options in leases ??

[froggy]

Hi all
We have just gotten an application for our rental from someone in the army.

We had stipulated to the realestate ...6 months lease (just so we can get a feel for tenant as we have been locked in 12 months with bad one before)
Anyway there is an application that the agent is very keen on, single man sargent from the army , has small dog and wants 12 month lease straight up with the option to break at any time if he is posted.

I have never heard of this before having an option for the tenant to break at anytime, i can appreciate being in the army that you do get posted from time to time and he did stipulate that he wanted security which is fair enough but just dont quite understand where i stand if tenants can put in there own options in the lease ? and i also need some sort of security that i wont be left with a empty house and loss of rent at anytime ? Just wanted some ideas on what others would say to this and were i would stand if we did give him a 12 month lease eg would he have to pay rent till another tenant found etc?.thanks

 

[Raddles]

Hi there
my husband was in the service for 20 years and when we did rent private accommodation - it was always a stipulation in the lease agreement that we could break the lease if he were posted. It really didn't end up being a big problem - you tend to get plenty of notice of a posting - which can be passed onto the real estate agent - who in turn has plenty of time to get a new tenant.
thanks

 

[YLC]

Hi Froggy,

We had tenants from the army and they requested an option to break the lease which is understandable. It hasn't been a problem because one stayed for a year and the other 3 years. They said they will give plenty of notice if they have to break the lease. Both of them were pretty good with rental payments and maintenance.

YC

 

[attrill]

How about adding your own addition to the option to break with a penalty scale that increses with the decrease in notice that they give you for the intention to break the lease?

It's fine to hear that they should be able to give you 3 months notice, but if the option is written as you say then there is no penalty for giving a weeks notice, which is not much of a lease and I would want to be covered.

If they know that they would be able to give you lots of notice then they would not mind a clause like this.

A rental lease is like any contract between two parties, it can contain what ever you like. It annoys me when an agent tells me. "This is the standard contract" or "everybody does it this way"

 

[Propertygirl]

Military tenants...

Some further information about military families/tenants...

A portion of their rent is paid by Defence and the tenant is required to put this clause in the contract, the contract is then submitted to Defence to determine how much they will pay. (there are set dollar values for ranks and locations). I doubt if they will accept a contract with a sliding scale penalty, but maybe a set penalty...like 4 weeks notice or payment of rent if the posting clause is invoked...

Ideally people get 6 months notice of a posting...however we have been posted with as little as 6 weeks notice.
There is a rencent push in the defence force to make all postings 3 years. I would ask the agent to find out how long the posting is for...

Have a look at www.DHA.gov.au to get some more info...

Normally defence tenant are good, since a portion of their rent is paid for them they normally pay on time...

hope this helps
propertygirl

 

[froggy]

Thanks everyone for your advice. We have said yes we will accept the lease tenant moves in on the 31st.

Thanks again and have a safe and merry christmas