Break lease rules - South Australia

[poppy]

A tenant has indicated they are going to break their lease (South Australia), although they have not given anything in writing yet.

I have had a look at the SA tenancy rules and I haven't found anything that specifically says I have to advertise the property at the same rent paid by the previous tenant, although maybe I haven't looked hard enough. Regardless, I imagine that unless I push the PM to do otherwise, they will sign up a new tenant for 12 months at the same rent. I would prefer that if I must advertise for the same rent, that the tenant be signed up on a very short lease for < 6 months so that I can give them a rent increase at the same time I would have normally done. However I'm sure this is either not allowed and/or PM is likely to resist?

BTW The legislation does seem to be saying that a landlord may pass on the water rates and supply charges, if it's written into the agreement, something which several PMs including my own have told me is not possible. Page 21
http://www.legislation.sa.gov.au/LZ/C/A/RESIDENTIAL%20TENANCIES%20ACT%201995/CURRENT/1995.63.UN.RTF

"the landlord may require the tenant to reimburse the landlord for rates and charges for water supply that are to be borne by the tenant under the residential tenancy agreement "

 

[Xenia]

There are many tenancy tribunal hearings that have let the tenant out of lease break costs because the landlord was advertising at a higher price than the current rent. The tenancy people at OCBA want to see you mitigate your losses to current expectations in a lease break situation.

You can increase rent in SA after 6 months even on a 12 month fixed term lease. In our agency we do rent renewals (looking at rent increases in area) every 6 months regardless of the term of the lease. This is in the legislation and CAN and HAS been done.

Water usuage should always be passed onto the tenant, this is the same as electricity, gas etc, it is what they are using!

Hope this helps

 

[The Mummy]

South Australia Rules!

Hi Poppy,

I know a RE Agent in SA & PM. I will find out for you, and where you stand.
The Golden Rules are always different somewhere else.
We will get to the bottom of this.

kind regards
The Mummy

 

[Pablo]

Hi Poppy,

I have been told that there should be no problems re-leasing the ip at "market rent" providing you advertise the property 2 times a week with just as many opens. So in other words don't get greedy and put an effort into getting the ip leased asap.

Here is the OCBA fact sheet on charging for lease breaks.
http://ocba.sa.gov.au/assets/files/fact_4.pdf

and a bit on breaking leases.
http://ocba.sa.gov.au/tenancies/res/leasetermination/agreement_tenant.html

Hope this helps
Pablo.

 

[poppy]

In our agency we do rent renewals (looking at rent increases in area) every 6 months regardless of the term of the lease. This is in the legislation and CAN and HAS been done.

Thanks Xenia, I am sure that if my IP was at your agency you would do this. I suspect though, that that the average PM would be most reluctant to increase rent during a lease (just been reading the "Company Policy" post). So, maybe I am better off just asking PM to do a 6 month lease when current tenant leaves.

I guess one thing I can do is get the PM to have the replacement tenant pay for all their water use, as the current tenant gets the water use allowance. That would at least help towards my losses...