Help With Lease Break

[regrow]

Hi all.

I have found myself with my first tenant challenge and would like to ask others who have found themselves in the same boat.

Here is the situation...

Tenant advises that she wants to break lease as her mother and one daughter have moved out and she now cannot afford the rent.

Now they were great tenants and I agreed as I feel it would be useless to try and keep her as a tenant if she no longer wanted to live in my IP.

I agreed as I thought that she was responsible for the rent and re-letting fees anyway.

So she moves out and stops paying rent. RE agent then sends her a letter to make good within 7 days. She dose not pay and the RE sends letter of termination for non payment. Lease is then cancelled.

Now the total money owed is roughly 2.5k plus the re-letting fee $390.

She says that the money owed can come out of the bond. Bond is $1560.

So she is really only behind in a small amount but it is still owed to me.

I cant find it just now but in the residential tenancies act point 52 states there is a $1k fine for implying that money owed is to be taken from the bond. Is this only if taken to court?

Is it worth while to claim on my landlords insurance for lost rent? $600 excess payable by myself increasing my loss.

Is it worth while to start court proceedings? More costs associated with this also increasing my loss.

Or should I just cut my losses and take the bond?

Problem is that I was asking an extra $10pw rent when trying to re-let the house, and the courts tend to favor the tenants.

She has offered to repay at $100pw when I demanded full repayment as it may be weeks before the bond is released.

What do you feel are my options from here?

Regards

 

[travelbug]

When you agreed to her moving out did you explain that she would be liable for the rent until you find a tenant, and release fees?

If not- good luck taking her to tribunal.

I'd take the $100 a week until it's paid.

 

[brianna]

hmmm, sounds like you may have made a number of mistakes here. Are you self managing?

when you said you aggreed for her to break lease it kind of sounds to me that you aggreed to cancel the lease. this would mean that she wouldn't be liable for any costs. In regards to a break lease, any tenant can break lease without the landlord's permission they just have to pay the relet fee and the rent until it is relet.

When reletting for a break lease you must advertise it at the current rent. You can't expect her to continue to pay rent while you are advertising it at a higher rent. In QLD this is a big no no.

Tribunal won't favour you with such mistakes, hopefully you can come to some arrangement with a repayment plan like travelbug suggested.

Brianna.

 

[regrow]

When you agreed to her moving out did you explain that she would be liable for the rent until you find a tenant, and release fees?

If not- good luck taking her to tribunal.

I'd take the $100 a week until it's paid.

Yes she was aware that she is / was liable.

hmmm, sounds like you may have made a number of mistakes here. Are you self managing?

when you said you aggreed for her to break lease it kind of sounds to me that you aggreed to cancel the lease. this would mean that she wouldn't be liable for any costs. In regards to a break lease, any tenant can break lease without the landlord's permission they just have to pay the relet fee and the rent until it is relet.

When reletting for a break lease you must advertise it at the current rent. You can't expect her to continue to pay rent while you are advertising it at a higher rent. In QLD this is a big no no.

Tribunal won't favour you with such mistakes, hopefully you can come to some arrangement with a repayment plan like travelbug suggested.

Brianna.

No managed by RE agent.

She wanted to break lease to which I agreed to as no point telling her no...under the impression she pays re let fee and rent till tenanted again.
This is where she stopped paying rent and RE agent sent out letter to rectify within 7 days. After the 7th day she still hadn't paid so RE agent sent out a letter of termination for non payment. Lease is then cancelled.

Property is in WA. Was not aware that it has to be advertised at same rent. Agent should have known though, but my fault at the end of the day.

Regards

 

[Animal Lover]

Hi There - Being a PM means its your job to understand all of the rules - just like any contract any time that you want to :change: anything its makes the original nul and void.
I was a pm for over 15years in NSW, QLD and WA and I still consult for re agents in all these areas and its one of the first things you learn when heading into the tribunals.
In my opinion the tenant has the right to claim that they dont owe you a cent apart from the 7 days prior to the agent terminating the lease. And the tenant can claim that the extra $10 was the reason why it too so long/ or wasnt renting. The judge is more than likely to not give you a cent either as there was a change in the lease - also in the laws it state that should you wish to increase the rent its deemed that you are no longer trying to fill the on-foot lease, but rather that you are strating fresh. Take what you can and leave it. Just my opinion.. and yes I know it sucks.

 

[regrow]

Being a PM means its your job to understand all of the rules - just like any contract any time that you want to :change: anything its makes the original nul and void.

I'm not a PM I pay a PM to do a job.

In my opinion the tenant has the right to claim that they dont owe you a cent apart from the 7 days prior to the agent terminating the lease. And the tenant can claim that the extra $10 was the reason why it too so long/ or wasnt renting. The judge is more than likely to not give you a cent either as there was a change in the lease - also in the laws it state that should you wish to increase the rent its deemed that you are no longer trying to fill the on-foot lease, but rather that you are strating fresh. Take what you can and leave it. Just my opinion.. and yes I know it sucks.

I am aware she only owes me up until the lease was terminated. This is what I am chasing. I was trying to see if it was worth taking her to the tribunal but from your and others replies I feel this is not the way to go.

If I claim the loss of rent on my landlords insurance it will cost me my excess for the small amount left over from what the bond will cover, say $600 excess to claim $1000 leaves $400 to me. Might be best to take up her offer to repay at $100 pw for the next 20 odd weeks.

Regards

 

[kathryn d]

Might be best to take up her offer to repay at $100 pw for the next 20 odd weeks.

Regards

When we have tenants make an offer, we write it up and have them sign it.

This actually happened today.
Tenant is a bit behind in the rent, and voluntarily requested to pay $100 month until caught up. It was written up and he signed.Goes a long way, if we need to take him to the tribunal in the future.

 

[redwing]

Geez Regrow,

Your lucky Dazz's not here to get stuck into you with this post

Your Landlords Insurance excess seems high?

 

[buzzlightyear]

Might be best to take up her offer to repay at $100 pw for the next 20 odd weeks.

Regards

I hope she does pay you, but that arrangement for someone who has already left your property, seems very unlikely to be honored in my experience. Would be totally different if she was still living in your IP.