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Lease break and finding a new tenant

Discussion in 'Property Management' started by beachgurl, 13th Feb, 2017.

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  1. beachgurl

    beachgurl Well-Known Member

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    I've just broken my lease with a few months left to run. Is the agent obligated to genuinely find a new tenant or do most just let the term run out and the old tenant pay the rent for the full term?
    If you're aware that the agent is dragging their heels, is there anything you can do about it? I understand that a lease is a lease and I'm bound to the terms, but it is one of the best rentals for the suburb so it should be snapped up by the first person that inspects. They've already rejected a friend of mine who applied prior to it being relisted.
     
  2. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    It's subjective really and depends on state law. If they're advertising the property and doing inspections at a reasonable market price then they're making an effort and you would have to go to the tribunal to prove that they're deliberately rejecting applications to drag the chain. It's not in the landlords or agents interest to do so anyway as they'll have to let it in a few months at their expense when they can just let it now and secure a new lease and have zero vacancy at your expense.

    What is making you aware that they're doing that? Remember, applications have to pass a number of criteria to be accepted. I'm not necessarily disagreeing it doesn't happen, but it just might not be a priority for this agent.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    • Check that the agent has it listed on the normal real estate portals including the one that you found it originally
    • Confirm that it is immediately available
    • At the same or lower rent
    • For the balance of your lease term
     
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  4. Luke T

    Luke T Well-Known Member

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    #if its located in nsw(often) the new laws say you just need to pay 6 weeks rent break fee(if broken within the first half)or 4weeks fee if broken in the second half of the lease.-Yes-pretty much a waste of time having a lease for the landlord
    #in qld you need to keep paying till they find a new tenant
     
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  5. Marg4000

    Marg4000 Well-Known Member

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    Was there a good reason to reject your friend?
    If not, apply to the tribunal to be released on the basis that the PM is not making genuine efforts to get another tenant.
    Marg
     
  6. Zepth

    Zepth Active Member

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    Why is it a waste of time? The 6/4 week provision is an optional lease option. If the landlord does not wish to include the option in the lease then break costs follow the same process as every other state.

    The new term can be a boon for a landlord in a low vacancy area as they could potentially relet the property with no vacancy and still receive the 6 week payout
     
  7. Luke T

    Luke T Well-Known Member

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    In my experience by the time they get them vacated,the property cleaned up ,advertise ,find a new tenant, pay the agency to relet the property ,you are usually behind
     
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  8. Chivaun

    Chivaun Property Manager - Logan, Brisbane, Ipswich Business Member

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    If you know they are dragging their heels. I would email them ask them to keep you updated in regarding viewings as you are still financially responsible for the property they should be keeping you updated in regards to finding a new tenant for the property just like they would the landlord.

    If you feel like they are not being proactive maybe suggest doing the viewings yourself for prospective tenant. May help.

    I know in other offices I have worked in they have sometimes told the tenants who were breaking their lease to do viewings. (I personally would not do this as I want to meet the tenant that is applying for the property).

    Hope this helps. As I am up in QLD I dont know the NSW act and legislation. Sorry
     
  9. beachgurl

    beachgurl Well-Known Member

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    Thanks everyone. The agent wouldn't let me host opens and said I have to vacate the property before they will advertise.
    They don't go by the 4 week rule, I have to pay until they find a tenant. Hopefully it doesn't take more than a month
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    What is in your lease - has the break clause been deleted?
     
  11. Ed Barton

    Ed Barton Well-Known Member

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    I wouldn't say that's doing everything they could to find a new tenant. I don't think it would go down well if you end up at tribunal.
     
  12. Zepth

    Zepth Active Member

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    Fair enough, in that case don't add the optional clause to your leases

    There is no point complaining about an optional clause though just because it doesn't work for you
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    The optional clause limits the tenant's liability - otherwise the tenant is liable for the duration.
     
  14. thatbum

    thatbum Well-Known Member

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    Disagree here. The law and proper procedures are fairly well established, and the its the same in every state unless its in NSW and the optional break lease clause applies.

    Unless they had a pretty good reason for rejecting this application, I'd be seriously looking into vacating on your preferred date and just ceasing to pay rent after that.
     
  15. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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  16. Sonamic

    Sonamic Well-Known Member

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    Put it on Gumtree as a Break Lease and have prospective tenants "visit". If they like it they can apply to the agent. One of my workmates is in this process now in the position of wanting to become the new tenant.
     
  17. kierank

    kierank Well-Known Member

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    Recently, we had a tenant who broke a lease in Brisbane with 7 months to go. We re-advertised at market rent (a reduction from what the tenant was paying).

    We did get a couple of applications but we rejected them on financial grounds, rental history, etc.

    After a few weeks, the tenant offered to pay two weeks rent for a new tenant if they signed up before end of February. We accepted this offer via our PM.

    Last weekend, we got an application that was acceptable to us.

    Something that I hadn't thought about. But you need an active PM.

    All three (landlord, PM and tenant) working together to solve a problem.
     
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  18. Ghoti

    Ghoti Well-Known Member

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    Went to tribunal in Vic as I believed simply listing on RE.com wasn't making reasonable efforts. The member went to great effort to explain that in this internet age a listing and a willingness to show any potential tenant through is all they need to do...no opens need to be scheduled.
     
  19. Ed Barton

    Ed Barton Well-Known Member

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    That's unfortunate, but has nothing to do with my post.