No need for a lease says PM

Discussion in 'Property Management' started by MyDarlinghurst, 5th Mar, 2018.

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  1. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    just bought a property in Regional NSW

    The PM says there is no need to have a lease for the tenants who have been there 3years.

    They are a young couple on Govt benefits with two kids who have been renting the same property for 3 years.

    They sometimes fall behind in their rent.but always catch up

    The PM said to me he thinks its better they dont have a lease in case he needs to issue a 14 days to vacate ?

    Isnt it better to have a lease ????

    What if i follow the PM advice and dont have a lease ?
     
    Last edited: 5th Mar, 2018
    MyDarlinghurst, 5th Mar, 2018
    #1
  2. DaveM

    DaveM Well-Known Member

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    There will be an implied periodic lease with all the usual notice periods and general terms a lease provides
     
    DaveM, 5th Mar, 2018
    #2
  3. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Fixed term tenancies automatically revert to a periodic tenancy with no fixed end date, but otherwise keeping all terms of the 'expired' fixed term agreement (unless changes are made), until either party gives notice to leave/vacate or a new fixed term agreement is signed.

    I can't see why your Property Manager would think it is a benefit to you that they can leave with only two weeks notice at any time!?
     
    Tom Rivera, 5th Mar, 2018
    #3
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  4. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    what do you mean by this?
     
    MyDarlinghurst, 5th Mar, 2018
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  5. Ace in the Hole

    Ace in the Hole Well-Known Member

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    What if the tenants smash up your property if they decide to have an ice party one night?
    Will your insurance pay up?
     
    Ace in the Hole, 5th Mar, 2018
    #5
  6. Ed Barton

    Ed Barton Well-Known Member

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    Is there no lease, or just a periodic one?
     
    Ed Barton, 5th Mar, 2018
    #6
  7. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    The tenants have been there several years, i gather there was a lease on their first year but not now.
     
    MyDarlinghurst, 5th Mar, 2018
    #7
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Ie Did they sign 3 years ago and simply holding over or entered the property without a bond or lease?
     
    Scott No Mates, 5th Mar, 2018
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  9. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    Im not sure but i gather they had a lease back when they first moved in several years ago.
     
    MyDarlinghurst, 5th Mar, 2018
    #9
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    That lease is still valid & you can't force a new one down their throats. Ask the agent for a copy but you should have received one with the sales contract.
     
    Scott No Mates, 5th Mar, 2018
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  11. Ed Barton

    Ed Barton Well-Known Member

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    I'd find out.
     
    Ed Barton, 5th Mar, 2018
    #11
  12. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    It's still a lease, just not a fixed term lease. You would never have tenants in a property with no lease at all.
     
    MyPropertyPro, 5th Mar, 2018
    #12
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  13. spludgey

    spludgey Well-Known Member

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    More like no need for that PM!
     
    spludgey, 5th Mar, 2018
    #13
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  14. Jane Ridder

    Jane Ridder Well-Known Member

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    This is an important point. Some landlord insurance providers may try to refuse paying a claim if the property isn't on a fixed lease period.
     
    Jane Ridder, 5th Mar, 2018
    #14
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  15. TMNT

    TMNT Well-Known Member

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    Ive heard Some insurance companies dont insure or dont pay out if its not on a lease,
    fortuantely, my companies do

    so very important to check
     
    Last edited: 5th Mar, 2018
    TMNT, 5th Mar, 2018
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  16. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

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    When a fixed term lease expires and the tenant hasn't given notice of intent to vacate and the landlord hasn't issued notice to vacate and the tenant hasn't signed a new fixed term lease, the lease lapses into the concept of a "periodical tenancy". The tenant is still bound by all the rules of the original lease (except higher rent if a rent hike has been issued). The only difference is the tenant doesn't have to give you as much warning if they intend to move out.
     
    JacM, 5th Mar, 2018
    #16
  17. brettc

    brettc Well-Known Member

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    This is quite correct. Some policies may not cover if there is no fixed term lease, and the tenants are on a periodic lease or lease continuation. This is definitely one to watch out for.
     
    brettc, 5th Mar, 2018
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  18. TMNT

    TMNT Well-Known Member

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    I don't understand what the difference is from a common sense point of view
     
    TMNT, 5th Mar, 2018
    #18
  19. DaveM

    DaveM Well-Known Member

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    And a sign of which insurers not to use!
     
    DaveM, 5th Mar, 2018
    #19
  20. Phantom

    Phantom Well-Known Member

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    Can you confirm EBM's position on this @brettc?
     
    Phantom, 5th Mar, 2018
    #20
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