Company let
A company let is a residential tenancy granted to a limited company rather than to an individual. The company, not its employees or directors, is the legal tenant. The occupiers live in the property as licensees of the company, not as tenants of the landlord. Under Section 1 of the Housing Act 1988, an assured tenancy can only be granted where the tenant is an individual. A company cannot satisfy that condition, so a company let is a common law contractual tenancy, governed by the terms of the agreement itself rather than by the statutory framework that applies to standard private rented sector lets.
What the Housing Act 1988 exclusion means in practice
Because the tenancy is not an assured tenancy, several statutory protections and procedures that apply to residential lets to individuals do not apply to the company itself:
The Renters' Rights Act 2025 provisions, including the abolition of Section 21, the assured periodic tenancy framework, restrictions on rent in advance, and Section 13 rent increase procedures, do not apply to the contract with the company. The company has no statutory security of tenure.
Deposit protection is not required. Tenancy deposit protection schemes apply only to assured shorthold tenancies; a deposit taken from a company under a contractual tenancy does not need to be registered with a scheme. This cuts both ways: the company has no access to the free adjudication process if there is a dispute at the end of the tenancy.
Rent increases are governed solely by the agreement. There is no Section 13 process and the company cannot challenge an increase at tribunal. Most company let agreements include a rent review clause specifying when and by how much rent can rise; without one, a landlord seeking to increase rent must negotiate a new agreement or rely on a contractual right to do so.
A residential let to an individual, by contrast, creates an assured periodic tenancy with the full protections of the Housing Act 1988 and the Renters' Rights Act 2025.
Ending a company let
A landlord cannot serve a Section 8 or Section 21 notice on a company let, neither applies. To end the tenancy, the landlord serves a Notice to Quit on the company at its registered address or the address specified in the agreement. The minimum notice period is typically four weeks (or whatever longer period is specified in the contract). If the company does not vacate after the notice expires, the landlord must issue possession proceedings through the courts.
If the company is in breach of the agreement, typically by failing to pay rent — the landlord may instead rely on a forfeiture clause if one is included. Forfeiture in a residential context is complex, and the risk of inadvertent waiver (accepting rent after the breach) is real. Taking legal advice before attempting forfeiture is strongly advisable.
What landlords need to check
From working with self-managing landlords across the UK, we know company lets carry risks that individual tenancies do not. The company is the party on the hook for rent and obligations, if it becomes insolvent, recovery is difficult. Directors do not have personal liability simply by virtue of being directors. Landlords should take a company search via Companies House to verify solvency, check filed accounts, and consider requiring a personal guarantee from one or more directors. A bespoke company let agreement, not a standard AST, is essential.
Housing standards obligations do not disappear because the legal tenant is a company. Gas safety, EICR, EPC, HHSRS fitness standards, fire safety, and local licensing requirements all apply to the property and its occupiers regardless of how the tenancy is structured. The landlord remains responsible to the local housing authority and, where applicable, to the courts, for the physical condition of the premises.
Right to rent checks apply to the individual occupiers, not to the company. Properties let directly to companies for employee housing are generally exempt from the formal check requirement, but the position is nuanced and changes depending on how the sub-occupancy is structured. Taking advice on the specific arrangement is advisable if the occupiers' immigration status is uncertain.
August's document management feature lets landlords store the company let agreement, Companies House search, and any director guarantees in one place, alongside gas safety certificates and other compliance records.
For the separate question of whether to hold your buy-to-let properties inside a limited company, see our guide to landlord limited companies.
Frequently asked questions
Is a company let an assured tenancy?
No. An assured tenancy under the Housing Act 1988 can only be granted to an individual occupying the property as their only or main home. A limited company cannot meet that condition. A company let is a common law contractual tenancy, outside the statutory assured tenancy framework entirely.
Do deposit protection rules apply to a company let?
No. Tenancy deposit protection schemes are a statutory requirement for assured shorthold tenancies only. A deposit held under a company let agreement does not need to be registered with a scheme, and the company tenant has no right to access the free adjudication process if there is a dispute at the end of the tenancy.
How do you evict a company let tenant?
The Section 8 and Section 21 notice procedures do not apply to company lets. The landlord serves a Notice to Quit on the company, with a minimum notice period of four weeks (or longer if the agreement specifies). If the company does not leave after the notice period, the landlord must apply to court for a possession order. Breach of the agreement may allow forfeiture where a forfeiture clause exists, but legal advice is strongly recommended before taking that route.
Does a company let need a different tenancy agreement?
Yes. A standard assured shorthold tenancy agreement is not appropriate for a company let and should not be used. The agreement must be a bespoke contractual tenancy reflecting the common law basis of the arrangement, including provisions on rent review, forfeiture, permitted occupiers, and notice periods.
