TENANCY AGREEMENT

[dmahzz]

We have tenants moving in on a short term contract but will change to long term after 6 months. Do they by law have to fill in a new gaurantor form after this period or can we still retain the old one - will that still be valid

[Grampa]

To be 100% safe then the answer is yes get the guarantor to resign on every renewal. But in the real world that isn't always possible due to some guarantors living the other side of the country. Posting the guarantor document off to them to sign causes other sort of problems such as getting the signature witnessed. You also have the argument that someone who signs a tenancy agreement or guarantor agreement at home has the right of a cooling off period (i think 14 days) So you could have the situation of the tenant resigning because the guarantor has resigned and then the guarantor changing their mind.

I agree this situation is unlikely but could happen.

Our deed of guarantee which we use is a very short document but clearly states the guarantor is a guarantor for the period of the tenancy, any re-grant of tenancy, any periodic tenancy and and rent increase. (with the same tenants)It also states they cannot choose not to be the guarantor without a replacement guarantor in place.

Before anyone says it I know the the above clauses may be classed as an unfair term and I have yet to test them in front of a judge but whenever I have had to chase a guarantor they have always paid up and I know some took legal advice.

With a guarantor you have to make sure the document is a deed and witnessed and the guarantor MUST have a copy of every contract and copy of any section 13 notice sent.