NSW Terminating lease - defense

Discussion in 'Property Management' started by giraffez, 26th Jun, 2019.

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  1. giraffez

    giraffez Well-Known Member

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    my tenant works in defense. Recently I received a termination notice from my agent saying he has been summoned to duty so needs to break lease. And because it’s in defense, they can terminate as required without any penalty even if the lease is not up.

    I can’t seem to find any documentation on this clause on the fair trading website. Is anyone able to confirm whether this is true?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    This is generally a special condition insisted upon by Defence Housing. Agent may or may not have documented this in the lease but would be well aware of the requirement.
     
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  3. Marg4000

    Marg4000 Well-Known Member

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    I do know of special conditions that apply to defence personnel, not sure of exact details.

    Also, In some states, tenants can legally end a lease on short notice if they are offered social or state housing.
    Marg
     
  4. giraffez

    giraffez Well-Known Member

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    Is there any documentation on this available to the wider public?
     
  5. TMNT

    TMNT Well-Known Member

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    In vic, there is something in the rules that say about defense leases and breaking them, from personal experience
     
  6. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    I have only come across this in passing in NSW, a defence applicant requested a clause to be able to terminate the lease early if they are deployed, but did need to provide 4 weeks notice.
     
  7. MyPropertyPro

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

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    Normally DHA supply them with a piece of paper that has the special clause on it, they provide it to the agent, and it forms part of the lease. The agent should have something, and at the least if they didn't provide it to you they should have told you about it.

    - Luke
     
  8. MyPropertyPro

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

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    I just found one that I remembered (can't post it as it has tenancy info on it) but it is from DHA titled "Release clause for tenancy agreements". In essence, for operational reasons, or a posting to another base, or if they are offered defence housing, they can end the lease with one month's notice.

    I don't believe it is a blanket rule for defence, it would have to be included in the lease.

    - Luke
     
  9. thatbum

    thatbum Well-Known Member

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    Pretty much this, or otherwise promised to them in some way.

    First thing to check is the lease, and then maybe speak to the agent to check if there was some other sort of promise made at the time of entering into the lease. Its possible that you might still be bound by a verbal promise for example.
     
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  10. twobobsworth

    twobobsworth Well-Known Member

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    When I leased a property to someone in the RAAF they provided this sheet as part of the special conditions. I would guess that if this wasn't provided they are bound to normal termination conditions. As that bum says check a copy of your lease.

    This tenant also moved out after 4 months.

    termination.jpg
     
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  11. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    2nd dot point of that is a big risky!

    upload_2019-6-26_15-14-55.png

     
  12. balwoges

    balwoges Well-Known Member

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    I have had experience of the personnel of the Defence Forces, just try to collect overdue rent, you meet total resistance from them - they are very good at protecting their own ... :(
     
  13. Beano

    Beano Well-Known Member

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    Were the leasings pretty attractive to the landlords ?
    That is
    1: net yields pretty good at the start of the lease ?
    2: steady growth ?
    3: they mostly stayed a good long period ?
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    I had the opposite, they were required to have their own place but payment was made by defence for 85% of the rent.

    These guys were officers, weren't allowed to put a foot out of line for fear of severe reprimand.
     
  15. giraffez

    giraffez Well-Known Member

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    My tenant has been good. Pays rent on time. I just want to understand where I stand with the break lease. I was told over the phone by the agent that they were summoned and can break lease without notice. I haven’t seen any evidence of the summon And don’t want to just take the agents word for it.

    I can’t find anything on department of fair trading on exceptions for defence personnels so I don’t even know whether this clause exists
     
  16. bunkai

    bunkai Well-Known Member

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    Perhaps ask the agent for a copy of the lease?
     
  17. giraffez

    giraffez Well-Known Member

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    I have a copy of the lease, it doesn’t say anything in this regard and I thought maybe it’s just a known rule that is applied to all defence force personnels on top of the lease.
     
  18. Dan Wood

    Dan Wood Well-Known Member

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    Are you leasing to DHA or the individual that happens to be a defence worker?
     
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  19. Dan Wood

    Dan Wood Well-Known Member

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  20. qak

    qak Well-Known Member

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    We had the same. He was a great tenant, the neighbours loved him, they even had a farewell party for him!
     

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