[Please note that this is a general summary of our Licence, Tenancy, and Lease Agreements and other related documents and does not constitute legal advice. As each jurisdiction may be different, you may want to speak to your local lawyer.]

SUMMARY OF LICENCE, TENANCY, AND LEASE AGREEMENTS TEMPLATES:

Members are often confused about which document to use in relation to Licence, Tenancy, and Lease  Agreements. The following table is a quick reference guide:

Documents	When to Use
License to Occupy - Residential (e.g. Airbnb)	Licence giving the licensee the right to occupy the domestic property for a defined length of time. A licensee has only a personal interest and this interest can be revoked by the landowner at any time. This is a short-term (e.g. Airbnb type) arrangement. It can be in favour of the Licensor / Licensee / neutral. IN MANY JURISDICTIONS, IT IS ILLEGAL TO LET DOMESTIC PROPERTY DAILY WITHOUT A LICENCE. YOU MAY WISH TO CHECK WITH YOUR LOCAL LAWYER.
Licence to Occupy -  Commercial (e.g. WeWork)	Licence giving the licensee the right to occupy the commercial property for a defined length of time. A licensee has only a personal interest and this interest can be revoked by the landowner at any time. This is a shared office arrangement. It can be in favour of the Landlord / Tenant / neutral.
Lodger Agreement - Room Rental	This Lodger Agreement gives the licensee the right to occupy a room in the domestic property for a defined length of time (this tends to be on a monthly basis instead of daily). A licensee has only a personal interest in the space. This is a room rental arrangement drafted in neutral form.
Tenancy Agreement - Residential	Tenancy Agreement for the lease of residential property with options on rent-free period and early termination. This is generally for a shorter term (usually less than 3 years). It can be in favour of the Landlord / Tenant / neutral.
Tenancy Agreement -  Commercial	Tenancy Agreement for the lease of commercial property with options on rent-free period and early termination. This is generally for a shorter term (usually less than 3 years). It can be in favour of the Landlord / Tenant / neutral.
Tenancy Agreement -  Residential - Representative / Manager	Tenancy Agreement for the lease of residential property with options on rent-free period and early termination. This is generally for a shorter term (usually less than 3 years). The Landlord appoints a representative / manager to manage the property on its behalf. It can be in favour of the Landlord / Tenant / neutral.
Lease - Residential	Tenancy Agreement for the lease of residential property with options on rent-free period and early termination. This is generally for a longer-term (usually more than 3 years and can be registered). It can be in favour of the Landlord / Tenant / neutral.
Lease -  Commercial	Tenancy Agreement for the lease of commercial property with options on rent-free period and early termination. This is generally for a longer-term (usually more than 3 years and can be registered). It can be in favour of the Landlord / Tenant / neutral.
Lease -  Residential - Representative / Manager	Tenancy Agreement for the lease of residential property with options on rent-free period and early termination. This is generally for a longer-term (usually more than 3 years and can be registered). The Landlord appoints a representative / manager to manage the property on its behalf. It can be in favour of the Landlord / Tenant / neutral.
Guarantee to the Landlord in relation to Tenancy / Lease	A guarantee is given by Tenant's parent / employer / owner to the Landlord for the Tenant's obligations in relation to a lease / tenancy / rental. This is required for Tenants with insufficient credit (e.g. small company or overseas employee).  It can be in favour of the Landlord / Tenant / neutral.

TENANCIES, LEASES AND LICENSES

A tenancy or a lease is an arrangement whereby the owner of land, the landlord or the lessor, agrees to grant the right to possession of his land to the tenant or the lessee, for a fixed period, on the payment of rent. Where the term granted is long, the arrangement is usually referred to as a "lease”. Where the term is short, the arrangement is referred to as a “tenancy”. However, if the arrangement only gives a person a non-exclusive right to occupy another’s land, it is a licence (e.g. shared office, hotel or Airbnb types of arrangement).

Differences between a lease / tenancy and a licence: 

The main difference between a lease and a license, legally, is that a lease creates an interest in the land but a licence merely gives you permission to use the property. A licence to occupy is a legal agreement between the licensor (the part who owns the property) and the licensee (the seeking to occupy the property), giving the licensee the right to occupy the property for a defined length of time. A licensee has only a personal interest and this interest can be revoked by the landowner at any time.

There are a few advantages of entering into a tenancy of will for a licensor. Firstly, the licence is for non-exclusive possession. He therefore can let to several different businesses under separate agreements. Second is that occupation is on a short-term basis. The licensor is therefore not committed for a long period of time but instead is able to make a temporary arrangement. However, the main purpose of granting a licence to occupy a business is to avoid "security of tenure" in many jurisdictions (legal protection afforded to tenants under legislation against arbitrary rent increases and landlord's attempts to repossess the property through eviction). 

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