renting to defence personnel

Discussion in 'Property Management' started by ozwanderlust, 16th Oct, 2018.

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  1. ozwanderlust

    ozwanderlust Well-Known Member

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    Potential tenant is a defence personnel with a family, wanted to include a clause (presumably standard from defence) which allows one month notice to vacate if they get moved / posted away. Is this normal / ok? We don't have a problem with this, per se, as we want to support our military people who keep our country safe. But interested in your thoughts.
     
  2. Michael Mitchell

    Michael Mitchell Well-Known Member

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    If you're fine with it, that's all that matters.

    IMO, if a tenant wants/needs to go, let them go, quicker the better to move on and get on with it. They still need to do right by way of leaving the property in the same condition less fair wear & tear, and also pay a break lease fee a the very least if applicable to cover your costs to re-let the property form their breach of contract. Have a fixed term in place + landlords insurance, don't specifically mention you relieve them of paying compensation of rent, but don't go to xCAT over it either, simply put a claim in to your insurer and get paid out that way instead.
     
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Pretty standard
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Likewise, have leased to Armed forces before, rent is guaranteed (in some cases).

    How many major deployments have we had in the last 50 years?
     
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  5. ozwanderlust

    ozwanderlust Well-Known Member

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    Thanks, everyone (Michael Mitchell, D.T. and Scott No Mates), for replying - appreciate your thoughts.

    Normally when a tenant breaks a lease, the PM often ensures that a new tenant is found and the old tenant pays the PM for the 1 or 1.5 weeks rent (as they call it a lease fee - this break fee does not go to us, but is kept by the PM). In this defence clause, it only mentions that if the defence force tenant is moved / transferred, then they can break the lease by giving one month notice without any compensation. I guess we could ask for the break fee, but as Michael Mitchell said we could just accept the clause and claim it from the insurer, or bear it ourselves :( Well, we don't want to make a big deal as we want to support our armed forces personnel.
     
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  6. Todd

    Todd Well-Known Member

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    I have 2 furnished apartments in Canberra and they are usually tenanted by defence personnel and I have the 1 month break clause in the lease - it's standard for defence dept. I have just been notified that one of them has to leave for overseas, leaving the apartment about 7 weeks before the lease ends. I don't mind as the guy is genuinely going to serve our country overseas and we have to support these guys/girls plus they are in general great tenants who look after the place and the rent is never missed.
     
  7. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Defence personnel tend to make fantastic tenants, so most Landlords are happy to let them include this clause- even if it does mean the tenants can leave without a lot of notice. Sometimes you used to be able to convince them to take the house without the clause, but they've been pretty adamant on its inclusion for the past couple of years.
     
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