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Company Let Tenancy Agreement – Unfurnished House


This Company Let Tenancy Agreement – Unfurnished House should be used where a Landlord wishes to grant a tenancy of an unfurnished house to a company tenant or to another non-natural person (e.g. a government body or educational institution). Usually the tenancy will have a term of 6 or 12 months.

Lettings to companies or other non-natural persons cannot be Assured Shorthold Tenancies (ASTs). This means that they are not covered by the statutory regime that gives tenants security of tenure. Company Lets can be terminated easily, subject to the Landlord complying with the notice period in the tenancy agreement and the notice requirements of the Protection from Eviction Act 1977 (a minimum notice period of four weeks). If the Tenant does not leave voluntarily, though, it will still be necessary to go to court for an order for possession.

This Company Let Tenancy Agreement allows the Tenant to permit directors and employees to occupy the property, subject to references being provided to the Landlord.

The Tenancy Agreement complies with relevant housing legislation and takes account of the OFT’s 2005 Guidance on unfair terms in tenancy agreements.

If the Landlord requires a guarantor for the Tenant, e.g. because the Tenant is not an established company or does not have a satisfactory financial record, a Tenancy Agreement Guarantee should be used in addition. We have versions for individual guarantors (e.g. directors of the Tenant company) and corporate guarantors (such as a parent company).

The Tenancy Agreement sets out the main details at the beginning, being the parties’ names, the address of the property, the term and the monthly rent.

Clause 1 is the grant of the tenancy.

Clause 2 contains standard legal interpretation clauses.

Clause 3 deals with the Tenancy Deposit. The Tenancy Deposit Protection legislation does not apply so there is no requirement for the Landlord to protect the deposit in accordance with an authorised scheme.

Clause 4 contains the Tenant’s covenants. These cover payment of rent and other outgoings (Council Tax and utilities), repair and maintenance, use, allowing the Landlord access for inspections and end-of-tenancy arrangements. Clause 4 includes covenants requiring the Tenant to observe the terms of the Landlord’s insurance policy and any title documents such as a superior lease. These covenants will only have effect if the Landlord has given the Tenant copies of the relevant documents.

Additional tenant covenants in respect of fire safety have been added.

Clause 5 provides for interest to be paid on overdue rent.

Clause 6 is the forfeiture clause. This allows the Landlord to forfeit (i.e. bring to an end) the tenancy if the rent is at least 21 days overdue or if there has been a substantial breach of any of the Tenant’s obligations. Landlords should note that it will still be necessary to go to court in order to obtain possession of the property.

Clause 7 contains the Landlord’s covenants. These cover quiet enjoyment (the right of the Tenant to use the property without interference) and repair.

Clause 8 is an optional break clause for each party.

Clause 9 will contain the parties’ addresses for service of documents. Section 48 of the Landlord and Tenant Act 1987 provides that rent is not lawfully due from a Tenant unless the Landlord has provided it with an address where notices are served. It is vital that the Tenant is given an up to date address for the Landlord.

Clause 10 is a jurisdiction clause.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

This Company Let Tenancy Agreement – Unfurnished House is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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Company Let Tenancy Agreement – Unfurnished House is part of Property Documents. Just £35.00 + VAT provides unlimited downloads from Property Documents for 1 year.

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