Non assured tenancy

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    Non assured tenancy

    Dear Forum members

    Is it mandatory to put deposit in a protection scheme for non-assured tenancy agreements as well?

    Thanks

    #2
    What makes you think it isn't assured?

    Comment


      #3
      The tenant has his/her only or main home elsewhere. Plus this is the title of the agreement.

      Comment


        #4
        The title of the agreement is probably irrelevant unless it states that its NOT an AST, in which case it could still be assured but not shorthold. You would have to be pretty confident about it no being the primary address. For example student accommodaion is usually assured despite them saying they live wih their parents whenever asked

        Comment


          #5
          What if their circumstances change during the tenancy and it becomes assured without your knowledge?

          Comment


            #6
            Thanks for clarifying further. Its a non-AST as the person who signed the contract was using the property for serviced accommodation for corporate clients.

            Comment


              #7
              Yeah, right. Have you inspected to see who actually is there? Who supplied the tenancy agreement - please don't tell us he did.

              What rights do you have to end the agreement?

              Excuse my cynicism....
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

              Comment


                #8
                The agreement was supplied by the management company. Agreement can be terminated with immediate effect in first 6 months and with 2 months notice thereafter. Its a 3 year contract and we are in month 5.

                Comment


                  #9
                  Originally posted by Purple80 View Post
                  Thanks for clarifying further. Its a non-AST as the person who signed the contract was using the property for serviced accommodation for corporate clients.
                  That's your problem: Was: Past tense.

                  So when this "gentleman" (I assume tenant is named as a human not a company..) starts using it as his principle home (how would you stop him, how would you know...he could already be living there...) it becomes an AST, even if the paperwork says it isn't. See the first lines of Thatcher's 1988 Housing Act

                  http://www.legislation.gov.uk/ukpga/1988/50/section/1
                  1 Assured tenancies.

                  (1) A tenancy under which a dwelling-house is let as a separate dwelling is for the purposes of this Act an assured tenancy if and so long as—

                  (a) the tenant or, as the case may be, each of the joint tenants is an individual; and

                  (b) the tenant or, as the case may be, at least one of the joint tenants occupies the dwelling-house as his only or principal home; and

                  (c) the tenancy is not one which, by virtue of subsection (2) or subsection (6) below, cannot be an assured tenancy.
                  In future, if tempted into such an arrangement...
                  a) Don't, think again...
                  b) Only with your tenant a company (then it can't be an AST).
                  c) Supply your own tenancy agreement or use a company let from LL association

                  In answer to your question, I'd protect deposit in a scheme (within 30 days of being given deposit) or any s21 would be invalid.

                  (No offence but..) what training have you done in landlord/tenant law??
                  I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                  Comment


                    #10
                    Thanks for clarifying further. I agree with what you have mentioned. We are terminating the contract but he is alleging that I should have used a DPS for his deposit as the contract mentioned it.

                    Comment


                      #11
                      He can sue you for breach of contract then (but presumably he's suffered no actual loss so will get £0.)

                      However, if he sues on the basis it was an AST & he is due the up-to-3xdeposit.... I'd not like to guess the outcome...
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment


                        #12
                        What does "no actual loss" mean, if he actually sues for breach of contract?

                        Comment


                          #13
                          Who is the contract with, an individual or a company? Is it a company let agreement? If he supplied it, did you get it checked out legally before signing? What does it actually say about the deposit? If it says for example the deposit will be registered with one of the Gov't approved schemes then as Artful says, he could sue you for breach of contract, although probably wouldn't as presumably you still have the deposit so there would be no loss. If it really is as you describe then I don't believe there is any statutory requirement to protect the deposit.

                          I would be amazed if a contract that he supplied allowed you to terminate the agreement with immediate effect and without penalty. Have you read the small print?

                          Comment


                            #14
                            Thank You DPT.

                            Its the tenant who has terminated the contract and after reviewing the contract it does state that 2 months of notice is required unless the termination takes place within the first six months. It is month 5 at present.

                            The contract is with an individual and the contract does state that I will protect the money with DPS. However, I failed to do so. It was not intentional and I am happy to pay the deposit back but not adding 3x of it.

                            Comment


                              #15
                              I think, by company, people really mean business, although it obviously easier to demonstrate that a company is operating as a business.

                              Also, I was under the impression that the deposit protection schemes only provided protection for ASTs.

                              Comment

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