Can they do that?

I just got this from my PM:

received notice from an organization who assist tenants when they are in trouble or need assistance and they have informed me that due to financial circumstances, they wish to terminate their lease as they have lost their job and cannot afford the rent.

They have put two options to us…

Terminate the lease by giving 28 days notice without any other penalties (Lease break fees etc)

Or offer a reduced rent for the remaining of the lease.

Or they could take us to VCAT?


Can they do that? I don't even get to keep their bond?
look at it this way, you can try and hold them to the lease, and have one of two things occur:

1) they fall into arrears and you are out of pocket alot of money before you finally evict them.

2) they take this to tribunnal and are let out of the lease anyway, because of financial hardship.

Why do you think you would be entitled to their bond?

If I were you I would be telling them that you are willing to let them out of their lease as soon as a suitable tenant can be found to take it over (with the clear intention that you will be looking ASAP).
Yeh, I'd take the offer of ending the lease early and re renting, over the reduced rent etc.

My only concern would be that they are actually out in the 28 days, the place is cleaned appropriately and the rent paid upto date.

Another plus could be to maybe offer a reduction if the last month(28 days) is paid up to before leaving. Maybe even work it out that the last week is free/refundable after they past the final inspection. This is sweetening the pot, you need tenants, they need out. Maybe also organise that the place can be viewed before they are actually out, to lessen the impact on you.

If the tenants took this to VCAT you are leaving yourself in the hands of a 3rd party, and any of the above could be done, best bet is to work out a good solution for everyone, with the best outcome for all.
received notice from an organization who assist tenants

Which organisation was it? What is the PM"s thoughts?

How many months left on the lease?

I am pretty sure the tenant's union would advise that a discussion be held with you/PM - but not an outright demand like that.

I would suggest you advise the PM that normal break/relet/advertising fees will apply as per the contract

We had a tenant leave for this reason, but they did everything required (cleaning, letting fees and rent until it was relet)


The Y-man

p.s. would have been much more accomodating if thay had simply approached you to say "lost job, going to have trouble, can we talk..."
Personally I would not give the tenant one inch. They can apply to break the lease and pay the re-letting costs just like anyone else. Why should you have to subsidise their lack of financial preparation?
Which organisation was it? What is the PM"s thoughts?

How many months left on the lease?

PM didn't say which organisation it was. PM thinks that since there's only 2-3 months left in the contract, better to let them go and source for a better one.

And PM is trying to get 2 weeks as penalty, instead of penalty free as they requested,