My client has just bought the freehold of a large disused pub which has two flats above that had been rented out until recently but are now vacant. He is planning to refurbish the pub and let it to a commercial tenant. In terms of the flats above he has been approached by Dreamy Pads Ltd (‘the company’) which provides serviced accommodation to visiting professionals mostly under short-term arrangements (which could be for as little as a night or two) but sometimes for longer terms (of six months or more) under assured shorthold tenancy agreements (ASTs). It wants him to refurbish the flats to a high standard complete with all furniture and contents such as bedding and kitchen equipment. The company will then lease the flats from him and pay monthly rent (whether or not they are occupied). It will...