Landlord Wanting To Break Lease

[TESSIE]

My IP is currently tenanted on a one year lease due to expire in August 03. Due to changes in personal circumstances (i.e. pregnancy) I would like to break the lease and move into my IP. Is it possible to ask the tenants to move out early if I give them adequate notice?

[Kristine..]

Tessie

You have an enforceable contract with them, which is binding on both parties.

If the property was previously your principal place of residence you can apply a shorter 'notice' period, but in any case, the notice to quit can not be earlier than the original date on the lease.

Of course, you could offer to 'buy' them out of the lease, ie, pay their relocation expense and any other reasonable expense, but they do not have to agree to anything.

You may just have to find other accommodation for yourself until the natural effluxion of the lease.

By the way - each state has slightly different tenancy laws, but a bargain is a bargain under the law.

Hope the pregnancy is happy and healthy

Kristine

[asy]

Hi Tessie,

Where are you?

In Victoria, there is a way to apply to the tribunal under the hardship laws to say that you have no alternative but to re-occupy the property.

However, this is long and tedious, and not a certainty, as you will have to prove hardship...

Your best suggestion would be to approach the tenants, and talk to them, you may find that they want to move out, or, offer to pay their moving costs if they go now.

Otherwise, Kristine is right, you have signed a legally binding contract and will have to stick to it, but make sure your Property manager gives them adequate notice to vacate at the end of their lease...

asy :D

[geoffw]

There was something I saw in one lease agreement which gave the right to the owner to be able to evict in order to renovate. I'm not sure of the circumstances (and it was an ACT lease- and it may have had a 90 day notice)- I don't know if that could be used.

[Sim]

Most of the leases I've seen allow you to give 90 days notice for the tenant to vacate, but only when on a periodic lease. A fixed term lease cannot be broken without the tribunal I think.

This is why periodic leases can be good - but it's all swings and roundabouts, by giving you the option of getting rid of the tenant with notice, you also give them the ability to leave with notice too.

[Sim]

Originally posted by TESSIE
Is it possible to ask the tenants to move out early if I give them adequate notice?

If it really is that important to you, perhaps you could approach your tenants, explain the situation - make sure they know you are aware of your obligations under the lease, but ask if they would be willing to move if you can help them find somewhere else to live ?

It may even be worth spending some money on them with removalists, even perhaps putting up bond money for their next tenancy ? Is it worth $1000 to you to be able to move back into your place early ?

If you do, make sure you get agreements in writing, and perhaps seek professional help to ensure that you do things by the book and the tenants have no recourse to claim no knowledge of the transaction and take your money and then refuse to leave.

[tonyd]

Had an amusing experience when renting some years ago.
The unit was on the market and we were fairly accomodating to the agent - kept the house & gardens tidy, allowed potential buyers through with reasonable notice. The agent was very rude though and repeatly offended my partner (now my wife) with his attitude.

Anyway, the contract was signed, offer accepted and we were told by the agent that we would need to start looking for a new place and move out by the end of Feb.
"But we have a lease till the end of March," said my wife.
"No your lease runs out in February," sneered the agent over the phone.

A phone call to the PM confirmed that the lease extended past the transfer date.
A fax was fired off to the agent pointing out his error.

Did that agent change his tune!
He was offering to write us a reference, telling us about the rentals on his companies books.

A few more faxes were fired off between us and the vendor.
We didn't know much about property but we knew the vendor was in a sticky situation.
So we put our conditions to him - we'll move out on time if we don't have to pay rent for the last two weeks, and we didn't want to have to clean the carpets.

Deal accepted!

Now I actually meant that I didn't want to have to steam clean the carpets. So the day after we move out, the vendor arrives early in the morning with his vacuum cleaner and cleaning gear.

But the place is immaculate. Carpets vacuumed, windows cleaned, skirting boards dusted, gardens looking great.

We get a phone call from him later that day. He can't thank us enough. So much so that he tells my wife to go and help herself to any of the big pot plant urns dotted around the garden.

Everyone lived happily ever after.

Anyway, I agree that you should have a chat to the tenants and make it a win-win for everyone.

Good luck!

cheers, Tony