Company lets: the tenancy that is not an assured tenancy
Let a property to a limited company for its staff to occupy and you have stepped outside the Renters' Rights Act entirely: assured tenancies can only be held by individuals occupying as their only or principal home. A company let is a common law tenancy, governed by the contract.
What that means in practice
- Fixed terms are available: the Act's abolition of fixed terms does not reach company lets, so a 12-month term with a break clause is lawful and normal.
- No deposit protection duty: statutory protection applies to assured tenancies; company deposits are held on the contract's terms. Many landlords still protect voluntarily or hold formal contractual arrangements.
- Possession follows the contract: notice provisions as drafted, with forfeiture clauses doing the heavy lifting, and court proceedings if occupation continues.
- Rent increases as agreed: Section 13 does not apply; the contract's review mechanism governs.
The risks to manage
Diligence the company as you would a tenant: accounts, credit, and a director's personal guarantee for young companies. Control who occupies: the agreement should name permitted occupiers and ban subletting, because an occupier paying rent directly can start to look like your tenant. And be certain the let is genuinely to the company for its business purposes: sham company lets constructed to dodge the Act will not survive scrutiny.
For ordinary lets to individuals, the periodic regime applies in full: start with what an assured periodic tenancy is.
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Start my agreement →Frequently asked questions
Does the Renters' Rights Act apply to company lets?
No. A tenancy held by a company cannot be an assured tenancy, so the Act's periodic regime, Section 13 and Section 8 do not apply. The contract governs.
Do company let deposits need protecting?
There is no statutory duty because protection attaches to assured tenancies. Handle the deposit through clear contractual terms, and protect voluntarily if you prefer the discipline.