PIMS ≡
  • Facebook
  • Facebook
  • Facebook
  • About us
  • Contact us
  • Join
  • Forgotten Password?

The website for Landlords and Letting Agents

  • Tenancy Agreement
  • Starting Tenancy
  • Managing Tenancy
  • Ending Tenancy
  • Legislation
  • Letting Agents
  • Latest News
  • Credit Checks
  • Latest Blog
  • Letting Flowchart
  • ABC to Lettings
  • Document Centre
  • Helpline
  • Landlords Insurance
  • EPC
You are here: Home / Tenancy Agreements complies with Renters Rights ACT from 1 May 2026 / Lodger, Company Let, Licence *
  • DOWNLOAD Tenancy Agreements - England ONLY May 26
  • Tenancy Agreement Compliance Check — May 2026*
  • Renters’ Rights Information Sheet - 1 May - June 2026
  • Instant Tenant Credit Checks
  • Guarantors (should Tenant default) --
  • Lodger, Company Let, Licence *
  • Company Let
  • Lodger
  • Licenses & Tenancies
  • Occupier with Basic Protection
  • Long Tenancies or Leases

Lodger, Company Let, Licence *

← Back
Tenancy Agreements in Detail — Renters’ Rights Threats
✓ PIMS Renters’ Rights Compliant

The Renters’ Rights Act 2025 changes the legal landscape for assured tenancies in England. The main threat is not just that old AST wording becomes outdated — it is that landlords may use the wrong agreement type entirely and assume they have protection they no longer have.

The key question: what type of agreement are you granting?

From 1 May 2026, most private residential lettings that fall within the assured tenancy regime will become assured periodic tenancies. Existing assured shorthold tenancies will automatically become assured periodic tenancies, and new assured tenancies will no longer be capable of having a fixed term or set end date.

This means landlords must be careful not to rely on old agreement names, old fixed-term wording, old Section 21 assumptions or old letting habits.

PIMS warning — wrong agreement, wrong outcome

The biggest risk is misclassification. If a landlord calls an agreement a licence, company let, lodger agreement, holiday let or common law tenancy, but the facts show it is really an assured tenancy, the label will not save the landlord.

Courts and tribunals look at the reality of the arrangement, not just the title on the document. If the agreement is wrongly classified, possession, rent increase, deposit, fee, licensing and enforcement consequences may follow.

1. Assured Periodic Tenancy

This is the main post-Renters’ Rights structure for private residential lettings in England where the Housing Act assured tenancy regime applies.

What changes?

  • No old fixed-term AST protection.
  • No Section 21 reliance.
  • Rent increases must follow the permitted statutory process.
  • The agreement must be periodic and compliant from the start.

PIMS action

Use the PIMS Tenancy Wizard for ordinary residential lettings in England where an assured periodic tenancy is required.

Create PIMS Tenancy Agreement
→ Read about the PIMS Tenancy Agreement

2. Lodgers and Excluded Occupiers

A true lodger normally lives in the landlord’s own home and shares living accommodation with the landlord. This is usually not an assured tenancy.

Where the risk arises

  • The landlord does not genuinely live there.
  • The occupier has exclusive possession of self-contained accommodation.
  • The document says “licence” but the facts look like a tenancy.
  • The arrangement changes over time and is not reviewed.

PIMS warning

Do not use a lodger agreement simply because it looks easier to end. If the facts do not support lodger status, the landlord may lose the benefit of the intended agreement.

→ Lodger Guidance

3. Company Lets

A genuine company let is usually outside the assured tenancy regime because the tenant is a company rather than an individual occupying as their only or principal home.

Where the risk arises

  • The company is a sham or is used only to avoid residential tenancy rules.
  • The occupier deals with the landlord as if they are the tenant.
  • The arrangement is really a residential letting to an individual.
  • The company fails and there is no meaningful guarantor or security.

PIMS warning

Company lets can be useful, but they need proper drafting and checks. If the company is weak, dissolved, fictitious or merely a device, the landlord may have very little practical protection.

→ Company Let Guidance

4. Holiday Lets and Short-Term Use

Holiday lets may fall outside the assured tenancy regime where the occupation is genuinely for holiday or short-term temporary use.

Where the risk arises

  • The property becomes the occupier’s real home.
  • The booking rolls on repeatedly.
  • The landlord uses “holiday let” wording for an ordinary residential letting.
  • The occupier receives post, registers services, or settles into long-term occupation.

PIMS warning

A holiday label is not enough. If the factual occupation becomes residential, the landlord may face a very different legal position from the one expected.

5. Licences to Occupy

A licence gives permission to occupy but does not always create a tenancy. However, calling an agreement a licence does not decide the issue.

Where the risk arises

  • The occupier has exclusive possession.
  • There is rent and a defined residential occupation.
  • The landlord has no genuine continuing control or services.
  • The licence is used to avoid tenancy rights.

PIMS warning

If the occupier has exclusive possession and the arrangement looks like a tenancy, the agreement may be treated as a tenancy despite the licence wording.

→ Licences vs Tenancies

6. Student Lettings

Student lettings are a high-risk transition area because many were historically granted on fixed terms aligned to the academic year.

Where the risk arises

  • Landlords assume academic-year fixed terms still work as before.
  • House shares are let using old joint fixed-term AST wording.
  • Guarantor documents do not match the new tenancy structure.
  • Landlords fail to plan for turnover, abandonment or replacement occupiers.

PIMS warning

Student landlords should review agreements, guarantor deeds and operational processes before relying on old academic-year wording.

Other agreement types landlords should understand

Occupier with Basic Protection

Some occupiers are not assured tenants but still have statutory protection. The landlord should not assume they can simply be removed without following the correct route.

→ Occupier with Basic Protection

Long Tenancies or Leases

Longer agreements and leases can create a very different legal framework. The wrong document may give the occupier stronger rights than the landlord intended.

→ Long Tenancies or Leases

Main threats across other agreement types

1. The name of the agreement is not conclusive

Calling something a licence, company let, holiday let or lodger agreement does not make it one. The facts must support the label.

2. Exclusive possession is a danger signal

If the occupier has exclusive possession of residential accommodation, especially as their home, the landlord must consider whether the arrangement is really a tenancy.

3. Renters’ Rights cannot be avoided by wording alone

Landlords should not use alternative agreement types simply to avoid the Renters’ Rights framework. If the underlying facts fall within the assured tenancy regime, the document may be attacked.

4. The wrong document can create expensive consequences

A wrong agreement can affect possession, rent recovery, deposit protection, licensing, guarantor enforceability, tenant fees, council enforcement and tribunal claims.

Not sure which agreement type applies?

If the property is an ordinary residential letting in England, use the PIMS Tenancy Wizard. For lodgers, company lets, holiday lets, licences or complex arrangements, check the facts carefully before issuing documents.

Create PIMS Tenancy AgreementMembers’ HelplineJoin PIMS
PIMS final rule:

Do not choose an agreement by name. Choose it by the facts. If the occupation is really an assured residential tenancy, the Renters’ Rights framework applies — and old wording or clever labels will not protect the landlord.


Starting a tenancy
Preparing to let The do's and dont's The vetting process Documents required Using a letting agent The good letting guide
Managing a tenancy
Inspections Maintenance Dealing with problems Renewing a tenancy Rent arrears Dealing with councils Rent increases
Ending a tenancy
The checkout and exit How to deal with a problem tenant Compare eviction notices Recovering debt Enforcing court orders Section 21 notice Section 8 notice
Letting legislations
Housing benefits LHA Maintenance and repair Health and safety Provision of services HMO and licensing Tenant litigation
Site index
Tenancy lifecycle Eviction flowchart Starting a tenancy docs Managing a tenancy docs Ending a tenancy docs News
MasterCard Maestro Visa Visa Electron Switch Solo JCB ePDQ
© 2023 PIMS
  • Home
  • About Us
  • Join
  • Contact us

Website by OddSphere
Memberships are from only £79.95 a year or £29.95 a quarter
X
Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/