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Standard lease agreement additional terms NSW

Discussion in 'Property Management' started by Tenant1315, 21st Dec, 2015.

  1. Tenant1315

    Tenant1315 Member

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    Hello, I just found this website and I'm hoping someone can help me. I know you are all probably owners so I ask for your fair opinion.

    I'll attach a photo of part of the lease agreement I signed. I need to break the lease early (2 months early) and there is a break lease listed under additional terms of the tenancy agreement.

    The agreement clearly states ANY ADDITIONAL TERMS ARE NOT REQUIRED BY LAW AND ARE NEGOTIABLE.

    But my owners are not willing to negotiate it, and are asking 4 weeks full rent, despite already having a new tenant lined up with only 1 day missing which I offered to cover, as well as their out of pocket costs for advertising.
     

    Attached Files:

  2. thatbum

    thatbum Well-Known Member

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    Get some tenancy law advice from a tenancy advisory service - I believe its the tenants union in NSW.

    Not sure why you brought this up - its referring to a different clause entirely and not relevant.
     
  3. Ian Macleod

    Ian Macleod Active Member Premium Member

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    This means that when you entered into the agreement that the additional terms were negotiable, and that they are not required under the residential tenancies act. So at that time you agreed to the additional terms which means you are bound unless those additional terms breach the Act.
    RESIDENTIAL TENANCIES ACT 2010 - SECT 15 (4)
    Variation of standard form A residential tenancy agreement for which a standard form is prescribed may include additional terms, but only if:
    (a) the terms do not contravene this Act or the regulations or any other Act, and
    (b) the terms are not inconsistent with the terms set out in the standard form.
    Breaking_a_lease_early

    Having said that, the purpose of this provision is to protect the landlord from a tenant breaking the lease and leaving the landlord high and dry. It is not intended as a Christmas bonus for the landlord since they have a tenant already lined up to take your place.
     
    Last edited: 21st Dec, 2015
  4. Tenant1315

    Tenant1315 Member

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    Thank you. I don't want to leave the owner with any loss and am willing to pay any costs they have incurred, which the agency have told me is $1500. But they want to charge me almost $4800 - I pay $1200 a week rent.
     
  5. Tenant1315

    Tenant1315 Member

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    But the break lease fee is an additional term of the tenancy agreement...

     
  6. Chilliblue

    Chilliblue Well-Known Member

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    Pretty standard agreement:

    Where there is a break fee in your agreement that is all you have to pay if you move out early. However, if the landlord or agent find a new tenant quickly it does not mean that you will get any of the break fee back. It is a fixed fee.

    Breaking_a_lease_early

     
  7. thatbum

    thatbum Well-Known Member

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    Which are allowed. You've cherry picked a line from a section of the agreement out of context.

    The whole of the clause allows additional terms that don't conflict with the act or the standard terms.

    Get some legal advice. Your matter is quite legally complex and I don't know you fully grasp the legal issues involved.
     
  8. Tenant1315

    Tenant1315 Member

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    Thank you, I definetly don't grasp it, I'm struggling, hence asking :)
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    You agreed to limit your risk to 6/4 weeks rent in lieu of being responsible for all costs up to the expiry of the lease (reletting fees, advertising, lease preparation, letting fee, signage, shortfall between current rent and new tenant etc) and the lessor carries the risk of not being able to relet within that budget.
     
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  10. Chilliblue

    Chilliblue Well-Known Member

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    As @Scott No Mates said. You agreed to a fixed fee and now you want to change that agreement.

    If the landlord could not lease the premises in that allotted time, then the Landlord would not be able to ask you for more money.

    You will have to wear this one unfortunately.
     
  11. Ian Macleod

    Ian Macleod Active Member Premium Member

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    Having said that
    Break fee is a standard additional term in NSW tenancy agreements, they are legal and binding

    Optional break fee
    You and the landlord can agree to include a break fee clause in the additional terms of your tenancy agreement. The break fee is a penalty you agree to pay if you move out before the end of the fixed term.
    If the fixed term of the agreement is for 3 years or less the break fee is:
    6 weeks rent if you move out in the first half of the fixed term
    4 weeks rent if you move out in the second half of the fixed term.
    If the fixed term is for more than 3 years and you and the landlord agree to include a break fee clause, you can agree on the amount and write it into the agreement. (which is what you have done)
    Where there is a break fee in your agreement that is all you have to pay if you move out early. However, if the landlord or agent find a new tenant quickly it does not mean that you will get any of the break fee back. It is a fixed fee.
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    Why did you not consider subletting or assignment?
     
  13. Tenant1315

    Tenant1315 Member

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    I didn't consider it because I didn't know I could. And the owner had a new tenant lined up for the day after we left the lease, at $75 more a week than we were paying
     
  14. Tenant1315

    Tenant1315 Member

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    If I have to wear it can I make a payment plan? What would be acceptable? I have a young family, we are on 1 income and to buy a house we have moved 2 hours away to a country town, we are now financially stretched paying a mortgage
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    An option may be to deduct the amount from the bond.
     
  16. Tenant1315

    Tenant1315 Member

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    I can see from a landlords perspective in an unsteady market getting 4 weeks rent if there were no prospective tenants would at lease give him time to find a new tenant etc, but in a good market, it's making a considerable profit to the owner at my expense and I feel like it's unfair on me. The market was good and has remained good for rentals in my area even before we signed the agreement. And I can see someone has said its a standard NSW additional term but why is it standard and also additional? As you can see I am just a mere normal person with no property experience
     
  17. Scott No Mates

    Scott No Mates Well-Known Member

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    The alternative could have been worse ie the agent had little motivation to lease out the property prior to expiration of the current lease and you would have borne the advertising, part lease prep, letting fee etc.
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    @Tenant1315 it is an optional clause just like pets, body corporate and swimming pools. These are crossed out if they don't apply.