Break Lease issue

[argentina]

We have residential rental property in NSW. It was on the market for sale when a new tenant moved in for a 6 month lease. The property manager was well aware it was for sale (hence the short-term lease). In August we found a buyer and in October we gave notice to the agent that the tenant would need to leave at the end of their lease 29th Nov as the property settlement was scheduled on 30th November. We specifically chose this date to fit in with the end of lease.

Today, I made contact with the property agent to check all was on track for the tenant to vacate and was told that she left on 30th October. The house has been vacant for a week without my knowledge, I was not given any notice and we won't be getting any rent for the next 4 weeks !

The property agent has told me that the tenant was entitled to break lease early because we were selling. My understanding is that this only applies if the tenant had not known about the sale prior to renting the property. There was a For Sale sign outside the property, so she had to have known even if the agent did not specifically advise. The agent was quite defensive on the phone when I was questioning her about the legislation. She said the tenant found another place and we can't expect her to pay 2 lots of rent. She also said that moving out on 29th Nov and having the place available for settlement on 30th Nov was not feasible with cleaning etc. We of course, would have been flexible in this matter, but it does not seem right that the agent can just release tenant of their obligations without even discussing with us.

Would welcome your thoughts.

 

[Jacque]

From the NSW OFT site:

When a property is put up for sale
If a landlord notifies their intention to sell the premises during the fixed term of a tenancy agreement and did not disclose the proposed sale before signing the agreement, the tenant can terminate the lease with 14 days notice and doesn't have to compensate the landlord for the early termination.

 

[Terry_w]

Or straight from the relevant legislation
http://www.austlii.edu.au/au/legis/nsw/consol_act/rta2010207/s100.html

 

[Scott No Mates]

Didn't you tweak when the rent was short for the month? Jack right to terminate on short is right with regards to tenants on short notice upon sale of the property.

 

[wobbycarly]

We have residential rental property in NSW. It was on the market for sale when a new tenant moved in for a 6 month lease. The property manager was well aware it was for sale (hence the short-term lease). *snip*

From the NSW OFT site:

When a property is put up for sale
If a landlord notifies their intention to sell the premises during the fixed term of a tenancy agreement and did not disclose the proposed sale before signing the agreement, the tenant can terminate the lease with 14 days notice and doesn't have to compensate the landlord for the early termination.

Sounds like it was "for sale" when the lease began...

 

[kathryn d]

That was how the understood the situation too.
Seems the PM is not looking after the landlord's interest.

 

[ozsupra]

Just to clarify the Lease was from the 1st June until the 29th of November or thereabouts?
As I read it you just informed the tenant the lease would not be renewed?

If that's the case then they are not entitled to an early termination without compensation.

and as to "we can't expect her to pay 2 lots of rent" I say BS to that, "of course we can" unless the PM would like to pay the rent for her.

Get stuck into them...
A.

 

[Terry_w]

Look at s100

100 Early termination without compensation to landlord

(1) A tenant may give a termination notice for a fixed term agreement on any of the following grounds:
....

(c) that the landlord has notified the tenant of the landlord’s intention to sell the residential premises and did not disclose the proposed sale before entering into the residential tenancy agreement,

So if the tenant knew about the landlord's intention to sell when they moved in then they may not be able to rely on this section to terminate early without compensation.

 

[Ed Barton]

J
and as to "we can't expect her to pay 2 lots of rent" I say BS to that, "of course we can" unless the PM would like to pay the rent for her.

It's been a longgg time since I rented, but we would always allow a weeks double rent when moving. Pick up the keys to the new place on a friday afternoon. Move over the weekend. Clean the old place on Monday and Tuesday, get called back on Wednesday to sort a smudge on glass. Bond and deal finalised on Thursday.

 

[argentina]

Thanks everyone for your comments. I ended up contacting the office of fair trading (tenancies) and have claimed for 14 days rent (in lieu of notice). I could have claimed more, but I wanted to show fairness to the tenant. I think the PM messed up big time with not interpreting the relevant legislation correctly. I was hopeful that would be the end of it...... but now...... just found out today by the agent that has sold the property that the house has been vandalised by paint. I have had detailed conversation with both the sales agent the the PM. The PM went to the property last Friday, found the back door open and didn't bother to inform me or the police. Her excuse "we have handed the property over to your sales agent, so we didn't think it necessary".

I can't believe the lack of care that this PM has. To not report a security issue to anyone !

I am wondering.... although the tenant has moved out (broken lease early), doesn't the contract between landlord (myself) and property manager still exist? The lease for the tenant was up to 30th November and I have not received anything in writing to formalise the end of their property management arrangement with us.