Help - My tenants changed thir mind and sent us a demand letter!

[Ed Barton]

It possibly was written by the tenant!

I can't speak for VCAT, but QCAT (basically the same) generally doesn't allow legal representation in the actual hearing - and generally 'legal costs' extends only to the QCAT application fee of $50-$100.

VCAT may make a decision that as the tenants never occupied the property, and there was no real lost opportunity to the owner, the tenants may be liable for beak costs up to the value of the bond or something to that effect, rather than the unlimited liability that a normal breaking tenant may face.

Wait and see, but I can almost guarantee that they won't win.

If I was the OP I'd just take it through VCAT too...

I wouldn't suggest it to the OP, but if it was me I might respond to the letter, just to run up the tenants legal fees. A nothing letter - one that causes the tenants lawyer to charge 6m to open the letter, 6m to call the tenant and 18m to the write another letter. That's another few hundred the tenant is up for, if they write back and I write another nothing letter back that's another few hundred.

 

[Ed Barton]

+1,
its quite funny how in the last 5-10 years, people seem to think that "you will be hearing from our lawyers" and "I will be pursuing legal action" is a sure way to get what they want.

Aussies have been watching too many American lawyer shows, where a tree has legal personality and non compensatory damages far exceed compensatory damages. This is not the case in oz, but we watch american tv so we expect $100m in exemplary damages. Not going to happen!!

 

[Marty McDonald]

I agree with all comments they are bluffing, consideration via way of the bond has been given and a contract signed, so they are in a bind.

You could try and counter offer them? If you can re-lease the property quickly enough then you could offer them to two choices 1) go the Vcat OR 2) settle and they pay for your lost rent plus 1 weeks rent for your trouble and any agents fees incurred. Should be a bit less than the bond and everyone moves on.

 

[tobe]

me, I would just relet the property and return the prospective tenants bond and rent in advance, less anything the letting agent was going to charge.

Lifes too short. yes, tenant hasnt got a leg to stand on. But how important is it? at least he got in early and let you know, even if it was by way of solicitor letter.

If vcat rules he has to abide by the agreement, he most likely will, and make you and your property manager run around like headless chickens for the term of the lease, rather than just roll over and pay to relet the property.

move on.

I reckon the only issue is his fridge doesnt fit your fridge space or something as banal as that...

 

[DaveM]

naturally, I never heard back from them,

and hence why I am no longer in that business
Good times!

Your post caused me considerable mental anguish and eye strain, please provide your solicitor details so I can sue you.

 

[Peterw]

Kirte, make sure that your PM has relisted the property as quickly as possible. In Qld the act requires that a landlord mitigates their loss, so I assume that the Vic Act would be the same. Here if the property takes a little while to let, mitigating will also require you to reduce the rent. The reduction can be part of your compensation claim from the old tenant. If your PM is competent and you have confidence in them, follow their instruction/advice.

 

[Truly Exotic]

Your post caused me considerable mental anguish and eye strain, please provide your solicitor details so I can sue you.

Touche!! Well said sir!