Short Term Corporate Lets: London Property Management Services

Short term lets for corporate or business clients can increase rental yields for landlords as they can generate anything from 15 to 50 percent more than rental prices under an assured shorthold tenancy.

For this reason, some landlords actually prefer to let to international companies and businesses on a short term basis, hoping to find a series of corporate tenants for a property, doing their utmost to minimise empty periods. This strategy can work for top quality luxury properties in the City of London or the West End of London, but it can be risky, as your property has a good chance of lying empty between lets.

Most short lets are catering for holidays or business people working in this country on a short term basis. Business professionals are the ideal tenants for most landlords. International blue chip ompanies are often willing to pay higher rents for high quality luxury properties in the right central London locations, as the alternative of hotel accommodation is usually much more expensive for the equivalent standard of accommodation. Some companies can even afford to supply cleaning, laundry, chauffeur and catering services for the tenants they are placing, due to the savings that they make over three, four or five star hotel accommodation.

With the exception of holiday homes, where certain other factors come into play, high class exclusive homes dominate the short term corporate letting market, with both flats and houses being popular. Not only are they generally high quality properties in upmarket areas, but the most successful are also presented with an attractive décor and furnished to a high standard. However, if your property does not fit this bill, it does not mean you won't be able to find a short term tenant. Excellent location, proximity to useful transport links, pleasant grounds or some other appeal can make your home attractive to certain tenants.

Do I need permission before I rent out my property?
If the property is subject to a mortgage, consent is normally required from the mortgage lender. Also if you are not the freehold owner of the property, permission is usually required from the freeholder. You should deal with this before instructing us to let your property.

Do I need to pay income tax?
This will depend upon your circumstances but income from property in the UK must be declared to the Inland Revenue. If the landlord is resident overseas the agent may be taxed but we can advise on how you can receive rent without us having to pay tax on your behalf. Landlords can claim personal allowances against income from property and husbands and wives may decide to opt for separate taxation. Expenditure incurred in connection with letting can be offset against income and a wear and tear allowance may be granted in the case of furnished properties. It may be prudent to take independent financial advice in connection with your tax affairs.

What about furniture?
Obviousy the better the decor the bettrt the rent. You must also ensure that any soft furnishings you supply comply with current fire safety regulations. The Furniture and Furnishings Fire Safety Regulations 1988 (as amended 1993) require that all furniture in rented properties must meet the standard. Of particular concern is foam filled or upholstered furniture manufactured between 1950 and 1988. Furniture manufactured before 1950 is exempt and may remain in the property but any other soft furnishings, bedding etc left on the premises should be appropriately labelled. isaac anthony offer a full executive furniture package aimed at attracting professional tenants. Please click here for more information on this service.

Do I need to insure the building and contents?
Landlords are normally responsible for insuring the property and London City Lettings recommend landlords also insure their contents. We can arrange a policy specifically designed for corporate rental properties.

Who is responsible for repairs?
The Landlord and Tenant Act 1985 section 11 (as amended by section 116 of the Housing Act 1988) requires the landlord to keep in repair the structure and exterior of the property together with installations for supply of water, gas, electricity and sanitation, and to keep in proper working order installations for space and water heating. Our rapid maintenance response team are on hand 7 days a week 365 days a year and can be relied upon to provide timely and cost effective remedial works as required.

Are there any other safety issues?
Landlords have a duty to ensure that the premises, fixtures, fittings and appliances are safe. isaac anthony recommend that appliances which burn fossil fuel such as gas, coal or oil should be serviced regularly.

The Gas Safety - Installation & Use Regulations 1994 (as amended) require landlords to ensure that all gas appliances or installation pipe work are maintained in safe condition and that they are inspected annually by an approved contractor. There are requirements for keeping records and issuing certificates to tenants. All tenants must receive the gas safety inspection certificate before the start of a tenancy. This is required in addition to any servicing arrangement which you may make.

Landlords have a duty to ensure that electrical equipment is safe. There are several pieces of legislation affecting the safety of electrical equipment, including the Low Voltage Electrical Equipment Regulations 1989, the Electrical Equipment (Safety) Regulations 1994, the General Product Safety Regulations 1994 and the Plugs and Sockets (Safety Regulations) 1994. So far as London City Lettings are aware landlords do not have to obtain an electrical safety certificate prior to letting but landlords must maintain electrical systems and electrical appliances under their control in safe condition. isaac anthony recommends that an appropriately qualified electrician should inspect the property and electrical fittings at the start of the tenancy and regularly thereafter. The Furniture & Furnishings Fire Safety Regulations have been mentioned above. In addition we recommend the installation of smoke detectors and the provision of fire blankets etc.