What Is Company Let in Central London? Guide for Hosts 2026

A company let can be one of the most lucrative opportunities for landlords in Central London. Companies often rent high-end properties at premium rates for their staff or directors. These tenancies last longer than standard agreements, with some extending up to 10 years. Understanding how company lets work maximises your rental income and minimises vacancy periods.

This piece walks you through what a company let is and how company let agreements differ from standard tenancies. You’ll learn about the core components of a company let contract and the practical considerations you need to know as a landlord in 2026.

What Are Company Lets in Central London?

What is a company let?

A company let is when a company, not a private individual, rents a residential property and becomes the legal tenant.

In this arrangement, the tenancy agreement is signed by the business, and the property is usually used to house employees, directors, or other approved corporate occupants. Although specific individuals may live there, the company remains responsible for paying the rent and complying with the terms of the agreement.

Unlike a standard residential tenancy, a company let involves a corporate entity with its own legal identity. That is why the contract is structured differently and does not operate in the same way as an Assured Shorthold Tenancy.

Types of companies that rent properties

Limited companies take out company let agreements to provide accommodation for their employees and directors. These might be large corporations seeking high-end properties for relocating staff or businesses housing employees on temporary assignments. Some companies provide transit accommodation for workers on short-term projects.

The properties rented through company lets need to meet specific standards. Corporate clients expect high-quality furnished properties with modern appliances and quality fixtures. These arrangements often involve premium accommodation, and companies are prepared to pay higher rents for properties that meet their standards.

Difference between company lets and ASTs

The critical difference between a company let and an Assured Shorthold Tenancy lies in the legal framework. Company lets cannot be ASTs because the Housing Act 1988 excludes company lets from its statutory protections. This legislation applies to individuals only, not corporate entities.

Common law principles govern company lets instead of residential tenancy laws. This means the rent increase procedures set out in Section 13, the eviction procedures in Sections 21 and 8, and other Housing Act protections don’t apply. The tenancy operates as a business-to-business contract rather than a residential arrangement.

Why companies rent residential property

Companies rent residential properties for several practical reasons. The most common is providing accommodation for employees who are relocating to an area for work or working on temporary assignments in Central London. This could include overseas employees on fixed-term contracts or executives requiring housing during their employment period.

Renting through a company structure separates housing obligations from personal finances for businesses. It allows them to deduct rental costs as business expenses.

How Company Let Agreements Work?

Creating a company let contract

Company let agreements operate as contractual tenancies rather than under statutory residential frameworks. The tenant is a corporate entity, so you’re not required to comply with Tenancy Deposit Protection legislation. You or your agent can hold the deposit without protection in an authorised scheme.

Your company let contract should set out the parties’ names, property address, term length and monthly rent at the beginning. An inventory must be completed and attached to record the property’s condition and contents. The agreement needs to specify that employees or directors of the company will occupy the property.

Forfeiture clauses allow you to terminate the tenancy if rent remains unpaid for at least 21 days or if there’s a substantial breach of tenant obligations. But you must avoid waiving your right to forfeit by acknowledging that the tenancy continues to exist, such as contacting the tenant about rent or conducting repairs.

Rent terms and review clauses

You can include rent review clauses within company let agreements to increase rent during the tenancy period. These clauses stipulate when rent increases will occur and by how much, lining up with market rates. The company cannot challenge increases once the agreement is signed.

If you wish to alter the rent amount, you’ll need to implement a new tenancy agreement with revised charges. This needs the company’s consent and signature.

Length of company let tenancies

Company let tenancies run for 6 or 12 months. But some company lets extend for much longer periods, with certain arrangements lasting up to 10 years. These longer terms provide predictable rental income but need careful thought about the company’s financial stability.

Tenant rights and landlord obligations

Your obligations include providing quiet enjoyment and maintaining repairs as specified in the agreement. The company must pay rent and outgoings, maintain the property and allow access for inspections. Termination needs compliance with the notice period in your agreement and a minimum four-week notice under the Protection from Eviction Act 1977.

Ending a Company Let Tenancy

Notice to quit process

You must serve a notice to quit rather than a Section 21 or Section 8 notice to end a company let agreement. These statutory notices apply only to Assured Shorthold Tenancies and cannot be used for company lets. So, attempting to serve Section 21 or Section 8 notices on a company tenant will be invalid and could complicate your eviction process.

A notice to quit requires a minimum of four weeks’ notice under the Protection from Eviction Act 1977. Your company let contract may stipulate a longer notice period, such as three months. The notice to quit ends the contract once served and cannot be rescinded, unlike a Section 21 notice. This means the tenancy termination proceeds if you change your mind after serving it.

Eviction for breach of contract

You’ll need to apply to court for a possession order if the company doesn’t vacate after the notice period expires. The court will review whether your notice was served properly and think over any defence the company raises. Standard possession claims take 8 to 16 weeks from issuing to receiving a hearing date.

Forfeiture procedure explained

You can use peaceable re-entry for breaches such as non-payment of rent by entering the property and changing the locks when unoccupied. This must be done without force and with professional enforcement agents present. But peaceable re-entry carries risks if the tenant later challenges the forfeiture in court.

You must serve a Section 146 notice under the Law of Property Act 1925 for other breaches and identify the breach while allowing reasonable time for remedy.

Timeline to regain possession

Court possession processes cost between £500 and £600, excluding legal fees. You’ll need a warrant of possession if the company remains after getting a possession order. Bailiff appointments can take anywhere from 4 weeks to 9 months depending on court capacity.

Practical Considerations for Landlords

Checking company creditworthiness

Run credit checks on the business itself rather than individual occupants before you accept a company tenant. Company credit scores draw from publicly available data at Companies House and County Court Judgements. You don’t need the company’s permission to conduct these checks. The assessment reveals whether the business pays bills on time and shows its debt levels and overall financial stability.

Credit checks provide reasonable assurance about a tenant’s reliability. They cannot guarantee you’ll never face payment issues though. Tenant credit checks remain inexpensive and straightforward. Your policy terms may require you to complete appropriate tenant checks if your landlord insurance has rent guarantee coverage.

Dealing with unpaid rent

Several recovery options exist when a company tenant falls into arrears. You can draw down on the rent deposit if one is in place. Commercial Rent Arrears Recovery allows enforcement agents to seize the tenant’s goods at the premises. You can serve a statutory demand requiring payment within 21 days. This can lead to winding-up proceedings if ignored.

Think over the company’s solvency before you pursue aggressive recovery. You’re nowhere near as likely to recover arrears if the tenant becomes insolvent. Negotiating a structured repayment plan preserves the landlord-tenant relationship and secures payment in some cases.

Including guarantor clauses

A guarantor provides security if the company defaults on rent or damages the property. The guarantor steps in when the tenant fails to meet obligations. Guarantees must meet simple contract requirements to be enforceable: offer and acceptance, consideration, and intention to create legal relations.

Execute the guarantee as a deed to avoid consideration issues. A deed must be in writing and clearly expressed as a deed. The guarantor must sign it before an independent witness and formally deliver it. Specify the guarantor’s obligations within your company let agreement. Cover rent payments, property damage and legal costs.

Ensure your guarantee extends to any statutory periodic tenancy arising after the fixed term. You may lack recourse for arrears accruing beyond the original tenancy period without this provision.

Managing property wear and tear

Fair wear and tear means gradual deterioration through normal use. You must account for several factors when you assess wear and tear as a landlord: the age and condition of items at tenancy start, their expected lifespan, reasonable usage, number of occupants and tenancy length.

Long-term tenants often treat properties as their home. They communicate issues quickly. They maintain properties well and reduce your repair costs. Complete a detailed inventory at the tenancy start. Document the condition of items with photographs. Keep purchase receipts and invoices as proof of age.

Avoid betterment when you assess damage beyond fair wear and tear. You cannot end up better off once a tenancy ends. Apply apportionment so tenants aren’t subsidising what you would have paid for normal wear and tear anyway.

Benefits of longer tenancy periods

Longer company let tenancies provide consistent cash flow and reduced void periods. You can plan finances more accurately and ensure mortgage payments and maintenance costs are covered without income gaps. Tenant turnover generates costs that include remarketing, viewings and application processing. Long-term tenancies reduce these expenses substantially.

Frequent turnover increases property wear and tear from moving activities. Long-term company tenants maintain properties better and result in lower refurbishment costs. Longer tenancies prevent you from reacting to local market rent surges until the term ends though. Retaining reliable tenants who pay on time outweighs maximising rent for some landlords.

Key Takeaways

Understanding company lets is crucial for Central London landlords seeking premium rental income and longer tenancy periods with corporate clients.

• Company lets operate under common law, not Housing Act protections, giving landlords more flexibility but requiring different legal procedures for rent increases and evictions.

• Corporate tenants typically pay higher rents for quality properties and stay longer (up to 10 years), providing stable cash flow and reduced vacancy periods.

• Always conduct company credit checks and include guarantor clauses in agreements, as you’re dealing with corporate entities rather than individual tenants.

• Use notice to quit procedures (not Section 21/8 notices) to end company lets, requiring minimum four weeks’ notice under Protection from Eviction Act 1977.

• Deposits don’t require protection schemes for company lets, and rent review clauses can be included to increase payments during the tenancy period.

Company lets offer landlords a pathway to premium rental income whilst reducing the administrative burden of frequent tenant turnover, making them particularly attractive for high-end Central London properties.

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