Lease break... PM asks us to drop $20pw!

Is this common? Four months into a 12 month lease our PM rings and says that our current tenants have had a marriage split and are breaking the lease, but he has some fabulous tenants to take over (both have great jobs, no pets, no kids) but they only want to pay $290 pw instead of the $310 on the current lease. He also said that the current tenant (now single) was having to eat rice because she couldn't afford to pay rent alone now that the guy had moved out.

I'm thinking: "What the....???".

I had to say 'no' because it would constitute a 'change in circumstances' and my bank could call in it's mortgage, but I felt like a horrible person for making her 'eat rice'.

It was awful.

Anyway, the PM found someone else at $310 in about a week.

Look, I'm sorry about the marriage split, but why should I take a rent cut of almost $90 per month for the REMAINING EIGHT MONTHS of the lease! Why not go to her first and get her to get a roommate? And what about the emotional blackmail he inflicted on me? And what about MY personal financial circumstances? Does he care about them? No. I'm the landlord, so obviously everybody wants to cut me down to size, is that it?

Nobody wants to take responsibility for their life choices!!

I would have helped out a bit, but the presumption that I would just cop the $20PW, no question, was so annoying.

Just wondering if I am being unreasonable. I think I am too soft for this business.... :(
 
You done the right thing, you are not a charity, if they need help then their are organisations that deal with that. This is one of many reasons why I prefer to not have much to do with tenants and let the pm deal with them. One recently invited me for dinner and another always wants me to do things to the house when I go there so the less I see them the better. In fact in the future I don't plan to ever meet them.
 
We had a lease break not that long ago ... property was vacant at old price for 3 weeks before we dropped the rent $15 and got someone in the following week.

The reason - even tho tenant is suppose to pay full rent until new tenant found at same price, once the bond ran out the chance of getting any more money would be very painful.

As it is, ex-tenant is taking us to tribunal because she is now claiming she broke lease due to an "unreported" issue of a bit of mould in one of the bedrooms. Fortunately PM has kept on her mobile both messages from tenant requesting lease break (of which we agreed to) - and then 2 weeks later to report mould (of which we had fixed within 3 days).

Still waiting for tribunal date.

We went for new tenant despite less rent because I'd rather have a tenant in paying guaranteed rent - albeit slightly lower - than go thru the pain of trying to get more-than-bond blood out of a reluctant stone.
 
Look, I'm sorry about the marriage split, but why should I take a rent cut of almost $90 per month for the REMAINING EIGHT MONTHS of the lease! Why not go to her first and get her to get a roommate? And what about the emotional blackmail he inflicted on me? And what about MY personal financial circumstances? Does he care about them? No. I'm the landlord, so obviously everybody wants to cut me down to size, is that it?

Wow. In this circumstance, a normal human being (assuming the PM is one, and, I know, it's a big IF) would probably feel more sympathy for the person who's marriage has split up, rather than the landlord who is losing 20 bucks a week rent. I find it strange that in these circumstances, you seem to think that you are the victim.

Nobody wants to take responsibility for their life choices!!

I would have helped out a bit, but the presumption that I would just cop the $20PW, no question, was so annoying.

Just wondering if I am being unreasonable. I think I am too soft for this business.... :(

In all honesty, I think your reaction was over the top. Tenants breaking a lease is a relatively common occurrence, and often under a flimsier pretext than marriage breakdown.

Chalk it up as experience and move on.
 
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Wow. In this circumstance, a normal human being (assuming the PM is one, and, I know, it's a big IF) would probably feel more sympathy for the person who's marriage has split up, rather than the landlord who is losing 20 bucks a week rent. I find it strange that in these circumstances, you seem to think that YOU are the victim.



In all honesty, I think your reaction was over the top. Tenants breaking a lease is a relatively common occurrence, and often under a flimsier pretext than marriage breakdown.

Chalk it up as experience and move on.

Indeed.

If you can't handle some uncertaintity in life then maybe having investment property isn't for you. It's not just a never ending money train. It is hard work which is at times stressful and uncertain.
 
Yes, I can see I should have thought about the tenant's feelings a bit more. Things aren't going that well for us right now and it clouded my judgement. Thanks guys. Good advice. :)
 
Yes, I can see I should have thought about the tenant's feelings a bit more.

Feelings don't come into it. Only $. You are running a business, not a charity. The tenant signed a lease and should honor the terms and conditions. You are within your rights to hold out until the agent found a tenant willing to pay the full asking price of $310 per week.

Look, if you were going through a marriage break up and couldn't afford to pay the mortgage on your investment property would your tenant feel sorry for you? I doubt it.

You have done the right thing. Next time if you have a lease break, advertise the property for the current price, and state that at x date the rent will increase by x amount.

Regards Jason.
 
Yes, I can see I should have thought about the tenant's feelings a bit more. Things aren't going that well for us right now and it clouded my judgement. Thanks guys. Good advice. :)

Sounds to me like the PM went a bit soft - as lizzie mentioned a few bucks a week reduction for guaranteed rent, vs. holding out for maximum $$$ is a bit self-defeating.

But the tenant(s) had a contract with you - it's not your FAULT that they couldn't uphold it. While I'm all for some empathy, this IP stuff is NOT a charity - that's what public housing is for!!

I think you did the right thing in saying "No" to the original proposal - don't feel bad about asking them to uphold their side of the contract.
 
It's no different than going into Woolies with the same excuse and asking at the checkout to have $20 off your groceries.

It's a business and should be treated like one.

It doesn't make you any less of a person. You can recognise someone's hardship and identify with it, but it doesn't then make you accountable for the ownership of their problem.

Rooster
 
I'd be more concerned about the PM and how SHE handles things - you half expect things like this from tenants from time to time, as part of IP investing.
 
Wow. In this circumstance, a normal human being (assuming the PM is one, and, I know, it's a big IF) would probably feel more sympathy for the person who's marriage has split up, rather than the landlord who is losing 20 bucks a week rent. I find it strange that in these circumstances, you seem to think that you are the victim.



In all honesty, I think your reaction was over the top. Tenants breaking a lease is a relatively common occurrence, and often under a flimsier pretext than marriage breakdown.

Chalk it up as experience and move on.

Mate, think about it this way, so you take the cut, now you are forking out the coin from you pocket, there for putting extra stress on your family.....

Like everyone else has said, its a business, not a charity....

How do you know that the wife didnt cheat and the husband found out, so he packs up and leaves.... still the victim.....

So whos the chump now....
 
Look, I'm sorry about the marriage split, but why should I take a rent cut of almost $90 per month for the REMAINING EIGHT MONTHS of the lease!

Because you are the landlord and must be rich!

seriously though I have rented for a lengthy part of my life and not once did I ever consider that the owner might be struggling financially, my general opinion (if I was ever asked) would have been that the owner is probably rich, how else could they afford to have investment properties :)

Now though seeing the other side of the coin, property owners arnt neccessarily rich, theyre just normal people investing and hoping to get ahead in life :)
 
Because you are the landlord and must be rich!

seriously though I have rented for a lengthy part of my life and not once did I ever consider that the owner might be struggling financially, my general opinion (if I was ever asked) would have been that the owner is probably rich, how else could they afford to have investment properties :)

Now though seeing the other side of the coin, property owners arnt neccessarily rich, theyre just normal people investing and hoping to get ahead in life :)

Yes but we have managed to save at least 20k - 50k or more to get a deposit and buy a home or two, to some that might be a lot of money.
 
Mate, think about it this way, so you take the cut, now you are forking out the coin from you pocket, there for putting extra stress on your family.....

Like everyone else has said, its a business, not a charity....

How do you know that the wife didnt cheat and the husband found out, so he packs up and leaves.... still the victim.....

So whos the chump now....

absolutely, if I called up the bank and did a sob story, do you think they will take $20k off a mortgage?? they'll probably send you a box of tissues and a reminder that if you pay late, you'll be hit with more fees
 
while you may think the PM is being terrible for suggesting the price drop - what are the circumstances surrounding it? Has the property been on the market for a while? Have there been any other offers? If the current tenants take the matter to VCAT and they find out an application was refused VCAT will not be sympathetic. Yes i agree the tenants sign a contract for a fixed term and should honour that fixed term, the owner should not have to cop a price drop - but in a falling rental market (yes it is falling) VCAT dont care. We all know they side with the tenants 99.9% of the time. Not saying it is right, but it is the way it is.

your PM actually may be giving you good advice - either take this or risk getting nothing if the tenants go to VCAT and win the end of a fixed term tenancy and disallow costs to the landlord because they were deemed unreasonable by refusing the application
 
Yes i agree the tenants sign a contract for a fixed term and should honour that fixed term, the owner should not have to cop a price drop - but in a falling rental market (yes it is falling) VCAT dont care. We all know they side with the tenants 99.9% of the time. Not saying it is right, but it is the way it is.

your PM actually may be giving you good advice - either take this or risk getting nothing if the tenants go to VCAT and win the end of a fixed term tenancy and disallow costs to the landlord because they were deemed unreasonable by refusing the application

That is very true. I will keep it in mind if it ever happens again.

Thanks. :)
 
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