Many landlords consider a corporate tenant to be the Holy Grail. But what are they exactly and how do you get one?
Corporate tenants are tenants who work for a firm which has agreed to cover the costs of the rental accommodation for their employees, usually when members of staff are relocating to London. Rather than renting through the company trading name, increasingly companies are paying employees an "accommodation allowance" and sending them to a reputable estate agent to handle the arrangements themselves. These corporate tenants are particularly favourable to landlords as they offer the security of regular rental payments from a reliable source and a reduced risk of failed rental payments and disputes.
Foxtons was the first agent to set up a dedicated corporate services department over a decade ago, providing the necessary calibre of service required by such tenants. These tenants are often unfamiliar with London and frequently unable to visit properties due to not arriving in the country until such time as their new role begins. Consequently an additional level of service is required making it essential that you use an agent with a dedicated corporate services department.
Additionally, corporate tenants tend to be high quality with regards to appropriate budgets for the London rental market and are able to commit to fixed terms of two to three years, in line with their posting/contract length which is why landlords clamour to attract such tenants.
So, what are these tenants looking for?
They have certain expectations and will look for a well maintained property, in good condition, with modern and neutral décor. Families relocating from overseas will be interested in local & international schools, shops and amenities while preferring professionally managed properties.
Corporate let, Clifton Hill, St John's Wood, NW8 £1,880pw (2 bedroom penthouse apartment with roof terrace with automatic doors)
Fully managed properties are first choice as the expectations of professional tenants have increased. The reassurance of a dedicated property manager, a 24/7 service and knowing issues will be dealt with quickly and professionally have become essential to the corporate tenant with limited time.
So, how do you attract one of these corporate tenants? It isn't just about being near to a tube station, an international school or how your property looks, landlords need to ensure service is of the highest quality. We find that landlords investing in managed properties are able to attract desirable corporate tenants and more importantly, retain them for future tenancies.
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