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Can I cancel a tenant b4 they move in

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

  1. justine77

    justine77 Well-Known Member

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    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

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    What do you mean by 'signed papers but not the lease'?

    Have your PM contact the tenant to withdraw the offer.
     
  3. Ricky Adelaide

    Ricky Adelaide PM in Adelaide -Elizabeth Salisbury Modbury Business Member

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    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 Solicitor, Finance Broker, CTA Business Member

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    If you have a written lease then this is a binding contract and it would be unlikely you could terminate
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    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.
     
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  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    The legislation could also deem there to be a lease when there isn't.
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    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

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    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 $$$
     
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  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    can also be cancelled by mutual agreement
     
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  10. dabbler

    dabbler Well-Known Member

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    yeah, of course, mutual agreement, how much is that in $$$ ... ;)
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    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 I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    So then the next question is... which state is it in?
     
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  13. Scott No Mates

    Scott No Mates Well-Known Member

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    Disrepair?
     
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  14. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Boom tish. ;)

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