Do HMO's have to now put deposit money in the tenancy deposit scheme?

confused_landlord

I own a house of multiple occupation. According to the Govt website, I was advised if the combined rent of all the occupants totalled more than £25,000 then I would not be able to give out 'assured shorthold tenancies' only 'bare contractual tenancies' whereby tenants are easier to evict if they are causing distress to other housemates and also deposits would not have to be put into the tenancy deposit scheme.

I was advised this situation has now changed, and I was wondering if anyone out there has any more news on wether or not I can still give out bare contractual tenancies.

Thanks in advance

theartfullodger

A multiplicity of questions here...

a) If you are a resident landlord (ie live at the HMO ) rules are different: Usually (?) occupiers of rooms are "lodgers" or "licencees" and there is no AST.. (even if the agreement says it is an AST).
b) If you are not a resident landlord and the occupiers have exclusive right & use of one room, then next quetion is - did they sign one common tenancy with them all as "jointly & severally" responsible?? if so...
i) Then currently if annual rent less than £25k it is an AST.. & if more than £25k but less than £100k it will be an AST from 1st October - in either case deposit MUST be in a scheme & LL gives tenants the "Prescribed information"...
......
if not one common tenancy but individual agreements for each room then (non-resident landlord)

ii) each has an AST, it is presumably (each agreement) below £25k p.a. and deposit, if any, MUST be in a scheme

Even if you give out "bare contratural" (whatever they are) when it should be an AST then you actually have an AST but not the paperwork... and if it ever gets to court you might appear less than competent. Suggest in these circumstances you issue new ASTs and get the paperwork all perfect...


Cheers!

Artful

clutton_2

i believe the limit has gone up to £100,000 in 'October.....

Mankysteve

I suspect by a bare Contract its one that has unfair contract terms.

tbs624

The rent threshold alters on October 1st 2010

A bare contract is one outside the Housing Act 1988 - NTQ used , rather than a S21 and so on.

Used for larger student lets and company lets


As Artful says, all those with a rent of less than 100k will become ASTs from Oct 1st