Licence Agreements For Shared Therapy Rooms

Yes, if you're letting another therapist use a treatment room in your clinic, you should usually have a written therapy room licence agreement in place.

The slightly trickier part is making sure the agreement matches how the arrangement actually works. A flexible shared room arrangement can be a licence, but if the therapist has exclusive control of a room for a fixed period, the law may treat it more like a lease, even if your document calls it a licence.

That distinction matters because it affects your control over the room, how easily you can end the arrangement, and whether rights under the Landlord and Tenant Act 1954 could become relevant. The good news is that you can avoid many headaches by setting clear terms from the start.

What Is A Therapy Room Licence Agreement?

A therapy room licence agreement is a type of property licence agreement that gives a therapist permission to use a room or space in your clinic on agreed terms, without giving them the same rights as a tenant under a lease.

You might use one if you run a clinic, counselling practice, wellness centre, physiotherapy studio, aesthetics clinic or similar space, and you want to let independent practitioners use a room by the hour, day or session.

For example, Maya runs a small counselling clinic in Manchester. She uses two rooms herself from Monday to Thursday, but one room is empty on Fridays. She lets an independent therapist use that room every Friday between 9am and 5pm. A well-drafted counselling room hire contract can set out the Friday access, fees, cleaning rules, confidentiality duties and insurance requirements, without giving the therapist full control of the room all week.

A room licence agreement usually covers things like:

• Which room or rooms can be used
• When the therapist can access the premises
• Fees, invoicing and late payment consequences
• What services can and can't be provided
• Use of furniture, equipment, waiting areas and shared facilities
• Client records, privacy and confidentiality
• Insurance, professional registration and regulatory responsibilities
• Cleaning, security, keys and alarm codes
• How either side can end the arrangement

Templates often miss the operational details that make shared clinics work smoothly. Your agreement works best when it's tailored to the way your rooms, bookings, clients and regulatory responsibilities actually operate.

Is A Therapy Room Licence The Same As A Lease?

No, a licence and a lease aren't the same, and calling your document a licence won't automatically make it one.

In England and Wales, the key issue is often whether the therapist has exclusive possession of the space for a period of time. If they do, and the arrangement looks like a tenancy in practice, it may be treated as a lease even if your agreement says otherwise.

A flexible occupancy licence for shared space in a clinic is more likely to be a licence where:

• The therapist uses the room only at specific booked times
• You can move them to another suitable room if needed
• You and your staff retain access to the room
• The therapist doesn't have exclusive control of the room
• The room is also used by others outside the agreed sessions
• The arrangement is genuinely about permission to use space, not occupation of premises

A lease is more likely where:

• The therapist has one particular room to themselves
• They can exclude everyone else, including you, from that room
• They have continuous access, not just sessional access
• They store their equipment there permanently
• The agreement runs for a fixed term and looks like a landlord and tenant relationship

This matters because business tenants can sometimes have renewal rights under the Landlord and Tenant Act 1954, unless the lease has been properly contracted out. A lease can also be harder to end, and may require formal steps that don't apply to a true licence.

You should also check your own lease if you rent the clinic premises. Many commercial leases restrict sharing, subletting, licences to occupy or use by third parties without landlord consent. If you ignore those restrictions, you could put your headlease at risk.

What Should Your Therapy Room Rental Terms Cover?

Your therapy room rental terms should cover the practical details of how the room will be used, paid for, maintained and handed back.

At a minimum, your agreement should be clear about the basics:

• Parties: who owns or operates the clinic, and who the therapist is contracting through, such as a sole trader or limited company
• Premises: the clinic address and whether the agreement covers one named room, any suitable room, or shared facilities
• Permitted use: the type of therapy, treatment or consultation allowed
• Hours: session times, set days, booking process and access outside normal hours
• Fees: hourly, daily, sessional or monthly rates, VAT treatment if applicable, deposits and payment dates
• Facilities: whether the therapist can use reception, waiting areas, toilets, kitchen, Wi-Fi, towels, couches or clinical equipment
• Behaviour standards: noise, client conduct, cleanliness, professional boundaries and respectful use of shared areas
• Branding: whether the therapist can use your clinic name, appear on your website or put up signage
• End of use: what must be removed, cleaned and returned when the arrangement ends

You should also be clear about what isn't included. For example, if you aren't providing reception services, appointment management, clinical supervision, chaperones, consumables or client follow-up, say so.

This is especially helpful where the therapist is an independent business using your space. The agreement shouldn't accidentally make it look like they're your employee, agent or part of your regulated service if that isn't the commercial arrangement.

How Should Confidentiality And Client Records Be Handled?

Confidentiality and client records should be handled separately from general room hire terms, because therapy work often involves sensitive personal information.

Under the UK GDPR and the Data Protection Act 2018, health information and therapy notes can be special category personal data. That means you need a clear legal basis and extra care around collection, storage, access and security.

Your agreement should say who is responsible for client records. In many room hire arrangements, the therapist is an independent controller of their own client notes and records. Your clinic might be a separate controller for booking data, visitor logs, CCTV footage or payments you process.

It's worth spelling out points such as:

• Who collects client information
• Who gives privacy notices to clients
• Who stores clinical notes and for how long
• Whether any records can be kept at the clinic
• Whether paper files must be stored in a locked cabinet
• Whether electronic records must be password-protected and encrypted where appropriate
• Who can access appointment diaries, emails and booking systems
• What happens if there's a data breach

Confidentiality clauses should cover both client information and your business information. For example, the therapist shouldn't disclose your pricing, booking processes, staff information, supplier details or other confidential clinic information.

You should also think about conversations in shared spaces. If clients wait near reception or other treatment rooms, your rules might require therapists to avoid discussing sensitive details where others can overhear them.

If you share any personal data with the therapist, or they use your systems, you may also need a data sharing arrangement or data processing terms. The right approach depends on who decides how and why the data is used.

Do CQC, Safeguarding And Health And Safety Rules Matter?

Yes, CQC, safeguarding and health and safety rules can matter, depending on the services being provided and who is responsible for them.

If your premises are in England, the Care Quality Commission regulates certain health and adult social care activities. Not every counselling, therapy or wellness service needs CQC registration, but some services can fall within regulated activities, depending on what is being done, who is doing it and the type of client care involved.

If your premises are in Wales, different regulators may be relevant, such as Healthcare Inspectorate Wales or Care Inspectorate Wales, depending on the service.

Your agreement should avoid blurring responsibility. If the therapist is an independent practitioner, the contract should make clear that they're responsible for:

• Checking whether their services require registration or approval
• Holding any professional memberships, registrations or qualifications they need
• Following relevant professional standards and codes of conduct
• Managing client consent and clinical records
• Handling safeguarding concerns within their professional duties
• Making sure their treatments are within their scope of practice

From your side as the clinic operator, you still need to manage the premises safely. That can include fire safety, emergency exits, first aid arrangements, cleaning procedures, accident reporting, safe equipment, accessibility considerations and risk assessments under health and safety laws.

There's also a reputation risk. If a therapist uses your clinic name, your reception, your website profile or your booking system, clients may assume the therapist is part of your business. Your agreement and client communications should match the reality of the relationship.

For higher-risk services, such as invasive aesthetics, acupuncture, physiotherapy, clinical psychology, medical treatments or services for children or vulnerable adults, it's sensible to get tailored advice before you hand over the keys.

What Insurance And Risk Protections Should You Ask For?

You should usually ask the therapist to hold their own insurance, because your clinic's policy may not cover independent practitioners using your rooms.

The exact cover depends on the service, but your agreement might require evidence of:

• Professional indemnity insurance: for claims relating to professional advice, treatment or therapy services
• Public liability insurance: for injury or property damage linked to the therapist's use of the premises
• Product liability insurance: if products, creams, oils or devices are supplied or used
• Employer's liability insurance: if the therapist brings staff or assistants, where required
• Contents or equipment cover: if the therapist stores equipment at the clinic

You can set minimum insurance levels in the agreement. There's no single figure that suits every clinic, so this should reflect the type of therapy, client risk, landlord requirements and your own insurer's expectations.

The agreement should also say the therapist must provide insurance certificates on request and notify you if cover is cancelled, reduced or not renewed.

Risk clauses can also deal with damage to the room, loss of keys, misuse of alarm codes, infection control, clinical waste, use of sharps, electrical equipment and cleaning after each session.

If the therapist uses your equipment, decide who is responsible for training, maintenance, breakages and checking that equipment is safe. For anything clinical or treatment-related, vague wording can create problems later.

How Should Access, Cancellations And Termination Work?

Access, cancellations and termination should be practical, specific and easy to follow, because most disputes start with diaries, money or keys.

Access Arrangements

Your agreement should explain exactly when and how the therapist can enter the premises. For example, can they arrive 15 minutes before a session to set up? Can they stay after hours to write notes? Can they access the building on bank holidays?

You should also cover:

• Keys, fobs and alarm codes
• Whether keys can be copied or shared
• What happens if a key is lost
• Parking and entry for clients
• Reception and waiting room use
• Emergency access by you, your staff or contractors

For a licence, it helps to keep some operational control. For example, you may reserve the right to access the room for inspections, maintenance, emergencies or to move the therapist to a comparable room if needed.

Cancellations And No-Shows

Your cancellation terms should say when a booking becomes chargeable and what happens if either side cancels.

For example, you might say that the therapist must pay the full room hire fee unless they cancel at least 48 hours before the booked session. Or, for a regular weekly arrangement, you might allow a limited number of cancellations per month.

If you may need to cancel because of repairs, staff sickness, building issues or an emergency, say what remedy applies. That could be a refund of the room fee, a credit, or an alternative room if available.

Ending The Agreement

There's no automatic notice period that fits every therapy room licence. You can agree one that suits the arrangement.

Common options include:

• Short notice for ad hoc or hourly bookings
• Seven days' notice for flexible sessional use
• One month's notice for regular rolling arrangements
• Longer notice for more committed arrangements, if that makes commercial sense

You should also include immediate termination rights for serious issues, such as non-payment, unsafe practice, breach of confidentiality, lack of insurance, regulatory concerns, damage to the premises, criminal conduct on site or behaviour that puts clients or staff at risk.

Without a written agreement, you may struggle to recover unpaid invoices, stop unauthorised access, or prove what was agreed about client records and responsibilities. Clear exit terms make the arrangement easier to manage if things don't work out.

Key Takeaways

• A therapy room licence agreement lets you offer flexible room hire without necessarily creating a lease, but the facts need to match the paperwork.
• If the therapist has exclusive control of a room, the arrangement may be treated more like a lease, with extra legal consequences.
• Your agreement should cover fees, access, permitted use, cancellations, cleaning, equipment, insurance and termination.
• Client confidentiality and records need careful handling under the UK GDPR and the Data Protection Act 2018.
• CQC-adjacent risks, professional registrations and safeguarding responsibilities should be clearly allocated.
• Check your own commercial lease before allowing another practitioner to use your clinic rooms.

If you'd like help with your therapy room licence agreement, confidentiality and client record terms, insurance requirements or shared clinic access arrangements, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.