What Is a Company Let Agreement?
Last updated: June 2026
A company let agreement is a tenancy signed by a company as the tenant — not by an individual. The company then provides the property to employees, directors, contractors or guests as accommodation.
This arrangement is used across a range of contexts: employers housing relocating staff, corporate relocation companies placing executives, and serviced accommodation operators running properties under a rent-to-rent model.
The legal framework is meaningfully different from a standard residential tenancy. Understanding that difference is important for any landlord considering signing one — or being asked to sign one.
This guide covers what a company let agreement actually is, how it differs from an AST, what the key contract terms look like, and how company lets connect to serviced accommodation and guaranteed rent arrangements.
Quick answer
A company let agreement is a tenancy signed by a company as the tenant, rather than an individual. The company then provides the property to employees, directors, or guests as accommodation. The arrangement sits outside the standard Assured Shorthold Tenancy framework, which means different legal protections apply. The sections below cover the key terms, typical contract structure and how company lets relate to serviced accommodation and guaranteed rent arrangements.
What a company let actually means — and how it differs from renting to an individual
In a standard residential tenancy, the person who signs the tenancy agreement is also the person who lives in the property. Their name is on the agreement, and the law — specifically the Housing Act 1988 — gives them certain protections as a residential occupant: a minimum term, a prescribed notice process for eviction, and rights relating to the condition of the property.
In a company let, the company is the legal tenant. The agreement is between the landlord and the company. The individuals who actually occupy the property — the employees or guests the company places there — are not named parties to the tenancy. They occupy as licensees of the company, not as tenants of the landlord.
This distinction has significant legal consequences.
Key distinction
A company cannot hold an Assured Shorthold Tenancy. The Housing Act 1988 defines an AST as a tenancy where the tenant is an individual. A company signing as tenant creates a common law tenancy — a contractual arrangement governed by the terms of the agreement rather than by statutory protections.
This does not mean company lets are less formal or less legally binding. It means they are governed by contract law rather than by the residential tenancy statute. The terms of the agreement matter more, because statutory protections fill fewer of the gaps.
How a company let agreement differs from an Assured Shorthold Tenancy
| Feature | Company Let | AST (Assured Shorthold Tenancy) |
|---|---|---|
| Named tenant | A company (Ltd, LLP, PLC or equivalent) | An individual — a natural person |
| Governed by Housing Act 1988? | No — common law tenancy | Yes — statutory framework |
| Security of tenure | None unless contractually agreed | Protected under section 21 / section 8 regime |
| Eviction process | Standard contract breach or notice under the agreement | Requires s.21 or s.8 notice; court process if contested |
| Who occupies the property? | Employees, directors, contractors or guests of the company | The named individual tenant(s) |
| Occupant rights against landlord | None directly — occupants have rights against the company, not the landlord | Named tenant has direct statutory rights against the landlord |
| Minimum term required? | No statutory minimum — set by contract | No statutory minimum, but notice periods apply |
The practical implication for landlords is that ending a company let — if the company defaults or the agreement expires — does not require navigating the section 21 notice process. The agreement itself, and general contract and property law, govern what happens.
Tax treatment may also differ. Always confirm the specific tax implications of a company let with a qualified accountant, as the position depends on individual circumstances and the type of use the company makes of the property.
What a company let agreement typically covers — the terms that matter
Because company lets are governed by contract rather than statute, the terms of the agreement carry more weight than in a standard residential tenancy. A well-drafted company let agreement covers the following:
- Parties and property — the full legal name and registered number of the company, the landlord's details, and a precise description of the property
- Permitted use — typically restricted to residential occupation by the company's employees, directors, contractors or guests. This clause defines who can lawfully occupy and prevents unauthorised use
- Occupant provisions — either a named list of permitted occupants, or a 'fluctuating occupants' clause allowing the company to change who occupies without notifying the landlord each time
- Rent and payment terms — amount, payment frequency, due date, and any escalation provisions for longer-term agreements
- Term and break clauses — the agreed length of the tenancy, any break options, and the notice period required to exercise them
- Restrictions on subletting and assignment — most company let agreements prohibit the company from subletting to a third party or assigning the agreement without the landlord's consent
- Maintenance and repair obligations — which party is responsible for which categories of maintenance
- Deposit or guarantee — the amount of any security deposit, and whether a personal guarantee from a company director is required as additional security
- Landlord access — the notice required for the landlord to inspect or carry out works
- Termination provisions — the circumstances in which either party can end the agreement early, and what notice is required
On templates
Standard company let agreement templates exist through organisations such as the National Residential Landlords Association (NRLA). Any template should be reviewed by a solicitor familiar with residential property and commercial tenancies before signing, particularly for longer-term agreements or where the company's financial standing is not straightforward to verify.
Why landlords choose company lets — and what to check before signing
The primary advantage of a company let for a landlord is the simpler legal framework for ending the arrangement if the relationship breaks down. Without the statutory security of tenure that AST tenants hold, a company tenant who breaches the agreement or whose term has expired does not have the same procedural protections that individual tenants have.
Company lets are also commonly associated with longer fixed terms. An employer housing staff or a serviced accommodation operator typically wants a predictable arrangement over 12 to 36 months — which gives the landlord a stable income stream without the void risk of a shorter arrangement.
Before signing
Always check the company's financial standing before committing to a company let. A search on Companies House will confirm whether the company is active, how long it has been trading and whether accounts have been filed. If the company is newly incorporated or has thin financials, a personal guarantee from a director as additional security is advisable. A company that cannot pay rent cannot be pursued in the same way as an individual, and dissolution or insolvency can make recovery very difficult.
The risk profile of a company let depends significantly on who the company is. A well-established employer housing senior staff represents a very different risk from a newly incorporated SA operator running a rent-to-rent model. Both use the same legal mechanism — but the due diligence required is different.
Company lets, serviced accommodation and guaranteed rent — how they connect
The company let structure is the legal mechanism behind most serviced accommodation rent-to-rent operations and many guaranteed rent arrangements.
In a rent-to-rent setup, a company signs a company let agreement with the landlord. The company then manages the property as serviced accommodation — listing it on Airbnb, Booking.com and other platforms, sourcing guests, handling cleaning and maintenance, and keeping the income from guests. The landlord receives a fixed rent from the company regardless of what the property earns from guests.
In Stayful's guaranteed rent model, Stayful signs as the company tenant. Stayful then manages the property as short-let serviced accommodation and pays the landlord a fixed monthly guaranteed income. The landlord's position is simple: a company let agreement with a single counterparty, predictable income, and no operational involvement.
The city-specific pages linked below cover the income figures for specific areas. The general principle holds across markets: the company let structure allows the SA operator to run the property commercially while giving the landlord the simplicity of a single contractual relationship with a single corporate tenant.
What landlords ask about company let agreements
A company let is the legal mechanism most commonly used by rent-to-rent operators — but not all company lets are rent-to-rent arrangements. In a rent-to-rent setup, the company signs a company let agreement with the landlord and then sublets the property commercially, typically as short-term or serviced accommodation. The landlord receives a fixed rent from the company; the company earns income from guests or occupants.
In other company let arrangements — for example, an employer providing accommodation to staff — there is no subletting. The company is simply housing its own people. Both use the same legal structure, but the underlying purpose and risk profile are different.
No. The Housing Act 1988 protections — including security of tenure and the prescribed s.21 and s.8 notice routes — only apply to tenants who are natural persons (individuals). A company cannot hold an Assured Shorthold Tenancy and does not acquire those statutory protections.
This makes company lets structurally different to end if the relationship breaks down: the landlord is not required to follow the AST notice process and instead relies on the terms of the company let agreement and general contract law. This is one of the reasons landlords sometimes prefer company let arrangements — but it also means the contract terms themselves matter much more.
Technically, a company can be named as a tenant on a document described as an AST — but an AST as defined by the Housing Act 1988 can only be held by an individual. If a company signs what is headed an AST, the tenancy would likely be treated by a court as a common law tenancy rather than a statutory one. The standard section 21 and section 8 notice procedures would not apply in the usual way.
A properly drafted company let agreement avoids this ambiguity by describing the arrangement accurately from the outset. This protects both parties: the landlord knows they are not dealing with a statutory AST, and the company knows the terms it is signing to.
If the company fails to pay rent, the landlord can pursue the company for arrears under the terms of the company let agreement. The landlord may also be able to end the agreement for breach and seek possession of the property — the process set out in the agreement itself governs this, not the AST notice regime.
If the company dissolves or enters insolvency, recovery of arrears can be very difficult. This is why due diligence on the company's financial position before signing is important, and why some landlords also seek a personal guarantee from one or more company directors. Where a company let forms part of a guaranteed rent arrangement, the guaranteed rent provider's financial backing is the key protection to understand.
A company let agreement is a legally binding commercial arrangement and it is advisable to have it reviewed by a solicitor before signing, particularly for longer-term agreements, where the permitted use includes subletting or serviced accommodation, or where the company's financial standing is unclear.
Standard template agreements exist through organisations such as the National Residential Landlords Association (NRLA). A template is a useful starting point, but any template should be reviewed in light of the specific property, the specific company, and the specific purpose of the arrangement. A solicitor familiar with both residential property and commercial tenancies is the right adviser for a company let.
This depends on the occupant provisions in the agreement. Some company let agreements list named permitted occupants — in which case, the landlord would need to be notified and may need to consent to changes. Others include a 'fluctuating occupants' clause that gives the company flexibility to rotate which employees or guests occupy the property without notifying the landlord each time.
The fluctuating occupants provision is common in serviced accommodation and corporate relocation arrangements, where occupancy changes frequently. It is worth clarifying this point explicitly in the agreement before signing, so that neither party has an unexpected obligation or right when occupancy changes.
Stayful's guaranteed rent service uses a company let arrangement in which Stayful signs as the company tenant. Stayful then manages the property commercially as short-term serviced accommodation — handling listing, guest management, pricing, cleaning and maintenance. The landlord receives a fixed monthly payment regardless of how the property performs from a booking perspective.
The agreement between the landlord and Stayful documents the guaranteed rent arrangement: the fixed monthly amount, the term, any break options, the permitted use, and Stayful's obligations as the company tenant. For landlords who want predictable income without operational involvement, the company let structure is the mechanism that makes this possible.
Stayful — Airbnb management, serviced accommodation and guaranteed rent across the UK
Stayful manages short-let properties and offers guaranteed rent arrangements via company let agreements. 15% + VAT management fee, £0 setup. Google rating 4.8★. Properties live within 7–14 days.
Find out what your property could earn
If you are considering a short-let or guaranteed rent arrangement — run the numbers on your postcode first