Tenant has not signed renewal lease - it has been two months since sent to them

Discussion in 'Property Management' started by Cbarchangela, 19th Aug, 2018.

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  1. Cbarchangela

    Cbarchangela Active Member

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    Hi,

    I have an interesting and (I think) a rather complicated situation. I have organised through to my Property Manager for my tenants to sign 6 months renewal, so that before it ends sometime next year (Jan/Feb), I am planning to ask them to vacate according to the notice period that falls under the fixed term agreement. Yes i am planning to take the unit back and I've already planned it at such (almost) specific date. The problem is that it has been two months since my PM sent the contract to the tenant and the tenant is difficult to be contacted when chased for the contract!! The PM told me that they have attempted with numerous emails and phone calls and so far the tenant would either not answer/reply, or a couple of times only say they'd get on to it and only verbally agreed to the renewal. I dont have a binding contract so far.

    I think i might ask the PM to just tell them to vacate within 26 weeks as I would like to move in there...without disrespecting them about the contract situation. 8 weeks has definitely passed since the renewal was organised and sent to them.

    The home that I currently live in is a rental property and I am wanting to move in to my own property that's why i'm trying to calculate the date as specifically as possible. I am on a periodic lease with my current rental home (i think the landlord just forgot about it, but I have a feeling they'll ask me soon), and if i sign a lease renewal, i cannot leave my rental home until end of my fixed term contract, at the same time i dont want to give 90 days to vacate notice to my tenants right now in case they are leaving any time and i may already have a binding contract with my own rental home.

    So, any help would be greatly appreciated! Has anyone left their rental place and moved in to their own property simultaneously without breaching any lease agreements? I'm extremely worried right now!! :(
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    There is no obligation on a tenant to enter into a new lease, the lease provides for holdover. Different termination provisions apply to the holdover period.
     
  3. Cbarchangela

    Cbarchangela Active Member

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    Regarding holdover period, does it mean i can ask the tenant to vacate within a month's time? since i have not had any binding contract and i'm not sure why they havent returned the renewal (maybe they are planning something else?). My PM told me that i needed to give 90 days notice if i wanted to take the unit back.

    As a tenant myself, I know i can leave anytime as i'm also on periodic lease? or similarly holdover?
     
  4. Ricki barkham

    Ricki barkham Well-Known Member

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    If they dont sign it they cant leave before the contact ends anyways
    And if they do they loose.there.bond and you can claim it on your rental insurance
     
  5. Carol M

    Carol M Well-Known Member

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    Depends which state you are in. I was told by my PM in NSW that tenant has no obligation to sign new lease, but if I want to terminate them on their holdover/continuing lease then I have to give them 6 months notice. Yet the only notice they have to give me is 2 or 3 weeks. Typically unfair to owners, aye. Would love someone to tell me I can give them less notice as I do want to get them to leave soon myself.
     
  6. wylie

    wylie Moderator Staff Member

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    It sounds like the tenants have already gone past the fixed lease end date. They've not signed the new lease that you want to end January/February. Is that correct?

    If so, then they are on a month to month, and you will need to give them the notice appropriate for your state. If your PM says that is 90 days, then I'd guess that will be correct.

    So, you can keep pushing for them to sign the lease that will finish at the time that suits you, or leave them month to month and issue notice with appropriate time (and allow for postage etc).

    Of course, it could be they will give you short notice that they are leaving, and that might be why they are not signing the new lease.
     
  7. wylie

    wylie Moderator Staff Member

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    I know many PM offices will issue a notice to leave with the new lease, so that if the new lease isn't signed, then notice has been issued to leave at the end of the current lease. It is too late for that in this case.
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    What does the legislation say?

    Periodic and holdover are different names for the same thing.

    AFAIK, there are no circumstances which require 6 months notice for NSW residential tenancies, this may apply only for retail lease termination (under a demolition or relocation clause)

    You should both read the free information on the Fair Trading or VCat websites as appropriate.
     
  9. Travelbug

    Travelbug Well-Known Member

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    Would help if you say what state the property is in.
    In NSW standard notice is 3 months when on a periodic lease. However I think it is shorter if you are moving in yourself or selling. Check the legislation for the state you are in.
     
  10. Ricki barkham

    Ricki barkham Well-Known Member

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    Im selling my investment property in vic and theres nothing in the residential tennacy act that says i have let them move out before lease ends.
    The realestate agent says i could offer compensation to help then move if i feel like it amd want to be nice but theres nothing in the letter of the law that says so.
     
  11. Cbarchangela

    Cbarchangela Active Member

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    My property is in NSW. They tenants have finished their fixed term lease since Feb this year and have been renting periodically since then. My PM didnt even notify me when the fixed term lease was about to expire but im sure it should have been my responsibility back then

    I guess i will just wait for the PM to give it a try again with the lease. If they returned it then thats fine i will work out my estimated time to get my unit back sometime early next year. Even if my current landlord offers me to sign renewed lease then my move out/in could almost happen simultaneously.

    If the tenants are wanting to leave soon then it will work out fine too as i can also notify my own landlord anytime ( as long as they dont get me to sign fixed term lease yet!)

    If my tenant can refuse to sign contract, then i am sure i can also do the same to my landlord if they ask me to sign, whilst im waiting the tenant to move out if their renewed lease doesnt happen.

    At the moment, Im entagled in both tenant and landlord roles perfectly!
     
  12. Ricki barkham

    Ricki barkham Well-Known Member

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    I think the 60 days notice is by law if you want to i crease the rent.
     
  13. wylie

    wylie Moderator Staff Member

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    Your property manager will know the rules for your state. I'd be listening to the property manager and working out how best to make this work within the rules.

    Anything outside the rules will land you in trouble. You also have to work within the rules regarding your own lease. Keep it simple.
     
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  14. ChrisDim

    ChrisDim Well-Known Member

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    You can't legally force existing tenants to get into a new fixed agreement in NSW.

    I guess you could give them 26 weeks notice (you only need 90 days BTW) but be prepared for them to start looking elsewhere from tomorrow with only 21 days notice back to you.... and if you are fixed on your February moving in day, then you could be landed with an empty property and no rent for a few months :mad:

    To be honest, if they have been there for a while and are pretty set and happy (which your PM should know if they are doing their job and have a good relationship with them), they are most likely going to be there in 3-4 months when you need to give them notice anyway.
     
  15. Cbarchangela

    Cbarchangela Active Member

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    They are great tenants and have always paid on time. It is such a shame to ask them to vacate because i do enjoy having my property rented out, but sadly not our current bank accounts. That is because we are also currently paying rent ourselves and are on periodic lease now (i think the landlord/PM forgot that we've finished our fixed term), so we now think this is it the chance for us to get out of rental place and move in to our own property.

    We may not be fixed for February moving, but once the tenant moves out with only 21 days I am ready to move in asap. However, if they do up till 90 days, and if my landlord asks me to sign another fixed term lease between tomorrow to 90 days later, how do I even say no to them? as I dont even want to be in a binding contract situation either, that's the reason why i couldn't get out of the rental property last year because I was on 12 months fixed term. :(
     
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  16. Simon Hampel

    Simon Hampel Founder Staff Member

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    This is completely wrong. In NSW, at the end of the fixed term, the lease automatically reverts to a periodic agreement (unless a new lease agreement is signed) - reference: NSW Legislation

    Termination of a periodic tenancy by the tenant can be made with a minimum of 21 days notice: NSW Legislation

    Termination of a periodic tenancy by the landlord must specify a termination date not earlier than 90 days after the day on which the notice is given - reference: NSW Legislation

    From my understanding of the Victorian legislation, it's largely the same (although timings may differ somewhat) - tenancies automatically revert to periodic if no new lease agreement is signed.
     
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  17. Simon Hampel

    Simon Hampel Founder Staff Member

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    Nope - as per my previous post - in NSW, a landlord must give 90 days notice to terminate a periodic agreement while a tenant only has to give 21 days notice.

    There is nothing that I can find in the NSW tenancies act which mentions a 6 month notice period - so I think it's time you got a new property manager who actually knows the laws required for their job!
     
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  18. D.T.

    D.T. Specialist Property Manager Business Member

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    ACT is the only place with 6 months notice period.
     
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  19. jprops

    jprops Well-Known Member

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    One option is to be upfront and offer them a new contract at a significant discount. There is always a price for certainty.
     
  20. jprops

    jprops Well-Known Member

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    If you are on periodic lease you can't be forced to sign new contract.