When you have an existing tenant and you choose to have a new lease rather than a continuing lease do you go through the whole thing again? Do you have to complete a new condition report or do you carry the original forward? Obviously you would complete an inspection but is it time to agree to a new condition report or would the original be sufficient?
A new lease rather than a continuing lease
- Thread starter plumtree
- Start date
Hi plumtree
At the end of a fixed term lease, usually after the original six or twelve months but with the appropriate notice - at or about the nine month mark - your property manager will write to you reminding you that the term will expire on a particular date and asking whether the property will be available for rent, whether you wish the tenancy to continue on a periodic ie month to month basis, whether you will offer the current tenant the opportunity to enter into another lease, and what rent you will be asking.
After they receive your instructions, they will then write to the tenant, stating that you are prepared to offer them a further twelve month lease, at a rental of $x.
The tenant will be advised that they may choose to enter into a new fixed term lease, or continue the tenancy on a periodic basis, but that the rent of $x will apply from a specific date.
The tenant can choose a lease or periodic tenancy. The landlord cannot enforce a lease, it is at the tenant's choice.
If the tenant objects to the new rent they can apply to the Tribunal to arbitrate on the amount a fair rent would be. This may involve obtaining a rental valuation on the property.
The Tribunal will then decide on a fair rent and that is all that a tenant can be required to pay.
However, if the landlord decides that this is not enough rent, they can give Notice of Possession for 'no particular reason' and this period of notice could be 90 or 120 days depending on which State the property is in.
If the tenant elects to continue, whether on a term lease or periodic rental, the original bond remains with the Bond Board. No further bond is payable. Most property managers will charge only an administration fee for preparing the new lease, or if the tenancy continues on a periodic basis there is no further work for the manager to do and therefore no further fee.
The property would be subject to periodic inspections anyway, so no new condition report would be required.
Does this answer your question?
Cheers
Kristine
At the end of a fixed term lease, usually after the original six or twelve months but with the appropriate notice - at or about the nine month mark - your property manager will write to you reminding you that the term will expire on a particular date and asking whether the property will be available for rent, whether you wish the tenancy to continue on a periodic ie month to month basis, whether you will offer the current tenant the opportunity to enter into another lease, and what rent you will be asking.
After they receive your instructions, they will then write to the tenant, stating that you are prepared to offer them a further twelve month lease, at a rental of $x.
The tenant will be advised that they may choose to enter into a new fixed term lease, or continue the tenancy on a periodic basis, but that the rent of $x will apply from a specific date.
The tenant can choose a lease or periodic tenancy. The landlord cannot enforce a lease, it is at the tenant's choice.
If the tenant objects to the new rent they can apply to the Tribunal to arbitrate on the amount a fair rent would be. This may involve obtaining a rental valuation on the property.
The Tribunal will then decide on a fair rent and that is all that a tenant can be required to pay.
However, if the landlord decides that this is not enough rent, they can give Notice of Possession for 'no particular reason' and this period of notice could be 90 or 120 days depending on which State the property is in.
If the tenant elects to continue, whether on a term lease or periodic rental, the original bond remains with the Bond Board. No further bond is payable. Most property managers will charge only an administration fee for preparing the new lease, or if the tenancy continues on a periodic basis there is no further work for the manager to do and therefore no further fee.
The property would be subject to periodic inspections anyway, so no new condition report would be required.
Does this answer your question?
Cheers
Kristine
I was just going to reply with yes you can continue the existing lease agreement then I saw Kristine's fully comprehensive property management procedures manual written above. well done 
I dont think there is anything anyone can add except that all above steps can be taken yourself if you are not using a property manager!
I dont think there is anything anyone can add except that all above steps can be taken yourself if you are not using a property manager!
Thanks Kristine and Xenia, my question was about the Condition Report that was agreed at the start-up of the lease. It listed a lot of things that start out as satisfactory but could, through normal wear and tear, become unsatisfactory. Roller blinds are the sort of thing that could deteriorate considerably over a period of years through normal use. If a landlord installs new insect screens after the lease was signed they would be on the original condition report as not there or unsatisfactory. If the tenant leaves after a few years and the screens are damaged it would leave the landlord without recourse to the Condition Report as evidence. This is only an example (hypothetical) and I am sure that there may be better examples.
I have always favoured 'continuing leases' but I am starting to feel that it may be better to start new terms with a new lease and, of course, a new Conditon Report.
I have always favoured 'continuing leases' but I am starting to feel that it may be better to start new terms with a new lease and, of course, a new Conditon Report.
I think it would be a good idea to complete a new condition report for an existing tenant say every 3-5 years, depending on whether they have kids & pets or not. It would limit any concerns or data to a particular time frame as well as providing the PO with a clearer and more detailed picture of the property condition. It also keeps the PM on his/her toes, avoids driveby periodic inspections, and has the many advantages of both parties signing off on the document. Should be accompanied by some photos. Not law, but just a suggestion.
cheers
crest133
cheers
crest133
Thanks Crest133, I think what you say is important! These condition reports should be revisited periodically and updated. So many things can change over the years through normal wear. They get forgotten and end up completely forgotten and I doubt that they would be valid after a few years.
