Friday, September 18, 2009

A company let of a room in a shared house?

Over on the Property Tribes forum, there is a question by a lady letting out a room. Her prospective tenant/lodger told her that as he is self employed, he is going to have the rent the room out through his company.

My view is that a company let of a room in a shared house or a room as a lodger, is wholly inappropriate, but having been put on the spot, I can't put my finger on just why! (Maybe its because it is late on Friday evening ...)

Do any other lawyers have any views on this?

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Francis Davey said...

Most of the advantages are with the landlord (surely?) since it won't be an AST (so no tenancy deposit worries) and notice is much simpler. Making sure you get the permitted occupier clause properly drafted is necessary of course.

But it may be a straw man and won't likely have any assets, so a personal guarantee of the rent might be appropriate, not that that will give much comfort where the tenant is self-employed and owns no property.

David said...

Whilst an AST has to have exclusive possession of any part of the dwelling, would the company not need exclusive possession of all essential living accommodation and so sharing the kitchen etc would preclude the use of a tenancy?