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Question

Types of Tenancies (England)

Company Tenancy

23 Feb 2018 | 8 comments

I am letting a residential property to the BBC for 6 months for their TV crew to use while filming in the local area.
What agreement do i use and do i take a deposit etc.

Answer

8 Comments

  1. guildy

    You would use our contractual tenancy which is suitable for this purpose. You can take a deposit and it will not need protecting because it’s not an assured shorthold tenancy.

  2. guildy

    Just as a quick addition, if 3 or more people are occupying, the property will become a HMO triggering the usual rules. Furthermore, if there are 5 or more occupying and the property is 3 or more storeys, a licence will be required (unless there is additional licensing in the area where the property is located in which case a license would be needed for 3 occupiers irrespective of storeys).

    • cotswoldandvalelettings

      Thanks for this, It’s a three storey, 3 bedroom property sleeping 3 in a village. It is a residential house and set up as such. Do I need to do anything different for this? The property is being let for a company to house their employees while working locally.

      Many thanks

      Nick

      • guildy

        Just check the link above as this will be a HMO because the occupiers won’t be related to one another. You will need for example a 5 yearly electrical certificate and “adequate fire precautions” (of which you should already have smoke alarms being in England). You will also need to display in a prominent position in a common part the name, address and telephone of the manager.

        The link above has an extensive list of what’s required for a HMO.

        • cotswoldandvalelettings

          Sorry to keep asking.

          Will it be an HMO if the company lets it for their employees who only stay there during the working week and then go home at weekends? I expect the company to pay the utility bills etc.

          Thanks

          Nick

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          • guildy

            That makes it more tricky and it would depend whether the local authority decided it was the occupiers “main residence” during the period of occupation.

            We would probably err on the side of caution and just assume it’s a HMO – that way, nothing can go wrong!

            It’s the fact they’re not all related to one another that’s the main trigger.

            The company side is irrelevant to any question of HMO. It’s all about who is occupying the property. The occupiers don’t have to be tenants either so it includes baby’s for example.

            The example of a HMO we use in training is Janet and Jane. If Janet and Jane are friends sharing, it’s not a HMO because 2 people are excluded from being a HMO. However, if Jane has a baby, it’s now a HMO because the baby is not related to Janet. To add further confusion, if Janet and Jane are a couple (either married or living together as married), it’s not a HMO because they are treated as all being related to one another (including the baby).

            The point is, it’s all about who is occupying the property and their relationship (by blood or specified allowances in the regs) to one another.

          • cotswoldandvalelettings

            But this seems to say different? http://www.cotswold.gov.uk/media/237154/HMO-licensing-mandatory-flowchart.pdf

            This seems to say if it’s not their only or main residence ( and if they have a house/home they are already registered in ( Voting register, pay their own council tax etc ) this can’t be the main residence )

            Basically if it’s an HMO it’s not worth the cost and hassle of getting licenced just for a 6 month agreement. I would be better waiting to fill it with a standard AST. However the rules seem different wherever you look!

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  3. guildy

    You are confusing a HMO with a “licensable” HMO. In our earlier reply, we said a license is only needed if there are 5 or more occupiers but you then clarified there was only 3. The only thing to check is that the local authority doesn’t have some other license scheme (additional or selective). Assuming not, you won’t need a license but it will still be a HMO and the rules linked above apply (e.g. electrical safety checks etc.)

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