Hello,
I have two friends living in my property now. One of them wants to move out, and they want to find another tenant to replace him. I would have to amend the tenancy to accommodate that. On the OpenRent web site there is a “renew tenancy” button. Can anyone explain me: does this create a new tenancy, with all the legal consequences wrt the Renters Rights Act, or just carry on with the previous tenancy, but with new tenants?
Thanks in advance,
Evgeny
well @Dan4 in OR legal team or @mod_harry or @mod_emma can answer but RRA does apply to existing tenancies too. I’m assuming you mean free from eviction on some grounds for 12 months
I ‘think’ it may legally be regarding as continuing an existing tenancy if same terms (property rent etc) otherwise you’d have to re-serve the gas safety record etc but @David122 or @Karl11 may have a view
However if you are basically starting a new deal with at least one new person you’ll want to reference them /the new combination of tenants anyway and why wouldn’t you want them to be there at least 12 months anyway.
Good luck
@Evgeny1 this is a situation that comes up fairly often and the short answer is that replacing one joint tenant is not a simple renewal, it is effectively creating a new tenancy.
When you “renew” via OR’s button, that is designed for extending the agreement with the same people on the same terms. Swapping out one tenant changes the parties to the contract, which in practice means ending the existing tenancy and starting a fresh one with the new group.
The practical implications for you:
The “renew tenancy” button on OR is really for carrying on with the same tenants on new terms, not for a replacement. For a swap like this I would suggest contacting OR support directly, they should be able to advise on the correct process in their system.
I’m not sure this is strictly true. If a contract deed of variation was signed by all parties simply changinging a name, the same original contract would stay in place.@David122 may be able to advise. Not sure that would then be a new tenancy for RRA purposes
However that may not be what OR do. Looking at the OR page for ‘Renewal’ changing tenants it suggests the old tenancy is ended by tenant giving notice or mutual consent of all parties so there is a new tenancy, and it refers to a new contract
Best
I am currently going through the renewal process because one of my joint tenants is leaving and the other wishes to remain. Renewal signed by all parties for renewal to take place on 25 May. I must admit, it took me a little while to get my head around it. I wasn’t sure if I was doing a completely new tenancy or it was a continuation of the existing tenancy
I can now confirm the renewal is a continuation of the original tenancy. You are able to add/remove tenants/guarantors etc and maintain the original start date which means the notice periods don’t reset like they do with a completely new tenancy. Also all the tenancy documents are copied over from the original tenancy, so no need to re-serve tenancy documents.
The renewal will create an APT complaint with the Renters Rights Act.
Dear @Christopher32 and everyone else, thank you so much for your helpful replies! Just for my education, what is an APT complaint?
@Evgeny1 I think @Christopher32 means an APT (Assured Periodic Tenancy) which is compliant with the RRA.
This doesn’t sound right. If you are signing a new tenancy agreement, it must be a new tenancy agreement with a new start date surely, not a continuation of the original.
I do however appreciate that the deposit etc are re-alloted to the new contract and not started again.
Hi Karl
The renewal tenancy makes reference to the start date of the original tenancy: 7 August 2024 and the start date the renewal takes effect 25 May 2026. It is a continuation of the existing tenancy with one tenant removed and one guarantor added.
I do think the terminology used by Openrent adds to the confusion. If you look at the help files
“Changing a Tenant or Guarantor in a Tenancy.”
Step by step guide;
Select the relevant tenancy that you’d like to update https://www.openrent.co.uk/listingmanager/rentnowmanager
Click "Change Tenants / Guarantors " which will bring you to the renewal options screen.
Select the option to “Create Renewal”.
You can add tenants and guarantors by clicking the blue “Add Tenant” or “Add Guarantor” button. You can remove a tenant or guarantor by clicking the “Manage” button next to their name and then selecting “Remove”.
When adding a tenant or guarantor you will be provided with referencing options. You can proceed without referencing if you prefer.
You’ll have the option to make any other changes to the contract (you can see all of the details that you can change at renewal here).
Issue the new contract by using the green ‘Propose Renewal Terms’ button at the bottom of the page.
We’ll email any former tenants to confirm that they are no longer part of the tenancy and invite any new tenants or guarantors to create an OpenRent account.
Once all tenants, guarantors and co-landlords named on the new contract have signed we’ll invite you, as the lead landlord, to sign.
In step 1 they use the word update which I think is more fitting for the process.
In step 7 it says issue the new contract… which to me is confusing.
Best!
Hi all,
This appears to be more complicated that what @Christopher32 was suggesting. I have taken this up with the OR customer support, and I think this is the right thing to do for anyone with similar circumstances who stumbles upon this forum thread. I am still in the middle of this, but so far I have been told that a lot depends on whether it is the lead tenant that is leaving, or another tenant(s). And also, contrary to what has been suggested, renewing the tenancy via OR web site does create a new contract. These things might change over time. Will report when this is finalised.
Evgeny
The point here is that RRA protects tenants from eviction (on grounds of selling or moving in) in first 12 months of a tenancy (so the notice cant be served till end of month 8) So what counts as resetting the clock for this purpose.
Irrespective of what OR processes are (which are confusingly described), any housing solicitor could prepare a deed of variation to the current tenancy agreement to swap out a tenant for a new one and continue the current tenancy, at least in principle.
However if all the tenants get changed, or significant changes are made to the terms of the contract, a court might well still consider it to be a new tenancy. We dont know if the RRA provision would protect the tenant for 12 months from the date they were added to a tenancy, till such a tenant challenges a s8 ground 1 or 1a notice, but it would be suitably cautious to assume it would and plan accordingly.
@David122 may be able to advise further.
Good luck
So I spoke to OR support, and they told me not to use tenancy renewal for my case. Can someone please advise a good solicitor who can draft a deed of variation, and not charge a fortune for it?
You have a choice of either ending the tenancy for both through a deed of surrender and the starting a new tenancy for the remainer and new tenant, or downloading a deed of assignment and assigning the tenancy from the current two to the new two, with everyone signing. Both these things you can do yourself. You must give the statement of terms of an APT to the new tenant. If you’re not confident, join a landlord association and ask them to guide you through the process.
Im sure Openrent will need to be involved somehow though to register the name of the new tenant and to deal with the deposit.
You already have advice from openrent that even though their ‘renewal’ option allows changing of tenants, in your circumstances they recommend doing something else. What do they recommend?
You can do a deed of variation using eg rocket lawyer.
Source: Rocket Lawyer Free Lease Variation | Template & FAQs - Rocket Lawyer UK
The difficulty tho is that then it’s not recorded on Openrent 's system and for the deposit. Check which tenant they have recorded as lead tenant (and which the deposit registered against). If that is the one moving out them i suspect they may say you need to do a new tenancy.
https://help.openrent.co.uk/hc/en-gb/articles/360022130832-Can-I-change-the-lead-tenant
Try messaging @Dan4 on OR’s legal team for your options - Dan may be better able to advise than the general customer support team
Tbh if you are concerned about needing to be able to use section 8 grounds 1 or 1a in the next 8 months in order to be able to move back in or to sell with next 12 the safest thing would be to not be taking on a new tenant right now whether in a new tenancy or adding to a current one. We dont know how a court would view your attempt to get round the protection the RRA is meant to offer. It’s not exactly fair on the tenant either.
But it really doesn’t matter in the least- if you are concerned the s8 ground 1 or 1a could be challenged and consider that a real risk then you are looking at maybe a year or more delay to any sale/to moving in - 4 months notice plus the time to apply for possession and to go to court etc - current timescales for s21s were 6-12months or more I think, the s8 process needing judges considering evidence is bound to be slower. So that would be very likely to scupper any plans you have to move in or to sell and be very stressful meanwhile -there would be a chance of it being unsuccessful and having to start all over again. I’d just bite the bullet and either not have a new tenant meanwhile if there’s a high chance youll want to use grounds 1 or 1a in next few months, or have a new tenancy, wait the 12 months and use a s8 ground 1 or 1a which is definitely valid
Good luck
Thanks @David240 , what you are saying aligns with my own reasoning.
They recommend doing my own deed of variation and seeking independent legal advice.
1 speak to a solicitor
2 renting to friends…inadvisable in business
3 new rules are extensive and come with big penalties. If you have one property consider selling, this is no longer a hobby