Renting to company on behalf of employee

flyer

I wonder if someone can give me some advice.

I am renting my house to a company and one of their relocating employees is moving in. The company is paying the rent.

Is there a separate rental agreement for this situation or, should I just use the Assured Shorthold Tenancy Agreement? If the latter, who is the tenant, the company or the employee?

TIA

mrginge

I would suggest you avoid involving the company in this.
Let direct to the employee
The company pays the employee
The employee pays you the rent.

dc197

If you let directly to the employee you may have to agree to a shorter-than-normal rental period, such as 3 months. In my experience of being relocated, the employer rarely pays for more than this. If you want a 12-month agreement the employee might not sign.

An alternative is to sign with the company, who might put several successive relocating employees there, or might put weekly visitors there. It could be a good relationship you foster with the company.

My company had a tenancy with a landlord and the house is rarely empty.

flyer

Thank you. I thought that would be the way to go but just wanted reassurance!

Boatdweller

It will be a company let, therefore you will not have an AST.

Guest101

There's definitely pros to renting to a company, they pay the rent, and they'll ensure the property is returned in a good condition.


The downside is that you cant use s.21 etc to end the tenancy, as it's a corporate lease

flyer

dc197 wrote: »

If you let directly to the employee you may have to agree to a shorter-than-normal rental period, such as 3 months. In my experience of being relocated, the employer rarely pays for more than this. If you want a 12-month agreement the employee might not sign.

An alternative is to sign with the company, who might put several successive relocating employees there, or might put weekly visitors there. It could be a good relationship you foster with the company.

My company had a tenancy with a landlord and the house is rarely empty.

Thank you. The company has already told me the employee will be in the property for at least 12 months.

dc197

flyer wrote: »

Thank you. The company has already told me the employee will be in the property for at least 12 months.

Do you know whether this employee has been with the company for a long time, or a new hire with a probation period?
Remember that a relocating new employee might get the boot within their probation period more readily than an established employee, and might like to re-re-locate back whence they came. This could mean even if the employee plans to stay for 12 months, they might not be able to.

flyer

dc197 wrote: »

Do you know whether this employee has been with the company for a long time, or a new hire with a probation period?
Remember that a relocating new employee might get the boot within their probation period more readily than an established employee, and might like to re-re-locate back whence they came. This could mean even if the employee plans to stay for 12 months, they might not be able to.

Been with them for a long time and has been seconded from abroad at considerable expense!

gingercordial

flyer wrote: »

Been with them for a long time and has been seconded from abroad at considerable expense!

Bringing the family? I work for an international company and we do have people go on what were supposed to be long secondments then come back again quickly if the other half and the kids hate it there (most recently one of my colleagues came back after six months in Hong Kong because his wife couldn't settle in, and he was meant to be gone for 2-3 years). Presumably even if you have a 12 month fixed term AST with the employee you'd find it very difficult to pursue them for the unpaid rent if they disappeared back off to another country halfway through. I'd imagine the employee being foreign would make the option of leasing to the company more attractive.

flyer

gingercordial wrote: »

Bringing the family? I work for an international company and we do have people go on what were supposed to be long secondments then come back again quickly if the other half and the kids hate it there (most recently one of my colleagues came back after six months in Hong Kong because his wife couldn't settle in, and he was meant to be gone for 2-3 years). Presumably even if you have a 12 month fixed term AST with the employee you'd find it very difficult to pursue them for the unpaid rent if they disappeared back off to another country halfway through. I'd imagine the employee being foreign would make the option of leasing to the company more attractive.

Just the husband, they have no children