Guarantor wants OUT

Landlord Discussion
1

Tenants contract ending end of April, they have a guarantor, but guarantor wants out at end of contract. Tenants want a new contract but don’t have a new guarantor and they previously were continuously in arrears.

I have explained the above, they are not responding, at the end of this present contract, if they don’t have a guarantor I want to issue them notice to leave, when should I give them this notice? Would an email to all concerned through OpenRent be sufficient to end the contract end of April.

2

Allow the rental contract to go periodic, rather than sign a new tenancy agreement. Most Landlords recommend this approach anyway, especially if a tenant has been a late payer, as it doesn’t tie you in, and restrict your ability to evict.

I assume you have used Openrent contract. The Guarantors liability continues beyond the minimum term.

If you wish to end the contract you must serve a Section 21 notice, but you sound not knowledgeable about this, so major research needed, or get a professional involved, as its easy to do wrong.

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3

Hi thank you for your message, I will definitely ask before i sign the new contract, I wasn’t aware that it’s easier to get tenants out of a property with a rolling contract.
Would you get the grantor to sign again?

4

As above, dont do a new contract, just let it go periodi , but check the wording of your guarantor agreement to make sure it continues.

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5

sign what again? If it’s an AST, it will go periodic automatically. No one needs to sign anything.

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Guarantors do not get an ‘out.’ They are a Guarantor until the tenants move out. I have not seen one that is different. This means the tenant goes onto a periodic tenancy after the fixed term. No need to sign new contracts, You have more protection that way. Otherwise the tenant can stop paying as soon as the guarantor is released and you have a long battle of unpaid rent and legal costs on your hands. When the tenant moves out. The Guarantors obligations end. My friend has an 11 years old tenancy. They had a Guarantor… they are still liable should problems arise, as they are on a rolling tenancy.

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Hi thank you for the advice given on this topic, I did change my mind, the tenants had all signed so had the guarantor, I let the contract roll, the tenants were not happy.

I feel more in control of the whole situation, they are still in arrears but are paying it off slowly.
Hopefully this will work for all parties. Thanks again.

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8

yes you did originally mention the arrears. Who is paying these “slowly”, the guarantor or the tenants?

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The tenants, as long as rent is being paid and arrears being paid off slowly I’m happy

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Just curious… did you approach the guarantor to pay you in full and leave the tenants to pay the guarantor back “slowly”?

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I messaged the tenants and guarantor through Open Rent explaining the situation.

Making them all aware.