Cant renew lease due to covid? Excuse or really?

Discussion in 'Property Management' started by Drekko, 19th Oct, 2020.

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  1. Drekko

    Drekko Well-Known Member

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    Hi
    My property is being rented and the lease had expired in September
    The lack of updates from my property manager is getting a little annoying now so I am starting to feel if the following is an excuse or if there is truth to it

    I asked if the lease can be renewed and my property manager has said , yes its due for renewal but I cant physically meet due to covid?
    You can do a court hearing over a zoom video but cant renew a lease? I dont understand why physically meeting in person is a requirement to renew a lease.
    E-mail. Post... easy
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Restrictions have been reduced, your agent is lazy &/or overworked and doesn't want to earn the letting fee.
     
  3. Joynz

    Joynz Well-Known Member

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    Does it really matter? You still have a lease - it’s just month by month.

    In a couple of weeks, Melbourne restrictions will ease and you can sign in person.
     
  4. Drekko

    Drekko Well-Known Member

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    That's what I think because I have to chase them up myself for everything now
     
  5. Drekko

    Drekko Well-Known Member

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    Yes. Because it provides security for both parties
     
  6. Joynz

    Joynz Well-Known Member

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    Are you the property owner or the tenant?
     
  7. Perp

    Perp Well-Known Member

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    Some landlord insurance policies are only valid if the tenant is on a fixed-term agreement.
     
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  8. Joynz

    Joynz Well-Known Member

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    More accurate I believe, is that landlord insurance policies will still be valid - but some benefits may be negatively affected by the terms of a month to month lease.

    For example, rental default benefits will only be accessible for the term of the lease and in many cases the first few weeks aren’t compensated at all, anyway no matter how long the lease.

    So on a month by month lease you may lose compensation for rental default benefits that you would have had in a 1-year lease.
     
    Last edited: 20th Oct, 2020
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  9. Michelle Evans

    Michelle Evans Well-Known Member

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    We've done our best to secure as many leases as possible. With the moratorium on evictions causing challenges - if your tenant loses their job, and doesn't pay rent for x amount of months you should be covered regardless of the fixed term lease because you should be covered for unpaid rent.

    Loss of rent however, when the tenant vacates and it takes you 2 months to lease it and you get less rent because of covid (potentially, I'd need to know where the property is exactly to have a better idea of market conditions) - this is where you lose money. If you're on a fixed term lease and they break the lease, you're covered until you release it as you've lost rent due to the tenant breaching their contractual obligations.

    Shouldn't be as much of an issue as restrictions begin to ease and we're doing private inspections again but it's really not that hard to email a lease, have them print and sign... or post a lease. We use docusign for electronic signing so it can be done in minutes if the tenant is online ready!
     
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  10. B7B

    B7B Well-Known Member

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    I live over 1000km from my IP I have never meet the Property Manager or any of my Tenants in 5 years. 3 leases signed in that period.

    So a new lease can be done without Face to Face meeting.

    (QLD)
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Agent signs the lease not the owner generally.