Periodic Lease in QLD

[AdamN]

So our leases for IPs in QLD are expiring in a couple of months, agent asks we what I want to do. One of them we are considering selling and another we are looking at doing a reno on. So I say let's roll them over onto periodic for now, assuming the 1 month notice clause either way would still apply.

Wrong my agent tells me, according to RTA legislation the tenants only need to give 2 weeks notice on periodic. To which I respond, well that sucks! This really disadvantages the landlord because they are highly unlikely to secure new tenants 2 weeks after the outgoing ones give notice.

It get's worse my agent says; if we want to give notice for them to vacate on periodic, it's 2 months!

What is this I don't even??
How can these conditions be skewed so far in the tenants favour? What is the logic behind this legislation? Is it the same in other states?

 

[thatbum]

Because its probably harder for tenants to pack everything up and vacate a property than for a landlord to find new tenants for a vacant property?

 

[Nemo30]

In Canberra you have to give 26 weeks notice, even if you want a tenant to leave at the end of a lease.

Tenant can give 3 weeks notice at the end of the lease.

 

[AdamN]

Because its probably harder for tenants to pack everything up and vacate a property than for a landlord to find new tenants for a vacant property?

We've moved more times than I can remember, both interstate and international. It's never taken us 2 months to vacate as tenants and we're talking shipping container consignment size.

My main beef is that the notice period goes from 1 month either way on a fixed lease, to 2 weeks/2 months on periodic. I don't see why it just couldn't remain at 1 month so it's fair for both parties. It's clear whose side the RTA is on.

 

[thatbum]

We've moved more times than I can remember, both interstate and international. It's never taken us 2 months to vacate as tenants and we're talking shipping container consignment size.

My main beef is that the notice period goes from 1 month either way on a fixed lease, to 2 weeks/2 months on periodic. I don't see why it just couldn't remain at 1 month so it's fair for both parties. It's clear whose side the RTA is on.

I think the main part of the process for a tenant to move out is finding a new place to live.

I'm not 100% on the QLD RTA, but I didn't think a tenant had to give 1 months notice to vacate at the end of a fixed lease.

 

[fisherman]

It is inequitable. The notice period should be the same for both owner and tenant, a minimum of four weeks.

Are you a member of the POA?

http://www.poaa.asn.au/index.php?page=poaq

 

[mattysavager]

My main beef is that the notice period goes from 1 month either way on a fixed lease, to 2 weeks/2 months on periodic. I don't see why it just couldn't remain at 1 month so it's fair for both parties. It's clear whose side the RTA is on.

I agree that it's unfair, and it's the reason I almost never let landlords have tenants on periodic leases, unless they have a good reason. You have a good reason, so it's probably a good idea. It's much easier to sell a property with a periodic lease.

I'm not sure where you got the 1 month notice from though, as that is definitely not correct for QLD.

The owner must always give 2 months notice, whether that's notice for the end of the lease or if it is periodic. The tenant must only give 2 weeks notice for the end of their lease, and 2 weeks notice on a periodic.

Matt

 

[AdamN]

It is inequitable. The notice period should be the same for both owner and tenant, a minimum of four weeks.

Are you a member of the POA?

http://www.poaa.asn.au/index.php?page=poaq

I'm not, but what would be the benefit if I was in this situation?

 

[AdamN]

I agree that it's unfair, and it's the reason I almost never let landlords have tenants on periodic leases, unless they have a good reason. You have a good reason, so it's probably a good idea. It's much easier to sell a property with a periodic lease.

I'm not sure where you got the 1 month notice from though, as that is definitely not correct for QLD.

The owner must always give 2 months notice, whether that's notice for the end of the lease or if it is periodic. The tenant must only give 2 weeks notice for the end of their lease, and 2 weeks notice on a periodic.

Matt

Fair enough, I wasn't aware of that. For some reason I had assumed it was 1 month either way during the fixed lease period.

 

[fisherman]

I'm not, but what would be the benefit if I was in this situation?

Information and representation.

 

[AdamN]

Information and representation.

Sure. But if these defined notice periods are legislation then what can really be done about it? Apart from lobbying to have it amended...

 

[fisherman]

Sure. But if these defined notice periods are legislation then what can really be done about it? Apart from lobbying to have it amended...

Correct. That is the suggestion. You asked,
"How can these conditions be skewed so far in the tenants favour? What is the logic behind this legislation?"

The answer is that tenants' advocates argue for those conditions. More changes are on the way. Owners are usually less organised, representation in their respect is not funded by government, and they (owners) may not themselves make representation for equity to local members and the responsible minister.

It is through the POA that you can make your views known.

 

[beachside]

Adam

Yep, regulations in favour of tenants. But once you get to know what they are you work with them to achieve what you want.

See this post of mine

Just like a contract, you can make up your own lease conditions to suit yourself as long as they are not contrary to any regulations.

Example, a tenant requested a 3 month lease renewal as he may have been changing jobs and moving. As it was only a maybe, I preferred to keep him on a 6 month lease in case he did not move but offered him a renewal on the basis that he could break lease after 3 months without penalty provided he gave me 28 days notice. He accepted and moved out 4 1/2 months later.

 

[lura]

That's why we send the tenants along with the lease renewal a notice to leave at the same time and if they don't return the lease to us within 14 days we start advertising for the end of the Lease end date.

The legislators did open discussions for possible changes to the Qld legislation late last year and although I attend to provide my 2 cents worth... I just came away from it more frustrated.

Submissions to the REIQ have been presented to the legislators also indicating members would like to see a more balance notice period to be given. The amendments are being drafted now so we should receive more information by the second half of this year.