My new tenants moved in last Friday on a 12 month contract (I’d have put them straight on to a periodic tenancy had I had the choice but as far as I was aware OpenRent only issue ASTs until the new rules come in on 1 May). My question is about my current guarantors, I have a couple in the flat and they each have a guarantor. When they switch to a periodic tenancy on 1st May I trust I will not lose those guarantors?
Under RRA existing contracts stay valid other than any clause that are contrary to RRA (such a reference to 12m periods or automatic cpi rent increases or ‘no pets’ or rent in advance payments) become unenforceable and it becomes an offence to try to enforce these.
However nothing in RRA stops you having guarantors (if anything they are more needed than ever) so there should be no reason for concern.
Some people recommend separate agreements with guarantors anyway (there’s a potential issue if other changes are made to contract such as rent increases and guarantor does not sign the changes).
Best
David
Thanks David, so the guarantors just remain on the periodic tenancy agreement and I don’t need to do anything. I have been advised that I should have a Deed of Guarantee for the guarantors which requires witnesses to oversee the guarantors signatures, is that what you are referring to above when you mention a separate agreement? Is this Deed of Guarantee done through the OpenRent system?
Check the wording of the OR guarantor agreement, but its likely that it will remain valid.
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@Joanne44 yes that’s exactly what I was referring to