Query re breach of tenancy in SA

Discussion in 'Property Management' started by P.N., 7th Jul, 2018.

Join Australia's most dynamic and respected property investment community
  1. P.N.

    P.N. Member

    Joined:
    10th Oct, 2017
    Posts:
    8
    Location:
    Adelaide
    Hi All,

    I served the tenant with a breach notice due to unpaid rent. They are required to remedy the breach by 8th July (which they have advised that they will not be doing) and the breach notice specifies that they need to give up possession of the premises by 14th July. The tenant advised yesterday that they will be vacating the premises tomorrow 8th July.

    I know that the tenant will sign the bond release form so should I have them sign the form tomorrow when they vacate or should I wait until the property is re-tenanted?

    I understand that I may be able to claim additional rent until the property is re-tenanted however I feel that it will be easier for me to have the tenant sign the bond release form when they vacate rather than trying to get back in touch with them later when the property is re-tenanted.

    If I do have them sign the bond release form when they vacate, am I entitled to claim unpaid rent until 14th July (the date specified on the breach notice that they are required to give up possession by) or only until 8th July when they actually vacate?

    The bond is sufficient to cover unpaid rent until 21st July.

    Thanks
     
  2. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    I would get them to sign when they vacate, in case you find it impossible to track them later. As for the rest, check with your PM/the legislation/your lawyer.
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    Is the breach for unpaid rent or another breach?

    Itll have a remedy by X day on it and if not remedied, move out by X+1. Most dont. Lodge a tribunal hearing, takes 3 weeks to get a hearing lately. The tribunal can decide what happens next based on the circumstances, ie vacate in 7/14/21 days, or go on a payment plan of an amount they decide. They can also award bond at the same hearing in SA.

    Landlord insurance (if with a good provider) will typically cover the period of unpaid rent, rent while going through tribunal process, rent while finding new tenant, etc.

    Reallocate bond to cleaning, junk removal, reletting as insurance doesnt cover these.
     
    jim1964 likes this.
  4. P.N.

    P.N. Member

    Joined:
    10th Oct, 2017
    Posts:
    8
    Location:
    Adelaide
    The breach is for unpaid rent only. It has a remedy by X day and I gave them an extra 6 days to move out by (eg. X+6). But they have chosen to move out on day X. They are still taking my calls and they contacted me to let me know they day they will move out so I don't expect any issues (they are moving back home with parents). I am confident that I can re-let the property within a week of them moving out as I have several interested prospects.

    If there are no other issues at final inspection (eg. cleaning, junk etc) and he signs the bond refund form on the day that he vacates (day X) am I entitled to claim the rent in advance to day X+6?

    Just thought it would be easier to get them to sign the bond refund form when they vacate rather than the hassle of going to tribunal. There is enough in the bond to cover X+13 days. Another possible option is to wait until the property is re-let in case it takes a bit longer to secure a tenant and then send the bond refund form without the tenant's signature (the tenant would then be notified and given the opportunity to dispute it but this would not be an issue as I have documented evidence for the unpaid rent).
     
  5. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    You really need to fill these forms out correctly or tribunal or insurance companies might not back you. It doesn't sound like you have.

    If they move out and sign over bond then its likely you'll get through this one unscathed luckily.

    You're entitled to claim rent til new tenant found (and letting costs if using an agent), because eviction counts as a break lease in SA.
     
  6. P.N.

    P.N. Member

    Joined:
    10th Oct, 2017
    Posts:
    8
    Location:
    Adelaide
    I believe that I have completed the form correctly. On the breach form where you complete the date that the tenant must give up possession it states "For a breach of unpaid rent only...this may be any day after the date outlined in part 2, which the tenant was required to remedy the breach." So it doesn't specifically need to be 1 day after the remedy date.
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,190
    Location:
    Adelaide and Gold Coast
    Yes but you need to do minimum to mitigate your losses, an essential ingredient in tribunal and insurance decisions