A company would like to rent a property and are happy to have one of the directors as guarantor. I read that this would then not be an AST, therefore are my rights and responsibilities as landlord still the same? Ie if I need to end the tenancy for whatever reason, do I still have to do the gas and electrical safety checks, do I register the deposit?
They only reason they have requested a company let is so the rent cost can be a business expense. The two directors will be using the property part time each week so renting is cheaper than paying hotel costs etc therefore the property will not be their principal residence.
I would be grateful for any advice you can provide on the best way forward please. If it is easier and better for me as landlord not to have a company let, please say.
Thank you
1 Comment
You would need a contractual tenancy available on Tenancy Builder.
Everything is similar regarding duties, except the deposit doesn’t need protecting.
Possession works differently in that it’s a month’s notice to quit instead of section 21, but the basic principles are all similar. You can’t seek possession during a fixed term without reason (same as AST), and therefore, you should keep the fixed term reasonably short (e.g. six months). The tenancy continues as periodic automatically (same as AST).