How to insure with no company let tenancy agreement?

How to insure with no company let tenancy agreement?

10:00 AM, 3rd December 2020, About 2 years ago 14

Text Size

I am reaching out for some advice from the wise members of this forum. A property I own is a residential property let to a company. The tenancy agreement is up for renewal imminently, but the tenant won’t sign another one until AFTER the imminent renewal date.

It’s probably not necessary here to have to explain here why that is an unacceptable position. So the tenant will receive notice to vacate the property.

The employee residing at the property and the company tenant have a history of not adhering to the previous agreements (that could be thread in itself), so I expect them not to vacate when notice is given.

Question 1 > if they don’t vacate, how would I arrange insurance on the property with no tenancy agreement?

Question 2 > if they don’t vacate, is it possible to jack the rent up on a non-existent tenancy agreement to pressure them to do so?

Many thanks




19:28 PM, 3rd December 2020, About 2 years ago

As you have a tenancy in place I would suggest you contact your broker and request insurance be arranged in advance of the renewal. You can honestly answer there is a company tenancy agreement in place when asked. If pressed you can state the tenant has indicated they will not be renewing the lease. If the tenant moves out or not will only be known on the day the tenancy runs out.


21:25 PM, 3rd December 2020, About 2 years ago


Thanks for all your responses.

The tenant has now paid the first instalment of rent, but still not signed the contract. In this time of Covid, I would rather have a company let than a AST, as it seems their are more protections for a landlord.

There have been multiple promises to sign the agreement, and stories keep changing, like dealing with multiple personalities. Originally they said it would be singed a few days ago. Since then, the story was the director wont be back until the tenancy agreement begins. But now have had an promise it will be signed before the deadline. Based on much previous dealings, anything could happen. There appears no rhyme or reason to the previous contact with this tenant.

My main two concerns are the ability to be insured and secondly the expense. Jason confirms what I am thinking, about the difficulty or expense. But It could be worth fishing around for an insurer as Graham mentions there should be insurance for every scenario.
Its just the extra faff and expense involved. Options available to insure with a company let were greatly reduced when this tenancy started, this will only make it harder.

Smartermind, I have looked at the Tenant companies cashflows for the last few years and they never keep much bank balance in the company. I also wonder if my current landlords insurance will cover the court case, since I will be out of insurance when I try to take them to court. This would be a last resort.

I think what I will do if they don't sign on time is:
1) Check if any insurers will insure on the basis of a "Periodic company let tenancy". I assume that is the default if I don't give them notice AND don't issue a tenancy agreement.
2) Once insurance is in place, give the tenant notice.

If I give them notice before the end of the current tenancy, I will be in no-mans land. Not somewhere I want to be.

I believe from the below article I just found, it would go to a periodic tenancy.


2:28 AM, 4th December 2020, About 2 years ago

Reply to the comment left by TheBiggerPicture at 03/12/2020 - 21:25
You are mistaken in thinking the tenancy will roll over. An AST contract directly with a (human) tenant would become a periodic tenancy, but not a contract with a company. If you have a contract with the company, then the company would have an AST with their employee as their tenant and it is that which would roll over.

If the contract is with a company, you really need to get it signed before the current one ends. You don't want to end up with a verbal contract and not a written one. Or worse no contract with the company but a person in the property who you can't evict and no contract with their landlord, the company. The company would not be obliged to pay you anything as there is no contract and their employee is not obliged to pay you anything as you have no contract with them. The protection you seek through a company let wouldn't exist.

The fact that this company doesn't keep much in the bank balance would be worrying, but they may have other assets?

Graham Bowcock View Profile

9:24 AM, 4th December 2020, About 2 years ago

Reply to the comment left by TheBiggerPicture at 03/12/2020 - 21:25
I agree with Smartermind - there is some confusion here about the occupation. I strongly suggest that you get a good local agent to look at this for you so that you do not create future problems. It is not wise to accept rent if you do not know the basis of the agreement.

You asked about "jacking up the rent"; this will entirel;y depend on the terms of the agreement (expired or otherwise). Nobody can really answer this without going through the documentation and establishing the correct basis of occupation.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now