corporate Letting
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Take a look below at our customers’ frequently asked questions. If you still require help, email email@example.com.
What is a corporate let?
A corporate let is when a company secures a property on a long-term basis via a management agreement (not sub-letting). The company may pay a higher rent than what’s achievable from the landlord, or a high street letting agency. In addition to this, the rent is guaranteed during the fixed term, usually a period of 3-5 years.
Why are landlords choosing Liquid Properties corporate letting over letting agents?
Under this arrangement, the landlord avoids the risks and uncertainties associated with being a landlord. For example, the landlord is indemnified against the corporate tenant not paying the rent. The landlord is also indemnified against any damage to the property, and avoids the risk and expenses of evicting a problem tenant who refuses to pay the rent after the first month of a traditional Assured Shorthold Tenancy (AST). The financial aspects are also causing landlords to choose corporate letting over traditional, with the 15-25% higher returns making them want to make corporate letting their preferred method.
Is my property suitable as a corporate let?
Liquid Properties Corporate are usually looking for higher-end properties, new builds, or properties that have been recently refurbished and modernised. Location is also a key criterion, we are seeking properties in prime locations, close to transport links, city centres, properties with sea views, penthouses, unique properties. On occasion, we will broaden their criteria and seek more affordable properties, so as to cater for the middle end of the corporate market, including junior employees and trainees, who are happy to house share. Liquid Properties Corporate are known to sometimes pay a higher premium, above the market rent for the right property.
If you want to let out your property as a corporate let, including those who might be worried that their home doesn’t meet the criteria, we are working with some great Landlords who want a higher rental return without spending any of their money preparing their property for the corporate market, which is why we partner with them and invest up to £8,000 of our own funds preparing their properties, and we lease them back long term”.
Who are our corporate tenants in Brighton?
Usually hard working, high achieving and high earning individuals, often employed by white collar, blue-chip companies. Many will have relocated to the UK for work and are wealthy, international homeowners themselves. Quite often they will want a place they can call home, rather than be limited for choice and stay in one of the up-market hotels or apartments, such as The Grand Hotel.
What are the downsides of corporate lets?
If you are approached by a company looking to lease your property you need to know if the company will be taking responsibility for the rent and management of the property, and therefore be classed as the tenant, or, if the employee who is renting the property will be responsible.
If it’s a company, you can use the checks available on www.companieshouse.gov.uk to ensure it’s a legitimate business. It is also wise to Google the company and find up to date reviews and experiences from others.
What if Liquid Properties corporate fail to pay the rent?
In our contractual agreement we protect our clients with a break clause. This ensures that, if we fail to meet our obligations, the agreement becomes null and void after 14 days. The property and tenants residing in the property by default return into your (the landlord’s) control. Irrespective of our contract, we are building a reputation for guaranteed rent in key cities throughout the South East based on personal introductions, transparency and integrity, which means that its commercial suicide for us should we fail to meet our obligations to you (the landlord).
When do you commence the payments?
Irrespective of how long it takes us to find a suitable corporate tenant, our, once our agreement is signed, and the property is presented in a condition acceptable to us, our agreed payments will commence instantly, from the same day.
How long is the contract?
Our contract usually runs from 3-5 years depending on how long you wish to eliminate the risks associated with being a landlord for. You can opt to extend the agreed period at any time by contacting us. You can also opt for a shorter period from 2 years.
What areas do you require properties in?
We immediately require individual properties and entire portfolios throughout Brighton and the South East. We will also proceed on multiple properties (i.e. portfolios) in or within a 30-minute commute of our offices.
What about damage to the property?
The agreement we enter into with you (the landlord) ensures that we must register a deposit on behalf of the corporate tenants we place in the property. This ensures that we are held responsible for the cost of the damage to the property up to the sum of 1 months rent. When a tenant vacates the property the detailed inventory obtained ensures that we return the property in the same condition it was received in (subject to a fair wear and tear allowance).
How much rent will I receive?
Many landlords fail to calculate the net rental figure they actually receive across a 12-month period. Net returns fluctuate considerably when landlords factor in the average void period of six weeks, letting charges, monthly management commissions of 10-15%, VAT at 20%, rental arrears, renewal fees and court eviction costs, amongst other unpredictable costs.
When landlords calculate the above (which is not an exhaustive list) the net returns fluctuate considerably; however, we guarantee a set amount that is more than you would receive when letting through a conventional agent.
Who pays the utility bills and property expenses when vacant?
We personally cover all utilities, energy and council tax bills for you (the landlord), even while the property is vacant.
Who will manage my property or portfolio?
We have a dedicated team of experienced corporate portfolio managers who are all collectively situated in an independent office in order to solely focus on and execute the highest possible portfolio management service.
What about maintenance?
We employ a professional team of maintenance men who ensure that our portfolio of properties are maintained swiftly and in some cases make significant improvements to particular properties at our expense. This means that if your property needs attention or repair you can approve our quote or proceed independently with your chosen maintenance team. It’s up to you!
Why should I choose Liquid Properties?
Unlike other firms it’s not rent guarantee insurance. It’s not an underhand council and benefits scheme operating as an intermediary between the council, DSS tenants and you. It’s not a start-up rent-to-rent scheme that’s here today trading online and gone tomorrow.
Our corporate letting scheme is one of our flagship products and, as a result, is testament to the strength of our success and increasing market share throughout the South East for high-end properties.
What properties does this work on?
We immediately proceed on properties provided by reluctant landlords, investors, property investment clubs, lettings and estate agents. These range from studios to large five bedroom executive homes and we offer the fair market rent.
How landlords can cover themselves
Make sure the company uses a corporate agreement, and doesn’t suggest using an Assured Shorthold Tenancy (AST). Ask to see a link to their most recent acquisition advertised on the internet, or visit it in person. In addition to this, make sure there’s a break clause in the agreement, in case the company fails to pay a single payment of rent. You should also make sure you propose amendments to the agreement if you need to.
Furthermore, make sure the company registers, or financially insures the deposit with a government scheme.
If a corporate let is correctly organised from the start, they are a low risk option and offer lucrative returns for the Landlord, with no voids. Their approach also means there are no issues with tenants, no management fees and the higher end tenants are usually homeowners themselves, which means they respect the property.
To request your free corporate let valuation and discover how much you would earn, call Liquid Properties Corporate on 01273 634 868 or email firstname.lastname@example.org or request a free valuation online below.