New lease- disclosure

Discussion in 'Property Management' started by Fabs90, 3rd Nov, 2019.

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  1. Fabs90

    Fabs90 Well-Known Member

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    Hi,
    Existing tenant just left and I am in the process to find a new one.
    I've just also decided to start a town planing application to subdivide the rear of the property.
    The advertising to find a tenant is for a 9 or 12 month lease.
    I estimate that this is the time that I will get council approval.

    Do I need to disclose anything else? I still unclear about :
    1) when I will get council approval
    2) if I will proceed with construction or sale with permit
    3) in case of construction or selling, when I will do it

    The property is in Melbourne. What should I disclose given the recent changes in the regulations for rental properties?
    Thanks
     
  2. thatbum

    thatbum Well-Known Member

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    Well if its not during the term of the lease, I doubt you have to disclose anything tbh.
     
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  3. Michael Mitchell

    Michael Mitchell Well-Known Member

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    AFAIK, it’s only if a Sale is on the cards you may need to disclose this fact (law differs state by state). With that said, if you plan to effect the sub division and reduce the amenity the Tenant is not likely to be happy about that :p, so if it’s probable during the term, perhaps best to make that section of land as an exclusion on the lease, say they can use it up until they can’t etc.
     
  4. Fabs90

    Fabs90 Well-Known Member

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    I am planning a full term without any impact to the tenant.
    A quick question to understand the new VIC rental reforms:
    1) If there is a 12 month lease agreement in place and i decide to sell on the 13th month, is this a problem? Why? If it doesn't affect the agreement?

    2) If there is a 12 month lease agreement in place and i decide to start construction on the 13th month, is this a problem?
    I understand that no, based on the above feedback.
    Any further comment?
    Thanks again
     
    Michael Mitchell likes this.
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    No on both counts. Disclosure during leasing will turn many renters off, who wants a construction site in the yard?

    If you would have the tenants on holdover, then I'd fence off the section of yard for the term of the lease provided that you have access via another way.
     
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  6. thatbum

    thatbum Well-Known Member

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    Your problem is that how exactly are you going terminate the agreement on the 13th month?
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Send 30 day termination notice a few days prior to expiry of the lease.
     
  8. thatbum

    thatbum Well-Known Member

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    Are you allowed to do that in Vic?
     
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  9. Fabs90

    Fabs90 Well-Known Member

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    90 days
    It is the end of a fixed-term tenancy agreement. ​

    60 days
    The premises are to be sold or offered for sale with vacant possession immediately after the lease ends.​

    Question again, there is no permit yet, it is unclear when I will get it and once I will get it, it is unclear to me if I want to proceed with construction, sell or even not to do anything yet.

    Before the new changes in VIC it was clear (60 or 90 days) Now, how should I proceed or disclose?
     
    Michael Mitchell likes this.
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Nothing to disclose until you have a DA

    Not by the looks of it, much tighter than NSW provisions which permit 30 days prior to the end of the fixed term and then the tenants may leave with 14 days notice when they find accommodation.
     

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