Company Lets

A company or corporate let is when a company, registered charity, or company incorporated by a trust, a local authority, or a government department takes on a residential tenancy agreement as the 'tenant' rather than an individual. A company employee or beneficiary of the trust then occupies the premises as a 'licensee of the tenant'.

In this capacity as a tenant, the company is responsible for all the tenant's obligations under the lease terms, including the payment of rent, council tax and utility bills and any damage to the property.

However, it is common practice for the occupant to pay council tax and utilities while the company pays the rent. The landlord's only concern is that the various costs are paid, and the company is fully accountable for any default in payments of any of these costs.

Most tenancy agreements in the private rented sector are assured shorthold tenancies. It is not unusual for letting agents to use these agreements for company lets. A company cannot sign an AST, which is only appropriate for personal lets.

Many companies that adopt renting from the private sector will have their tenancy agreements, which they prefer. If not, the agent must supply a suitable agreement known as a 'contractual tenancy' that remains outside the Housing Act 1988.

The agent and landlord should know the identity of the person living in the property. The agreement usually allows the property to be occupied by the 'permitted occupier with their family'. Within a company let, the tenant usually reserves the right to replace the occupant with another company employee as a licensee of the tenant.

The company tenant will also be responsible for managing the property under the HMO management regulations if sharers are present and for dealing with deposit protection if they sublet via an AST.