Break lease - hardship claim

Discussion in 'Property Management' started by Hanso, 15th Nov, 2016.

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  1. Hanso

    Hanso Active Member

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    Shout out to all the PM's

    Got a situation where a tenant is wanting to break lease with a claim of hardship. I do feel for the tenant as its a young mum who has broken up with her partner who has now moved out. There is also a DVO involved as well as I found out today.

    What should be the course of action here?
    I have landlord insurance through terri sheer and 2 months to run on the lease

    Its obviously coming in to a period of the year where it's not ideal to be finding a tenant,so don't really want to be the only one left standing when the music stops and have it all coming out of my pocket.

    I'm obviously discussing with my PM but want to get some feedback here to make sure she is on point.
     
  2. Stoffo

    Stoffo Well-Known Member

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    You are right about "coming into this time of year":oops:

    I'd ask my PM if they have any potentials :rolleyes:(unsuccessful applications from similar properties)

    If your current tenant is keen to get out, then they shouldnt have any problem allowing the PM to show potentials thru :D

    If you get a suitable application that can take over in the next 2-3 weeks, take it ;)
     
  3. thatbum

    thatbum Well-Known Member

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    Legally a tenant in a DV situation might have grounds to terminate the tenancy early anyway, so you should factor that in too.
     
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  4. Hanso

    Hanso Active Member

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    I'm really questioning the grounds, more interested if anyone has had a similar experience. Seems like something landlord insurance would cover, I haven't read through the policy yet though.

    I assume there are still notice periods on break leases in this type of situation?
     
  5. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Please do Let us know what your Landlord's Insurance does?
    For Domestic Violence I think the police say remove the danger immediately.
    I think the insurance, if they were to consider paying would ask for the Police Report Number.
    I hope this helps, cheers
     
  6. thatbum

    thatbum Well-Known Member

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    Sorry did you mean you are, or aren't questioning the grounds?

    There are no notice periods for break lease situations btw. Its a common law thing. Your PM should know what to do, but basically you should just find a new tenant as you would normally.
     
  7. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    The course of action in these situations depends on a range of factors such as whether there is an excessive hardship application to QCAT by either party - tenant or owner, whether the tenant is requesting a mutual early termination or issuing a Notice to Leave, who you are insured with and your own personal approach regarding the situation.

    From a professional stand point, you should follow your PM’s guidance as they will have full disclosure as to the specifics of the situation, which could vary any advice you receive on here.
     
  8. DaveM

    DaveM Well-Known Member

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    What state is the property in? It varies state to state, eg in SA hardship generally does not cover financial aspects
     
  9. Biz

    Biz Well-Known Member

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    Not worth the hassle. Let them move on and find a new tenant. You're lucky they are being up front with you. A lot of tenants would just go to ground and you wouldn't find out what is going on until they are already a month behind.

    You're the landlord. Society expects you to eat merda. That's just how it is. If you can make money at the end of a long battle you've done well.
     
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  10. Hanso

    Hanso Active Member

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    @thatbum missed a crucial word "not"

    @DaveM in qld

    I'm sure I'll find out more in the coming days when my PM goes through the process. For those interested I will check back in to post the outcome.
     
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  11. Perthguy

    Perthguy Well-Known Member

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    I think it's actually quite a good time of year to find tenants if you can list the property soon. People will be keen to move in before Christmas
     
  12. brettc

    brettc Well-Known Member

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    You should find you have up to 4 weeks loss of rent due to Hardship under your insurance policy.
     
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  13. hash_investor

    hash_investor Well-Known Member

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    What is EBM policy in this regard?
     
  14. brettc

    brettc Well-Known Member

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    RentCover pays up to 6 weeks for Hardship.
     
  15. dabbler

    dabbler Well-Known Member

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    Yeah, I think it is good they have told you, sounds like they will co operate, your PM should be showing the place before they even leave, you may be down a week or so if done right and vacancy rate is not high.
     
  16. Hanso

    Hanso Active Member

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    So just checking back in to give an update for those interested. The tenant has been attempting to get a tribunal decision to allow exit from the lease under hardship, however it sounds like it has been a lengthier process than they expected and they haven't got a ruling on it yet.

    The lease is due to expire in a month now so it looks as though they will just see it out now and move out early Jan. Gets me through the Christmas period so will hopefully limit the vacancy duration.
     
  17. Bayview

    Bayview Well-Known Member

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    We have had a couple of break leases like this.

    We have always let them go; and got a new tenant in not long after.

    Technically; they should pay rent until the new tenant is found, and pay the costs to sign the new tenant, etc from memory, but we have never enforced that. Too soft.

    Think of it as your good samaritan act for the year/month/week/day!!...Karma ;):D
     
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  18. Big Will

    Big Will Well-Known Member

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    Good to hear it seems to be panning out well.

    For your next tenant and if a standard home, I would sign them up with a 6 month lease and then renew for 12 months.

    1. Lowers your risk of them being a bad tenant as you can boot them out.
    2. It gets you away from the 'bad' period of finding a tenant.

    Listen to your PM and their opinion but I would rather have leases expire in Feb->Oct then Dec->Early Jan.
     
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  19. Xenia

    Xenia Well-Known Member

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    Charge vacancies and lease break charges as normal.
    Mitigate losses

    Let tribunal sort out whether an early termination is warranted.

    As a PM I would go for maximum entitement for the landord and not try to get into any reasons for hardships.
     
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  20. Sonamic

    Sonamic Well-Known Member

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    In one of my props the male half suicided. Seeing as he was the sole breadwinner I obviously terminated the lease on compassion grounds. Took 4 weeks to find another tenant. I wore all the costs as didn't see it as worthwhile taking it to LL Insurance for a Claim. On a brighter note the female tenant is doing fine now nearly 2 years later.
     
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