Allowing existing tenant to sublease.

Hi Rixter

Thanks for your comments, and everyone else for his/her valuable advice.

But I'm curious now when you say, "added them to the lease for risk management purposes.".

"Risk management purposes" - can you please briefly elaborate.

Many thanks again.

Tony
 
"Risk management purposes" - can you please briefly elaborate.
If I may be so bold, I believe Rixter's referring to the fact that you now have more people to pursue if things go wrong. Tenants are jointly and severally liable for their debt - e.g. if they stop paying, or trash the place. Therefore, the more people you have legally responsible for such consequences, the better your chance of getting your money back.

But... this is becoming somewhat of a theoretical advantage, in my experience. If three people are named on the lease, I've seen Tribunals make orders with each tenant responsible for one-third of the debt - instead of the three of them being jointly responsible for the whole debt - and that somewhat defeats the purpose. :/

I've even seen one of two tenants turn up, and say "the other one is responsible for all of it", and the Tribunal make an order only against the absent party. Grrrrr.
 
Hi Rixter

Thanks for your comments, and everyone else for his/her valuable advice.

But I'm curious now when you say, "added them to the lease for risk management purposes.".

"Risk management purposes" - can you please briefly elaborate.

Many thanks again.

Tony

Hi Tony, yes as per Perp's post. You are increasing possible avenues for chasing damages/debt should things ever go pear shape from a tenancy perspective.
 
Hi Tony, yes as per Perp's post. You are increasing possible avenues for chasing damages/debt should things ever go pear shape from a tenancy perspective.

I'll add that when they all on the lease - they have a direct financial interest in the bond you hold. It is formal and all tenants are clear on their responsibilities (as outlined in the lease).
 
On top of the risk management purposes already mentioned, if you have someone just join the existing tenants without being on the lease, what happens if your tenants move out? You are left with someone you've not vetted or checked living in your house, not on a lease, no paperwork at all.

We had this happen to us, where two young men invited a third young man to share the cost without asking our permission. The third person caused a ruckus in the street and we suggested the first two move before becoming embroiled. Luckily the third person moved when the initial two moved. Had he decided he wasn't moving out, we would have had a very tricky situation.

In similar situations, we always add the new person to the lease so that we have more power should things go wrong.
 
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I've seen Tribunals make orders with each tenant responsible for one-third of the debt - instead of the three of them being jointly responsible for the whole debt - and that somewhat defeats the purpose

Happened to my folks a few years back QCAT treated ONE lease on one prop as two leases.
 
I would allow it, though remind them that any damage caused by the extra tenant will ofcourse affect their bond. As others have stated, shouldn't be able to raise the rent, next review just try and push it up a little more if you still feel that way.
 
There's a legal obligation that you act reasonably; you can't say no on a whim. Reasonable justifications for declining would be things like violation of body corporate rules, it violates planning rules, it creates a fire risk, the proposed new tenant has a bad rental history, etc. You can't just "choose" in the sense of having unrestrained freedom to decline. See s 75(3), where it gives examples of what the law considers "reasonable".

NSW is different which is what I was referring to.
Read at the link below if you do not believe me.
www.austlii.edu.au/au/legis/nsw/consol_act/rta2010207/s75.html
 
That's the precise legislation that I quoted, and which supports my position. :confused:

Sorry but I don't know what you are reading but if you need it more clear, read the below link under reasonable refusal where says you can refuse if it exceeds the amount of occupants stated on the lease. If the tenants sign the lease with 2 max occupants then that is the limit unless the landlord agrees to change it.

www.fairtrading.nsw.gov.au/ftw/Tena...ncy/Subletting_requests_from_your_tenant.page
 
Sorry but I don't know what you are reading but if you need it more clear, read the below link under reasonable refusal where says you can refuse if it exceeds the amount of occupants stated on the lease. If the tenants sign the lease with 2 max occupants then that is the limit unless the landlord agrees to change it.

www.fairtrading.nsw.gov.au/ftw/Tena...ncy/Subletting_requests_from_your_tenant.page
I understand; I just would have thought that it's still subject to the landlord acting reasonably. If the lease says maximum 2 occupants and it's a 3 bedroom home, I imagine that the Tribunal would find that a maximum 2 occupants was an unreasonable imposition.

But maybe your Tribunal is way more badass than QCAT. :)
 
If the rule wasn't like that then the number in the tenancy agreement wouldn't mean anything. So this way the landlord has some control in who lives at their property, but at the same time it's important to keep the tenant as happy as possible so you would still allow a request if it is reasonable.

It could be possible that the tribunal may make an exception if necessary. Eg. maybe one of the tenants family members is experiencing some hardship and needs a place to live or maybe the tenant lost their job and can't afford to pay the rent and needs someone else to share the cost of the rent.
 
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