Withdraw Lease application

Any Vic property managers here that can help me with this tricky (may be not) situation?

I entered a 12 month lease agreement to start living at the premises on 24th April (so havent moved in yet).
I paid a month's rent as per the contract.
I see a few better and cheaper properties close by. So, now I am greedy and want the cheaper ones than the one I signed up for.

Question:
- Can I legally break the lease and get back my rental deposit? Please note, I have not moved in yet.

Thanks,
Mumbai

 

The fact you haven't moved in is irrelevant to the issue of whether you have a binding lease agreement.

Which is sounds like you have, so the normal break lease liabilities would probably apply.

 

Yes, thats what I am afraid of. I have sent an email to the PM, but have not heard back yet.

 

Bumping for more responses.

 

What else do you want to know?

If you want proper advice, call your state tenancy advisory service or local tenant advocacy service.

 

Is there a cooling off period on tenancy leases, or are you stuck as soon as you put pen to paper?

 

Yes you can break the lease
Legally? No, it’s a breach of contact so only mutual consent makes it legal.

Since it’s a breach you will be liable for break lease charges, ie vacancies and advertising and letting fees.

So yes you can break lease but not for free

 

Unfortunately this would come under break lease scenario.

@Lil Skater who is a Melbourne Property Manager could tell you how the costs would be worked out, as the formula is a bit different there than here.

No cooling off period. But 'stuckness' varies a bit per state perhaps. Don't even need pen to paper here - if you've been accepted for property and paid your bond, thats good enough to form commitment here.

 

I got a response from the PM of then property I was thinking of breaking lease.
There is letting fee two weeks plus GST , Advertising $320 and rent up until they find someone.

If I assume that the property is getting rented before the 24th (my start date), then including the 2 weeks re-letting fee and ad costs, I would be still be saving around 2k in a year. But, it will start getting tricky if they dont find someone soon.

 

What's their incentive? You're already obliged to pay the rent when empty.

Market sounds like it's contracting, they achieve a lower rent and you make up the difference.

 

I agree and that is why, I believe I should be sticking with this property.

 

As stated above, it is a lease break situation. Although VCAT tends to look on this sort of thing differently and I can almost guarantee the outcome of it should you take that action.

You've signed a binding contract though, there isn't a change of mind or cooling off option. If the owner has been charged full fees and the agent has done all the work, you need to abide by said contract. So your options are to pay the money, or stick with it for 12 months and if you're still unhappy move along.

 

I definitely agree, even in a best case scenario the break lease fees are expensive- but if it takes a significant amount of time to rent (and it sounds like it might) then it could cost you a lot more than you bargained for. Too risky.