Understanding Company Let Agreements in Scotland

If you’re renting in Scotland through a company or are being asked to sign a Company Let Agreement, it’s crucial to understand how this arrangement differs from standard private tenancies. This guide explains what a Company Let Agreement is, your legal rights and protections, and what official resources can help you if you have concerns.

What Is a Company Let Agreement?

A Company Let Agreement is a type of tenancy where a company (rather than an individual) is the tenant. The company rents a property from a landlord, sometimes to house employees or visiting staff. The main point is: the agreement is between the landlord and the company, not with the individuals actually living in the property.

In Scotland, most renters are covered by either a Private Residential Tenancy (PRT) or an Assured Tenancy, both of which provide renters with significant protections under the Private Housing (Tenancies) (Scotland) Act 2016 or the Housing (Scotland) Act 1988. However, a Company Let Agreement is not classed as a 'residential tenancy', so standard renter protections often do not apply.^[1]

How Are Company Lets Different from Normal Tenancy Agreements?

• Who is the tenant? The company is the legal tenant, NOT the people living in the property.
• Key legal protections: Company lets do not offer the same rights as PRTs or Assured/SAT tenancies. For example, eviction protections and deposit scheme rules may not apply in the same way.
• Resident status: Individuals living in the property are usually classed as 'licensees', not tenants, so their rights depend on what is in the agreement between them and the company.

Because of this, it’s important to read any documents carefully and understand exactly who will be legally protected.

Key Rights and Responsibilities in a Company Let

Unlike with a private tenancy, if you live in a property under a Company Let Agreement, you:

• Might not have the right to challenge rent increases under the Private Housing (Tenancies) (Scotland) Act 2016
• Might not be protected from eviction in the same way as individual renters
• May have limited routes for resolving disputes, as your contract is usually with your employer, not the landlord

Are Company Lets Regulated?

Company Lets are private legal contracts. Although standard residential tenancy laws usually do not apply, both landlords and companies must still follow basic property and safety rules (like gas safety, electrical checks, and HMO licensing if relevant). You can learn more about property standards on the Scottish Government renter rights pages.

Forms and Official Processes Involving Company Lets

Since Company Let Agreements are not covered by the statutory forms used for normal residential tenancies, the usual official forms for renters do NOT usually apply to company lets.

• Private Residential Tenancy agreement (Scottish Government Model PRT Agreement): Model Tenancy Agreement (Scotland) — Used for individuals, not companies.
• Notice to Leave (Form AT6 for Short Assured Tenancies): Again, these forms do not apply to company lets, but may be relevant if the agreement is with an individual (AT6 form guidance).

If you think your agreement should be a Private Residential Tenancy (for instance, if you signed as an individual but your landlord is claiming it’s a company let), you may be able to challenge this at the First-tier Tribunal (Housing and Property Chamber).

Where to Get Help for Company Let Issues

In Scotland, renter issues are handled by the First-tier Tribunal for Scotland (Housing and Property Chamber), but they only deal with specific tenancy types — not company lets. For disputes within a company let, you generally need to resolve matters through your employer, with legal advice, or through civil court.

1. What is a Company Let Agreement in Scotland?
   A Company Let Agreement is when a landlord rents a property to a company, not an individual. This company then allows its employees or contractors to live in the property. The legal relationship is between the landlord and the company, not between the landlord and the residents.
2. Does a Company Let Agreement give me the same rights as a regular private renter?
   No. Company Let Agreements are usually classed as commercial lets, not residential tenancies. This means you do not have the same protections against eviction, rent increases, or deposit protection as under a Private Residential Tenancy.
3. If I have a problem with my company let, can I go to the First-tier Tribunal?
   Usually not. The First-tier Tribunal deals with issues under specific tenancy laws but not company lets. Disputes are generally resolved within your company or through civil courts.
4. Should my deposit be protected in a tenancy deposit scheme?
   For most company lets, landlord deposit protection rules do not legally apply. However, you should confirm this and always ask for written details or clarification about your deposit.
5. Where can I check if my agreement is really a company let or a standard tenancy?
   Refer to official Scottish Government guidance on your tenant rights or get independent advice before signing anything.

Need Help? Resources for Renters

• First-tier Tribunal for Scotland (Housing and Property Chamber) — Rents, eviction, and tenancy dispute resolution for most residential tenancies
• Scottish Government: Private Renting and Tenant Rights — Official Scottish government guidance on tenancy rights and laws
• Shelter Scotland: Advice Services — Free independent guidance for renters

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1. The Private Housing (Tenancies) (Scotland) Act 2016 defines legal private tenancies and does not apply to company lets. The Housing (Scotland) Act 1988 covers assured and short assured tenancies.

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