We are only 2 months in to 1yr lease and may wish to break it as we may have bought a house. I understand we would have to pay readvertisement costs, and also rent until it is rerented. Is that right? Do they have an obligation to try hard to rent it quickly. I will do a search on this area and see whats available, when we wanted to rent only 2 mths ago, everything was being snapped up extremely quickly. Should I stick to the truth (buying a house) or will that make us sound like capitalists who can afford to pay the rent while they rerent at leisure. Or should I be more inventive and say my mother has had a very bad accident (shes actually passed on so no bad karma) and we have to return home to live with her. All input gratefully received. In this climate, I would like to think they would practically be grateful.
How hard to break lease?
- Thread starter fernfurn
- Start date
Just checked and there is very little choice, only 8 and some of these 2br and single garage. The other thing is, if they put it back on the market at a higher rental, and dont rent it, why should we pay if it takes extra time to rent because of that. Does it legally have to go back on the market at the same price?
Not sure if there are legally required to do so, however, I have seen, the following done for many lease breaks. (In Melbourne mind you).
Original Lease starts Nov 07 and finishes Nov 08 and the rent is $400pw. Tenants need to vacate in June 08, and are liable as you said for advertising, re-letting fee & rent until it is re-let.
New 12 month lease offered is $400pw from June to Nov and then a new increased rental* from Nov 08 to June 09.
* I am assuming a rental increase.
If you were to go to the tribunal because it wasn't leased for some time but advertised at a higher price, you would have a good case that you might only have to pay for rent for a specific period only. I have heard of other examples here in Vic, where the tenant was only liable to pay for 4 weeks rent when the property was unrented for longer, even when the rent was still the same
In the current market though, probably not likely.
In a lease break situation the landlord is OBLIGATED to mitigate losses, they need to put it back on the market asap at the same rent. They cannot advertise at a higher rent.
The tenant is liable for lease break costs including letting fees, advertising fees and paying rent until they find a new tenant. If they rent it below what your agreement is then you are liable to make up the difference. 2 months into a 12 month lease means that you will be liable for most of the costs, if it was 6 months into it then you will be liable for about half and if you broke the lease at the end you will be liable for a smaller portion. The pm should have a formula to work out costs to tenant. '
You can also just stop paying rent for 14 days and you will recieve a termination notice on day 15. Then you will not be liable for lease break costs under normal tenancy legislation. This is the tenant advantage part of the legislation. But you can get black listed
The tenant is liable for lease break costs including letting fees, advertising fees and paying rent until they find a new tenant. If they rent it below what your agreement is then you are liable to make up the difference. 2 months into a 12 month lease means that you will be liable for most of the costs, if it was 6 months into it then you will be liable for about half and if you broke the lease at the end you will be liable for a smaller portion. The pm should have a formula to work out costs to tenant. '
You can also just stop paying rent for 14 days and you will recieve a termination notice on day 15. Then you will not be liable for lease break costs under normal tenancy legislation. This is the tenant advantage part of the legislation. But you can get black listed
Celia
Two of my tenants recently broke their leases. They told me why but I don't think you need to say if you don't want to. Moving jobs or buying a home is the most common.
The first tenant is under market rent so I just released him from the lease as I am far better off letting it for at market rates and paying for letting fee etc. It will cost him nothing.
The second tenant the PM thought the rent was about right so I readvertised at the same price and he will need to cover costs. It did however let straight away and the successful tenant offered $20pw more so all is good
I would let them know asap so they can start advertising now. Also check the advert and ensure they are leting for the same amount.
Two of my tenants recently broke their leases. They told me why but I don't think you need to say if you don't want to. Moving jobs or buying a home is the most common.
The first tenant is under market rent so I just released him from the lease as I am far better off letting it for at market rates and paying for letting fee etc. It will cost him nothing.
The second tenant the PM thought the rent was about right so I readvertised at the same price and he will need to cover costs. It did however let straight away and the successful tenant offered $20pw more so all is good
I would let them know asap so they can start advertising now. Also check the advert and ensure they are leting for the same amount.
Steps to breaking lease in Qld
Celica,
You are entitled to break lease under Qld Tenancies Act. It doesn't matter that you have purchased a property.
You need to put in writing that you wish to break lease. The PM will have to re-advertise for a new tenant.
The costs you will incur:
1. All rent until the day a new tenant starts paying rent.
2. The let fee - in Qld it is generally 1 week plus gst.
3. Only advertising you agree to pay if the agency wants to advertise in the paper - web advertising is generally free to owners so you should not be charged that as a fee.
**The purpose of these costs for you in the break lease situation is to protect the owner from incurring costs to secure a new tenant, to keep the owner in the same financial position if you had stayed to the end of your tenancy.
Obligation of the PM under the Residential Tenancies Act 1994: to advertise and re-let your property as soon as possible. To do what they would normally do if the property was vacant. If they fail these duties to you and in your opinion take too long, you are able to apply to the RTA conciliation process with a Form16. If they are found to be not doing what they are supposed to do, and you are given the okay from the RTA, you can terminate your lease with no penalties - this is the incentive for the PM's to find someone new because if they lose you - they have to still find a tenant for the property and the owner will be charged the let fee and if the owner was to find out why - they will not only be annoyed, the agency could potentially lose the management.
Your obligation: ensure the property is clean and tidy, ready to present to a prospective tenant. Be flexible with the property manager when they want to come around and show the property to a prospective tenant. By law, they need to give you 24hours notice in writing - but you are also able to agree by phone to them coming around without the Entry Notice. It's all about working together to get the property rented.
Don't feel bad - it's no skin off their nose, they will still get a let fee for their efforts.
Additional things you can do:- Under the Residential Tenancies Act, if you are able to find a suitable tenant to take over your lease (it must go through the agencies processing/due diligence) you should not be charged a break lease fee. If they do, they may do so under the guise of application processing fee or something like that - if they do, just pay it and move on, it won't be much (no more than the let fee).
Call the RTA on their helpline - the number is on the back page of the green book (Form17a) you were given at sign up. Talk to them - the rules in Qld are really fair to both owners and tenants.
Celica,
You are entitled to break lease under Qld Tenancies Act. It doesn't matter that you have purchased a property.
You need to put in writing that you wish to break lease. The PM will have to re-advertise for a new tenant.
The costs you will incur:
1. All rent until the day a new tenant starts paying rent.
2. The let fee - in Qld it is generally 1 week plus gst.
3. Only advertising you agree to pay if the agency wants to advertise in the paper - web advertising is generally free to owners so you should not be charged that as a fee.
**The purpose of these costs for you in the break lease situation is to protect the owner from incurring costs to secure a new tenant, to keep the owner in the same financial position if you had stayed to the end of your tenancy.
Obligation of the PM under the Residential Tenancies Act 1994: to advertise and re-let your property as soon as possible. To do what they would normally do if the property was vacant. If they fail these duties to you and in your opinion take too long, you are able to apply to the RTA conciliation process with a Form16. If they are found to be not doing what they are supposed to do, and you are given the okay from the RTA, you can terminate your lease with no penalties - this is the incentive for the PM's to find someone new because if they lose you - they have to still find a tenant for the property and the owner will be charged the let fee and if the owner was to find out why - they will not only be annoyed, the agency could potentially lose the management.
Your obligation: ensure the property is clean and tidy, ready to present to a prospective tenant. Be flexible with the property manager when they want to come around and show the property to a prospective tenant. By law, they need to give you 24hours notice in writing - but you are also able to agree by phone to them coming around without the Entry Notice. It's all about working together to get the property rented.
Don't feel bad - it's no skin off their nose, they will still get a let fee for their efforts.
Additional things you can do:- Under the Residential Tenancies Act, if you are able to find a suitable tenant to take over your lease (it must go through the agencies processing/due diligence) you should not be charged a break lease fee. If they do, they may do so under the guise of application processing fee or something like that - if they do, just pay it and move on, it won't be much (no more than the let fee).
Call the RTA on their helpline - the number is on the back page of the green book (Form17a) you were given at sign up. Talk to them - the rules in Qld are really fair to both owners and tenants.
Regarding rent:
The PM must advertise your property for the same price - as a Break Lease - and insert a rent increase clause if the rent was to go up upon the expiry of your orignal lease.
The idea here is to not disadvantage you. If the market has declined in the short time you are there - you can opt to make the difference to the new rent until the end of your original lease. I don't think this would be necessary though in this market up here.
Good luck.
The PM must advertise your property for the same price - as a Break Lease - and insert a rent increase clause if the rent was to go up upon the expiry of your orignal lease.
The idea here is to not disadvantage you. If the market has declined in the short time you are there - you can opt to make the difference to the new rent until the end of your original lease. I don't think this would be necessary though in this market up here.
Good luck.
I broke my lease in April (3 months before the end of it) because we bought a house too, and the PM advertised de house at $50 pw more than my current rent without any mention of the break of the lease. It was the first time I was renting in Australia (I am french), and I did not know much about the rules except what I'd read on the RTA and that I was going to pay the rent until they found a new tennant. After 1 month and only 2 visits, I asked the PM if it was fair to increase the rent that much while I was paying for the rent. She told me that the owner was entitled to try for the market. but she changed the ad including a sentence at the end of it: "save til July $330". After investigations I was advised by a tennant association to stop paying the rent (as I had moved out) and claim my bond straightaway and wait for the RE to take me to the tribunal. It took them 2 months to rent the house (which was $20 above the market, and in a pretty average condition), and they claimed my bond + $200.
So I am going to the tribunal at the end of the month to see if the fact they advertised the property at a higher rent than the current one is considered as a breach of their duty to mitigate the loss. I am not quite sure. You think, when you play with professionnals that they know what they are doing, but she did not look that confident and, maybe she just tried as she assumed I (as french) did not know the rules or would not go that far. Well if you don't try, you don't get anything! That's a new experience in Australia, and as we are also renting our house in NSW, it is interesting to know what can be done and what can't.
I let you know.
Sylvie
but she changed the ad including a sentence at the end of it: "save til July $330". After investigations I was advised by a tennant association to stop paying the rent (as I had moved out) and claim my bond straightaway and wait for the RE to take me to the tribunal. It took them 2 months to rent the house (which was $20 above the market, and in a pretty average condition), and they claimed my bond + $200.So I am going to the tribunal at the end of the month to see if the fact they advertised the property at a higher rent than the current one is considered as a breach of their duty to mitigate the loss. I am not quite sure. You think, when you play with professionnals that they know what they are doing, but she did not look that confident and, maybe she just tried as she assumed I (as french) did not know the rules or would not go that far. Well if you don't try, you don't get anything!
That's a new experience in Australia, and as we are also renting our house in NSW, it is interesting to know what can be done and what can't.I let you know.
Sylvie
Hi Lura,
You seem very informed on the process. We have a tenant that wants to break the lease and we assumed we could advertise the property for more since rents have increased.
Where on the rta web site does it state "The PM must advertise your property for the same price"?
Cheers,
Bazza
Bazza
Hi Bazza,
Yes rents definitely have increased. You must advertise as a break lease, the date, the current rent and the new rent.
When signing the lease, it must be inserted into the special condition that the tenancy agreement will have a rent increase of $x from x-date as a result of a prior break lease.
Hope this helps.
Hi Bazza,
Yes rents definitely have increased. You must advertise as a break lease, the date, the current rent and the new rent.
When signing the lease, it must be inserted into the special condition that the tenancy agreement will have a rent increase of $x from x-date as a result of a prior break lease.
Hope this helps.
There are absolutely no loopholes for landlords to break a lease in any state.
There is something in the legislation under "personal hardship" which means that if a landlord really needed the house to live in then they would be able to break a lease agreement with the tenant.
There has never been a single tribunal case where a landlord was granted permission to break the lease on those grounds.
A landlord can break a lease if a tenant breaches the contract conditions and that's what happens when tenants stop paying rent.
Hi Bazza,
In fact you won't find any statement saying that. The only part of the RTA concerning this issue is in section 230 (3) of the Residential Tenancies Act 1994 (Queensland):
“The lessor or tenant—
(a) must take all reasonable steps to mitigate the loss or expense; and
(b) is not entitled to receive compensation for any loss or expense
that could have been avoided by taking the steps. ”
The property can be advertised at any price
. But if it takes "Too long" to rent the property and the PM claims some money off the bond to cover rent loss, the tenant can use the increase of the rent as an argument to dispute the claim (which is what I have done myself): it might be because of the rent increase that it tooks so long to re-rent the property. It will most probably end up at the Small Claim Tribunal and it will depend on the referee's decision.So if you are confident the property will go fairly quickly with an increased rent or if you don't want to claim compensation for rent loss, why not?
Sylvie.
Hi Bazza,
In fact you won't find any statement saying that. The only part of the RTA concerning this issue is in section 230 (3) of the Residential Tenancies Act 1994 (Queensland):
“The lessor or tenant—
(a) must take all reasonable steps to mitigate the loss or expense; and
(b) is not entitled to receive compensation for any loss or expense
that could have been avoided by taking the steps. ”
The property can be advertised at any price
So if you are confident the property will go fairly quickly with an increased rent or if you don't want to claim compensation for rent loss, why not?
Sylvie.
Hi Sylvie,
That explains why I could not find any reference to it on the RTA web site or the RT Act. Since we do want to claim compensation if we are out of pocket then we best do the right thing and rent it at the current tenants rent and increase it in three months time.
BTW I tried to edit the RTA General Tenancy Agreement (Form 18a) Item 6 so that I could have rent $'x' Then from 'date' $'y' but the Word doc is somehow protected. Anyone know how to fix this?
Cheers,
Bazza
Well although we put in a written statement saying we were breaking the lease the re wouldnt even start to advertise it until we had signed their official form agreeing to all sorts of conditions. As these conditions are evidently law anyway I cant see why we had to sign another form, but anyway we have done so and hope it will be on the internet tomorrow - nearly a week after we gave notice. The owners are overseas on holiday and originally the re said they couldnt rerent it without contacting the owners, but I said what if that takes 2 weeks, then they said that because they originally rented it for 1 year the re could just rerent it. Probably all BS to get us to sign. On the phone she said there will be no trouble rerenting, but when we went in to sign, she said it was quiet at the momemt. All bs again. There are lots of 2 br duplexes and $1,000pw apartments, but no 3 br houses at all avail on internet so hopefully we wont have much trouble
You can save the file on your disk, open it with word. In the menu "Tools" select "Unprotect Document" and deselect any selected restrictions (Editing restriction). You should now be able to modify it.
Cheers.
Sylvie
I can't speak for QLD but a legal form agreeing to exit date is standard. Otherwise a tenant coud only be forced out with notice to evict. PM is trying to avoid new tenants coming in and old ones yet to vacate!
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