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Tenant issued termination notice due to arrears

Discussion in 'Property Management' started by snoopy, 3rd Sep, 2016.

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  1. snoopy

    snoopy Active Member

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    Hi - our PM issued a termination notice as the tenants in Central Coast (NSW) have been constantly behind on rent and went over 14 days in arrears. The tenant replied and said that based in the notice they will move out in 2 weeks. Lease has 6 months to go.

    The PM says the following:

    - can't advertise the property as tenants could pay arrears and stay in. I am saying tenants have emailed giving notice too. She says but it refers to our termination notice.
    - She says tenant won't be liable for any rent while vacant or relet costs as we issued termination notice. Sort of makes sense although termination notice is due to tenants breach of lease

    The tenants are good people and have challenges with their work situation so I don't mind them leaving. I would just like to minimise vacancy period and would welcome any comments or suggestions.
     
  2. Ghoti

    Ghoti Well-Known Member

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    Watching with interest. A friend goes to VCAT on Monday having issued a termination notice for non-payment, but his tenants appear to have no intention of leaving and have ignored calls, emails, letters and a visit from the PM.
     
  3. thatbum

    thatbum Well-Known Member

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    The PM is mostly correct - you just need to move quickly once you have possession again, but until you do, you never quite know how long it might take.
     
    D.T. likes this.
  4. jins13

    jins13 Well-Known Member

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    I also have a tenant that was issued a termination notice (NSW) and they have secured a new rental property, but I can't advertise the property and they haven't provided an exit date, even though the lease has expired.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    @jins - the termination notice has a drop dead date. The tenant can leave beforehand.
     
  6. jins13

    jins13 Well-Known Member

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    Pretty sure from memory with my one, it's expired but guess that due to them having another place to go to, not escalating the matter.
     
  7. snoopy

    snoopy Active Member

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    Thanks for the reply.

    Does this mean if a tenant wants to get out of a fixed lease the best thing for them to do is stop paying rent and wait for a termination notice? Is there no downside to the tenant in such scenarios.

    Could we mutually agree a termination which allows us to advertise the property sooner.
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    Plenty of downsides
    - lose bond
    - no reference for next rental
    - blacklist database
    - insurance co will chase them up
     
  9. Phoenix Pete

    Phoenix Pete Member

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    Most of those downsides can quickly be eliminated by the tenant, if they are shrewd and able enough.

    They can stop paying rent and wait to receive the notice, then simply get the property fully cleaned up, hand in the keys to the agent or owner along with all the rent due up to (and including - depending on the time of day) the date the keys are surrendered - meaning no further charges incurred that would be deducted from the bond. The owner or managing agent cannot list them on a default database as they don't owe any money and there won't be a need for insurance to chase them up because again, there is no money owing.

    The only problem for the tenant would be obtaining a tenancy reference, but there are ways around that too (not going to reveal these tricks).