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Company Let Tenancy Agreement UK: Guide for 2026

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Part ofUK Property Law Guide

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
When a business, rather than a private individual, takes on the lease of a residential property, the arrangement sits outside the usual assured shorthold framework that most landlords and tenants are familiar with. This is where a company let tenancy agreement comes in. It is a contract between a landlord and a corporate entity, and the rules that apply are quite different from those covering an ordinary residential let. If you are a landlord considering renting to a business, or a company thinking about taking on a property for staff accommodation or operational use, it pays to understand how these agreements work, what protections are in place, and where the risks sit. This guide walks through the essentials so you can approach the arrangement with your eyes open.

What this document is

A company let tenancy agreement is a lease granted to a limited company or other corporate body rather than to a named individual. Because the tenant is not a person living in the property as their only or principal home, the arrangement falls outside the Housing Act 1988 protections that cover assured shorthold tenancies.

That has real consequences for both sides. The company, as tenant, does not enjoy the statutory security of tenure that an AST would provide, and the landlord is not locked into the same prescribed procedures for things like deposit protection and section 21 notices.

Instead, the relationship is governed almost entirely by what the parties agree in writing, which is why getting the drafting right matters. Typical uses include providing accommodation for employees or visiting executives, housing contractors on long projects, securing a residence for a director, or holding property as part of a corporate portfolio. In each case, the contract needs to reflect who will actually occupy the property and on what terms.

How to use this document

  1. Confirm the let genuinely qualifies as a company let. The tenant must be a properly constituted company or corporate body, not an individual using a company name as a label. Courts will look at the substance of the arrangement, so a 'company let' that is really an individual tenancy in disguise can be reclassified, which changes the legal position entirely.
  2. Carry out checks on the corporate tenant. Run the company through Companies House to confirm it is active, check its registered office and accounts, and consider asking for a personal guarantee from a director if the company is newly formed or thinly capitalised. You should also satisfy yourself about who will actually be living in the property as the occupier.
  3. Draft the agreement to reflect the corporate nature of the let. The contract should clearly identify the company as tenant, name permitted occupiers, set out the rent, term, break rights, repair obligations, and rules on subletting and assignment. It should avoid any language that would pull the arrangement back under the AST regime.
  4. Handle the deposit and inventory sensibly. Deposit protection rules under the Housing Act do not apply to company lets, so a deposit can be held directly by the landlord. Even so, a detailed inventory and schedule of condition, ideally prepared by an independent inventory clerk, protects both parties when it comes to end-of-tenancy deductions.
  5. Plan for the end of the tenancy from day one. Because statutory notice procedures for ASTs do not apply, termination is governed by the contract itself. Make sure the agreement sets out clear rules on how the tenancy ends, what notice is required, how the property is to be returned, and what happens if the occupier refuses to leave when the company's right to possession ends.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q Is a company let the same as an assured shorthold tenancy?
No. An AST can only exist where the tenant is an individual occupying the property as their only or principal home. Because a company cannot live anywhere, a let to a corporate tenant automatically sits outside the AST regime. That means the usual protections around deposit protection, prescribed information, and section 21 notices do not apply, and the contract itself does most of the heavy lifting.
Q Does the tenancy deposit need to be protected in a government scheme?
The statutory deposit protection rules apply to assured shorthold tenancies, not to company lets. A landlord can therefore hold the deposit directly without using an approved scheme. That said, many landlords still use a scheme voluntarily or hold the deposit in a separate account, because it reduces disputes at the end of the tenancy and gives a clear audit trail.
Q Can a landlord evict a company tenant more easily than an individual?
In many cases, yes, because the statutory grounds and notice procedures under the Housing Act do not apply. Eviction follows the terms of the contract and the general law of landlord and tenant. If the occupier refuses to leave when the company's right to possession ends, the landlord will usually still need a court order, so it is not an instant process.
Q Who is responsible if the employee living in the property causes damage?
The company is the tenant, so the company is legally responsible for the condition of the property and for any breach of the agreement, regardless of which employee caused the damage. This is one of the reasons a thorough inventory and clear repair obligations matter. The company may then take the issue up internally with the employee under its own policies.
Q Do gas safety and electrical safety rules still apply?
Yes. Safety obligations on landlords, including gas safety checks, electrical installation condition reports, smoke and carbon monoxide alarms, and fire safety in furnishings, generally apply wherever residential accommodation is provided. These duties do not disappear just because the tenant is a company. Landlords should make sure certificates are in date and that the occupier has copies.
Q Can a company let be used for short-term or serviced accommodation?
It can, but the arrangement needs careful thought. If the property is used in a way that looks more like a hotel or serviced apartment business, there may be planning, licensing, mortgage, and insurance issues to consider. The head lease on the building, if it is a flat, may also restrict this kind of use. Always check the underlying documents before agreeing to such a purpose.
Q Should the landlord ask for a guarantor from the company?
If the company is small, newly incorporated, or has limited trading history, a personal guarantee from a director is a sensible protection. It means the landlord can pursue the individual if the company fails to pay rent or meet its obligations. Larger or well-established corporate tenants may resist this, so it often comes down to negotiation and the overall strength of the covenant.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.