Hi there,
I’m looking for advice if anyone can help with regards to the best way to advertise a property as serviced accommodation via open rent and specifically with regards to the rental agreement contract via this platform so I’m able to offer short term accommodation of 1 month at a time. I’ve seen a few companies on open rent doing this method but have had no response from them or open rent on the contract specifics and how to go about this correctly. If anyone can help it would be greatly appreciated. Also with serviced accommodation I gather that there would be no rental amount disputes unlike an AST?
Thank you.
Hi Katherine,
That is a very good question.
I think it could depend, to an extent, on who your occupants were.
Companies can like all inclusive accommodation with a cleaner and then you would probably use a company let tenancy agreement.
People on holidays often want serviced accommodation and then you would use a holiday let agreement.
If your occupants had their main residence elsewhere and were not in your property for the whole week, for example, then you could use a contractual tenancy agreement.
If your occupants were using your property as their only or main residence, then the only option would be a licence agreement, and these are frequently used for lodgers. You might have to prove that they did not have exclusive possession of their accommodation e.g. a cleaner could walk in at any time as in a hotel.
I do agree Katherine that there isn’t much information anywhere about the nature of the agreement or the right contract to use for serviced accommodation.
All the best, Lilian
Hi Katherine,
One other point.
There is a book on Amazon called “Serviced Accommodation - The Contract Templates, Letter Templates, Guide and Starter Pack You Need”
That contains a possible contract between host and guest which could be used in all instances, I suppose.
Best wishes, Lilian
Thank you Lilian,
This is very helpful. Much appreciated
Hi Lilian
If I let my house for a short term contract of 6 months as company let and that company uses it as service accommodation. Do I need to take planning permission for this? Is there anything needed from landlord side? I would really appreciate if someone can answer it.
Kind regards,
Hemlata
Hi Katherine,
One other point.
There is a book on Amazon called “Serviced Accommodation - The Contract Templates, Letter Templates, Guide and Starter Pack You Need”
That contains a possible contract between host and guest which could be used in all instances, I suppose.
Best wishes, Lilian
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Most experienced landlords will tell you to avoid such arrangements, which usually require you to employ a specialist solicitor to protect your interests.
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Hi Hemlata,
If you are in London, there is something called the 90 day rule which means that you can’t let for short lets of less than 90 days for more than 90 days a year. If the total number of short/holiday lets were more than 90 days in a calendar year then you would need to apply for full planning permission.
When there is a company let then the company generally pays the rent of relocated staff who become licensees. Company lets previously were a possibility, but now it is uncommon to find a company who enters into that type of arrangement. The employees are more likely to look for a flat themselves in their own name, and consequently, those employees would have security of tenure when Section 21 is abolished.
Rent to Rent arrangements are different. In those arrangements, the tenant is paying the rent to to a management company. The occupants would have security of tenure unless:
a. there is a cleaner who can enter the bedrooms etc without notice or
b. they were on holiday and had holiday tenancy agreements
c. they have another address in the UK which is their main address and they are only using your accommodation for part of the week
The issue of short lets doesn’t seem to have been addressed yet by the new Labour government and there may be new rules including new planning permission rules.
In Scotland there have been quite strict rules for serviced accommodation including changing the beds twice a week.
As David says, it can be risky to use a Rent to Rent management company as it may not be clear who they are putting in your house or exactly what the cleaning arrangement is.
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