QLD break lease for OO purchase

Discussion in 'Property Management' started by crackles01, 26th Apr, 2021.

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  1. crackles01

    crackles01 Active Member

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    Help! I settled on an OO property that is currently tenanted. The day after settlement (surprise!), I got a call from agent that the tenants want to break lease 3 months early. The notice came just under 3 weeks of their planned termination.

    I've spoken to the REA that I'm unable to lease it further to meet the purchase condition. Since the tenants wish to go ahead, what are my options? The best compromise I can agree that still somehow fits my schedule is to terminate one month ahead. I understand people's circumstances change, but moving in right after tenant leaves is not really an option for me as I have multiple deadlines in May/June. It's part of why I chose this property in the first place. I also have to rent my current place (I made arrangements on the same day).

    In hindsight, I shouldn't probably have considered this risky setup (as some have suggested), lesson learned. Anyway, any advise what would be a good win-win situation in this case? Thanks.
     
  2. robboat

    robboat Well-Known Member

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    You cannot force the tenant to stay...and they do not have any care or influence on your deadlines.
    I think you need to go to your plan B where the the property is vacant until you can move.
    You do have a Plan B....???
    Your Plan A was pretty risky if it depended on tenants.....:(
    Good luck!
     
  3. crackles01

    crackles01 Active Member

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    Thanks @rabboat. Not forcing anyone at all. :) Just asking for my rights and something that benefits both parties, not just the tenants. I put my current place up for rent as soon as I was told, and will "try" to move-in as soon as possible (probably still at least 3-4 weeks after it's vacated though). Isn't 3 weeks notice too short? Agent has advised tenant responsibility as per tenancy agreement, but I'm not sure if that still applies or there's some exception in this situation.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    This should be treated according to the lease break provisions in Qld - tenant pays for the costs as per the lease (reletting fee, advertising etc) if there isn't a specific provision for breaking the lease. Your agent should be advising of this.

    As for your shortfall, refer to your plan B.
     
  5. thatbum

    thatbum Well-Known Member

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    The problem under the standard laws is that the owner is arguably entitled to nothing in terms of losses if they aren't willing to take reasonable steps to find a replacement tenant.
     
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  6. crackles01

    crackles01 Active Member

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    Thanks @Scott No Mates and @thatbum. The agent said the same and I was thinking about it since. What would be "reasonable" steps in this case? Agent has put it up if anyone wants to take over the lease for only that period, which is likely too short. I'm willing to mutually terminate lease a month earlier, and taking steps to move in even sooner, just not the day after it's vacated. I was a tenant once and broke lease, still paid rent until the new folks moved in.

    I'll report back here how things go. :)
     
    Last edited: 26th Apr, 2021
  7. thatbum

    thatbum Well-Known Member

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    If it was me I'd probably cut a deal to take 2 or 3 weeks worth of rent beyond the vacate date for a mutual termination and call it at that.
     
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  8. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Just go through the break lease process and try and re-let it, but understandably it may be difficult to re-let at this time with covid uncertainty etc, so in the end, you know like fast forward 2-3 months, you'll probably just have to approach your landlord insurer and put in a claim for loss of rent maybe
     
  9. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Agree with this- try for mutual termination. The general understanding is that you should be able to secure someone within a month, so 5-6 weeks total extra rent is a good compromise.


    Assuming I'm getting what you're putting down, it's a pretty big gamble to hide your planning to move in from everyone- current tenants, prospective tenants, property manager and insurer.
     
  10. crackles01

    crackles01 Active Member

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    Thanks for all the comments. I've taken on @thatbum's idea and managed to agree on a common compromise. Agent is treating it as typical lease break, but I'd rather avoid more risk and claim a loss. In this case, both tenant and myself have certainty.

    Always great to learn from good fellas here. thank you!
     
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