building insurance VOID help needed

Hi all,

i'm in a bit of a pickle atm as i'm days away from leasing a property to a government agency they use the property to house people who cannot afford private rentals.



Below is the clauses they want to add to the tenancy agreement (A,B & C)

"The arrangement is similar to a company renting a house for its employees to use. In common parlance, this arrangement does not amount to a 'sub-letting'.

Clause 34 of the general tenancy agreement only allows subletting with the lessor's consent. For the use of the premises to be viable for the program, we need to be able to place our program clients in residence without reference to the lessor. To do this, we need to insert the following additional provision in Part 3 Special Terms of the general tenancy agreement -

A. The lessor acknowledges the tenant has taken the tenancy of the premises for the purpose of accommodating clients of its specialist youth housing service program.
B. The lessor agrees such use of the premises does not amount to a subletting of the premises and the agreement (in writing or otherwise) of the lessor under clause 34(1) is not required.
C. The tenant acknowledges such use of the premises does not relieve the tenant of any liability under this general tenancy agreement or otherwise at law."


the pros. (in their words)

the tenant takes full responsibility and liability to any damages that may occur from sub tenants.

they will pay rent in advance, on time even if vacant.

will ensure the property is maintained and handed back at the end of the lease agreement in the same condition it was when the lease agreement started. (fair wear and tear to be considered)

will take full responsibility for the tenants that they sub lease the property out to.


i really want them as my tenant as the property has been vacant for weeks and theres heaps of properties similar to mine on the market but i've found out that my insurance company wont accept the tenant subletting without knowing who the sublet tenant is. i've contacted a insurance broker and i've sent the lease to them and they said theres no insurance company in Australia who will insure the building because of the lease. this seems bizarre to me as these types of government agencies are all over the place doing these type of support programs for people.


has anyone had dealings with government agencies before with renting out your property? any suggestions?

Cheers, Elives

 

Just have the department to advise you or the pm who the subtenant is, that t g en satisfies the insurer's issue. Condition the contract accordingly.

I have had no issue getting the contact details for the occupant (when let to an affordable housing co-op).

They have to try garder than that.

 

that seems to good to be true, i don't see why they can't do that but they've said in the email above "we need to be able to place our program clients in residence without reference to the lessor. To do this, we need to insert the following additional provision in Part 3 Special Terms of the general tenancy agreement -"

i will follow up on Monday it doesn't seem unreasonable to ask for the sub let tenants names for insurance purposes but they'll say it's for privacy reasons.

 

You are asking to satisfy a condition of insurance to be made aware of who is in occupation of your property. Unlike the normal situation where the lessor has the right to veto subtenants, you are only seeking to be advised the contact details of the tenant to satisfy a condition of insurance.

 

Yea i feel like it's more then reasonable i'll ask them i just don't have high hopes for it. i'll give an update tomorrow. cheers

 

Surely they have other landlords they do this kind of business with?
Perhaps you could ask them who their other landlords insure with?
Just a thought.
Cheers