Risk check · England
Company lets and corporate tenants: how they work now
A company let is a tenancy where the tenant is a company — often an employer housing staff, a relocation firm or an operator. Because the tenant isn't an individual, it isn't an assured tenancy, so the Renters' Rights Act tenancy rules (periodic tenancies, section 8 grounds, section 13 rent increases) don't apply to it. The contract does most of the work.
That flexibility comes with risks: the people actually living there still have legal protection, a 'company let' that is really an individual's tenancy can be treated as an assured tenancy, and your mortgage or insurance may not allow it.
The eight questions — law and contracts are different
Something can be legal and still be forbidden by your mortgage, lease or insurance. Check each one separately.
1. Is it legally permitted?
Yes. A tenancy can only be assured if the tenant is an individual occupying as their only or main home (Housing Act 1988, s1), so a genuine company let is a contractual (common law) tenancy governed by its terms. It is ended under the agreement or by a notice to quit, not by section 8 grounds.
2. Does the mortgage lender permit it?
Many buy-to-let mortgages restrict or forbid company lets, or need consent. Check the lender's conditions.
3. Does the superior lease permit it?
If you're a leaseholder, check whether the lease allows letting to a company and the type of occupation planned.
4. Does the insurance cover it?
Tell the insurer the tenant is a company and who will occupy. Some policies (including rent guarantee) treat company tenants differently.
5. Is planning permission or licensing needed?
Safety rules still apply — gas safety, electrical checks, EPC, smoke and CO alarms. If the occupiers form 2+ households, HMO rules and licensing can apply.
6. What rights will the occupiers get?
The occupiers (for example employees) aren't your tenants, but treat them as protected residential occupiers: don't remove them without a court order — harassment or unlawful eviction can be an offence, and how the eviction protections apply to employees under a company let depends on the facts. Right to Rent checks on adult occupiers may still be needed — check Home Office guidance for your arrangement.
7. Money and tax
Rent is taxed as normal. Tenancy deposit protection and the Tenant Fees Act are written for tenancies with individual tenants, so they don't usually apply to genuine company lets — but get the agreement right. Ask for a guarantee from a parent company or director, and check the company's accounts.
8. What happens if it goes wrong?
If the company goes insolvent, a liquidator can end (disclaim) the tenancy and the rent may become an unsecured debt — a guarantee or rent deposit protects you. If the 'company let' was a sham for an individual's tenancy, a court can treat the occupier as an assured tenant with full protection.
Questions you'll need to answer
- Is the tenant really the company, or the person who will live there?
- Who will occupy, and do any of them need Right to Rent checks?
- Does my mortgage and insurance allow a company tenant?
- What notice and break terms will the agreement have?
- What guarantee or deposit will protect me if the company fails?
Watch out
- A "company let" that is really an individual's home can be treated as an assured tenancy.
- Treat occupiers under a company let as protected unless a solicitor confirms otherwise — removing them usually needs a court process, and unlawful eviction is an offence.
- Safety duties (gas, electrics, EPC, alarms) apply to company lets too.
- Check your mortgage and insurance — many restrict company tenants.
What to ask the professionals
Solicitor
- Is this a genuine company let, or could it be an assured tenancy?
- How do I end it and recover possession from the occupiers?
- Do deposit protection, Tenant Fees Act or Right to Rent apply here?
Mortgage broker / lender
- Does my mortgage allow letting to a company?
Insurer
- Is a company tenant covered, including rent guarantee?
Talk it through, or get a specialist
Wala will ask the questions it needs and go through your answers with you. If you want a professional to look at it, Wala will tell you who to see.
Sources
| Source | Where | Status | In force from | Checked |
|---|---|---|---|---|
| Housing Act 1988, s1 — meaning of assured tenancy (tenant must be an individual) | England | Law in force | — | 10 Nov 2026 |
| Mishcon de Reya — guide to the Renters' Rights Act 2025 (tenant 'an individual, not a company') | England | Commentary | — | 10 Nov 2026 |
| Protection from Eviction Act 1977 | England and Wales | Law in force | — | 10 Nov 2026 |
| GOV.UK — Landlord's guide to right to rent checks | England | Guidance | — | 10 Nov 2026 |
| GOV.UK — Gas safety, electrical safety and EPC duties for landlords | England | Guidance | — | 10 Nov 2026 |
Reviewer status: Not yet reviewed by a solicitor. Mortgage and insurance terms vary by lender and insurer — only your own documents can confirm them.