Corporate vs. private lets for relocations
Which is best for your business?
As an employer, you have two clear choices when it comes to securing rented accommodation for your assignees: a corporate or private let. While the type of let you choose depends entirely on the circumstances of a relocation – for both you and your employee – there’s an increasing trend for organisations to move away from the corporate route.
What is a corporate let?
If corporate lets were an item of clothing, they’d be flared jeans. Put simply, they’re not in vogue anymore and the reasons are simple. However, before we get into the whys and wherefores, let’s start by finding out exactly what they are. According to leading online letting agent, Upad, a corporate let occurs when:
“A company secures the property on behalf of their employee…because they’re relocating from abroad. Under this arrangement, the company – not the individual – is responsible for all the tenant’s obligations, including the payment of the rent and all the utility bills.”
Disadvantages of corporate lets
So, why have corporate lets become less popular with employers? The reasons can be divided into three clear categories: workload, risk and resources.
- The employer is responsible for managing the full lifecycle of the tenancy under a corporate let – from arranging the payment of utilities to the termination of bills and everything in between. This creates additional workload that can distract from the business’s core objectives.
- Security deposit schemes offer less protection for corporate lets compared to private lets. SMEs often can’t afford to risk non-reimbursement of security deposits; particularly if they have multiple assignees in post.
- Organisations continually strive to streamline the relocation process, not create more work for functions that have other priorities. Responsibility for managing the full lifecycle of a corporate let – deposit, bills, cleaning, repairs etc. – often falls to the HR department.
Advantages of corporate lets
Despite falling out of favour, there are certain circumstances where corporate lets can be beneficial:
- If the assignee is considered a VIP, it makes sense to manage every aspect of the relocation on their behalf.
- If an assignee is being relocated on a short-term basis, a corporate let can prove more efficient for the employer. For example, overseas roles that have a high rotation of staff that use the same accommodation each time.
- If an assignee isn’t employed by a UK entity, i.e. they aren’t paid a salary in the UK.
Simply London can help whatever your relocation requirement
Whether you insist on assignees signing their own tenancy agreement, or you buck the trend and decide a corporate let works for you, Simply London – London’s leading relocation agency – can help. Having already assisted with the home search process, we can help you and your assignees to arrange, negotiate and manage any type of tenancy agreements from start to finish. These specialist services – together with our school and settling in offerings – free up time for your business to focus on achieving its objectives and your assignees to concentrate on their new role.