When a lease is coming to an end - what is the full plan?

Discussion in 'Property Management' started by Anthony Brew, 10th Apr, 2017.

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  1. Anthony Brew

    Anthony Brew Well-Known Member

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    Hi,

    I just want to get it crystal clear in my mind so I can plan for the end of a lease on my property in Sydney.

    Here are my 2 assumptions (please correct me where I am wrong)

    1. Price increase needs 60 days notice (I think I saw this somewhere, so please correct me if wrong). So over 60 days before end of lease, need to discuss with agent if rental price needs adjusting and give notice of 60 days if want to do that.

    2. Need new lease signed at least 4(?) weeks prior to lease ending for enough time to start advertising to minimise vacancy period. So in that case need to ask the tenant about 6 weeks before end of lease if they will stay on, and if the tenant does not hand in a signed lease at least a month before end of lease, assume they will not stay and start advertising.

    Hmm also if they do not hand in a lease by a certain date, we would need to try and fix anything wrong with the property in time to start showing it to people 4 weeks before end of lease, so maybe it needs more time.

    Can anyone clue me in for the steps (and also what I have gotten wrong) ?

    Cheers
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes, you need to discuss any rent increase at least 70 days out from expiry to allow the 60 days +4 days postage if you want it to be effective on the 1st day of the following term.

    There is no obligation on the tenant to sign a new lease as they can stay on holdover (they give 21 days notice).
     
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  3. Anthony Brew

    Anthony Brew Well-Known Member

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    so if I want to increase the rent, I need to send it out say 70 days out.
    but I also don't need to have the new lease signed yet, right?

    eg

    70 days out send notice to raise rent
    40 days out (use new increased price) say that if no contract is signed by 30 days out we will assume they are not staying on and will start looking for a new tenant

    if they did not sign by 30 days before end of lease, do we need to send out a notice to end the lase to get them out?
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    70 days allows time to discuss with the property manager and 4 days postage and 60 days notice.

    You can't assume that they're not staying so can't advertise unless you have given them notice to vacate or they have confirmed that they're leaving. So you have to decide whether you are getting rid of them or going to get vacant possession and run the risk of extended vacancy, loss of rent, repairs/unplanned maintenance just because the tenant wants to go into holdover.

    A 2 week vacancy, advertising, letting fee & a small rent increase for a new tenant will never catch up for the loss of rent due to vacancy.
     
  5. Anthony Brew

    Anthony Brew Well-Known Member

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    Thanks for the reply.
    How much notice do you need to give before the end of a lease (in NSW) to vacate at the end of the lease?
     
  6. Marg4000

    Marg4000 Well-Known Member

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    Check with leglislation in your state. Some allow the tenants to delay signing until a shorter time than 30 days from the end if the lease.

    You cannot force a time frame different to the tenancy laws.
    Marg
     
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  7. Anthony Brew

    Anthony Brew Well-Known Member

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    Hmm yea.
    Thanks for the heads up.

    Right now just trying to get a time-line down and the order of operations to make sure I (and the agent) don't screw up the situation when the time occurs.
     
  8. Xenia

    Xenia Well-Known Member

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    Andrew we send out new lease with increase as well as a termination notice if not signed. These are all sent out together. We dont allow periodic leases except in some specific conditions that require it.

    In SA 28 days are required as notice of non renewal so extensions are sent out in enough time to cover that period if required, 2-3 months from lease end date.
     
  9. Anthony Brew

    Anthony Brew Well-Known Member

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    oh you send out new lease, including any rent increase, and also termination notice all together 2-3 months out, and if contract not signed by say 4 weeks before lease end date, we can just start advertising at that time (to minimise vacancy time)?
     
  10. Xenia

    Xenia Well-Known Member

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    Correct
     
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  11. Xenia

    Xenia Well-Known Member

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    And we access property during that 28 day period whether tenant likes it or not
     
  12. Anthony Brew

    Anthony Brew Well-Known Member

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    Awesome! That way makes the whole thing incredibly simple and less likely to screw up and cost me money unnecessarily.
    Thanks a lot @Xenia - awesome as always.
     
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  13. dabbler

    dabbler Well-Known Member

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    They are gonna get you one way or another buddy :eek::p
     
  14. Tanya1335

    Tanya1335 Well-Known Member

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    Agree, we do the same in QLD, the tenants tend to sign and return the lease more frequently
     
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  15. giraffez

    giraffez Well-Known Member

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    What happens if you issued notice and they still do not vacate when lease ends?
     
  16. D.T.

    D.T. Specialist Property Manager Business Member

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    I had this happen just recently.

    Owner bought the property, had tenants on a fixed lease that he inherited with the property. I gave them notice to leave (40 days rather than the required 28 to allow plenty of time to move) and they did not.

    Arranged tribunal that afternoon, got a hearing 3 weeks later. At the hearing the judge gave them 3 weeks to leave. And ordered that rent still be paid during this time.

    They did leave on the last day of that order. If they hadn't, a bailiff would have come dragged them out.
     
  17. giraffez

    giraffez Well-Known Member

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    But you are out for about a month! Thats tough.
     
  18. Tanya1335

    Tanya1335 Well-Known Member

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    Then the tribunal process begins, you would need to seek a "warrant of possession" to have them evicted. Generally an urgent case will take up to 6 weeks to get a court date, however I applied to QCAT last year and waited 8 weeks for a hearing as the court was swamped with other cases at the time I filed documents. This is where your landlord insurance comes in handy.
     
  19. Tanya1335

    Tanya1335 Well-Known Member

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    That is tough on the owner as they still have to pay the mortgage, the bank doesn't care whether the tenants pay rent. In my experience as soon as you lodge QCAT paperwork as in the one I mentioned last year, the tenant paid no rent for 8 weeks and just walked out and leff the place a mess, after judgement went against her they then run a muck in the two weeks the judge gave her to find another property and punched holes in every wall. I have since learnt that this lady was given a house by department of housing. Which made me incredibly angry.
     
  20. giraffez

    giraffez Well-Known Member

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    But what happens when you have another tennant lined up? They shouldn't need to find another place to leave because the existing tenant can't get their act together . And at such short notice!