Tennant done a runner 2 months early

Discussion in 'Property Management' started by oneone, 21st May, 2019.

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  1. oneone

    oneone Well-Known Member

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    So the lease agreement was to the end of June. Last rent payment was for April. When chasing up on this month's rent, got a text from tennant to say they already left and moved out...
    Checked IP, luckily no damage, just a clean is needed. So I could be 2 months out of pocket
    Suggestions on what to do ?
    - can I keep the bond ? that will at least cover some period of vacancy, I've registered this bond at the time of lease agreement. So will need to see what paperwork or sign off I need to get this one
    - lodge a claim with insurer (AAMI), do I have to show I'm currently looking for a replacement and try make a claim for the vacant period ?

    And an aside, tennant was a heavy smoker. No carpet or much soft furnishings. Walls were repainted about a year ago. Whats the best way to get rid of the smell ? A vinegar wash ?
     
  2. EN710

    EN710 Well-Known Member

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    Do you have a property manager? They should be able to help sort you out
     
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  3. oneone

    oneone Well-Known Member

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    No, at the moment looking at this IP myself. The tennant has been very low maintenance and pretty reliable up to this point.
    The last real estate agent got busted by the authorities (unauthorised used of bond funds), so I took it back
     
  4. thatbum

    thatbum Well-Known Member

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    In short the normal things you would do on a vacate, coupled with treating it like a break lease situation essentially.

    I'm a bit concerned that you don't know what to do - you should really be getting a PM to do this.
     
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  5. TMNT

    TMNT Well-Known Member

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    You shouldn't be self managing if you dont know the basics of property managment

    Especially about the bond
     
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  6. EN710

    EN710 Well-Known Member

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    Maybe check the legislation for NSW on what you can claim for bond, also check insurance policy on what's covered. The general tip I was told was use bond for things that insurance won't cover
     
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  7. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    Unfortunately all tenants are reliable and low maintenance until something goes wrong.

    Will you be self-managing going forward? If you're considering a PM then it makes sense to get them to assist with this issue.

    Otherwise calculate how much rent is owing (inc breaking the lease) & cleaning costs, fill in this form (https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0009/367749/claim_refund_bond.pdf) or go to RBO if it was online. Then look at how much you're out of pocket and determine if its worth an insurance claim.
     
  8. MRO

    MRO Well-Known Member

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    Has the tenant stopped paying rent?
     
  9. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Break lease or abandonment?

    - Luke
     
  10. thatbum

    thatbum Well-Known Member

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    They're legally the same thing assuming the tenant is the one informing the PM/LL that they have left.

    Abandonment is the legal term used in the legislation for most states. Break lease is just the colloquial industry term.

    Just to be more confusing, both are just different ways to word what is essentially a common law 'repudiation' of a lease.

    Often there's confusion about "abandonment" because most states have a process for establishing whether a property has been abandoned where it hasn't been expressly communicated by the tenant.
     
  11. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    upload_2019-5-21_17-51-30.png
     
  12. oneone

    oneone Well-Known Member

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    Thanks everyone and the helpful comments
    I called up RBO and had a chat. I have the keys and so have submitted a claim on the whole bond to be refunded directly and the tennant has 2 weeks to submit a claim against that. Am checking in with insurer on the process.

    The tennant missed a payment few days ago, which was why I tried get in contact. So with them leaving the lease 2 months early, as they pay 4 weeks upfront and if I get the whole bond back, luckily I shouldn't be too out of pocket.
     
  13. thatbum

    thatbum Well-Known Member

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    Uh do you even have a legal basis for this? Even if you do, have you even quantified all your losses?

    Shouldn't you be waiting until you know the value of all your claimable losses?

    Sounds like "RBO" gave you dud advice, which isn't surprising because I doubt they're qualified to give advice at all.
     
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  14. oneone

    oneone Well-Known Member

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    yes I've quantified the losses, its not hard to do. I've spoken to insurers too.
    RBO didn't give me advice, they just explained the bond claim process which I acted quick on, as its preferable to be the one to have lodged claim first.
     
  15. thatbum

    thatbum Well-Known Member

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    Really? You said your lease was until the end of June. You haven't gotten a new tenant in yet have you?

    I also don't see how its preferable to be the one that lodges first - I don't see any real difference either way.
     
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  16. wylie

    wylie Moderator Staff Member

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    My understanding is that if you lodge first and the other party wants to dispute it, they have to do the work, and pay any fee if they decide to take it to tribunal.

    If they get in first, you need to pay the fee to take them to tribunal.

    I've heard that but have never had to test it (and I don't know if disputing it means going to tribunal either).
     
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  17. D.T.

    D.T. Specialist Property Manager Business Member

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    No difference in the states ive worked in. Is there a difference in yours?
     
  18. D.T.

    D.T. Specialist Property Manager Business Member

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    Landlord pays either way here :(
     
  19. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Yes in terms of the process to take possession, and some insurance policies I have seen have different coverage based on the event.

    - Luke
     
  20. thatbum

    thatbum Well-Known Member

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