Pros and cons of renting out to companies
Do you have a house or part of a house that is not in use? Then you can do like many others and rent it out. In this article, we'll walk you through the pros and cons of renting out your house to businesses, we'll also go through a few things that you should consider before renting out.
There are many advantages to renting out your house to a company and in practical terms there is no difference between renting out to companies or to private individuals. Firstly, you can usually charge more in rent when you rent to a company, but there are, just like when you rent to private individuals, rules regarding reasonable rent to relate to. Another advantage is that companies in many cases rent housing to employees who commute or use the home to a lesser extent for other reasons, which means less wear and tear on the home.
Many also find it safer to have a company as a tenant than a private person, provided that the company is well known, has a good reputation and has good finances. Companies are also willing to sign longer rental contracts than private individuals in general.
The disadvantages of renting out to companies may be that, in a possible dispute, they become a strong opponent, it can also be difficult to know exactly which individual or individuals will actually live in the house if you forget to formulate this in an agreement. The other side of the coin where companies are willing to pay more to rent a house is that they often place higher demands on you as a landlord, it is therefore important that you make sure to have all the relevant information on hand and that your house is well maintained when you put it out for rent.
In conclusion, there are both pros and cons to renting out your house to a business; the big difference lies in the details, "devil is in the details"- how to handle your rental process – from the choice of tenants to credit check, properly written contracts, documentation of the home and fixtures, possible side agreements for the care of houses and gardens, etc.
Advantages:
- Higher revenues.
- More stable tenant.
- Less wear and tear on the home.
- Longer contracts.
- Easier to check references
Disadvantages:
- Stronger opponents in disputes.
- It's hard to control which people are actually in the house.
- Companies place higher demands on you as a landlord.
- A company may end up insolvent and cancel payments.
We who work at Soxbo can with our many years of expertise and experience help you who rent out to turn the disadvantages into advantages and reduce the risk in all points.
Do you have a house you want to rent out? We will help you with the whole process, contact us on 0709 688 188/0766 40 41 61 or post an ad HERE.