Join Australia's most dynamic and respected property investment community

QLD IP one tenant requesting to be removed from lease

Discussion in 'Property Management' started by MissSwiss, 26th Sep, 2016.

  1. MissSwiss

    MissSwiss Member

    Joined:
    9th Apr, 2016
    Posts:
    19
    Location:
    NSW
    Hi all,

    My situation is that I recently leased a QLD IP to a couple two weeks ago (a 6 month lease). I have just received notice that one of the people on the lease has moved out and is requesting to be removed from the lease. I won't go into their personal situation, but I would be inclined to release her from the lease on compassionate grounds.

    I'm not, however, comfortable with having the remaining tenant living there on his own. Due to his individual circumstances I am in doubt as to his ability to pay the rent on his own. We leased the property to two adults. If he had applied for the property on his own, we wouldn't have approved him.

    So what do I do? I could refuse to remove her from the lease, but I don't think that would achieve anything because I would a) be pretty cruel considering the private situation she is in and b) keeping her on the lease isn't going to be able to force her to pay rent for a house she isn't living in without legal proceedings. Can I do anything about the remaining tenant? Or do I just have to wait and see if he pays or not?

    I don't have insurance for loss of rental income currently. Should I pursue this is I have doubts about the tenant?
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    902
    Location:
    Perth, WA
    I'm in exact the same situation. I'll probably end up 'releasing' the outgoing tenant from the lease and drawing up a new lease with the tenant remaining.

    I've had a chat to him and he'll probably rent out the spare room on a sub-lodging agreement. I gave him the option of finding a new co-tenant for the lease as well.

    I don't really understand the urge to remove the remaining tenant though - you were happy with him before but now you aren't because he's there by himself?
     
  3. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,143
    Location:
    NSW
    I suggest to get an insurance regardless..

    Can you (or PM, do you have a PM) have a chat with him and see what his plan is?
     
  4. MissSwiss

    MissSwiss Member

    Joined:
    9th Apr, 2016
    Posts:
    19
    Location:
    NSW
    He has only been a tenant for 2 weeks, and the 2 week tenancy has been more tumultuous than it should have been. It is part of the reason why one person has moved out. Even if i weren't that keen on him personally, my main concern is his ability to pay the rent on a single income (rather than the dual income which we expected when the lease was signed).
     
  5. MissSwiss

    MissSwiss Member

    Joined:
    9th Apr, 2016
    Posts:
    19
    Location:
    NSW
    That's a great idea and I will discuss it with them.
     
  6. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,566
    Location:
    Melbourne, Australia
    Get insurance and let him lease by himself, he will know his obligations and you never know you might not have any problems with payment :).