Not renewing the lease in VIC

[Lt.Shmidt]

Guys,
Need some advice, probably from the landlords or agents. I'm renting same place for 3 years and was never late with repayments and all 3 years was on renewed 12 month lease every year. Few months ago had made decision to build own home due to some personal circumstances (otherwise I'd continue lease). Building is in progress and should be finished in October or November. Was planning to advise agent about it in August as this is time when I was normally getting new 12 month lease. My lease expires end of September.
But got a call from agency this week and they offered me new 12 month lease now. I had to refuse and explained that I'm building home. Also sent the same in the email with details and asking for me to go on periodic post September for few months until settlement.

Now still awaiting their response on this, but very worried that landlord may now give me a notice to vacate and terminate my lease at the end of September as I'm not planning to sign new contract.

Agent also advised me about rent increase and I said this is not an issue at all.

What does landlords normally do in this situations? I'm pretty sure my situation is not unique. It will be a challenge to rent something for 2 months for me and having two relocations.

This is all in Victoria.

 

[Scott No Mates]

Do Victorian leases have a 'break' clause similar to NSW? If so, sign a new lease and break it paying the break fee (negotiate a lesser fee) or just negotiate a 3 month lease/remain on hold over.

 

[poordeveloper]

Can't see why the LL would do that but I did once rent a property where the RE would send me a 'Notice to Vacate' every year, followed by a new 12 month lease to sign.

I suspect it was nothing more than the agency trying to earn a new lease signing fee. I resolved the situation by pointing out that the residential tenancy act states that a tenant can't be forced to enter into a new lease, and that VCAT would probably take a dim view of their tactic.

 

[The Y-man]

But got a call from agency this week and they offered me new 12 month lease now. I had to refuse and explained that I'm building home. Also sent the same in the email with details and asking for me to go on periodic post September for few months until settlement.

Now still awaiting their response on this, but very worried that landlord may now give me a notice to vacate and terminate my lease at the end of September as I'm not planning to sign new contract.

1. Hope your honesty does not disadvantage you. You could have gone monthly regardless - you are not compelled to sign the lease and do not need to give any reason.

2. They need to give you 120 days notice regardless for moving you on with no reason. However, given your circumstance you may be able to challenge this through the tribunal.

The Y-man

 

[Lt.Shmidt]

1. Hope your honesty does not disadvantage you. You could have gone monthly regardless - you are not compelled to sign the lease and do not need to give any reason.

2. They need to give you 120 days notice regardless for moving you on with no reason. However, given your circumstance you may be able to challenge this through the tribunal.

The Y-man

Well, I do hope that being honest is good. at the same time I understand that leasing the property is business...

They can give me 90 days to vacate at end of July and this will be exactly by end of the fixed lease.

 

[vaughan]

Landlord might want to have tenant under a fixed-term lease to satisfy insurance requirements.

Ask to have the lease period less than 12 months, until the end of November or whenever.

 

[Sez]

In VIC it is not legal to force a tenant onto a new fixed term lease, you are legally entitled to go onto a periodic lease. If they were to send you a notice to vacate it would have to be a 120 day notice to vacate, the legal reason for this notice is 'Notice to Vacate for No Specified Reason'. If you turn up to tribunal and state that they are kicking you out because you wouldn't sign a new fixed term agreement and produce the emails I think you will find they rule in your favour. 120 notices hardly ever stick!

Your PM has probably just taken your response as a 'no fixed term lease' emailed the landlord, filed away your email in which you tell them you won't take up their offer and moved on. No need to panic but let us know what happens!

Just remember when your house is ready you need to give your agent 28 days notice of your intention to vacate in writing (email is fine but call at the end of the day to ensure they received it).

Congratulations on building your new home!

 

[Sez]

Landlord might want to have tenant under a fixed-term lease to satisfy insurance requirements.

In VIC landlords need to change insurance provider if they have this clause in their insurance, we are powerless to ensure their tenants stay on a fixed term lease.

 

[Lt.Shmidt]

Just remember when your house is ready you need to give your agent 28 days notice of your intention to vacate in writing (email is fine but call at the end of the day to ensure they received it).

Congratulations on building your new home!

Thanks for your advise and congratulations. This is exactly what I stated in my email to agent, saying I will give a proper formal notice when I will have a firm settlement date and will also let LL to do inspections while we preparing to move.

 

[Sez]

Excellent, you're doing all of the right things! Who is your agent? I know a lot in the area and may be able to give you some insight as to what is going on, you can PM me. There are some excellent property managers in the area so hopefully you have one of those!

 

[alicudi]

Hi

I know a couple agents in the area as well. And from the ones I know I don't think you are going to have any problem going onto a month to month after your 12 months is up.

I just can't see the agent telling you to leave and they will just wait till you give notice to vacate.

I am sure the landlord is happy with you after these 3 years of you been a tenant and they will have no issue you staying as long as possible!

Best of luck.

Regards,

alicudi

 

[wylie]

My first thought is that the owner probably fears that you will leave the week before Christmas. Perhaps you can assure them that you will be gone well before the worst time to have a house empty?