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Tenancy Tip Thursday - Notice to end a lease

Discussion in 'Property Management' started by D.T., 15th Oct, 2015.

  1. D.T.

    D.T. Specialist Property Manager Business Member

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    Hello again :)

    I want to cover how leases can end, whether that be by the lease duration being up, by the tenant or landlords wishes or because one of them has frustrated the agreement. Except in parts specified, this is based on SA rules. Maybe one day we'll get a federal Act :p

    Firstly, ending a lease due to the fixed duration being completed. This is a bit more tricky in SA than other states, but a Form 2A must be served 28 days prior to the lease ending. Since the extension / renewal has to be organised prior to that and some tenants are slow to return them (and some PMs are lazy to follow them up), I've seen a few cases where this window is missed. If so, you have no choice but to accept the tenant on a periodic tenancy. This is why most charge a (re)letting fee - it takes some time / organising; an investor savvy PM will discuss with the owner their investing intentions.

    Thanks to recent amendments, WA is the simplest state to renew. Both parties agree to it and its done, similar to a commercial option taken up.

    For a landlord / owner to end a periodic lease 90 days notice must be given using a Form 3 (can be reduced to 60 days if proof of demolition, major renovation or landlord moving into / selling the property). For this reason and because its less secure investment income, it's really important that you end or renew the fixed lease correctly.

    Tenants get much more generous notice periods on periodic agreements with just 21 days notice required. They have the same 28 days required for end of a fixed lease as landlords do but landlords can accept less at their discretion.

    For a serious breach, such as causing serious damage to the property or endangering a life, application can be made for an immediate eviction.

    14 days notice is needed for most other breaches including non payment of rent, which requires a Form 2 to be sent allowing 7 days to remedy the situation first. Recently, a rule came in saying 3x Form 2s (even if remedied each time) shows a pattern for which an application can be made to evict.

    Section 90 is a newly amended piece in the SA Act. It allows any interested party (being strata manager, police officer, neighbour, etc) to apply to evict. If evidence is given at the tribunal, it can give up to 28 days eviction notice.

    Neither party can exit a fixed lease agreement during its term, regardless of reason / notice given! (Unless mutually agreed in some states)

    Victorian rules seem a little simpler, but higher notice periods where they have:
    - 14 days for breaches,
    - 60 days for demolish, occupy by landlord, renovate (must time it for being after the fixed period has ended)
    - 90 days for end of fixed lease (ouch), and
    - 120 days for periodicals (ouch).

    In NSW tenants require only 14 days prior to the end of a fixed lease or only 21 days during a periodic. For landlords its:
    - 30 days prior to end of fixed term
    - 90 days for no reason given on periodic
    - 30 days on sale of premises on periodi

    In a future tip I'll cover what happens if the tenant leaves belongings behind at the end of their tenancy, but in the meantime I'd like to hear from all of you:
    - what experiences have you had with all of the above? Any stories to share of successfully / unsuccessfully serving notice on tenants?
    - what other topics would you like to learn about that I could cover?

    Cheers,
    Dave
     
    Last edited: 15th Oct, 2015
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Yup.Each state's RTA is feral, some states are more so than others.
     
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  3. Nemo

    Nemo Well-Known Member

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    In Canberra, a tenant can leave at the end of a fixed term by giving 3 weeks notice... Not so easy for the landlord.

    At the end of the fixed term you can only terminate if you have lawful grounds for termination or to recover the property.

    To terminate without cause you need to give 26 weeks notice.

    www.tenantsact.org.au/rentingAdvice/tenancy-factsheets/Eviction-in-the-ACT
     
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  4. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    NSW Landlords (where tenants are not in breach)

    30 days prior to end of fixed term
    90 days for no reason given on periodic
    30 days on sale of premises on periodic
     
  5. D.T.

    D.T. Specialist Property Manager Business Member

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  6. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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  7. D.T.

    D.T. Specialist Property Manager Business Member

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    Thanks Dave , have updated the article to include them :)
     
  8. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Tenant

    • End of lease/periodic - 28 days in writing by the tenant
    • After notice to vacate - 14 days at any stage, technically not while they're in a lease but if you've served the NTV VCAT will say tough luck
    Landlord
    • End of lease >6 months - 90 days
    • End of lease <6 months - 60 days
    • Family moving in - 60 days (or 14 if written into the lease that it was immediately before the TT moved in the owners PPOR)
    • Rent arrears - 14 days
    • No specified reason - 120 days
    • Property sold - 60 days
    • Renovations - 60 days (must be substantial renovations that cannot be conducted with TT in the property)
    There's a few others for drugs etc, but they're uncommon.


     
  9. 733

    733 Well-Known Member

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    Qld Landlords (where tenants are not in breach)

    Periodical agreement = 2 months notice

    Fixed term agreement = 2 months
     
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  10. xanh

    xanh Active Member

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    This is a great thread. Perhaps this should become a sticky?
     
  11. TMNT

    TMNT Well-Known Member

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    In the slums, tenants leave whenever they feel like it, they are NOT required to give any notice and simply get their best friend bob to hand in the keys.(if they are sober enough to remember)

    and depending on how many bongs they've had, they leave a few holes as a reminder to the landlord on how tough their lives are

    :D:D:D
     
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  12. Ouchmyknees

    Ouchmyknees Well-Known Member

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    @Lil Skater , I'm very confused about the rule.
    Say a 1-year lease will expire on 1 August, after that the lease will roll into periodic. If I serve a Notice to Vacate today, should it be 90 days end-of-lease (since today is still within the lease period) or 120 days (since the termination day will be after the lease expires)?
    Thanks a lot!
     
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    In Vic you can give 90 days prior to the end date. Since you said 1 August in your example you've missed the window on this.

    Because you've missed that window, you'll have to til it ends and then serve 120 day notice.

    Or that's how it'd work here (though our timeframe are different, I assume the process is the same), @Lil Skater can confirm.
     
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  14. Ouchmyknees

    Ouchmyknees Well-Known Member

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    Many thanks @D.T. for this. Why do I have to wait until 1 Aug? Can’t I serve the 120 day notice today?
     
  15. D.T.

    D.T. Specialist Property Manager Business Member

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    Because thats the notice for a periodic lease, and you're not on a periodic lease.
     
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  16. Ouchmyknees

    Ouchmyknees Well-Known Member

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  17. D.T.

    D.T. Specialist Property Manager Business Member

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  18. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Hello folks, sorry for the tardiness.

    A 90 day end of lease notice must expire on the final day of the lease. Ie. If lease expires on the 1st August you must have served the notice at least ~97 days prior to that date (90+ postage).

    You can issue a 120 day notice to vacate now. This can be served at any stage during a tenancy, providing the final date on the notice is not before the end of the fixed term lease date.

    Hope that helps :)
     
  19. D.T.

    D.T. Specialist Property Manager Business Member

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    Wow thats completely the opposite to SA rules.
     
  20. Blue Skies

    Blue Skies New Member

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    Great Thread DT

    I have a question regarding this scenario

    Rental Property in Vic, fixed term lease expired in May this year and has now rolled onto a periodic tenancy. I would like to move into the property and it has not been my PPOR in the past.

    WRT notice to vacate in this situation - would it be 60 days as I'm moving into the property or 120 days as it is now a period lease.

    Thanks in advance