We are trying to work out how much the break lease fees on our current house are for our employer to pay out and we have come up with the huge price of $4600+!
We will be leaving around 9 weeks early as we have been transferred overseas.
We are in an area with a lot of available rentals so we worked out these costs based on an agreement we signed when we moved in.
- Rent to end of lease = $3150
- Letting Fee + GST = $770
- Advertising = no idea how much this costs so estimated $300
- $55 for each open inspection so we have estimated $440
The clause we signed also says that all costs will be taken from our bond which obviously won't be enough and we need to pay extra before the new tenant starts their tenancy.
It also says we need to pay all Residential Tenancies Tribunal costs. I am unsure what this means and am hoping for some advice on any extra costs we may not have anticipated.
All advice very much appreciated. Thank You.
Ok that is all a crock!!
Firstly, the leasing fee can only be charged pro rata so it would be calculated as follows (going by your calculation for your final rental payment i am guessing you pay around $350pw) Assuming the owners pay a 3.3% leasing fee it would be as follows:
2 months remaining of the lease agreement @$1521 pcm x 2 x 3.3% = $100.38 (inc GST)
They cannot make you pay the full 9 weeks rent and then the leasing fee and advertising on top of it. You only pay the leasing fee and the advertising if it is leased BEFORE the end of the lease. If a new tenancy does not commence until after the end of the fixed term then they are not legally able to charge you those fees.
Advertising should cost you at the high end no more than $200 inc GST
$55.00 inspection?!!! In my 15 years as a PM I have never heard of this being charged before, that is what the leasing fee is for. You do not have to pay this!
In short the agent/owner has a legal obligation to list the property and do everything in its power to mitigate your loss. If they fail to do this, if they advertise the property at a higher rate then you can take them to VCAT. Ask them to put your contact phone number on the internet listing and have prospective tenants contact you directly (if you feel confident enough to do this) I would be contacting the tenants union regarding this.
If the property is leased before then end of the lease but say after a month, then make sure the LF is pro rata down to only reflect one month remaining.
Just because you have signed a form stating the agent can deduct the fees from your bond does not mean they can, they require your signature on the bond claim form. DO NOT SIGN A BOND CLAIM FORM WITH THESE RIDICULOUS AMOUNTS CHARGED!!! If they refuse to back down on the fees then make them take you to VCAT (if you are overseas by the time the hearing occurs contact VCAT and see what you need to do to be able to have a representative at the hearing on your behalf - hell i will even represent you if you need!!) There is no way on earth that VCAT would award inspection fees or full Leasing Fees with 9 weeks remaining of the tenancy and they will give the agent a serve for trying to get them past the keeper! I wonder how many unsuspecting tenants they have scammed in the past
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It is a tough market and say worst case scenario the property does not lease for 9 weeks, then you are NOT LIABLE for any lease break costs as you have not broken your lease, you have fulfilled the contract by paying all rental monies until the end of the fixed term tenancy.
Good luck with it, happy to help more if you need, send me a DM.
Cheers
