Breach of Lease - mutually agree to terminate or issue breach/termination

I have a tenant in a residential IP who has breached their lease agreement and the strata rules. It seems they are unable to comply with the rules and are causing flow on effects to other residents. A breach has been issued.

Should they not fix the issue (unlikely that they will), what's the best option here, issue termination and go to court if they don't vacate? Or mutually break lease? Property manager seems to prefer to mutually break lease, potentially because it's less work for them.

 

Your willing to pay money to go to court to get them out, but dont want them to leave voluntarily?

 

The tenant doesn't follow what they say, so I am not sure if they will actually terminate mutually or just use it to string the process out (which is what has happened over the last few months of the issue being raised). Also, I am unsure if they have different financial implications here.

Thanks, keen to hear people's thoughts.

 

Commercial/retail - lockout.

 

Sorry, it's residential.

 

Generally less work for the Property Manager also means less risk and loss for you.

I would be doing everything to organise the mutual break lease, and if that doesn't work- then you issue termination. The tenants are incentivised to assist in the re-letting process under a break lease, and they are required to cover any costs associated with you leaving early.

If you terminate them, they may well decide not to let you in for any viewings prior to vacate, or -worse-, just hang around not paying rent.

That said, we can't really make a proper recommendation without more information.

 

Thanks Tom. So under the mutual break lease, is the tenant under any obligation to cover any costs? I was told that they weren't liable for any costs under mutual break lease or termination. (Btw I am the landlord here)

 

Please dont stuff yourself around expecting to get the tenants to pay you any costs like advertising fees and re-letting fees. Just let them go as easily as possible. Do you really think they will pay you anything even if they are supposed to. If they are causing problems, especially for the strata and neighbours, then i would suggest to cut your losses.

Ask your insurer the same questions as here.

 

Id offer them money to leave.

 

Hmmm might be a confusion in terminology. The definition of a break lease is that they need to compensate you for any loss incurred by their early exit- usually paying advertising, let fee and rent until the new tenant moves in. Under a mutual termination, they are not liable for any loss of rent or letting costs associated with their moving during the agreement term, though of course they're still liable for any damage, cleaning or other costs (e.g. water).

I guess it's important to know the nature of the issue. Are the tenants being difficult on purpose, i.e. you're unlikely to get a result out of any situation that requires their cooperation?