Join Australia's most dynamic and respected property investment community

Can I end a tenancy agreement earlier?

Discussion in 'Property Management' started by ATANG, 22nd Aug, 2015.

  1. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    176
    Location:
    SA
    Is it possible to end a tenancy agreement earlier if I want to move in to it myself? In Melbourne.
     
  2. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Anything's possible.
    Just a matter of how easy it is.
    You could ask the property manager to gauge how keen the tenants are to move.
     
  3. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,647
    Location:
    Sydney
    If they are on a fixed term lease, you can't legally force them to move out until the lease ends - and only then once you've given them the required notice.

    However, as mentioned by Azazel - you could simply ask the tenants if they are prepared to move ... if they seem reluctant, perhaps offer to pay their moving costs or something?

    It's a matter of working out a win-win to see if you can come up with a mutually agreeable arrangement.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,544
    Location:
    Sydney or NSW or Australia
    There'd have to be some pretty compelling reason as the tenant will have you over a barrel.
     
  5. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    I remember the 1st place I rented, the real estate agent said the owners wanted to move back in there. We moved, not really a big deal to us at the time.
    You might get lucky.
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,647
    Location:
    Sydney
    You never know - the tenant may have already decided to move but is bound by the terms of the lease, so they may actually be keen if given the chance to move early.

    But then, they might not either - and it is their right to stay there until their lease is up.
     
  7. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    176
    Location:
    SA
    I have the tenant signed up till 2017 lol... Cuz I was a bit concerned with the oversupplies thing in melb but then.... I kinda wanna move in myself sometimes next year... He's a decent tenant though, manager role, taking good care of my property.
     
  8. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Hmm... good luck! ;)
     
  9. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,373
    Location:
    Somewhere in the land of Oz
    You can end if both parties agree. Ask your pm to sniff around next inspection or phone call
     
  10. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Yes, get them to subtle-y have a sniff, you might get lucky.
     
  11. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,117
    Location:
    FNQ
    I don't like your chances, they signed an extended lease until 2017. They obviously had no intention of moving prior otherwise why sign a lease for greater than 12 months restricting themselves in the process.
     
  12. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,373
    Location:
    Somewhere in the land of Oz
    True but like atang circumstances may have changed, i bet when offering a lease for long term there was no thoughts of moving in either. You never know your luck in the big city!
     
  13. WestOz

    WestOz Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    625
    Location:
    WestOz
    I've found open honest discussion works best, as Simon says (no pun) ya never know your luck.

    If there's nothing preventing it in the terms of the lease you could possibly up the rest enough for them to protest and want to move.
     
  14. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,924
    Location:
    Brisbane
    You cannot just "up the rent" if they are on a fixed lease.

    I would see what they want in order for them to move earlier than planned. We've done this before and allowed the tenant to have the last four weeks rent free. He wanted to move anyway, so it suited him very well.

    People renting in our street came here after being paid $10K to move in order for the vendor to sell the house. They moved into our street, only to find out the landlord had quietly listed the house. They were not impressed, apart from the fact the landlord had no legal right to list the house within a certain time of a new lease. Tenants didn't make it easy for the open houses, and fair enough. The owners had unrealistic expectations of sale price, so the house didn't sell.
     
  15. WestOz

    WestOz Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    625
    Location:
    WestOz
    In WA it depends on the terms in the lease (don't know about other states).

    "Rent in a fixed-term tenancy can only be increased if the written agreement specifies how much the rent increase will be or the method of calculating the rent increase is shown (eg by CPI).
    If the rent is able to be increased, it can take effect no sooner than six months after the commencement of the tenancy agreement and the date of the last increase.
    The lessor must give at least 60 days’ notice of the increase."

    http://www.commerce.wa.gov.au/consumer-protection/rent-increases
     
  16. Simon Hampel

    Simon Hampel Founder Staff Member

    Joined:
    3rd Jun, 2015
    Posts:
    1,647
    Location:
    Sydney
    In NSW you are permitted to increase the rent during a fixed term tenancy of 2 years or more provided it is not increased more than once every 12 months - RESIDENTIAL TENANCIES ACT 2010 - SECT 42 Rent increases under fixed term agreements.

    However I believe the OP is in SA, and I don't believe any such clause exists in the SA Residential Tenancies act. In SA, you can only increase rent during a fixed term tenancy if it was agreed to as a part of the tenancy agreement.
     
  17. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,924
    Location:
    Brisbane
    You can write an increase into a Queensland lease too but it is agreed to before signing and you still must give notice before it goes up (unless I am mistaken).

    The suggestion to "up the rent" sounded like a desperate ploy and I think is just not "doable" but it would be interesting to hear if the OP has any scope to do so.
     
  18. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Not commenting on the ethics, but it could have the intended result in certain circumstances.
    If my landlord said they were increasing the rent by $XX/wk (even if they couldn't legally do it), I would probably get the ****s and start looking for somewhere else.
    Whether you want people who have the ****s with you looking after your house is another matter.
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,544
    Location:
    Sydney or NSW or Australia
    Agreed, even for NSW.

    You should issue rent reviews prior to renewal but include the notice in the lease.
     
  20. WestOz

    WestOz Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    625
    Location:
    WestOz
    Confusing/frustrating how all states differ legally, so many things would be so much easier/efficient if the country was uniformed.
     
    wylie likes this.