A tenancy exists where someone lets premises to another for a term in return for a rent.

The term of the letting is usually a number of years. It is, however, possible to create a weekly, quarterly or yearly tenancy.

The expression "business tenancy" is commonly used to refer to a tenancy of premises used for the purposes of a business. The premises may be a building, part of a building or even open land, used for example as a haulage depot. Business in this context, however, does not include agriculture, where a different set of rules and customs applies.

In many ways the law relating to business tenancies is the same as for any other type of tenancy. There are, however, several distinguishing features which apply specifically to business tenancies.

One key distinction between business tenancies and other tenancies is that with a business tenancy the tenant normally has the right to apply to the county court for the grant of a new lease at the end of his term. This is known as “security of tenure” and means that the lease does not automatically end when the term expires, but is renewed and continues on substantially the same terms as before save as to the rent payable.

Whether or not a business tenant has security of tenure will depend on whether the lease was granted for a fixed term in excess of six months and the tenant has been in occupation of the premises for at least 12 months.