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[NSW] How to make tenant leave early during fixed term tenancy

Discussion in 'Property Management' started by htopg, 23rd Oct, 2015.

  1. htopg

    htopg Well-Known Member

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    If a tenant is in a fixed term and landlord wants to end the tenancy before the fixed term ends (let's say there are still 10 months to go), what can landlord do to achieve that?

    Many friend told me the following
    1. tell the tenant that he will renovate
    2. tell the tenant that the house will be sold
    3. talk to tenant and see if he agrees to end the tenancy mutually
    4. talk to tenant and see if he agrees to convert to periodic and then end it by giving 90 days notice
    5. deliberately breach the contract (eg by not fixing things)

    I personally don't think there is a way besides something like "undue hardship of landlord".
    1 & 2 will not do according to Department of Fair Trading NSW.
    5 sounds stupid.
    3 & 4 seem to be the ways to go?
     
  2. neK

    neK Well-Known Member

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    3. talk to tenant and see if he agrees to end the tenancy mutually.

    You never know, perhaps the tenants has an issue and needs to move out too.
    Or
    Given enough time, the tenant can find a new place and the property owner can cover all removalist costs.

    I would like to think that there are nice people out there.... its just that the scum bags usually have a louder voice - hence it feels like they are everywhere.
     
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  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Under the RTA2010 option 3 is your only remedy unless there is genuine landlord hardship or property becomes uninhabitable
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Why do you need to get vacant possession so soon after leasing the property?

    The tenant can refuse to move.

    A change in your circumstances is not necessarily the tenant's problem.
     
  5. Travelbug

    Travelbug Well-Known Member

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    Why would they convert to periodic? I'd speak to them. Offer to pay moving expenses?
    You'd need a good reason in order for the tenant to put themselves to all the hassle of moving. I know how much I hate it. Tenants tend to stay even if rent goes up a fair bit which shows you how much people hate moving.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    3 is probably your only bet. You may have to offer incentives to convince them.

    10 months to go sounds like a long time, are they only 2 months in? What changed?
     
  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    I don't know about NSW but in SA there is no precedence of a landlord ever ending a fixed term due to hardshop. Provisions are the in the legislation but there are no reported cases that I know of that have proven hardship - unless someone can point to some I don't know about.

    End my mutual agreement, money always talks, pay him $500 to leave or provide another incentive that is win/win.
     
  8. wylie

    wylie Moderator Staff Member

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    We offered a tenant (who we knew was happy to break the lease due to his own changed circumstances) the final four weeks free of rent. He cooperated with keeping the house ready and clean for open houses. We documented this (he was a lawyer) and it worked perfectly. Win/win.

    People we know were (according to them) given $10K to leave so the house could be sold dressed. This was clearly a high end house and they had young kids. But they held the cards but I believe a small cash or other (free rent or pay their moving costs) incentive would work like it did for us.

    If you tell them the lease will not be renewed they know they are up for moving costs anyway so might cut you a deal. Get it in writing. Depends on the tenant...
     
  9. Ed Barton

    Ed Barton Well-Known Member

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    I have a friend who has been given $5-10k to break a lease by LLs on several occasions. It's a small tourist town so a little different than city properties. Someone holidays in the town, 'falls in love' with the town and wants immediate vacant possession.

    He's a bit of a vulture and has identified a pattern and targets properties to rent that may want to pay him to leave.
    • Owner buys a property as a holiday house with the intention of holiday letting it when they're not using it.
    • Owner hardly ever 'holidays' in it and gets a crappy amount of holiday lets, with high commission and cleaning costs etc.
    • Owner then rents it full time resi at a really ****ty yield.
    • Owner decides to sell up. New owner loves the town and wants vacant possession.
    • Rinse and repeat.
     
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  10. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    You're going to have to make it worth their while. Pay moving costs etc. Otherwise why would they agree to a major inconvenience?
     
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  11. Marg4000

    Marg4000 Well-Known Member

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    As said, the tenant holds the trump cards so your only option is to make it worth his/her while. Expect at least $5K for inconvenience unless you are lucky enough to have a tenant who is happy to move.

    It cost our son $10K to get his tenant to leave early. However, as he was returning to his previous (interstate) PPOR after a great job offer, he figured it was worth that to avoid a double move and the inconvenience of a short term rental. Tenant played hardball to earlier, lower offers.
    Marg