Understanding Company Let Agreements in Wales: A Renter’s Guide

If you're renting in Wales, it's important to know the type of tenancy agreement you hold. While most renters have tenancy agreements with individual landlords or letting agents, sometimes a property is let to a company instead of a person. This arrangement is called a company let agreement, and it comes with different rules and fewer protections compared to standard residential tenancies. This article explains what a company let agreement is in Wales, how it could affect your rights, and what practical steps you can take as a renter.

What Is a Company Let Agreement?

A company let agreement is a type of contract where a landlord rents a residential property to a company, rather than directly to an individual. Typically, the company then allows an employee to live in the property, often as part of their employment package or for business reasons.

• In a standard residential tenancy, the tenant is an individual with rights under Welsh housing law.
• In a company let, the company is the tenant for legal purposes—not the person living in the property.

Since the company is not an individual, most protections under the Renting Homes (Wales) Act 2016 do not apply.^[1]

Key Differences from Standard Tenancies

It’s crucial for renters and occupants to be aware of how a company let agreement differs from usual tenancies:

• No assured status: Company lets are not considered “standard occupation contracts” under Welsh law.
• Limited eviction protections: Notice periods and grounds for eviction found in housing legislation do not apply. The agreement is governed by contract law, not housing law.
• Deposit protection: Landlord is not legally required to protect deposits in a government-approved scheme for company lets in Wales.
• Disrepair and maintenance: The company tenant (not the resident) usually must communicate with the landlord about repairs, unless otherwise stated in the contract.
• No recourse to the Residential Property Tribunal Wales for housing contract disputes: Since the occupant is not party to a standard occupation contract.

If you live in a property as an employee or licensee of your company, your residency rights are typically part of your employment arrangement or a separate licence agreement with the company.

Your Rights and Responsibilities as an Occupant

If you live in a property under a company let agreement, you are classed as a ‘licensee’ or ‘permitted occupier’, not a legal tenant. This means:

• You do not have a direct legal relationship with the landlord.
• Your right to stay often depends on your employment or arrangement with the company.
• Protections found in the Renting Homes (Wales) Act 2016 do not apply directly to you.
• If your job ends or company policy changes, you could be asked to leave with little notice.

Always carefully check any written agreement you sign, and ask your company’s HR or legal department for clarification about your rights as a resident.

Forms and How To Use Them

Because a company let is not a standard occupation contract, most official Welsh housing forms (such as the RHW2 notice, used by private landlords to end standard occupation contracts) do not apply. However, you may encounter contract termination or possession processes if the company or landlord wishes to end the arrangement.

• Form RHW2: Ending a Standard Occupation Contract
  This official notice is not used for company lets. It can only be served to individuals who hold a standard occupation contract. If you are unsure, consult company HR or seek independent advice. Find standard forms here.

Which Tribunal Handles Disputes?

If you have a complaint about housing conditions (for example, disrepair), the legal tenant is the company. If you experience any form of harassment or illegal eviction, seek advice immediately.

The Residential Property Tribunal Wales deals with residential contract disputes under Welsh law, but it generally cannot consider disputes where there is no standard occupation contract.

What Laws Apply to Company Lets?

While most Welsh housing law covers only standard occupation contracts, company lets are mainly governed by general contract law. The main Welsh tenancy legislation, Renting Homes (Wales) Act 2016, does not extend the same protections to company lets.^[1]

If the company or landlord takes court action for possession, the standard rules for business tenancies may apply, not the usual residential eviction process.

Summary of Key Points

• Company let agreements offer fewer legal protections for occupants than standard tenancies in Wales.
• Occupants usually rely on their employer or company to deal directly with the landlord.
• If you are unsure of your rights, seek professional advice as soon as possible.

Frequently Asked Questions (FAQ)

1. Do I have any eviction protection if my home is let to a company?
   Occupants under a company let in Wales do not have legal eviction protection under the Renting Homes (Wales) Act 2016. Your notice period will depend on your employment terms or company policy, not housing law.
2. Does my deposit need to be protected if I live in a company let?
   No. The requirement to protect tenant deposits in a government scheme does not apply to company lets in Wales.
3. Who should I contact about repairs in my company let?
   Contact your company or HR department, as they are usually the legal tenant and handle repairs or maintenance requests with the landlord.
4. Can I challenge a rent increase as an occupant in a company let?
   You do not have the right to challenge rent increases under Welsh occupation contract law as an occupant in a company let. Your company may be able to negotiate with the landlord.
5. Where can I go for advice if I am being asked to leave?
   Contact Rent Smart Wales or an independent advice service like Shelter Cymru for guidance about your rights and next steps.

Conclusion: What Renters Should Remember

Here are the main points to keep in mind about company let agreements in Wales:

• A company let agreement means you have fewer rights than under a standard residential tenancy.
• Your protections are based on contract law, not Welsh housing law.
• Always read contracts carefully and seek advice if you have concerns about your rights or if you are facing eviction.

Need Help? Resources for Renters

• Welsh Government: Renting Homes Guidance
• Rent Smart Wales – Advice for tenants and occupants
• Shelter Cymru – Free housing advice in Wales
• Residential Property Tribunal Wales – For tenancy dispute information (mainly for occupation contracts)

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1. Renting Homes (Wales) Act 2016 – official legislation
2. Residential Property Tribunal Wales – official site

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