As a result, a number of clauses in this agreement are not appropriate if your lease is with individuals. When a company rents housing for its own employees or directors, it is called “renting a business.” Note, however, that if the property is leased to clients for sublease purposes, it will be a commercial lease and not a dwelling. But the company is responsible for the rent, if the subtenant/occupier pays it. Sometimes south of the Thames are found in some of the new river developments for business rentals. Home Counties homes are also popular, close to reliable commuter lines. Traditionally, business leases have been primarily active in the financial sector, but are now increasingly found in the information technology and telecommunications sectors. The rental of the business is not regulated. Therefore, a company cannot challenge a rent – once it has entered into a tenancy agreement – and claim that it is too high (as is sometimes possible under the law). Owner law expert Tessa Shepperson explains the law behind a company renting your residential property for the use of its employees or customers. Unsecured leases operate in many ways differently from guaranteed or guaranteed short-term rents. For example, the security deposit should not be protected in a national system, withdrawal usually begins with a termination instead of a section 21 or section 8 notification, and the prohibition on rental fees does not apply to this type of rental housing. If a lessor wishes to terminate a tenancy agreement for the fixed term, this can only be done if the tenant violates the terms of the tenancy agreement, if the lessor can apply the old expiry procedure.
The company is not a protected tenant, so you have much stronger control than under an AST. The owner has no obligation to the occupier. Conversely, it is up to the company to fulfill all the usual tenant alliances. Even if a “business lease” is used, the landowner may be able to become the owner of the business tenant (under an AST) at the end of the lease with the company, in accordance with the s18 provisions of the Housing Act 1988. If your tenants are a registered organization, this agreement will create an unsecured rental agreement and the document was designed to do so. This agreement is usually used when you lease your property to a company that then places its employees in the property. In the event that the company pays a cash bond, it will insist without exception that it be held by an independent stakeholder of both parties, who will only release the funds after the authorization of both parties. You should also be aware that sometimes someone will try to rent a home through their business, because they would not pass the normal referencing. It is therefore important to know who will live in the accommodation and, if possible, to take references. The most common agreement signed in the rental market is a shorthold Insurance rental agreement.