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. Tanya1335

    Tanya1335 Well-Known Member

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    Once the tribunal process is underway, you can't line up another tenant until you have an outcome for the hearing, then there are usually repairs to be carried out prior to re renting, this is why it is such a costly exercise to the owner
     
  2. giraffez

    giraffez Well-Known Member

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    but usually you have a tennant lined up in advance. It's only on the last day you know the refuse to leave
     
  3. Tanya1335

    Tanya1335 Well-Known Member

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    You can generally tell when you are showing a property if the current tenant is preparing to vacate, boxes of packing everywhere, when you take perspective tenants through, you also have to keep in mind, should you require the current tenants to return and finalise cleaning etc they have to be allowed time to return otherwise you can not take these costs from the bond, I generally allow 2/3 day between tenancies just in case this occurs.
     
  4. dabbler

    dabbler Well-Known Member

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    They should get a room in Her Majesties motel and be made to do laborious work to repay for damages.

    This is standard housing sort of stuff.
     
  5. thatbum

    thatbum Well-Known Member

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    Generally you should never line up a tenant until you have actual possession of your property.
     
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  6. giraffez

    giraffez Well-Known Member

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    Really? Maybe I have had really bad property managers in the past. They all lined up a new one before the old one vacates. But if you start advertising after the old tennant leaves, potentially, you will be weeks out of rent while you pay your mortgage?
     
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  7. giraffez

    giraffez Well-Known Member

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    But still you have a tennant waiting to move in. If they refuse to vacate at the end, they are likely to drag out for a few weeks.

    Isn't cleaning done prior to them handing in the keys?
     
  8. Tanya1335

    Tanya1335 Well-Known Member

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    Certainly advertise have a tenant lined up but ensure there is at least a 2 to 3 day gap between the vacating tenant and incoming tenant

    Cleaning etc should all be done prior to the keys being handed back, however if there has been something missed by the out going tenants you are required to give them the opportunity to go back and complete adequately before you can take money from bond. Legislation states you must mitigate their losses
     
  9. thatbum

    thatbum Well-Known Member

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    Depends what you mean by "lined up" I suppose. But if you have a signed lease agreement, and then can't deliver on a vacant property for the new tenants as agreed, then you could be up for some significant damages payments to your new tenants.
     
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  10. Tanya1335

    Tanya1335 Well-Known Member

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    That correct, it is a fine line
     
  11. giraffez

    giraffez Well-Known Member

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    Is it just me or is this very unfair? the tennant at fault gets away with everything in their favour. Even if you take them to court they are still in your property!
     
  12. thatbum

    thatbum Well-Known Member

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    I guess in a way. But there is never really certainty about when you might get possession back once you lease out a residential property. Comes with the territory really.

    So best not to make any contractual promises on your property unless you know you can deliver on them 100%.
     
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  13. dabbler

    dabbler Well-Known Member

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    Nah, that is what they do, the PM will usually know as sometimes they are finding your ex tenant another place anyway, the tenants talk to them, they see the place when showing new prospects, they will usually know how to work it all.

    You advertise as available, but just like buying a house, it is not yours till everything is done.
     
  14. Anthony Brew

    Anthony Brew Well-Known Member

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    As per the previous few comments, how does this normally work in practice when they do not renew?
    Say you have sent the tenant the lease renewal and termination notice and 4 weeks out they have not been returned so time to start advertising.
    If you find someone a couple of weeks before lease end date, do you get them to sign the contract in advance of taking possession of the property?
     
  15. Xenia

    Xenia Well-Known Member

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    Andrew at this stage it becomes a negotiation with the current tenant as it can get tricky if you sign a lease and the other tenant has not left when lease is starting - serious legal issues.

    We tell first tenant that we are about to sign a lease and get them to give us a firm date that the property will be vacant. If they are not playing then we will lock in a tenant with a flexible time frame - and get first tenant out first.
     
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  16. Anthony Brew

    Anthony Brew Well-Known Member

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    Oh right. Being direct and getting information right from horses mouth would be the best approach. Cheers for the reply.
     
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  17. giraffez

    giraffez Well-Known Member

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    Would tennants play ball with a flexible time frame? I'm thinking from a tennant perspective, if I was renting from one place to another, I need to give notice to the existing landlord, yet without a firm move in date, it will be difficult to do so.

    What consequences are there for the tennant that refuses to vacate? You take them to tribunal but so what, from a landlords point of view they have breach their contract and yet all they get is a small slap on the wrist.
     
  18. jprops

    jprops Well-Known Member

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    Do you consider this at all risky if the rental market is soft? I.e. current market rent well below what current tenant is paying?
     
  19. Anthony Brew

    Anthony Brew Well-Known Member

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    Well, yea it is unfair, but the problem is that the system is not perfect. There are people who legitimately have a problem finding a new place to move to, and the system can either err on the side of the tenant who needs somewhere to live or err on the side of the landlord who is looking to make money.

    If it errs on the side of the landlord, there are lots of landlords who will throw people out even when they have nowhere to go.
    If it errs on the side of the tenant, there are some tenants who will take advantage of this and stay longer.
    In a country where there is no social responsibility, they go with the former, but in a country that tries to help the legitimately disadvantaged, they will go to the latter, even when some people will take advantage of it.

    If there was a way for the law to separate those taking advantage of it from those legitimately in a difficult situation, I am sure they would.
    In the same way if there was a law to separate dole bludgers who are too lazy to work from those who legitimately have problems, I am sure they would - but since they can not, it errs on the side of avoiding making life worse for those legitimately disadvantaged.

    I am currently living overseas in a country where everyone screws everyone and there is no social responsibility and I'm glad that I was lucky to grow up in Australia where there is help when you really need it.
     
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  20. thatbum

    thatbum Well-Known Member

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    Its actually not a breach of any residential lease terms or legislation for a tenant to 'overstay' on their tenancy.