Company Let vs AST – Landlord FAQ

What is an AST (Assured Shorthold Tenancy)?

An AST is the standard form of residential tenancy in England, where the property is let to an individual who occupies it as their main home. Most private rentals fall under this category.

What is a Company Let?

A company let is where the property is rented to a limited company, not an individual. The company then houses its employees, contractors, or relocating staff.

Which option achieves higher rent?

• Company Lets often achieve 10–20% higher rent than an AST.

• AST rents are typically capped by the local residential market.

Which option offers more legal protection for landlords?

• ASTs are heavily regulated and provide clear statutory processes.

• Company Lets are governed purely by contract law, offering greater flexibility but less statutory protection.

Does the Renters’ Rights Act apply to Company Lets?

No.
The Renters’ Rights Act (including the abolition of Section 21) applies to residential tenancies (ASTs) only. Company lets are treated as commercial agreements.

Can I take a higher deposit with a Company Let?

Yes.

• AST deposits are capped at 5 weeks’ rent.

• Company lets have no statutory cap, and landlords often require 2–6 months’ rent, particularly with newer companies.

Which option is easier if I need the property back?

• Company Lets usually allow for clearer termination clauses and fewer delays.

• ASTs are becoming more restrictive, with longer notice periods and fewer possession routes.

Is wear and tear higher with Company Lets?

Potentially, yes.
Company lets may involve multiple occupants over time, so landlords should ensure:

• Regular inspections

• Strong repairing clauses

• Professional cleaning obligations

Do I need consent from my mortgage lender or insurer?

Yes.
Some lenders and insurers do not automatically permit company lets, so approval should always be confirmed before proceeding.

Who pays council tax and utilities on a Company Let?

This must be clearly stated in the agreement.
In most cases, the company tenant is responsible, but ambiguity can cause disputes if not documented properly.

Which option is best for me as a landlord?

An AST may be best if you:

• Prefer a traditional residential let

• Want a lower-risk, regulated framework

• Are a first-time or cautious landlord

A Company Let may be best if you:

• Want higher rent and longer terms

• Are comfortable with commercial risk

• Have lender and insurance approval

• Are targeting corporate or relocation tenants

Can HPS Property Solutions advise on which is right for my property?

Absolutely.
At HPS Property Solutions, we assess:

• Your property type

• Local demand

• Mortgage and insurance restrictions

• Risk appetite and long-term goals

We’ll then recommend the most suitable option and handle everything from contract drafting to tenant selection.