Now is most definitely the best time for Landlords who are thinking of renting their properties to Japanese Corporate Tenants.
As our last article discussed, the general low stock and high demand in the rental market has led to rents rising and void periods decreasing.
This is now coupled with Japanese companies with offices in London bringing over more and more staff from Japan to work here.
Due to Covid, the number of Japanese expats coming to London was almost non-existent, as travel restrictions and uncertainty in the business world put relocations of staff on hold.
In recent months, we have seen a real boom in demand from Japanese Corporate Tenants now that restrictions have been lifted and The City is once again open for business.
Why Japanese Corporate Tenants?
In Japanese culture, reliability, integrity, certainty and cleanliness are core qualities, and as a landlord you’ll recognise them as precisely what you look for in a tenant.
Furthermore, a corporate let means that the tenancy is between the Landlord and the Company, rather than the individual. Rent is paid direct from the Accounting department of the Company, which offers increased rental security for property owners.
The Employee of the Company is what’s known as a “Permitted Occupier”, which means only they, and their family, are allowed to live in the property for the duration of the tenancy.
It is important to distinguish between this type of formal Corporate Let and sub-letting, where a company, sometimes a Letting Agent, will take the property in their own name and then sublet on short-term lets at premium rates to any number of tenants. This opens Landlords up to huge risk from a compliance perspective.
Company Lets are different to Personal Lets (Assured Shorthold Tenancy) and the “Tenant Fee Ban” does not apply, so often the Landlord can share the cost of things like the inventories, cleaning and tenancy setup fees.
What do Japanese Corporate Tenants look for in a property?
Our specialist department has an intrinsic knowledge of the key criteria sought by executive tenants relocating from Japan. Home life is of paramount importance, as is location and other factors often including:
- Location & convenience
- Secure parking
- Modern security systems
- Excellent public transport links
- Contemporary, high-tech living
- Reliable internet connectivity
- Luxury fixtures & fittings
- Concierge/porter services
Why Choose Excel for Japanese Corporate Lettings?
As the first British agent to open a dedicated Japanese Lettings agency desk some years ago, Excel Property Services has become well-regarded throughout London’s prime locations for our expertise in this niche area.
The past two decades have seen us build enduring relationships with a host of London based Japanese corporations that depend on us to source suitable properties meeting the discerning requirements of their executive employees. A selection of our long term corporate tenants includes:
- The Embassy of Japan
- Sumitomo Mitsui Banking Corporation
- Sumitomo Nikko Capital Market
- Mitsubishi UFJ Financial Group
- Mizuho International plc
- Bank of Tokyo-Mitsubishi UFJ
- Daiwa Capital Market
- Nomura Asset Management
Fundamentally, though, we prioritise the best interests of our client, the Landlord. You can rest assured that our experienced team, with hands on Directors, will look after your investment and ensure a smooth tenancy from start to finish.
Get in touch on 020 7691 9000 or email us at info@excel-property.co.uk to discuss how we can help you take advantage of these opportunities.