DepositGuard Compliant Assured Shorthold Tenancy Agreement - Room Only

When should this tenancy agreement be used?

This is for use where you, the landlord, do not live in the property, protect your tenant's deposit with DepositGuard and you rent out the property by the room.

Important

This version has important differences in its terms and conditions that make it applicable only for use with DepositGuard, the RLA service that provides landlords with access to the TDS deposit scheme.

The accommodation will be non self contained so that the tenant will share facilities (e.g. a bathroom or kitchen) with other tenants in the same house/building.

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What type of tenancy does this create?

The tenancy created by this agreement is an assured shorthold tenancy (AST) within the Housing Act 1988.

Do I need a different tenancy agreement?

If you are renting out individual rooms and you have no deposit or you are using a deposit scheme other than DepositGuard, the Assured Shorthold Tenancy Agreement - Room Only is the appropriate form.

If you are using DepositGuard but renting out the entire house or flat on one tenancy then you should use our DepositGuard Assured Shorthold Tenancy Agreement instead.

Where you are renting out the whole property on one tenancy, and protecting your tenant's deposit through a deposit scheme other than DepositGuard, you should use our standard Assured Shorthold Tenancy Agreement (AST) instead.

In some circumstances, an assured shorthold tenancy agreement of any type would be the wrong type of agreement. The RLA has a number of other types of tenancy agreement to cover these circumstances so where you are letting your property to a company, you are thinking of getting a lodger for your own home, or you need a non-assured tenancy agreement we have the right tenancy agreement for you.

If you are still unsure which tenancy you need then you can also check our guide to tenancy agreements.

I am happy with my current tenancy. Can I still use DepositGuard to protect my deposits?

This version of the tenancy agreement is perfectly suited for use with DepositGuard, but you can use your own tenancy agreement as long as you do one of the following things:

Arrange for some additional terms to be included within your existing tenancy agreement - this may require advice from your solicitor to make sure the additional conditions do not clash with any other existing conditions.

or

Attach an addendum to your existing tenancy agreement which includes the additional terms - again, this may require advise from your solicitor to make sure the additional conditions do not clash with any other existing conditions.

If you are renting out the flat or house on one joint tenancy, and you are using the DepositGuard scheme to protect your deposit, you will need to use our DepositGuard Assured Shorthold Tenancy Agreement instead.

Can I use this tenancy agreement if I choose one of the other approved deposit schemes?

No. You must only use this agreement with DepositGuard. If you use one of the other government approved schemes please use our standard room only AST.

Do I need to protect the deposit?

Any deposit paid must be protected under one of the Government approved tenancy deposit schemes. This version of the room only AST is ONLY for use when collecting a deposit and protecting it through DepositGuard. If you prefer not to take deposits, then our standard room only AST can be used.

How do I protect my deposit with DepositGuard?

You can protect the tenant's deposits via the deposit management page. We also have a step by step step by step userguide to assist with this.

How do I end this tenancy?

You can use the section 21 procedure to obtain possession provided the fixed term of the tenancy has come to an end or will soon expire. If the tenant breaches the agreement inside the fixed term of the tenancy you will need to serve a Section 8 notice.

Why should I use the RLA Assured Shorthold Tenancy Agreement?

The RLA Assured Shorthold Tenancy Agreement (AST) offers the following benefits:

  • Complete On-Screen - Fill in all your information on your PC using Adobe Reader and save it so you always have a record for your files.
  • Easy to Understand - The agreement is in plain English, meaning there is no jargon, gobbledygook and other confusing language.
  • Tenancy Deposit Scheme Ready - The RLA tenancy agreement includes information relating to the handling of deposits.
  • Proven Protection - The RLA tenancy agreement is in widespread daily use and is widely acknowledged in the industry. It has protected landlords for many years.
  • Constantly Developed - As soon as Housing Law is changed, our tenancy agreement is updated by the RLA. Use in confidence that you will not fall foul of legislation.
  • FREE Telephone Support - Advice on any aspect of the tenancy lifecycle is available to RLA members
  • Completion Instructions - are available to assist you in completing the tenancy agreement.

What's new in the 2017 tenancies?

  • In light of the decision in Broadley v Leeds City Council, the RLA has decided to move back to using contractual periodic tenancies instead of statutory periodic tenancies. This amendment means that whenever you give this tenancy for 6 months or more, the tenant will be liable for council tax until the tenant's valid notice expires. Previously, if a tenant left without giving notice or before their notice expired, then the landlord became liable from the moment they left.
  • In addition, the clause relating to the storage of the tenant's belongings after the tenancy ends has been updated. Now the landlord can dispose of the goods after 14 days provided they have followed the procedure set out in the tenancy clause. Previously this could entail waiting up to 3 months to dispose of the goods.
  • Members in Wales should be aware that this means that they will need to serve a notice under section 21(4) of the Housing Act 1988 to evict a tenant in a periodic tenancy rather than under section 21(1) of the Act.
  • Members in England and Wales should contact the Landlord Advice Team directly on 03330 142 998, before signing the agreement, if they intend to take all of the rent for the entire tenancy in one payment.

What else do I need before I sign this tenancy?

Many experienced landlords and agents get into the good habit of providing a welcome pack for their tenants to sign prior to them moving in. This lets the tenant know all of their responsibilities, but it also protects the landlord by covering everything they are legally required to do beforehand.

A good welcome pack should include:

  • a copy of the check-in inventory for the tenant to approve. Without a good inventory, it is extremely unlikely that you will be able to make deductions from the deposit for damages. A high quality inventory is something that the landlord can perform themselves if they wish and the RLA offers an online training course to help landlords learn how to do this. We also recommend landlords use the Inventory Plus app to produce detailed inventories with pictures.
  • the energy performance certificate (EPC) for the property. Landlords are required to provide their tenants (and anyone who comes to view the property) with an EPC at the earliest opportunity. If they don't, they may face a fine and in England they cannot serve the section 21 form until it has been served. If you have lost your copy of your EPC you can get a replacement copy for free from epcregister.com. Alternatively, if you need an EPC, you can order one for just £55 + VAT.
  • the gas safety certificate for the property. By law, all landlords must ensure their gas appliances are safe every 12 months by having a Gas Safe Registered Engineer inspect the property. The landlord must provide an up to date copy to the tenant or face a fine and/or criminal sanctions. In England, landlords also cannot serve the prescribed section 21 form until the gas safety certificate has been served on the tenant.
  • the deposit certificate, prescribed information and scheme leaflet. If you take a deposit, you are required to provide all of the deposit information to the tenant and anyone who has paid towards the deposit within 30 days of receiving the money. Each scheme has different information and your first step should be choosing which scheme you want to use as it will dictate what goes in your welcome pack, as well as what goes in your tenancy agreement!
  • a copy of 'How to rent: a checklist for renting in England'. In England, landlords are required to give this document at the start of any tenancy beginning or renewed on or after October 1st 2015. This does not apply to Wales.
  • your contact details if you are managing a House in Multiple Occupancy (HMO). Landlords who rent out a property to 3 or more people, where at least two are not related, should provide their name, address and any telephone contact number to every tenant. They should also display this prominently somewhere in the property.
  • the electrical safety certificate. Currently, only HMOs are required to get an electrical safety certificate every 5 years. However, this is set to change to cover all rented properties in the near future and you may want to get ahead of the curve.
  • instructions on how to use any appliances. The best way of making sure your tenant doesn't break your washing machine is letting them know how to work it properly!
  • details on the current utility providers. It can be a pain for landlords when they find out that the tenants have not notified their utility providers when moving out or in. The RLA has partnered with Utilitease to provide a free service for our landlords to make utility switching easier, as well as helping to protect you from being chased for a tenant's unpaid bills.
  • confirmation the tenant has received any documents they are legally required to have. It is vital that landlords get some evidence that they have complied with their legal responsibilities. To assist with this, the RLA has prepared a start of tenancy checklist for the tenant to sign to show the landlord has performed all their legal requirements.

In addition to the welcome pack, you should never sign the tenancy agreement, or hand over the keys, until you have successfully completed your referencing and credit checks of the tenants or guarantors. The tenant should also pay the deposit and their first rent period in advance before you agree to sign the agreement.

Warning

You must perform the right to rent checks for everyone over 18 who wants to move into the property. If you don't do this before signing, you could go to jail!

Is this tenancy suitable for HMOs? If so, why?

Yes this tenancy is ideal for HMO properties.

If you are renting out a property to 3 or more people, at least 2 of which are unrelated, then you will need to comply with the HMO management regulations or risk significant penalties. The best way of doing this is to have regular access to the property for inspections. As this tenancy type allows the landlord access to the communal areas of the property, this is ideal for the management of an HMO property.

I want to use a guarantor. What do I need to be aware of?

To avoid potentially successful unfair terms challenges, the RLA recommends that a new guarantor form should be provided to the guarantor for their signature prior to every new tenancy. This includes renewing an existing tenancy (or when you expressly agree to extend a tenancy).

You must send an unsigned, but completed, copy of the proposed assured shorthold tenancy agreement alongside the deed of guarantee. You should also allow the proposed guarantor sufficient time to read the document and take legal advice if necessary. This will typically be at least 7 days before the start of the tenancy agreement. Failure to do so will likely make your guarantee unenforceable.

For more information on guarantor obligations and cancellation rights please see the explanatory guide attached to the RLA guarantor forms.

Renting out a property with a Green Deal charge?

Are you entering a Tenancy Agreement with a new tenant for a property for which a Green Deal charge is payable?

If so - the Tenancy Agreement must contain a prescribed form of acknowledgement under which the tenant agrees to pay off the Green Deal charge.

If you fail to comply you may well have to repay the full Green Deal charge at once rather than repaying via a charge on the electricity meter.

Where a new tenant becomes the bill payer, they must be given a copy of the Energy Performance Certificate (EPC) giving details of the Green Deal before they view the property or at the first viewing and then sign the required acknowledgement in the Tenancy Agreement itself to say that they agree to pay the ongoing Green Deal charges.

The wording you need to insert is available on the government's website. Alternatively, please contact the Landlord Advice Team for assistance.

Unsure whether your tenant is over 18?

If there is any uncertainty as to whether the prospective tenant is aged 18 or over you must check. Obtain a copy of their birth certificate/other proof of age. If you let someone under 18 use this agreement it could be much more difficult to obtain possession (e.g. due to rent arrears or because the tenancy has run out, whilst they remain under the age of 18).

Landlord & Investment Show
Martin Co
Envirovent
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