What is a Company Let?

A company let is a rental agreement between a landlord and a business. Rather than letting it to a private individual who will live in the property like a standard tenancy, the legal tenant in a company let is the business itself. Usually, the company will allow named employees, directors, or other approved contractors to live on the property.

Businesses may need to offer some remote work to employees or host some overseas clients for a short period of time. In certain situations, some landlords may find this arrangement quite beneficial for them. But it’s not just a case of copying across a standard residential tenancy agreement and adding the name of the business at the top.

This guide will explain what a company let is, when it might make sense for certain landlords, and highlight the potential risks that come with it. This article will also include tips on what to include in a company let agreement.

What is a Company Let in Simple Terms?

The business becomes the legal tenant in the rental agreement. Therefore, the company itself is responsible for paying the rent. The company must also follow the terms set out in the tenancy agreement and maintain the condition of the property.

Unlike a normal residential tenancy, the people living in the property themselves are not the legal tenants. Instead, the people on the property are known as occupiers. As an example, a business may want a six-month company let to allow two workers to live near a particular site.

The company pays the rent. If the business doesn’t pay the rent or part of the property is damaged, then the landlord’s claim and dispute will be against the business rather than the two workers who are staying there. Knowing what a company let is gives landlords a starting point. It’s one of the many different types of tenancy. But it’s important to know how it differs from a standard tenancy.

Is a Company Let the same as a standard tenancy?

A company let is completely different from a standard tenancy. In England, a standard private tenancy is usually for a person who lives in the property as their main home. Since the Renters’ Rights Act was introduced in May 2026, existing assured shorthold tenancies changed to assured periodic tenancies. Any new private tenancies are assured periodic tenancies, running on a rolling basis rather than having a fixed end date.

Company lets do not sit within that structure because the legal tenant is a business, rather than an individual. This prevents landlords from using a standard assured tenancy template for a company let.

Company Let vs Standard Tenancy

When a Company Let Makes Sense for Landlords

A company let can work well for landlords in certain circumstances. It’s best for the landlord to research the company. If the landlord is confident the business is stable, then it is probably worth exploring it further.

Organisation

Generally, a company let is more organised and financially reliable than an individual tenant. Businesses often want long-term tenancies so the landlord will get a more reliable rental income. It also makes managing the property a little bit easier. Changes can still happen, but usually company let landlords don’t need to go through the process of finding new tenants as often. It’s more common for businesses to pay rent on time, reducing the risk of rent arrears.

Professionalism

When working with a business, the relationship is more likely to be professional. This makes managing the agreement easier because you’re likely to have a more structured approach. It could be that company directors are a little bit more experienced when it comes to working with legal elements.

Maintenance

Whether an individual tenant in a standard tenancy properly maintains and looks after the property is always a bit hit-and-miss. While there are still no guarantees in a company let, businesses tend to maintain properties to a higher standard to make sure everything remains professional.

What Risks Do Company Lets Carry?

Landlords who intend to go down the company let route should be aware that there are several risks.

Lack of Control and High Occupancy Turnover

You may not have complete control over who occupies the property. The business will decide who stays there, and this can change regularly. Some landlords will prefer to carry out proper screening processes and get a tenant reference before letting them live in the property, but this is more challenging under a company let.

Limited Assets

If a limited company becomes insolvent, there may be consequences for the landlord. This is especially the case if the business has no meaningful assets because it will make recovering unpaid rent or damage costs challenging. To try and avoid this as much as possible, landlords should check the company before making any agreement. Companies House can provide information about the business for free.

Property Misuse

Similar to the lack of control, landlords may not be entirely sure what the property is being used for. If the employees are working at a remote location, they may use the space for various business-related activities. This may result in different types of wear and tear. 

What Should Go Into a Company Let Agreement?

It’s important to make the company let agreement clear and detailed. If it is vague, it can leave grey areas and confusion, which can result in headaches later down the line. It needs to be written for the specific agreement. The following details need to be included:

• Full Company Details: The agreement needs to include the name of the business and all relevant details, such as company number and trading address. Landlords should check if these match the data on Companies House.
• Approved Occupiers: The agreement should state who is going to live there and the maximum number of people allowed to live there. You should also explain the process for changing approved occupiers.
• How the Property will be Used: The agreement should make it clear that the property is for residential use by approved occupiers only. You may also want to include an exclusions list, such as subletting.
• Rent Terms: The agreement needs to clearly state how much rent is due and when payments are due. You should also include information about what happens if rent is not paid.
• Deposit: You should state what the deposit covers and how deductions will be assessed. This should tie in with the inventory and check-out process.
• Repairs: The agreement needs to highlight the landlord’s responsibilities for repairs and the company’s responsibilities for damage caused by the occupiers.
• Inspections: Regular inspections are important, and the agreement needs to indicate how they will be organised and arranged with the company.
• End of Agreement Process: It should detail what needs to be done at the end of the agreement.

Now that it’s clear what a company let is, it’s worth considering whether it’s a good option for you as a landlord. When there is a genuine business need and a reliable company, then it may be worth exploring further. Landlords will need to carry out checks and write a well-drafted tenancy agreement. 

If you’re looking for landlord insurance to help protect your property, then get in touch with our team for a quote today on 01788 818 670, or you can visit our advice centre for more information.