Non Assured Tenancy Agreement
When should this tenancy agreement be used?
This is for use in three situations:-
- Where the rent is not more than £250 per annum.
- The tenant has his/her only or main home elsewhere. If there are joint tenants each of them must have their only or main home elsewhere. You need to be sure of this situation and as certain as you can be that it will continue for the duration of the tenancy. For example if a tenant lives with his family elsewhere at weekends and uses the property during the week returning home at weekends.
- You are resident as landlord but do not share living accommodation with the tenant. This means that you must not share toilet, bathroom, kitchen or a living room with the tenant. However, your residence elsewhere in the same property must be your only or main home and not your second home.
Do I need to protect the deposit?
In all the above cases as the tenancy is not an assured tenancy you can take a deposit without having to pay it into the Government's tenancy deposit scheme.
How do I end this tenancy?
To end this tenancy you do not need to give a Section 21 or Section 8 Notice. It is a common law tenancy. As it starts the fixed term tenancy the tenant can stay there until the end of the fixed term. Thereafter it becomes a monthly tenancy. You will need to give a notice to quit to end the tenancy.
NB: Previously, this agreement could also be used where the rent exceeded £25,000 per annum. However, the maximum rent level for an assured tenancy is raised to £100,000 effective from 1st October 2010. After that date all tenancies where the rent is between £25,001 and £100,000 automatically becomes assured tenancies whenever they were created. The provision is retrospective. They become assured shorthold tenancies automatically so long as the tenancy first commenced after the 28th February 1997. The RLA therefore no longer provide an agreement for this situation.
Do you use guarantors?
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).
For more information on guarantor obligations and cancellation rights please see the explanatory guide attached to the RLA guarantor forms here.
Is this the correct Tenancy Agreement for you? Read the RLA Guide to Tenancy Agreements.