Why more landlords are considering company lets, what the legislation actually says, and the risks you need to understand.

By Ronke Maye | Property Consultant | October 2026

The introduction of the Renters’ Rights Act 2025 has brought some of the biggest changes to England’s private rented sector in decades.

Since 1 May 2026, landlords have been adapting to a new system that abolished Section 21 no-fault evictions, removed fixed-term assured tenancies and introduced stronger protections for residential tenants.

But while many landlords are adjusting to the new rules, one type of arrangement has attracted increasing attention: the company let.

Company lets are not new. They have been used for years by businesses, relocation agencies, employers and accommodation providers. However, with the new restrictions on ordinary residential tenancies, their different legal status is becoming particularly relevant.

So, have company lets found a way around the Renters’ Rights Act?

The answer is that genuine company lets operate under a different legal framework. But that does not mean landlords can simply change a tenancy agreement to avoid their legal responsibilities.

What is a company let?

A company let is an arrangement where a landlord rents a property directly to a business rather than to an individual residential tenant.

The company becomes the contractual tenant and may use the property to accommodate employees, contractors, relocated staff or other permitted occupants.

For example, a business may rent a three-bedroom house to accommodate employees working temporarily in London.

Alternatively, a relocation or accommodation company may rent a property to provide housing under an arrangement agreed with the landlord.

Unlike an ordinary assured residential tenancy, the contractual tenant is a corporate entity.

That distinction is particularly important under the Renters’ Rights Act.

Why are company lets treated differently?

Under Section 1 of the Housing Act 1988, an assured tenancy must satisfy certain conditions, including that the tenant is an individual.

A limited company is not an individual.

Consequently, where a genuine tenancy is granted to a company, that tenancy cannot ordinarily qualify as an assured tenancy under the Housing Act 1988.

This means the assured-tenancy reforms introduced by the Renters’ Rights Act do not automatically apply to the contractual relationship between the property owner and the company.

Depending on the agreement, this can allow landlords and companies to negotiate arrangements including:

• Fixed contractual terms, such as 12, 24 or 36 months.
• Commercially agreed break clauses and notice provisions.
• Rent-review arrangements specified in the agreement.
• Upfront rent payments negotiated with the company.
• Corporate responsibilities for permitted occupants, maintenance and property management.

This gives landlords flexibility that is no longer available in the same form under ordinary assured periodic tenancies.

However, the agreement must represent a genuine company letting arrangement. Calling a document a company let does not, by itself, determine its legal status.

Are company lets exempt from the Renters’ Rights Act?

Not completely.

A genuine company tenancy is generally outside the assured-tenancy regime because the company is the tenant. However, the arrangements between the company and the people living in the property must be considered separately.

Where a company sublets accommodation to individuals, those occupants may have assured tenancy rights under the relevant legislation.

The company may therefore have its own obligations as a landlord, including complying with the Renters’ Rights Act where the occupiers hold qualifying assured tenancies.

Other legal requirements concerning property safety, licensing, planning, occupancy and management may also continue to apply.

In other words, a company let is not a blanket exemption from residential property law.

Why might landlords find company lets attractive?

There are several reasons why landlords may consider a corporate tenancy.

1. Greater contractual certainty

With ordinary assured tenancies now operating on a periodic basis, landlords cannot rely on a fixed tenancy end date in the way they previously could.

A genuine company let can provide an agreed contractual term, subject to the conditions and termination provisions negotiated between the parties.

2. Potential for longer-term rental income

Some businesses seek accommodation for extended periods, particularly where they regularly house employees, contractors or relocated personnel.

A suitable arrangement could provide a landlord with a consistent corporate tenant rather than having to find individual occupiers.

However, the strength of the arrangement depends on the company’s financial position and its ability to meet its obligations.

3. Commercially negotiated payment terms

Company let agreements may provide more flexibility over payment arrangements, including rent paid quarterly or several months in advance.

This can appeal to landlords seeking greater predictability over cash flow.

The rules applicable to an assured tenancy should not automatically be confused with those governing a genuine corporate tenancy.

4. A different approach to property management

Some company tenants take responsibility for coordinating occupiers, reporting maintenance issues and managing the day-to-day use of the accommodation.

Nevertheless, landlords must establish precisely which responsibilities the company has accepted and which statutory obligations remain with the property owner.

The risks landlords should not ignore

Although company lets can offer advantages, I would strongly caution landlords against assuming that every corporate tenant represents a safer or easier option.

There are several important considerations.

The company’s financial stability: A company promising rent over a long period is only as reliable as its ability to pay. Company accounts, trading history, directors and financial guarantees should be assessed carefully.

Subletting and occupation: Landlords need to understand exactly who will occupy the property, whether the company intends to sublet and what type of agreements will be used.

Property condition: A company operating accommodation for multiple occupiers may require additional bedrooms, safety equipment, furnishings or alterations. Landlords should establish what is being requested and who will pay.

Licensing and planning: Company lets do not automatically remove HMO licensing, selective licensing or planning requirements. These need to be checked with the relevant local authority.

Insurance and mortgage consent: Some mortgage providers, freeholders and insurers restrict company lets, corporate occupation or rent-to-rent arrangements. Written approval may be necessary.

Possession and termination: Ending a company tenancy may involve different legal procedures from recovering possession under an assured tenancy. A fixed term or break clause does not entitle a landlord to bypass the courts where a court order is required.

The most important point is that a company let should be assessed as a commercial decision, not simply as a way of avoiding the Renters’ Rights Act.

Are landlords increasingly choosing company lets?

The legal differences between individual and corporate tenancies make company lets a potentially attractive alternative for some landlords.

However, it would be premature to suggest that the whole market is moving towards company lets or that they are automatically more profitable.

There is also a practical issue: restricting a property to company tenants reduces the number of prospective applicants.

A landlord may overlook a financially secure family or professional household simply because they are waiting for a corporate applicant.

This can lead to longer void periods, lost rental income and unnecessary marketing costs.

In my experience of working across London’s sales and lettings market, the best strategy is not always to target a particular type of tenant. It is to assess the quality of the applicant, the suitability of the property and the strength of the proposed terms.

An established company with robust financial credentials may be an excellent tenant.

Equally, a well-referenced family intending to make a property their long-term home may be a better choice than a newly formed company offering ambitious guarantees.

Can landlords use a company let to get around the restrictions?

This is where landlords need to exercise particular caution.

There is a difference between entering into a legitimate corporate tenancy and trying to disguise an ordinary residential letting as a company let.

A company must genuinely be the contracting tenant, and the legal and practical arrangements must support that position.

Where the arrangement involves individuals occupying the property as their home, their rights must be considered carefully.

A landlord should never assume that adding a company name to a contract automatically removes statutory protections.

Any unusual or complex structure should be reviewed by a solicitor with expertise in residential landlord and tenant law.

My advice to London landlords

The Renters’ Rights Act has changed the private rented sector, and landlords understandably want to explore arrangements that give them more certainty and control.

Company lets remain a legitimate option and can work particularly well for some properties and corporate occupiers.

However, they are not suitable for every landlord or every property.

Before agreeing to a company let, I recommend reviewing the company’s financial standing, the proposed occupants, licensing requirements, contractual responsibilities, insurance conditions and exit arrangements.

Most importantly, consider whether the company let actually delivers a better commercial outcome than a conventional residential tenancy.

A reliable tenant, a properly maintained property and a legally compliant agreement remain the foundations of a successful letting.

Thinking about letting your property to a company?

At Ronke Maye, we work with landlords across London, helping them navigate changing legislation, assess prospective tenants and make informed decisions about their rental properties.

Whether you are considering a company let, a professional household or a traditional family letting, our approach is focused on finding the right arrangement for your property.

Contact Ronke Maye to discuss your rental property and the options available to you.

Ronke Maye ANAEA
Director | Property Consultant
07949 165 483
ronke@ronkemaye.com
www.ronkemaye.com

Information checked on 13 October 2026. This article provides general information about the law in England and is not a substitute for legal advice on individual tenancy agreements.