Lease ends in 2 days - Careless PM!

[GZM]

We've never had an issue with tenants or property managers before...but in the last week two things have cropped up. One has been sorted, but I'm not sure how to handle the other...

This is what's happened:

1. There's been a tenant in the property for 4 years.

2. She's been on a 12 month lease. The current rent is $315, but market rent is at least $360.

3. At the end of the current lease, we're planning to put the rent up to market, and we highly doubt that the current tenant will stay (due to the increase).

4. The PROBLEM is that the lease ends in two days! We weren't aware of the exact date (which is obviously a bit careless), but happened to check it on the weekend... We called the property manager who, believe it or not, said that he didn't know that the lease was ending either!!!

5. Because of this, the manager hasn't sent any notices to the tenant at all regarding ending the tenancy or increasing the rent.

What does everyone think we should do? What are the tenant's rights? What are our rights? What should the property manager be responsible for?

Not sure how to proceed at all...any guidance much appreciated!

 

[kaf]

Sounds as if your tenant is now going onto a periodic lease which is a pain. Have a look at your local RTA website and see what your rights are (I only know the Queensland rules). We had something similar happening earlier this year (PM didn't notice that tenant hadn't got back to them with signed lease) and we refused the periodic lease and had them sign I think a 6 weeks lease as they wanted to leave anyway.

Following on from that experience I now have a note in my calendar to chase PMs up about 8 weeks before lease is due and reminding the PM that I won't accept periodic leases.

Good luck with this one.

kaf

 

[The Y-man]

What does everyone think we should do? What are the tenant's rights? What are our rights? What should the property manager be responsible for?

Not sure how to proceed at all...any guidance much appreciated!

The PM can now offer a fresh lease at $x or to continue on a monthly basis.

Rent increases need a 60 day notice regardless, so you need to have given notice 2 months before the end of the lease anyway.

A tenant doen NOT have to sign a fresh lease. They can automatically choose to go to monthly, regardless of a lease being offered.

See
http://www.tuv.org.au/advice/resources.aspx

Cheers,

The Y-man

 

[jaycee]

Yeah lookk it up in the Residential Tennancy Act etc... and write down whqat can be done, how, by when...... This will clarify the options available (what i f this / what that.) better than pple probably can provide

Then do as I did and the previous post suggested - work out when everything is due, and put a reminder in your calendar to remind yourself & your pm to do it !

 

[buzzlightyear]

GZM, the Y-Man is spot on. You've got 60 days (plus 3 I think to allow for the notice to get to them by registered post) before you can raise the rent.

Just something to take note of in increasing rent, if you provide the rental notice and the tenant is not happy and wants to go, they can leave with 28 days notice. Even given the strong rental market ATM, June/July would be the worst time to rent out IMHO. Its cold and rainy and people tend to mov less so there is less demand at that time. (There could also be less choice for the tenant too mind you!, but now I am arguing against myself )

You will however know the area better (and maybe even better than the PM by the sounds of it), so you will be in a better position to judge what you can increase it to and when.

 

[NorwegianBlue]

So in the situation where the tennant is on a 12-month lease, you give notice of the increase in rent 63 days before the lease expires, now the tennant can leave in 28 days with 1 month remaining on his/her lease and not be in breach?

 

[The Y-man]

So in the situation where the tennant is on a 12-month lease, you give notice of the increase in rent 63 days before the lease expires, now the tennant can leave in 28 days with 1 month remaining on his/her lease and not be in breach?

You can put in a hardship claim to have VCAT authorise the break of lease.

Cheers,

The Y-man

 

[buzzlightyear]

So in the situation where the tennant is on a 12-month lease, you give notice of the increase in rent 63 days before the lease expires, now the tennant can leave in 28 days with 1 month remaining on his/her lease and not be in breach?

Yes, the tenant can give notice (min 28 days) with a month to go on their lease. This would take them up to the end of the lease.