Break Lease in WA - Questions

Hi,

Thought I'd turn here because most of you own investment properties and may have come across similar situations as this. Basically it is as follows

- Tenant breaks lease with 2 months remaining with 3 weeks notice to move out date.
- Property Manager readvertises property increaseing the rent from $380 to $450.
- Tenant objects saying they PM isn't mitigating his loses by asking for excessive rent.
- PM states they are within their rights as thats what they feel is the market rate.
- Property is advertised for 2 weeks with no luck, so PM drops rent $10.
- Tenant objects saying they still aren't doing their part, has now sought legal advice and have been advised to not pay rent past their move out date.
- PM advices they are doing their part as people are viewing the property and agrees to drop the price an extra $15.
- Both parties appear happy to go to magistrates court to argue their case.

has anyone seen a similar situation in WA? if so what was the crucial parts of the sitatution and in whose favour did it fall?
 
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For the sake of $630 it is about to cost you a lot more.

Should have advertised it for $380 for a two month lease which will be renewed at $450 after that?
 
Agree with Ausprop,
I beleive the re advertised rent for a break lease is to be for the same amount as the ongoing lease..
I would question my PM.
 
Thanks for the responses.

The PM is adament that rent can be requested above the rental price as long as its in line with market rates and that the tenant will be forced to pay either directly or via bond/magistrate court order.

the situation makes me uncomfortable as a similar albeit slightly nicer 3x1 was advertised for $410 and relet within a week. Think I'll have a word with them again.
 
It is also my understanding, the advertised rent should remain the same until the current tenant's lease expiry date.

I have been in the same situation and my PM's advised me the same as above. That is cant increase rent until such time as current lease expires. Otherwise the tenant is financially disadvantaged having to keep paying rent when another tenant could have been found sooner if it wasnt for the advertised rent at a higher rate.

I am confident the magistrate will rule in the out going tenant favor.
 
sounds like a post I was reading from the tenant's perspective on another forum.

The increase from the old rent to the new seems pretty huge, I think you will have a hard time winning this if it goes to tribunal.
 
Hi there,

Any update on what happened as I'm in the same situation.

Re signed on the 1/09/2012 for another 12months but between now and then I brought a house and wouldn't think it would be a drama getting out of the lease.

Informed the agency last week and they want me to get in new tenants for a ridiculous weekly price. Currently paying $430 and they have advertised it for $470, how can the "market price" change in a month.

Is this legit?
Surely the rent has to stay at $430 until the lease expires on the 1/09/13?

Any feedback would be much appreciated
 
Check with the fair trading office in your state - in NSW you can only expect the house to be relet at the same amount. Generally, you will be up for the agent's letting fee, new lease preparation fees and advertising.
 
Reverse situation.

I have a friend struggling to gain a rental. Her landlord is selling her house that she is leasing. My friend is constructing and has 6-9mths left of construction time.

She is willing to offer above advertised rate to secure property on a 12 mth lease but will need to break lease.

She has found a rental in Mt pleasant that is currently $550pw the new advertised rate is $650 and she is willing to offer $700 to secure. But then what happens if she break lease do the new tenants have to pay 700?

Very complicated!
 
Damo,

Exactly the same thing has happened in my case, less than 2 months to go and currently paying 390 a week. Unit has now been advertised at $450 per week. I gave 4 weeks notice but I'm yet to get the final bill, for the sake of everyone involved I hope that no rent is requested, otherwise things could get messy.

Will let everyone know soon when the final bill comes...
 
Short version in the above cases is that the owner is free to advertise and re-let at market rate, but if its an increase, then they probably would not be able to claim any break lease rent component for any vacant property period.

But possibly still be able to claim pro-rata advertising and letting fees though. (Unless the new tenant and increased rent actually nets them a profit overall)
 
Short version in the above cases is that the owner is free to advertise and re-let at market rate, but if its an increase, then they probably would not be able to claim any break lease rent component for any vacant property period.

Sorry but are you saying in my break lease case they are trying to relet the property for a $40pw increase that I can move out after 21 days and be done with the property?

They have said I must find someone to pay $470 a week or I will continue to pay until my lease is up? Which $470 is a extremely night price and no where near market value.
 
Sorry but are you saying in my break lease case they are trying to relet the property for a $40pw increase that I can move out after 21 days and be done with the property?

Yes pretty much, if you give the 21 days notice and actually hand back the keys as per the notice.

You should stop paying rent after you vacate and see what they do. If they advertise and chase the higher rent, then you aren't liable for any further rent.

But like I said, possibly still liable for pro-rate advertising and letting fee costs. It depends what the new tenant is paying and for how long.
 
Reiwa have said that the property manager is entitled to increase the rent to whatever they like as long as it is within market rates. As for moving out after 21 days I will still need to pay rent until it is relet. Pretty average but I guess that's why you shouldn't break the lease.
 
Reiwa have said that the property manager is entitled to increase the rent to whatever they like as long as it is within market rates. As for moving out after 21 days I will still need to pay rent until it is relet. Pretty average but I guess that's why you shouldn't break the lease.

REIWA shouldn't be giving legal advice because here is a classic example of where they are wrong, if what they said implies that an owner can increase the rent AND claim for lost rent in a 'break lease' situation.
 
Also remember that REIWA are an organisation for REA's not tenants, their advice is more likely to be biased towards the agent than the tenant.
 
Also remember that REIWA are an organisation for REA's not tenants, their advice is more likely to be biased towards the agent than the tenant.

Hmm good point have been trying to ring TESwa but impossible to get through to. Too much of a gamble to leave and them to keep 2k in bond.
 
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