Selective Licensing and new tenancy?
3 years ago | 4 comments
Selective licencing on a BTL residential?
12:03 AM, 14th July 2023, 3 years ago
17
Hello, my property is a BTL residential freehold property. I have been approached by a business owner through an intermediary who is willing to rent the property on an AST.
My property has a selective licence. The business owner will be renting the property but his staff will stay at the property. Am I allowed to let my property to the business owner?
Thank you,
Dave
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Member Since July 2023 - Comments: 2
9:30 AM, 14th July 2023, About 3 years ago
I would’ve thought not if he’s charging the staff rent. It’d be the same as subletting. Ask mortgage company and buildings insurance. Pretty sure not allowed. Not sure how selective licensing comes into it. It could possibly become an HMO depending on what staff he wanted to accommodate there. Too many complications. I wouldn’t do it
Member Since April 2021 - Comments: 189
9:32 AM, 14th July 2023, About 3 years ago
It would not be an AST but a company let – these are not covered by tenancy regulations but have their own set of rules
Member Since October 2022 - Comments: 1
9:34 AM, 14th July 2023, About 3 years ago
Do a Rent to Rent contract
Member Since June 2022 - Comments: 111
10:06 AM, 14th July 2023, About 3 years ago
Yes you can rent to a company.
Selective Licensing is irrelevant.
I’ve personally let to companies previously.
The Contract will be a Company Contract and not an AST as some. Previously mentioned.
The tenant will be the Company and the person living in the property will be classed as the occupier.
You will be able to take 6 weeks deposit and not the usual 5 on an AST.
You must have a guarantor never let to a company without.
Have a maximum number of occupiers at any one time.
Member Since January 2015 - Comments: 1435 - Articles: 1
10:45 AM, 14th July 2023, About 3 years ago
It should be let as a company let ie a commercial contract and not an AST.
You could draft the contract as a full insuring and repairing lease. Just a thought.
This also should take it out of residential selective licensing, I would have thought
Member Since October 2020 - Comments: 198
11:23 AM, 14th July 2023, About 3 years ago
I agree with others — it would not meet the legal definition of an AST. The contract would be worthless. But that also tells you that the intermediary is incompetent (or worse), so best to steer well clear.
Member Since October 2020 - Comments: 1137
3:49 PM, 14th July 2023, About 3 years ago
I would strongly suggest you read more about the potential problems and then turn him down.
Member Since January 2020 - Comments: 559
5:11 PM, 14th July 2023, About 3 years ago
I agree with others that it’s not an AST.
I have done such lets several times over the years without issue. Some responders are perhaps too cynical. However, you do need to have an understanding of the tenant company and how they are to use the property. The best will simply be housing their own staff for no rent; find out exactly what they are proposing.
Get a proper lease done. The tenant can pay for this as (I believe) it’s outside the tenant fee ban.
Get the directros to be guarantors. No guarantors, no lease.
If the intermediary is an agent they should (a) be propelry regulated and (b) ought to know what to do.
Member Since June 2022 - Comments: 111
5:23 PM, 14th July 2023, About 3 years ago
The Guarantors would need to pass strict referencing .
Also you could ask for 12 months rent in advance.
Member Since April 2023 - Comments: 4
10:09 PM, 14th July 2023, About 3 years ago
Yes, you are allowed to rent, with your own usual checks etc.