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Fully managed Service


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Hello all

I'm a new landlord and have just instructed a national agent to let the property. They are now saying the Tennant requires a fully managed service and the agent insists I pay them to do this rather than doing it myself.  Can anyone tell me if its a legal requirement that I pay the agent to do this? They are also telling me corporate let's are a minimum of 3 years, can I add an 18 month break clause? 

Many thanks 


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What it appears you are being told is half truths and half the information.

Fact:  An Assured Shorthold hold tenancy can be as short as you like. Though their are other implications on serving  a section 21 notice (2 month notice). This tenancy has to have an individual named as a tenant.

Fact: An Assured Tenancy which is normally used for corporate /company lets can also be  as short as you like. But you cant use a s21 to evict you have to use a s8  which means only if there is a breach in the tenancy obligations.

A corporate/company let is a potential can of worms if not done correctly. Such as:

1. Some companies demand their tenancy agreement is used which is likely to be loaded in their favour.

2. The named tenant is likely to be the company which means they will want to chop and change the residents which means more wear and tear.

3. If the company goes bust it becomes more problematic to get the tenant out as they are not named on the tenancy.  

4. If I do one I always try to get one of the company directors to sign up as a personal guarantor. If they wont that always rings alarm bells. 

5. You have to check the person signing on behalf of the company has authorization to sign.


However some company lets can work very well. I would check with your insurance and mortgage company that you are allowed company lets and if you go ahead take out a suitable landlord insurance product and you may be able to negotiate the tenant /company to pay for it but may sure its one you approve of.

The agent cannot insist you have a fully managed service but the company/corporate may make it a requirement. If you are not happy with this type of tenancy tell the agent you want an individual as a tenant.

As a new landlord it is not advisable to self manage unless you are very knowledgeable on landlord tenant law. There are so many documents and requirement that have to be done now it is a big risk for a novice. Have you watched "Nightmare Tenants" or "Cant Pay? We'll take it away" ? Most of those shown are self managed landlords.



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