Corporate Lets in London: what companies need to know before signing a tenancy

Corporate lets have become an increasingly interesting option in the London rental market, particularly for businesses relocating employees to the UK.

For an employee arriving from overseas, they can solve some of the familiar challenges associated with renting in London: no UK credit history, limited UK income history and difficulty passing conventional tenant referencing.

But while a corporate let can make securing a London home easier for an employee, it also changes the legal and financial relationship considerably.

The company, rather than the employee, becomes the tenant, and that means companies need to understand exactly what they are signing up to.

What is a corporate let?

In simple terms, a corporate let – often referred to as a company let – is a residential tenancy where a company is named as the legal tenant.

The company rents the property from the landlord and allows an employee, or another authorised individual, to live there.

This is an important distinction. The employee occupying the property is not normally the tenant under the main tenancy agreement. The company is.

In England, a tenancy granted to a company cannot be an assured tenancy because an assured tenant must be an individual. Corporate lets therefore sit outside the assured tenancy regime that applies to most private residential tenants.

This distinction has become particularly relevant since the implementation of the Renters’ Rights Act 2025 reforms in May 2026.

How is a corporate tenancy agreement drafted?

A corporate let should have a tenancy agreement specifically drafted for a company tenant.

Companies should be wary of simply signing a standard residential tenancy agreement that has been adapted by replacing an individual’s name with the company name. The legal relationship is different, and the agreement needs to reflect that.

Typically, the agreement will identify the company as the tenant and specify who is permitted to occupy the property.

It should also deal clearly with matters including:

• the length of the tenancy and any break clauses;
• the rent and payment arrangements;
• the tenancy deposit;
• responsibility for utilities and council tax;
• permitted occupiers and what happens when an employee changes;
• repairs and maintenance responsibilities;
• damage caused by the occupier;
• insurance requirements;
• restrictions on subletting or sharing occupation; and
• how and when either party can terminate the agreement.

Companies should consider taking legal advice before signing, particularly where the agreement involves a substantial rental commitment or a longer fixed term.

The company is taking on the liability

This is perhaps the most important point for employers.

When a company signs the tenancy agreement, the company is the tenant.

If the employee fails to look after the property, leaves unexpectedly or causes damage beyond fair wear and tear, the landlord will generally look to the company to meet its contractual obligations.

Similarly, if the employee leaves the business halfway through the tenancy, the company’s obligations under the tenancy do not automatically disappear.

This is why companies should have clear internal policies governing corporate accommodation.

Before signing a tenancy, the company should understand what happens if an employee resigns, is dismissed, is transferred to another country or simply decides they no longer want to live in the property.

The tenancy agreement and the company’s arrangements with the employee need to work together.

Fixed terms can be both an advantage and a risk

One attraction of a corporate let is the ability to agree contractual terms that may provide greater certainty over the duration of the tenancy.

For a company relocating a senior employee for a defined assignment, this can be very useful.

However, certainty works both ways.

If a company commits to a fixed contractual term and the employee’s circumstances change, the company may remain responsible for the rent until the tenancy can be brought to an end under the terms of the agreement.

A well-negotiated break clause can therefore be particularly important.

Companies should examine the break clause carefully before signing and understand exactly when it can be exercised, how much notice must be given and whether any conditions must be satisfied.

What happens if the employee changes?

Another point to establish at the outset is whether the property is being rented for one named employee or whether the company has flexibility to substitute another employee during the tenancy.

Landlords may want to know exactly who will be living in their property and may require any new occupier to be approved.

For companies with internationally mobile employees, this can become important. A property originally rented for one executive may not automatically be available for another employee if the first person is relocated elsewhere.

The tenancy agreement should make the position clear.

Referencing the company

A corporate let does not necessarily mean that referencing disappears.

Instead of referencing the individual employee as the tenant, the landlord or letting agent may want to establish the financial strength and credibility of the company taking the tenancy.

For a large, established UK or international business, this may be relatively straightforward.

For smaller companies, recently incorporated businesses or overseas companies without a significant UK presence, landlords may request additional financial information or security.

The exact requirements will vary between landlords and letting agents.

Deposits need particular attention

Companies should also understand how the deposit is being held and what the tenancy agreement says about deductions and repayment.

The statutory tenancy deposit protection rules associated with assured residential tenancies do not apply to a company let in the same way.

This makes the wording of the contract particularly important.

The agreement should clearly set out who holds the deposit, the circumstances in which deductions can be made and the process for returning it at the end of the tenancy.

The company should also ensure that a detailed inventory and schedule of condition are completed at check-in. When the company is ultimately responsible for the property, having a clear record of its condition at the beginning of the tenancy is essential.

Who pays for what?

Corporate lets can also create more administrative questions than an ordinary private tenancy.

Will the company pay the rent directly?

Does the company require monthly invoices?

Will the employee pay council tax and utilities, or will these costs be covered by the employer?

Who deals with the managing agent if there is a maintenance issue?

Who attends the check-in and check-out?

None of these issues is particularly difficult, but agreeing them before the tenancy begins can prevent considerable confusion later.

Companies should also remember that a letting agent’s processes may have been designed primarily for individual tenants. Corporate procurement, finance and legal approval procedures do not always move at quite the same speed as the London rental market, where landlords may be considering several offers at once.

Starting the internal approval process early can make a significant difference.

Understand the employee’s position

Companies should also consider the relationship between the corporate tenancy and the employee who will actually occupy the property.

The company’s right to occupy the property comes from its agreement with the landlord, while the employee’s right to live there will depend on the arrangement between the employee and the company.

That arrangement needs careful thought.

For example, what happens to the employee’s accommodation if their employment ends? How much notice will they receive? Who is responsible for moving costs? And what happens if the company’s tenancy ends before the employee is ready to leave?

Employment law and housing law considerations can potentially overlap, so companies should seek appropriate professional advice when establishing their policies.

A corporate let is not simply a way around the Renters’ Rights Act

The renewed interest in corporate lets following the Renters’ Rights Act does not mean that every tenancy involving an employee should automatically be structured as a company let.

It needs to be a genuine arrangement in which the company is prepared to become the legal tenant and accept the contractual responsibilities that come with it.

Companies should therefore consider the decision from a practical, financial and legal perspective – not simply as a convenient way to secure a property.

Is a corporate let right for your employee?

For international relocations, corporate lets can be an excellent solution.

They can make it easier to secure accommodation for an employee who has recently arrived in the UK, provide greater certainty for an assignment and remove some of the difficulties employees face when navigating UK rental referencing for the first time.

But they also transfer significant responsibility to the employer.

Before entering into a corporate tenancy, companies should ensure that they understand the agreement, have appropriate internal approval and policies in place, and have considered what will happen if the employee’s circumstances change.

Further reading

Once a company has decided that a corporate let is the right option, the employer and employee should also agree clearly who is responsible for costs, damage, utilities and what happens if the assignment ends early.

Read our guide to what employers and employees should agree before moving in.

For more context, you can also explore why corporate lets are back in favour with London landlords.

Need help navigating a corporate let?

At Simply London, we work with companies and their relocating employees to navigate the London property market, from understanding rental options and finding suitable homes to managing the practicalities of securing a tenancy.

A corporate let can be a valuable relocation tool. The key is making sure that everyone – the landlord, the company and the employee – understands exactly what they are agreeing to before the keys change hands.

Read more about our Home Search services, and contact us today if you need help with your Corporate or Private let.

This article provides general information and should not be considered legal advice. Companies considering entering into a corporate tenancy should obtain appropriate legal advice on the terms of the agreement and their individual circumstances.