Sub-leasing on a fixed term tenancy agreement

Question from Shelley Turner updated on 22nd November 2006:

Hi. This question pertains to a fixed term tenancy agreement. The property has an annexe (referred to as "the storage unit")that can be sublet. It was sublet for residential use, however, this was contested on the basis that the annexe was only to be sublet for "storage" purposes. Does this mean any sublease of the "storage unit" would be considered a "commercial lease" agreement and thus not subject to the Residential Tenancy Act? Thanks.

Our expert Jeff Montgomery responded:

The Residential Tenancies Act 1986 applies to tenancies for residential purposes only. If the annex is being subleased to another party for storage purposes, and not residential purposes, the Residential Tenancies Act will not apply.

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