A Company Rents for an Employee: Terms for the Property Owner

A company wants to rent your apartment for an employee. Human resources handles negotiations, accounting promises to transfer the money and someone else will collect the keys. The arrangement can work well when the contracting party and responsibilities are clear before occupation.

For a corporate tenancy, identify the contractual tenant, actual occupants, payer and authorised representatives separately. A company name does not replace agreement on payments, employee changes, liability and handback. Corporate involvement alone guarantees neither punctual payment nor protection of the property.

🔎 Establish the relationship first

Several structures are possible. The company signs as tenant and a named employee occupies the apartment. Alternatively, the employee rents personally and receives reimbursement. Sometimes the company merely pays on an individual tenant’s behalf.

These are different arrangements. Request the draft agreement before discussing keys and identify who accepts the tenant’s obligations. Do not assume the company is responsible for everything because its representative joined the correspondence.

Agree the purpose too: accommodation for specified people does not automatically permit an office, client visits or short-stay staff accommodation. Check the proposed use against the property and agreement.

Verify signing authority

Request the exact company name, identification details and current representation records. Establish who can act for it: one representative, several jointly or an authorised attorney.

A job title in an email signature and a corporate address do not themselves prove authority to conclude the lease. Where a person acts under authorisation, have its scope, validity and form checked.

A foreign company may require additional document and form checks. Do not automatically apply the process for a Georgian company to every overseas organisation.

📋 Record the roles separately

Role	Record
Contracting party	Full legal name, details and obligations
Signatory	Basis and scope of authority
Employee occupant	Person authorised to live in the apartment
Other occupants	Permitted household and change procedure
Payer	Who transfers money and on what basis
Operational contact	Routine issues, access and requests
Formal notice contact	Destination for contractual communications
Handback representative	Who attends inspection and signs records

One person may perform several roles, but both parties should understand this. An emergency contact does not necessarily have authority to amend the lease or agree deductions.

Occupants and employee replacement

Identify permanent occupants and the process for adding family members or replacing an employee. “We rent it, so we can accommodate anyone” can produce conflicting expectations.

Agree what information is needed about a replacement, how notice is given, whether owner consent is required and how the change is documented. Collect only necessary information and avoid excessive personal-document copies.

Discuss visitors, multiple employees and rotating occupation separately. If regular turnover is intended, assess that actual model rather than assuming a single employee’s ordinary residential tenancy.

Fit corporate payment procedures into the timetable

Accounting may require particular documents before making a transfer. Establish that list before signing, rather than after the first payment becomes due.

Agree amount, currency, due date, payment reference and bank details. Establish who can change the payment details and how such a message is independently checked. If another group company or the employee pays, clarify the basis and consequences separately.

“We usually pay at month-end” is insufficient. The agreement needs a clear mechanism, including the first partial period and final settlement. A company’s internal invoice approval should not silently become an agreed payment extension.

Security and responsibility for property

Discuss whether security is required, who provides it, which obligations it secures and who receives any refund. Have the amount, deductions and return conditions checked against applicable requirements.

Do not confuse security with the last month’s rent unless that is the properly agreed arrangement. Nor should the employee automatically be treated as personally guaranteeing the company: additional obligations need an appropriate separate basis.

Agree how damage is recorded, distinguished from ordinary wear and supported by cost evidence. Set a fault-reporting and works-approval procedure. Responsibility for occupants and guests should not rest on a vague assurance that “the company will sort it out”.

🗝️ Handover requires more than a furniture list

Prepare an agreed handover record covering condition, inventory and existing defects. Photographs should clearly relate to rooms and items.

Check appliances, key quantities, building access and information needed for utility reconciliation. Do not hand over the owner’s personal passwords. Agree separate access arrangements and how they will be withdrawn.

An employee’s signature records participation within the authority actually granted; it should not be assumed to bind the corporate tenant automatically. Establish who signs for the tenant and whether key delivery to the resident needs separate recording.

Emergencies, repairs and owner access

Keep working contacts for the employee and company, plus a backup. Agree who receives reports about leaks, appliance failures or access problems.

Separate routine requests, emergency actions and work requiring advance approval. Establish how expenditure is documented. A round-the-clock contact number does not authorise every repair at the owner’s expense.

Owner access should follow the agreement and law: grounds, notice, suitable timing and emergency procedures. Corporate tenancy does not justify assuming unrestricted unannounced access.

🔄 A hypothetical employee change

A company rents for one year for employee A. Four months later A transfers to another city and the company wishes employee B to move in.

If the lease allows replacement following approval, use that procedure: obtain necessary information, record property condition and key transfer, and update contacts. Clarify whether the existing lease continues and how money already paid is treated.

A’s departure should not automatically be treated as lease termination, nor B’s arrival as authorised without checking the terms. This fictional example illustrates a process question; it is not a ready-made legal model for every tenancy.

Tax and accounting documents

Before agreeing the final amount, establish the tax treatment of your actual arrangement. The owner’s status, contractual party, real use and participants’ duties can matter.

Do not automatically transfer a calculation for letting to an individual onto a corporate lease. An accountant or tax specialist should determine who declares income, whether withholding obligations arise, what records are required and how this affects cash settlement.

There is deliberately no universal rate here: without the relevant facts it could create a misleading expectation of net income. Establish the applicable treatment before comparing offers.

Handback and final settlement

Identify who gives notice and represents the company at inspection. Employee dismissal and lease termination are separate issues whose relationship must be checked against the agreement and law.

Agree inspection, return of property, keys and access, condition records and utility reconciliation. If a final utility invoice arrives later, provide a clear lawful reconciliation process.

Check who receives any security refund and who can approve final figures. A promise made to the resident is not necessarily a proper settlement with the contracting party.

Checklist before handing over keys

• Tenant, payer and occupants are identified.
• Signing authority has been checked.
• Permitted use and employee-change arrangements are agreed.
• Accounting documents and payment deadlines are coordinated.
• Security and liability provisions have been reviewed.
• Inventory and condition records are ready.
• Emergency and formal notice contacts are established.
• Tax questions have been assessed for this structure.
• Handback and settlement procedures are clear.

Frequently asked questions

Is a company always safer than an individual tenant?

No. Examine the agreement, authority and practical operation of the arrangement rather than relying on brand recognition.

Does the tenancy end when the employee leaves?

Not necessarily. The answer depends on the terms and applicable rules. Agree replacement and termination mechanisms in advance.

Can the employee make payments?

Establish the payment basis and how it satisfies the tenant’s obligation. Otherwise allocation and refund questions can arise.

Is an agreement without an inventory enough?

Detailed property and condition records help prevent disagreement. A corporate tenant does not remove the need for them.

Prepare for the actual letting model

A well-organised corporate tenancy starts with clear roles, verified authority and predictable move-in, replacement and departure procedures. Agree these before possession is handed over.

Legal information checked on 31 October 2026; contractual and tax consequences require individual assessment.

If you are choosing an apartment for letting or employee accommodation, explore the BuyHome catalogue. Explain the intended use so suitable layouts and relevant questions can be identified early.