Any private landlords had a tenant break their lease?

[gooram]

Just wondering what other peoples experiences are with this situation.

My tenant has just called to say that they can't afford to pay rent anymore and are moving out this weekend.

She is quite reasonable and is aware that it may cost her her bond.

After reading the legislation, it basically says that the tenant is liable for loss of rent and expenses incurred by me as part of breaking the fixed lease agreement.

If you have experienced this, what did you do? My inclination is to charge rent until I get a new tenant, plus reletting fees. The problem will be if these exceed the bond.

Cheers for you input.

 

[BayView]

Yep.

Charge them rent until you find another tenant.

 

[Nikolina]

If your tennant can't afford the rent now leaving in such a short notice what makes you think that he/she will be able to pay you the rent and reletting fees up untill you find a new tennant? You might be entitled to it but Somehow i think your going to have great difficulty getting this! Good luck...

 

[troyhunt]

If you have experienced this, what did you do? My inclination is to charge rent until I get a new tenant, plus reletting fees. The problem will be if these exceed the bond.

Happened to me a number of times and I've done exactly what you suggested on the advice of the PM. You'll need a fairly long vacancy to exceed the value of the bond, just get onto finding a new tenant quickly.

If your tennant can't afford the rent now leaving in such a short notice what makes you think that he/she will be able to pay you the rent and reletting fees up untill you find a new tennant?

Take it from the bond.

 

[jaycee]

How you going to find the new tenant Gooram ? Are you going to use a pm

My 2 tenants both exprire in November, hopefully neither will want to leave before then ! and I have months to decide

 

[RightValue]

Just be thankful you had a decent tenant that realises they can't pay their rent and is moving out before they get behind.

Most tenants would just fall behind, make promises, break them, pay in dribs and drabs, you would have to go to a tribunal, get them evicted and loose far more rent - and loads of your time - than the coupe of weeks void you will get now .. which is easily covered by the bond.

Like I say, you are actually quite lucky.

cheers

RightValue

 

[alexlee]

Shouldn't your landlords insurance kick in if the tenant absconds with a lease still in place?
Alex

 

[gooram]

Shouldn't your landlords insurance kick in if the tenant absconds with a lease still in place?
Alex

Yes it will, but tenant is happy for any outstanding $$ to be taken from her bond, so if break costs exceed the bond I guess my insurance will cover any extras. I'm not sure if insurers expect you to do everything you can to get the money from the tenant? i.e. take them to court. (I've never claimed in LL insurance before)

I've decided to go with a PM this time around, so are the fees I incur from them for re-letting, claimable from the tenant or from my insurer?

 

[gooram]

How you going to find the new tenant Gooram ? Are you going to use a pm

My 2 tenants both exprire in November, hopefully neither will want to leave before then ! and I have months to decide

I've been managing myself for a number of years, but decided to go with a PM on another property and it's been really good. So, based on that and the fact that I've had a few dramas with this particular one, I'm going with a PM for this one too.

I've always been an advocate for self managing but I'm slowly coming around to outsourcing

 

[gooram]

Just be thankful you had a decent tenant that realises they can't pay their rent and is moving out before they get behind.

Most tenants would just fall behind, make promises, break them, pay in dribs and drabs, you would have to go to a tribunal, get them evicted and loose far more rent - and loads of your time - than the coupe of weeks void you will get now .. which is easily covered by the bond.

Like I say, you are actually quite lucky.

cheers

RightValue

I totally agree. She's a good tenant, her relationship ended and she couldn't afford it on her own so it's unfortunate she cant stay as I'd love her to. However it is a business after all not a charity so I need to cover my own a$$ first and foremost.

 

[Peterw]

In Qld, a tenant can apply to the Tribunal, to be released from the fixed term tenancy, should their circumsatnces have changed, and they are now in a position of financial hardship. Not sure how the laws are in the other states.

 

[neK]

Make the tenant find you a new tenant. It is in their best interest to do so to minimise their bond loss.

However make it a condition that the tenant approval will be subject to your discretion (so make sure you interview the prospective tenants), otherwise you'll get all sorts of people put in front of you.

 

[yeslist]

Isn't it good that the tenant has been up front with you.
you can now re let the property at whatever the market will pay. It may even be more than what the old tenant was paying.
If you insist that the tenant continue paying rent until a new tenant is placed, you can not increase the rent to it's new market value....... It is a bummer though if the market has fallen.
Cheers
Si