Any risk in letting a tenant get access early?

Discussion in 'Property Management' started by RogerP, 7th Apr, 2021.

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  1. RogerP

    RogerP Well-Known Member

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    I have a new tenant. They'll be moving in on a Monday. They've asked if they can collect the key on the Sunday night. Think they work full time so it's just easier to get the key on the weekend.

    They've already paid bond and 2 weeks rent and the old tenant will likely be out by the Sunday night.

    Any risk in giving them early access? I'm not interested in charging then extra rent or whatever. Just want to make sure I'm aware of any risk before I grant the request.
     
  2. wylie

    wylie Moderator Staff Member

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    Why not change the lease start date to Sunday?

    What is the final date for the vacating tenants?

    If there is any chance of an overlap, just say no. I've allowed this before, but would think twice these days, in case something went wrong and I was put in a position of defending my decision.
     
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  3. balwoges

    balwoges Well-Known Member

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    When are you going to carry out the final inspection of previous tenant for return of their bond? You need to do that before handing over keys to new tenant.
     
    Last edited: 7th Apr, 2021
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Change lease date to Sunday. Then he can collect key Sunday, and obviously start paying rent from Sunday. Only downside of this is that rent will then be due Sunday (assuming you pay weekly or fortnightly), meaning if it lands with you on Monday he'll be a day late every payment. Not a big deal.

    The bit that might be a big deal is you said other one likely be out by then. How likely? What is your plan if they havent even started moving? Or what is your plan if it needs significant cleaning / repairs between tenants?
     
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  5. Phoenix Pete

    Phoenix Pete Well-Known Member

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    Has the new tenant signed the lease already and the property is still occupied? If so, this is breaking one of the cardinal rules of tenancy.

    A lease should NEVER be signed by a tenant unless the owner or agent is absolutely certain that the property is vacant and ready for occupation.
     
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  6. NedKelly

    NedKelly Well-Known Member

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    AND you also need an entry condition report after it has been cleaned.
     
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  7. Coen

    Coen Well-Known Member

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    Is this really what everyone does?
     
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  8. RogerP

    RogerP Well-Known Member

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    Are you saying you literally wait for the previous tenant to completely move out before you sign the lease of the new tenants? That seems like you're going to have a month or so of the house being empty every time the tenant changes.
     
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  9. RogerP

    RogerP Well-Known Member

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    yep, I'll be doing the final inspection with the old tenant probably about a week or so before they the new tenants move in.
     
  10. Gockie

    Gockie Life is good ☺️ Premium Member

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    The old tenant should have moved all their belongings out and cleaned the place before you do the final inspection. Will that be the case in your inspection?
     
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  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Agree with above comments, in summary:

    - When are you going to do your exit inspection and allow time for rectification works if the tenants changeover on the same day? (and a Sunday at that!).

    - Change lease start date to commence Sunday, no issues at all. I believe there are insurance implications for providing access prior to commencement.

    - It is best practice not to sign a lease before an old tenant has moved out, to avoid complications if tenant does not move, but it is common practice to do so anyway. Often people will advertise and accept a tenant well in advance, but wont sign the actual lease until the old tenant vacates. I'd argue if you've taken any sort of consideration and provided written acceptance, you still have an agreement in place with or without the paper lease. The only way to completely avoid that scenario is to simply avoid approving anyone until the old tenant moves out, which would cause unnecessary vacancy. It's all about risk management.
     
  12. Phoenix Pete

    Phoenix Pete Well-Known Member

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    Yes... every time and without fail. The new tenant/s don't sign the lease until I can confirm 100% that the previous occupants (owner, tenant or otherwise) have moved out.

    I have heard of cases very early on in my PM career where property managers allowed the new tenants to sign the lease and they turned up to the office asking for the keys only to be told that the property was still occupied. Not a nice situation to find yourself in especially when new tenants have removal trucks packed with all their stuff and ready to move into their new premises.... so I avoid all risk of that happening to me by sticking to my cardinal rule.

    No it doesn't. You obviously have the tenant/s approved and lined up to move in shortly after the existing occupants vacate... and I explain to them that I can't confirm the exact lease start date until I confirm that the property is vacant. I have never had a new tenant not be happy with that explanation.. then, provided all is ok with the property.. they often sign/start the lease a few days later.
     
    Last edited: 8th Apr, 2021
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  13. Phoenix Pete

    Phoenix Pete Well-Known Member

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    Are owners/agents advertising properties with an availability date as the same date a tenant/owner/occupier is due to move out or the day after?

    If so, this is simply asking for trouble. I put the availability date as 2-3 days after the keys are due to be returned unless I know there either will be issues with the property or that the owner is arranging for some works to take place.

    The 2-3 day gap gives me time to get the outgoing and ingoing done properly. If there are any complications then I advise the new tenants straight away so they are aware.
     
    Last edited: 8th Apr, 2021
  14. Momentum

    Momentum Well-Known Member

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    Is it standard practice for the PM to email the owner a copy of the lease and entry condition report for any new leases and ingoing tenant? I've noticed some PMs do and some some are reluctant to send
     
    Last edited: 8th Apr, 2021
  15. Phoenix Pete

    Phoenix Pete Well-Known Member

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    My office's software and procedures include sending both new leases and lease renewals to the owner.

    Ingoing inspection reports and outgoing inspection reports are sent if the owner requests them (which rarely happens).
     
  16. thatbum

    thatbum Well-Known Member

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    I do this every time.

    Imagine the claim for damages if you can't deliver on providing a vacant premises in time for your new tenant. Accommodation costs, storage, general damages - list goes on.
     
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  17. RogerP

    RogerP Well-Known Member

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    Thanks, it's good to know for next time. So to clarify, once the tenants give notice, you advertise, find a tenant and then you make the new tenants pay 2 weeks of rent to hold the property?

    Do you provide a receipt? what guarantee can you really provide at this point regarding when they can move in? Cause like you said, if the old tenants don't move out then they're still pretty much screwed right?

    Then after they move out, you get them to sign the lease and move in at the specified date. How many weeks do you often leave between the old tenants and the new tenants?

    In my case the current tenants have already moved out. They got the end of lease cleaners and carpet cleaners coming in early next week and we'll do the inspection shortly after. Should be plenty of time between them and the new tenants.
     
  18. Coen

    Coen Well-Known Member

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    Yes, you get the new tenants to provide a deposit (refundable in Qld for 48 hrs if they change their mind) and you need to provide a receipt (in Qld anyway). Read all the legislation and make yourself checklists because you won't remember everything by the time you have to get new tenants and do it all over again.

    We tend to leave around a week between tenants because we find it too rushed if we only leave a few days. If you have to get cleaners in or need to sort carpet issues etc it is too difficult with people moving in simultaneously (and not fair on them either). A week gives you time to properly attend to other issues too and keep the place well maintained. That's just our preference anyway.

    We have always signed our leases prior to old tenants moving out. Now I've got hands on cheeks going OMG .... why didn't we think of the possible issues with that. On checking my very old paperwork from when I last rented, the lease was signed on the lease start date. I remember going to the real estate office and picking up the keys and signing the lease that day. We will certainly be considering a new procedure for this now.
     
  19. JoannaK

    JoannaK Well-Known Member

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    This is the way it's supposed to be done. You can't guarantee possession to the new tenant till the old tenant has vacated.....the tenancy with the old tenant isn't terminated till vacant possession has been delivered by them. I've heard of a number of instances of agents having to put new tenants into temporary accommodation because they've prematurely signed leases and then been unable to provide possession.
     
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