Corporate lettings are a profitable alternative to long term or holiday lettings. If you’re a landlord considering making the move into corporate lettings, we’ve put together this handy guide to cover all the ins and outs you need to know!
What are corporate lettings?
Let’s start with the basics, corporate letting is the rental of accommodation to a company. This company will use the accommodation to provide housing to an employee who is on a short term, for example, a two-month on-location project.
Alternatively, they can also be used to accommodate an employee who is relocating to the area and who needs temporary accommodation while they work and look for something permanent.
The company the accommodation is let to is responsible for all the bills and contract agreements, not the individual, you can read a bit more on the subject here.
Why do companies want corporate lettings?
You see, there is a bit of a gap in the market between the two most traditional types of lettings, long-term and holiday lets where corporate lettings are ideal. Companies don’t want to have to pay nightly hotel fees and all the other costs associated with a staff member staying in a hotel (meals, laundry etc). Plus, a hotel isn’t very homely for a relocating staff member who has moved their life to a new location.
Then there’s holiday accommodation, which is more suitable than a hotel but the weekly rental is aimed at the holidaymaker who will only want to stay a week or two so the prices are much higher per week and usually not the highest of quality — unless you want to pay the top prices.
This is where corporate lettings like the ones you will find on InnClusive come in, for companies that need to house staff for more than 4 weeks but typically less than 6 months, they provide the ideal solution and corporate lettings are on the rise following the COVID-19 pandemic with many organisations opting for private rentals over hotel rooms as they are seen as the safer option.
@CM_World says, “80% of business travel executives say health and safety is pivotal in driving a return to travel.”
Why corporate letting is a great sector
There are many benefits to corporate lettings. It’s a sector which is growing all the time especially in the UK’s major cities including London, Edinburgh, Newcastle, and Cambridge to name just a few. Where businesses are looking for high-quality rentals for their employees.
When you let your accommodation to a company they expect and are usually willing to pay a higher rental price for a property that’s in excellent condition and well maintained for their staff.
Corporate clients are also keener to sign a long term agreement. For example, if they will have several members of staff to house over a couple of years, the company is likely to want to sign a longer-term agreement for that period to guarantee the availability of that accommodation.
Staff living in corporate rentals are typically better tenants too. After all who would want their landlord to complain to their employer about not keeping the accommodation clean and tidy.
Is there a catch?
Not a catch, but you will have to be mindful of the company’s expectations for your property, corporate clients expect the accommodation to be regularly maintained, any reported faults dealt with almost immediately and everything kept in first-class condition.
Some landlords are not willing to do this, so if you are about to try your hand at corporate lettings you’ll need to decide how much time and effort you have to put into the property.
The benefits of becoming a landlord to corporate tenants are certainly appealing, if you do decide to take the plunge, make sure you list your property on InnClusive to get in front of those premium corporate clients.