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Lease is expiring. Tenants haven't signed the new lease...

Discussion in 'Property Management' started by Abooking, 22nd Nov, 2015.

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  1. Abooking

    Abooking Well-Known Member

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    I recently changed managing agents. The lease expires tomorrow and the tenants still havent signed the new lease. They indicated weeks ago that they want to stay on for another year. Im certain that they will sign it tomorrow but just in case they don't where do I stand if they don't sign it and the old lease is finished? I live abroad and left this in the hands of the new agent but just found out late Fri afternoon that the tenants havent returned the signed lease yet.

    The bond transfer form has been faxed off to fair trading. But its not ideal if they dont sign the new lease by COB monday. If they injure themselves or accidently burn the house down for example its not ideal...

    Im planning to make sure it happens on Monday but where do I stand legally if they dont hand in the lease on the expiry date of the old contract?

    thanks for any opinions
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    If they don't sign the lease then it automatically rolls over to a periodical lease.

    A periodical lease has different rules on how much notice you can give them and how much they can give you. It's also less secure / stable income so it's to be avoided.

    It varies a little per state on how it is supposed to be handled - here in SA we send both an eviction (Form 2a - end of fixed lease) and renewal so that if they don't accept the renewal then the eviction one kicks in when the lease completes.
     
  3. Abooking

    Abooking Well-Known Member

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    no, as stated above I moved agents. The old lease is null and void as its associated with the old agent
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Leases continue on between agent changes and even between property owner changes.
     
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  5. Xenia

    Xenia Adelaide Property Manager Business Member

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    My suggestion would be for the new property manager to give the tenants a push to get the signed lease renewal back. It will roll over to a periodic tenancy agreement at expiry of a fixed term lease. All good except when you need to do an insurance claim and find that you can't get maximum benefits on a periodic lease.

    It's common for tenants to be slack in getting lease renewals back in time, every agent has their own tricks in getting them signed, ask for it to be returned back asap from the agent.
     
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  6. Coota9

    Coota9 Well-Known Member Premium Member

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    I have a reminder 70 days out from my IPs lease expiry so I can follow up with my PM to send out to tenant a notice on intention letter
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Good thinking!
    Shouldn't really have to though, they should be the ones letting you know.
     
  8. JacM

    JacM VIC Buyer's Agent Business Member

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    Not sure why the bond form (?bond release?) has been faxed to oft if tenants have not submitted notice of intention to vacate. As has been mentioned it will go onto a periodical tenancy if they don't sign a new lease. They still have to give you a certain amount of warning if they intend to leave though. In the meantime they must pay rent as per the amount noted on the expired lease, and abide by the normal rules.
     
  9. Xenia

    Xenia Adelaide Property Manager Business Member

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    bond TRANSFER form - for the new agent to be listed as agent concerning that bond
     
  10. WestOz

    WestOz Well-Known Member

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    Wasn't aware of that? (I hate reading fine print)

    Periodic's never bothered me, tenants will do what they want when they want regardless of a lease or its conditions, in the end the legal system/magistrate takes pity on them, were just the tirant landlords.
     
  11. JacM

    JacM VIC Buyer's Agent Business Member

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    @Xenia yes fair play - i didn't see the word transfer hehe.
     
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  12. Nick Valsamis

    Nick Valsamis Well-Known Member

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    FYI, the correct name of the form in NSW is
    "Change of Managing Agent/Owner"
     
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