How the Rent Reform Act Is Driving Landlords Toward Company Lets

Under the New Rent Reform Act Company Lets Are More Valuable Than Ever

The New Rent Reform Act is reshaping how landlords rent to individual tenants across the UK.

With tougher compliance, expanded tenant rights, and tighter restrictions on landlords, the traditional Assured Shorthold Tenancy (AST) model is becoming less flexible, more regulated, and increasingly difficult to manage profitably.

However, one letting strategy remains largely untouched by these new rules - and it’s rapidly becoming the safest, simplest, and most in-demand option for landlords: Company Let Agreements.

“A Company Let is a commercial tenancy where the tenant is a business - not an individual - meaning the Rent Reform Act does not apply as the agreement is governed by contract law, not residential housing legislation.”

As the Rent Reform Act places more pressure on private landlords, Company Lets stand out as a far more stable and secure alternative.

Demand from serviced accommodation operators, care providers, relocation companies and other corporate tenants is higher than ever - many are actively competing for reliable landlords and long-term contracts.

For landlords seeking control, stability, and long-term income, company lets are rapidly becoming the safest and most predictable option.

Why More Landlords Are Switching to Company Lets in 2025

Company lets offer several major advantages that standard ASTs can no longer guarantee. Here’s what’s driving the shift ↓

1. Fixed Contract Lengths = No Open-Ended Tenancies

Under the Rent Reform Act, ASTs become open-ended by default, meaning tenants can leave with short notice and landlords lose long-term security.

Company lets restore true consistency.

With a company tenant, you can:

• Agree fixed terms (6, 12, 24 months or more)

• Build renewal terms into the contract

• Avoid unpredictable turnover

• Guarantee income for agreed periods

This gives landlords the stability that individual tenancies can no longer offer.

2. Your Property, Your Rules = Strong, Enforceable Terms

Because company lets fall under commercial contract law, landlords can include robust clauses such as:

• No pets

• No smoking

• Business-use only

• Minimum maintenance standards

• Inspection and access requirements

And unlike residential tenancies, these terms cannot be overridden by housing legislation.

You retain full control over how your property is used.

3. Easier Evictions if Rent Isn’t Paid - No Section 21 Needed

With Section 21 abolished, regaining possession from residential tenants is slower and more regulated.

Company lets operate differently:

• Termination follows commercial breach-of-contract rules

• No residential eviction process

• No tribunal routes

• No enhanced tenant protections

If a company tenant stops paying rent, you can enforce the contract directly - fast, clean, and legally secure.

4. No Rent Caps or Restrictions on Rent Increases

Under the new rules, rent increases for individual tenants must follow a regulated Section 13 process.

Company lets remain completely commercial.

Landlords can:

• Review rents annually

• Build in inflation-linked increases

• Set performance-based rent reviews

• Adjust rents to reflect market conditions

You stay fully in control of your income - without any capped increases.

5. Professional Tenants = Lower Risk, Higher Standards

Renting to a company means dealing with professional organisations, not individuals.

Common company tenants include:

• Serviced accommodation operators

• Care providers

• Corporate relocation agencies

• NHS and government contractors

• Construction & engineering firms

• Supported accommodation organisations

These tenants typically offer:

• Guaranteed rent

• Better accountability

• Higher property care standards

• Professional communication

• Fewer disputes than individual renters

In a market where ASTs come with rising compliance and risk, corporate tenants offer a much safer alternative.

Ready to Make the Most of the New Rent Reform Landscape?

Now is the best time to secure a company-let tenant.

Across the UK, demand from serviced accommodation operators, housing organisations, and corporate tenants has never been higher - and many are urgently seeking properties for long-term contracts.

List your property for FREE on TenantMarket and instantly connect with verified, high-quality company tenants ready to move quickly.

Get enquiries from operators who value guaranteed rent, longer agreements, and professional property care.

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