Permitted occupiers aren’t classed as Tenants. They can’t be bound by the Tenancy Agreement, and aren’t responsible for paying rent or looking after the property. Instead, the Tenant(s) assume full responsibility for them. The clause acknowledges their right to live there, but permitted occupiers don’t have legal rights to the property.
Take note - If the Tenant leaves, so must the Permitted Occupier.
Why might Landlords include this clause?
One example is those with children at university. They’re not responsible for the property, but will likely stay there from time to time.
Another example is where one occupier doesn’t work. The Landlord might like to avoid granting them full rights.
If someone lives in the property from time to time — but doesn’t really qualify as a Tenant — it’s best to record them in the tenancy agreement.
Permitted Occupiers do not need a guarantor.