Believe it or not, it isn’t always easy to book a corporate let. Corporate lets are a form of rent where a company rents the property from the landlord and is responsible for all managing aspects of the property, as well as for finding hosts – who are employees from different companies. The corporate let stands between the short term rent for tourists and the classical long term contract.
The owner of the property technically has only one tenant, which is the company, who will pay a fixed rate for rental. The company-tenant is then responsible for looking for trusted corporations in need of a place for their employees. The company that rents the property is accountable for taking care of regular cleaning, payment of bills and charges, monitoring the property’s technical condition, and such.
Tenants who rent a company let also have many advantages, especially related to convenience – in a single contract, they pay for all costs related to renting, fees, bills, administrations fees and utilities, for example. The amount is set and fixed at the beginning of the lease, which makes the process more convenient and practical overall.
How corporate lets are better than hotels
Although corporate lets managers provide services similar to what hotels do – changes of sheets and towels, and cleaning, for example – this type of renting is better for corporations like yours in many aspects.
The company responsible for letting the property to your employees is responsible for managing the entire portfolio of properties.
Besides the price of hotel stays, which can be much more expensive, companies who manage corporate lets will provide your company’s employees with full support if the apartment is not compliant with any of your company requirements (with the possibility of even exchanging the apartment for another).
Also, corporate lets have fully equipped kitchens, unlike hotels, and provide the comfort and privacy of an apartment. With a corporate let, your employees do not need to go through the hotel reception to visit someone, for example. They will have freedom as if it was their house.
The importance of location for corporate lets
Most corporate lets are also located near restaurants, squares and cafes. This is because most companies that lease these properties require that they have close proximity to the town centre.
Also, most corporate lets offer excellent proximity to bus stops, and other commuting services, typically within walking distance.
This topic refers to parking spaces that your employees use on the workspace or to parking spaces used by them while on a business journey (going somewhere work-related, such as an appointment).
Parking is very important for most companies who rent company lets, and you, as an employer providing parking spaces to your employees, need to follow the National Insurance and reporting obligations.
These obligations are for parking spaces for vehicles, including cars, motorcycles and bicycles, and there are different rules for when you provide parking spaces yourself and for when you cover the costs of employees’ parking.
Value-added tax (VAT)
Some properties will have VAT charges on the rental payments, and some will not.
Whether the landlord has chosen to tax or not, and if the business you run is VAT-registered, then it is likely that your costs will not be any higher. That is because your business can reclaim any VAT paid, as you can do for other business purchases.
However, businesses not VAT-registered will have increased costs if they choose for a rental payment with VAT charges. Something often overlooked when you book a corporate let.
Overall, the landlord can or cannot choose to tax for VAT purposes. Depending on your case (VAT-registered or not), this can make a difference and have an impact on your costs. In any case, you must choose very carefully, always considering your business needs and financial capabilities.