Have you tried the corporate letting market?

[nmb]

There is potentially big money to be made in the corporate letting market with many large employers in the UK moving their staff across various parts of the country as and when required. This has increased the requirement for short-term letting arrangements so that large corporations avoid taking on the undue expense of acquiring property or long term leasing arrangements and the associated costs.

Unlike the holiday let market, putting aside holiday periods such as Christmas, the corporate letting market should be more active throughout the year. Do you have any experience of the corporate letting market? What kind of yields are you able to demand on short-term lets?

 

[KGeeson]

I actually came across a deal advertising corporate let investments today and it said they had 100% occupancy. Quite a claim! How would you go about doing Due Diligence on a company rather than an individual though (as you would a 'normal' tenant)? On the surface it seems far more financially secure (if the company is a big player) but i wonder what the 'catch' / biggest risks are...

I'd be very interested to hear if anyone has invested in a corporate let?

 

[nmb]

I would be very cautious of an advert suggesting 100% occupancy – even if they could do this you have to ask yourself what kind of rental concessions they would need to offer? Checking the credentials and reliability of a company should be far easier than checking out an individual but you still need to get the money from them asap to help your own cash flow.

 

[Gareth Bain]

It is very difficult to claim 100% occupancy so I would take that with a pinch of salt. The average for the UK is 70% with London reaching around 80%. Obviously, this is based on a yearly average. Corporate lets can be very seasonal as well.

I would make sure that you do your due diligence before getting involved with a corporate let. They might achieve 100% occupancy by their rate could be really low.

 

[realdeals]

I read some good advice - base your financial forecasts on occupancy rates of 10 months out of every 12.

 

[Longterminvestor]

That sounds like two very good arrangements which will bring in significant income in the short, medium and longer term. What standard of properties do you make available to the interns and medical residents?