Company Let Insurance for Employee Tenants

Ashburnham provide company let insurance for landlords who let to companies or company employees. Flexible, comprehensive, and cheap corporate landlord insurance can be hard to come by, but with Ashburnham you can choose the level of cover you require using our online policy form. Just make sure that you select that the lease agreement is between you or your Agent and “Any Other Party”, going on to specify the company’s details.

What does company let insurance cover?

As with letting to anyone, the most popular type of landlord insurance for company employee tenants is buildings cover. Landlords buildings insurance protects your most important asset: your property. But there are a number of optional extras which you can add to extend your cover.

Buildings

Covers the financial cost of repairing a property’s structural damage. We cover both accidental and malicious damage as standard, in addition to environmental damage (e.g. flooding, storms, etc).

More about landlord buildings insurance

Contents

Recommended for furnished let properties, this will protect the landlord from the costs of repairing and replacing furnishing that have been stolen or accidentally damaged by company employees.

More about landlord contents insurance

Malicious Damage

Covers the intentional damage caused by the company employee or any other malicious persons to the landlord’s property.

More about malicious damage by tenant cover

Rent Guarantee

Covers loss of rent by guaranteeing monthly rent payments for a maximum of 6 months in the event that a company finds themselves in arrears due to financial difficulty or otherwise.

More about loss of rent insurance

Public Liability

Indemnifies the property owner against liability if a tenant, guest or member of the public is injured on the premises, including cover from the financial costs of any claims made due to negligence.

More about landlord public liability insurance

Legal Expenses

Indemnifies the expenses in pursuit or defense of any disputes connected to a landlord’s property that require legal protection.

More about legal expenses insurance

What do you need to know about letting to companies?

When you let to a limited company, the tenancy will not be an assured shorthold (AST) as these can only be made between a landlord and a “living person” – whereas a company is considered an “artificial person”. For this reason, the deposit you collect from the company does not need to be held in a tenancy deposit scheme. It also means, however, that eviction is a very different process, as you will not be able to use a Section 8 or a Section 21 Notice, but rather a Notice To Quit. There are many differences between a usual let and a company let (where the Housing Act 1988 does not apply), and we recommend familiarising yourself with the common law rules before renting property to companies.

Corporate tenants are assumed to be more responsible when caring for property as they have a higher degree of accountability to their employer. When company employees have been relocated for work, especially on a short-term basis anywhere from a few days to a few months, they tend to expect the property to be fully managed.

Traditionally, corporate tenancies would be in the company’s name, and they would guarantee the rent and responsibility over the property. In recent years, more and more of the responsibilities are entrusted to the employee tenant.

There are still many reasons why a company would want to rent property for their employees in the company’s name. This can be to do with tax, or may be due to a high turnover of employees who will be staying in the property on short-term bases, where it makes more sense to just rent via a company let than deal with individual tenancies. Company lets also tend to be more cost-effective than booking hotel rooms for individual tenants, if you have employees who frequently travel between different headquarters.

Many company employee tenants are classed as “service occupiers”, where the accommodation is essential to their job role, such as a live-in carer or housekeeper, or employee of a pub or hotel.

Whatever the situation, the company is providing accommodation to their employees and the rent may be deducted from the employee’s wages or is considered part of the work requirements and therefore is of no additional expense to the employee. The tenant may even receive an accommodation allowance to pay the rent directly, and accommodation is simply another company expense.

Similar to conducting a reference check on a prospective tenant, it is often best to purchase a full report on the company in question so that you can check their accounts and financial history. This may be in addition to getting reference checks and credit checks on the company let’s guarantors or company directors.

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