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Photo for illustration. Photo from Pexels.
A company let agreement is a lease where the tenant is a company, not an individual. Because only individuals can hold assured tenancies, a company let is governed mainly by its own terms, not the Renters’ Rights Act rules for tenancies. That makes the wording important, especially on rent, repairs, use and handback.
This is a general guide, not legal adviceCompany lets turn on their wording. Ask a solicitor to review any agreement before you sign.
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How is a company let different from a tenancy?
A company let differs from a tenancy because the tenant is a business. Assured tenancies can only be held by individuals, so most of the statutory tenancy rules do not apply in the same way.
| Company let | Assured tenancy (individual) | |
|---|---|---|
| Tenant | A company | One or more individuals |
| Main rules | The lease terms | Housing Act 1988 and the Renters’ Rights Act |
| Ending it | As set out in the lease | Legal grounds and notice periods |
| Rent changes | As agreed in the lease | Once a year, on the statutory form |
General comparison for England.
What clauses should a company let agreement include?
A good company let agreement sets out the rent, term, use, responsibilities and how the property is returned.
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Agree the handback condition at the start. Photo from Pexels.
What are the common pitfalls with company lets?
The common pitfalls are vague responsibilities, no clear handback standard and a company with weak finances.
Unclear repairs
Agree who fixes what, and up to what cost, before anything breaks.
No handback standard
Without an inventory and condition schedule, disputes are hard to settle.
Weak company
Check accounts on Companies House and references, and consider a guarantee if the company is new.
Read about inventories for serviced accommodation and handback at the end of a company let.
How does Esho Stays use company lets?
Esho Stays takes homes on company lets and runs them as serviced accommodation. The lease sets out exactly who does what.
- Esho Stays becomes your tenant under a company lease
- Rent is paid in full every month, even if the property is empty
- We list the home across major booking platforms and our direct network of more than 30 companies
- We handle bookings, guest screening, communication, cleaning and maintenance
- Regular inspections, with cleaning between every stay
- A landlord dashboard showing upcoming bookings and performance
Frequently asked questions
Does the Renters’ Rights Act apply to company lets?
The Renters’ Rights Act changes mainly affect assured tenancies, which can only be held by individuals. A company let is generally outside those rules and is governed by its terms. Take legal advice, as some general landlord duties, such as safety, still apply.
Can a company let be used for serviced accommodation?
Yes, if the lease permits it and the landlord has the right consents. The agreement should state the permitted use clearly, such as serviced accommodation for short and medium stays, and set out house rules, insurance and maintenance responsibilities.
Is a company let safer than letting to individuals?
It can be, because the tenant is a business with a commercial interest in keeping the property and paying on time. The risk shifts to the strength of the company, so check its accounts, references and track record before you agree.
Who signs a company let agreement?
An authorised director or officer of the company signs on its behalf. Check the company number on Companies House and confirm the signatory’s authority. Some landlords ask for a personal or parent company guarantee for newer businesses.
Next step
Want a clear company lease?
Tell us about your property, and we will walk you through our company lease terms.
