Can I cancel a tenant b4 they move in

Discussion in 'Property Management' started by justine77, 24th Aug, 2016.

Join Australia's most dynamic and respected property investment community
  1. justine77

    justine77 Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    154
    Location:
    australia
    if we agreed to let an apartment to a tenant and papers r signed but no lease
    Can we reneg before they have moves in if there's been a personal emergency reason that we don't want to rent the flat ?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    9,547
    Location:
    Sydney or NSW or Australia
    What do you mean by 'signed papers but not the lease'?

    Have your PM contact the tenant to withdraw the offer.
     
    Zoolander and Tom Rivera like this.
  3. Ricky Adelaide

    Ricky Adelaide PM Playford Elizabeth-Munno Para (SA)

    Joined:
    3rd Aug, 2015
    Posts:
    76
    Location:
    Munno Para South Australia
    Reading between the lines, sounds like they have a lease but wish they didn't . Your suggestion is correct. Use diplomacy and hope they do not push there rights.

    Only time I have seen someone not hand over keys and commence the lease is in the same circumstance you have mentioned but the to be tenant has been found to be fraudulent in their application but in my opinion this was still rolling the dice - better just to be sure before you are in the situation of them having a signed lease.

    If they are good people, hopefully they will be reasonable and hopefully your agent will also help you where possible. Definitely the potential to be awkward or inconvenient.
     
  4. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    Joined:
    18th Jun, 2015
    Posts:
    14,702
    Location:
    Remote
    If you have a written lease then this is a binding contract and it would be unlikely you could terminate
     
    Ted Varrick, JacM and Tom Rivera like this.
  5. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    7,502
    Location:
    Adelaide, SA
    Contract does not necessarily equal possession though, and hasn't given details of any consideration paid. Probably needs diplomacy as Ricky mentions, but likely very difficult depending on the scenario and the remaining facts that we are not privvy to.

    You mention there's an emergency - what is it? You need to sell it? Or move into it? How much time could you wait? There's probably other options available.
     
    Colin Rice likes this.
  6. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    Joined:
    18th Jun, 2015
    Posts:
    14,702
    Location:
    Remote
    The legislation could also deem there to be a lease when there isn't.
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    7,502
    Location:
    Adelaide, SA
    Yes its possible, really depends on what tribunal member you get on the day sometimes. I've successfully argued the opposite before. Tenant arranged housing dept assistance on bond and pulled out prior to signing lease and I charged them a break lease fee citing they were intending to contract.

    Best bet is to avoid tribunal and negotiate separately.
     
  8. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,444
    Location:
    Sid en e - olympic city
    What was signed ?

    If agent agreement, then no problem.

    If agent had tenant sign a lease, then there is a lease, if this is the case, will depend on if tenant has given notice that can't be changed and if there is incentive (read $) to convince otherwise, also depends on if a tight rental market or not, PM also does not have much incentive really, so this is not ideal, but can probably be sorted, at the end of the day, it is all about $$$
     
    Ted Varrick and Perthguy like this.
  9. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    Joined:
    18th Jun, 2015
    Posts:
    14,702
    Location:
    Remote
    can also be cancelled by mutual agreement
     
    Ricky Adelaide and Perthguy like this.
  10. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,444
    Location:
    Sid en e - olympic city
    yeah, of course, mutual agreement, how much is that in $$$ ... ;)
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    9,547
    Location:
    Sydney or NSW or Australia
    Have someone put up "for sale" signs & have it poorly advertised so you have heaps of foot traffic, the tenants suffer maximum inconvenience ie 2 opens per wk but no takers as you have very high sales expectations. The tenants have a right to terminate if they haven't been advised of a sale in the first few months of a lease in NSW.
     
  12. Gockie

    Gockie Be the change you want to see in the world Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    8,318
    Location:
    Sydney
    So then the next question is... which state is it in?
     
    Scott No Mates likes this.
  13. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    9,547
    Location:
    Sydney or NSW or Australia
    Disrepair?
     
    dabbler and The Y-man like this.
  14. Gockie

    Gockie Be the change you want to see in the world Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    8,318
    Location:
    Sydney
    Boom tish. ;)

    And yeah... @D.T. raises a good question. Is it really an emergency? Or just a change of mind?
     
  15. Alyshajay

    Alyshajay Member

    Joined:
    4th Nov, 2017
    Posts:
    10
    Location:
    Perth
    I'm looking for answers in this too urgently for my situation. If someone could look at my thread and give any advise it would be appreciated.
     
  16. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    Joined:
    18th Jun, 2015
    Posts:
    14,702
    Location:
    Remote
    might help if you provide a link
     
  17. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    617
    Location:
    South East Queensland
    We need more information.

    If you have offered a lease, that's enough to be binding- even if it's not signed.

    That being said, that only becomes relevant when push comes to shove. Try to work with these potential tenants, assist them with finding another property and potentially consider some sort of compensation.
     
  18. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    700
    Location:
    Sydney
    Yet another thread from @justine77 with an open ended question and few details or specifics :mad:
    Seriously :confused:
     
    Tom Rivera likes this.
  19. Zoolander

    Zoolander Well-Known Member

    Joined:
    15th Dec, 2016
    Posts:
    489
    Location:
    Sydney
    Had a colleague encounter this. Signed a lease, landlord changed his mind before he moved in- dont know the trigger for it.

    Advised my colleague he has the right to live there. Landlord would get slaughtered at NCAT probably.

    Colleague got several months rent to quietly agree to move into another spot. He wouldn't say how much but its for a studio in Sydney cbd.. so anything from a few K to $25k (6mths at $500pw).

    Indecision and legal documents dont mix well.
     
    Perthguy and wylie like this.