Landlord Law

3.9 Company lets

3. Lettings
3.9 Company lets
Where residential properties are let to a company rather than an individual, the company is responsible for all of the tenant’s obligations under the terms of the tenancy agreement in the same way an individual tenant would be. Company tenants are not treated as consumers under the relevant legislation. Agreements will not be an assured shorthold tenancy.

should request sufficient details to legally identify the company, such as the company registration number and who may legally contract on behalf of the company.

You should be informed of the identity of the licensee of the tenant company. The tenancy agreement should allow the property to be occupied by the permitted occupier together with their family.

The tenancy agreement should include a clause making clear that money paid by the licensee towards the rent will be paid as an agent on behalf of the company and will not give the licensee rights as a company tenant.

Note that this type of agreement is NOT the same as an agreement allowing the company to sublet the property as a business.

You will need a special agreement, as the tenancy will not be an AST but an unregulated ‘common law’ tenancy.  As the tenant cannot be a ‘consumer’ (as a company is by its very nature a business) the consumer legislation, including the Unfair Terms in Consumer Contracts Regulations will not apply.

it is a good idea to take a guarantee from the directors as it is not unknown for companies to go insolvent leaving their tenants in situ.  Note also that sometimes company lets are taken to provide accommodation for someone who would not pass normal referencing.