Which Tenancy Agreement?

Answer: Company Let

A let to a limited company cannot be an occupation contract because section 7 of the Renting Homes (Wales) Act 2016 refers to an ‘individual’.  A company cannot be an individual as this means a living person.

So you will need to use a company let agreement – which can be the same as company let agreements used in England. Landlord Law members will find one on the  tenancy agreements page.

Make sure the tenant really is a limited company – you can do a free online search at  Companies House.

The Landlord Law company let agreement is intended for use when the occupier/s will be directors and/or employees of the company (and their families if appropriate). It will not be suitable for other situations.

For example, if the tenant will be

• running a business at the property or
• subletting to other tenants (i.e. not to their own employees or directors) as in ‘rent to rent’ situations

then this will not be a residential tenancy, and you will need to seek advice regarding commercial property lettings – which are not covered on Landlord Law.

Although members will find a video on ‘rent to rent’ lettings here.

If you need a tenancy agreement to rent to a company under a Rent to Rent arrangement, this needs to be carefully drafted.  We have an agreement which might be suitable which you can buy here.  If you need advice (for example, about adapting it), then we suggest speaking to David Smith at JMW Solicitors, who drafted the agreement via our telephone advice service.