QLD Break Lease / Lease Transfer - Advice Please

Hi Property Chat Crew,

I've (via PM) received a break lease submission – 3 months to go on the lease– for a unit I own up in North Queensland.

With Cairns hard-hit by double unemployment figures, I'm actually impressed they had held out until now. Although about 6 weeks ago they had flagged they might be requesting rent reduction due to financial hardship (they didn't end up requesting this in the end). The unit rents at well below median rates, but vacancy rates in Cairns are climbing as you can probably imagine.

Anyway, the tenants are wanting to waive the break lease fee - suggesting another family member (who is working) could take over the lease.

Sounds good to me – fingers-crossed the application looks good.

The PM has suggested the new tenants, if suitable, will need to take the property "as is" without the need for exity/entry reports.

Am I missing something here?

Family or not, shouldn't the PM still conduct a condition exit report? I mean, if there is new damage to the property I can't ask the new tenants to fit the bill.

I'd love experienced voices here - on the PM's suggestion, and on the situation in general. I've never been involved in Lease transfers before.

 

I'd be leaning towards an exit/ingoing condition report be done. This will mean a clean break with the outgoing tenant (& ability to repair any damage/bond claim) and a new bond lodged for the incoming tenant.

 

Treat it just the same as any other tenancy, even stricter.

 

Thank Scott no mates & Michael Mitchell

I don't understand where the PM is coming from with this, maybe just less paperwork

Still scratching my head... any other suggestions very welcome

 

They'll want full whack for a new tenant but none of the responsibility.

 

It's preferrable to be able to do a full exit and entry, BUT it's perfectly possible to do a full changeover of tenants.

The new tenants will need to be made aware CLEARLY and IN-WRITING that they are taking over an EXISTING tenancy and are responsible for the property from the day that their predecessors moved in. I'd get them to acknowledge receipt of the original entry condition report and perhaps even sign it to acknowledge that they accept it as the condition in which they must return the property to (with consideration to fair wear-and-tear).