Commercial Letting (corporate lets)
These are the most desirable kind of lets, as you are actually renting your property out to a company, rather than an individual. There is, however, no guarantee that a company won't get into financial difficulties, but you are less likely to get a `default' on rental payments than you are with an individual. Corporate lets can come through location agents, whose job is to find accommodation for company employees who are coming to work in the area. Their first port of call will be to the more established letting agents in the vicinity.
These lets can last from six months to three years and will generally have a pre-negotiated rental increase built in for each year, depending on the length of the tenancy! They can be the most hassle-free lets but you will probably have to agree to have the property professionally managed. Together with the 10% letting fee this can cost you anything up to 16% of the gross rent.
Key factors for corporate lets
- The property will have to be professionally managed.
- The property will need to be well presented.
- It should have a `power' shower.
- Leisure facilities and 24-hour concierge will be an advantage.
- The property needs to be in the best location.
- Fixtures and fittings need to be of a high standard.
- The kitchen needs to be fully equipped with modern appliances.
- The property will need secure parking.
Tip
If a letting agent charges in excess of 16% for letting and full management, and they refuse to negotiate on commission - go to another agent!
