For landlords and operators
Company lets, explained
A company takes the whole property on a lease and pays you whether or not it is occupied. It is a normal arrangement, it is not right for every property, and it is the one an estate agent tends to decline on your behalf without asking.
What it actually is
Instead of letting to a person on an assured shorthold tenancy, you let to a limited company on a commercial lease, typically two to five years. The company becomes your tenant. It then places its own occupiers in the property — guests on short stays, adults receiving support, or sharers, depending on what the business does.
Because your tenant is a business rather than a household, the tenancy rules that govern an AST largely do not apply. That cuts both ways: fewer of the protections a landlord is used to leaning on, and fewer of the constraints.
If you own the property
Rent whether or not it is occupied
The company holds the lease, so void periods are their problem rather than yours. That is the main thing being traded for.
One relationship instead of a series of tenancies
No re-advertising, no referencing each new tenant, no check-in and check-out every twelve months.
They handle the day-to-day
Tenant issues and routine maintenance normally sit with the operator. Who covers what is set out in the lease — read that clause carefully, it varies.
Usually below full market rent
A guaranteed figure is generally under what you would achieve letting it yourself in a good year. You are paying for certainty. Whether that trade is worth it is your call, not ours.
If you are the company
Say what the property is for, up front
Serviced accommodation, supported living, an HMO or social housing are very different propositions to a landlord. Naming it in the first message saves you both a week.
Expect to evidence the business
Company number, how long you have operated, and references from landlords you already lease from. A landlord who asks for these is doing the right thing.
Bring the lease
Company lets are normally papered by the operator. Landlords will want their own solicitor to look at it, and that is reasonable.
Be straight about the consents
If the landlord's mortgage or freehold does not permit a company let, it is better for everyone to find that out in week one than after refurbishment.
Four things to check before you sign
None of these are unusual, and none of them are reasons not to do a company let. They are the things that stop one late, which is the expensive way to find out.
1
The lender
Many buy-to-let mortgages assume an assured shorthold tenancy and require written consent for anything else. Some permit company lets outright, some charge a fee, some decline.
Ask your lender's buy-to-let team for their position in writing.
2
The insurer
Landlord insurance is usually priced around a known occupancy type. Short stays and supported living are not the same risk as a single household, and an undeclared change can leave a policy ineffective at the moment you need it.
Tell your insurer the intended use before the lease starts.
3
The freeholder or managing agent
On a leasehold flat the head lease often restricts subletting, short lets or business use. This is the one that most often stops a deal late.
Check the head lease, and ask the managing agent in writing.
4
The council, for some uses
HMO licensing and, in some areas, planning or additional licensing can apply depending on the property and the use. Requirements differ by council.
Check with the local authority for the property's own address.
This is general information, not legal or financial advice. Leases, mortgage terms and licensing rules differ by lender, insurer, freeholder and council, and they change. Take your own advice on the specific property before you commit to anything.
Makan just makes the introduction possible
A landlord ticks whether they would consider a company let. An operator can search for landlords who have. Everything after that — terms, references, the lease — is between the two of you. Makan is not a party to your agreement and takes no cut of it.
One thing you should know
PropertyVault, which runs Makan, also takes some properties on itself under guaranteed rent — which is a company let. So we may be one of the companies that replies to you. We get no priority, no advance sight of a listing and no better position than anyone else here, and you are free to ignore us. The market is far bigger than what we take on, and the point of Makan is that every other operator gets to make you an offer too — which is exactly what an agent prevents.