Licence Agreement Tenancy Agreement

License Agreement vs. Tenancy Agreement: What`s the Difference?

When it comes to renting agreements, there are two main types: License Agreements and Tenancy Agreements. While these two agreements may seem interchangeable, there are significant differences between the two that should be taken into consideration.

License Agreement

A License Agreement is a non-exclusive, revocable agreement that allows the licensee (the person renting the property) the right to use the property of the licensor (the owner of the property). Essentially, this means that the licensee is being granted permission to use the property, rather than the right to possess it.

In a license agreement, the licensor retains control over the property and has the right to terminate the agreement at any time. This type of agreement is commonly used in scenarios such as sharing office space or renting a parking spot.

Tenancy Agreement

On the other hand, a Tenancy Agreement is a legally binding agreement that grants the tenant (the person renting the property) the right to occupy the property for a specific period, usually six or twelve months. In a tenancy agreement, the tenant has the right to possess the property and make it their home.

In this type of agreement, the landlord gives up control over the property to the tenant for the duration of the agreement. However, the landlord still maintains certain rights, such as the right to inspect the property, the right to receive rent payments, and the right to evict the tenant if certain terms of the agreement are broken.

Key Differences

The main difference between a license agreement and a tenancy agreement is the level of control the owner of the property retains. In a license agreement, the owner can revoke the license at any time and retain control over the property. In a tenancy agreement, the tenant has the right to possess the property and make it their home.

Another key difference between the two agreements is the level of legal protection offered to the tenant. In a tenancy agreement, the tenant is protected by the law, and the landlord must follow specific procedures when it comes to eviction and rent increases. In a license agreement, the licensee generally has fewer legal rights and protections.


In summary, it`s important to understand the difference between a License Agreement and a Tenancy Agreement. While they may seem similar, these two agreements offer different levels of control and legal protection to both the landlord and the tenant. It`s always best to consult with legal professionals to ensure that you`re choosing the appropriate agreement for your needs.