What is a corporate let (rent-to-rent)?
A corporate let is a type of rental strategy often offered by independent property advisors (IPAs) to provide landlords with a hands-off investment. It is similar to a single let; however, there are several key differences:
- Firstly, the paying “tenant” is a company instead of an individual/couple/family.
- Secondly, instead of an assured shorthold tenancy (AST) agreement between the homeowner (landlord) and the company there is either a commercial/corporate tenancy agreement or a management agreement.
- Thirdly, this company takes over running and renting out the property (including all management of tenants and maintenance) for typically 3-5 years.
Who is a corporate let for?
A corporate let is suitable for any landlord. However, it is especially suitable for landlords who wish to have a hands-off approach to their property investment and don’t want the job or stress of being a “landlord”.
What are the benefits of a corporate let?
There are several added benefits for a landlord with this type of “rental” agreement compared with a traditional single let:
- Guaranteed Rent: Every month the homeowner receives the rent agreed in the contract, without any hidden costs.
- Zero Costs : The company with the agreement is responsible for the management costs and maintenance costs; therefore, the landlord does not incur any of these costs.
- No Voids : Even if the company renting the property doesn’t have any tenants, the homeowner gets paid!
- Hassle & Stress Free: A completely hands-off approach to property investing; homeowners no longer have to deal with day-to-day landlord duties including management or maintenance.
Lastly, a corporate let can often increase the yield of a rental property when compared to the same property being rented as a single let through a letting agent. This is because the landlord isn’t exposed to any management fees (which would usually be charged by a letting agency), maintenance fees or void periods.
Where can I find someone who offers a corporate let?
If you’re a landlord who wants a more passive & hands-off property investment or wishes to explore options to increase the yield of a rental property, use Doormarked today to find an independent property advisor (IPA) in your area who offers corporate lets!
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