Should I choose a corporate let over an AST for summer tenants?

I would any insurance would insist on an AST

What do you mean by a corporate let?

From what you describe you are sailing very close to the wind on a sham.

It sounds like these tenants want the house for their own occupation - it's therefore an AST. QED!

Sounds strange.

If his company is not limited then it's not a company - he's a sole trader. Therefore you'd name him personally as tenant. In which case a corporate let is not at all approrpiate. If he trades as (for example) "John's Property", that's irrelevant as "John's Property" does not exist!

An AST effective minimum term is 6 mothns, but if the tenant wants shorter you can agree a break clause - but if they don't do you can't enforce it.

You need to tread very carefully with this one.

Most/all BTL insurance and lenders require ASTs.

I'd expect right to rent to only apply to natural persons, not UK Ltd Co's, but DYOR.

.gov and all their minions trap us in legislation "for our protection" supposedly. So even if you want to do something with common sense you may fall foul of that.

This forces all the financial industries surrounding BTL to conform to the legislation and thereby coerces us to do so also.

The whole system is becoming so regulated that you are in effect a tool of the state with little/no autonomy. You are free to be taxed, that's all. Enjoy.

Reply to the comment left by Graham Bowcock at 30/05/2024 - 12:04
For the record I was replying to a post that has since been removed.

As others say, if you have a mortgage, the mortgage company is highly unlikely to allow this form of let.
You need to protect yourself from this becoming an AST. You will want documentary evidence to keep of that the two have a main home elsewhere in the UK, and signed affidavits from them that it is fully their intention to retain that home and return to it full time after the 5 months.
And you need clauses in the agreement that should they cease to have a main home elsewhere, they must inform you, the agreement ends and they must vacate and you may enter and reclaim possession immediately. That should cover most of the bases.
Your insurance premiums might go up too.

No, just because its a "corporate let" doesn't mean you'll be getting "corporate tenants". Most Corporate lets are for Service Accommodation or if its for the summer, AirBnb. Beware the "corporate let" scam

I would be more worried over the solvency of the corporate entity you are letting to.

It doesn't sound like they are a big company with financial strength. I imagine the owners are trying to pass the rent off as an expense as their company (in reality themselves) relocates them to the city for 5 months.

I would consider to get a holiday let contract (just ask Google) and let it via that route

Either way see if they will pay upfront for the full 5 months

If you were to put your property on airbnb or booking.com do you need passport photos? You just book. Do you pay a deposit? No, but there is the option to charge for damages on checkout. If you're going for a private arranagement - be careful of the terms. Get it drawn up professionally.

Another option - perhaps create a listing on airbnb so that you're covered by them. Tell them to contact you via the listing. Give them a £10 offer, and they pay the reminder of the balance directly to you. Then you're covered by the airbnb scheme, and you've not given them a chunk of commission when you found the guest yourself. Just an idea. Keep it as a short term rental... just make sure your insurance allows it, and if you have a mortgage - that you're on the correct type... One that allows short lets and not a 6 month minimum AST. Good luck.