Periodic tenancy Ethics & tenant leaving 1 month early

Hi, I'd planned to move back into my PPOR next January when the lease runs out. However there is a spanner in the works now as the tenant wants to leave 1month early.

I'm thinking about leasing my ppor as periodic tenancy as it will give me greater flexability in that I can move in when I want to. If I decide I dont want to wait till January then I can give 90 days notice ? Is that right 90 days notice that I want them out.

My PPOR is very close to cbd, just a 20 minute walk. Do you think it would be easy to get someone on a periodic tenancy? I kind of dont want to put someone in for 6 months as I dont think its fair if the tenant wants to stay long term to be kicked out after 6 months. Its not ethical.

I'm thinking the fairest lease is periodic and to inform the tenant its a short term lease where i'll be possibly moving back early next year. Its the honest and right thing to do. Is that a silly thing to do... to tell prospective tenants of my plans to move back in next January. I'm hoping I'll be able to find someone that just wants a short term stay.

Also seeing that the tenant is leaving a month early the still need to pay for the last month dont they even though they wont be living there.

I'm waiting to hear back from PM to discuss.

thanks.
 
If you were planning on moving back in January, and they want to move out one month earlier than the end of their lease in January, why not move back in earlier, or tell them you will not release them from the lease, and if they do break the lease, they fact the financial consequences.

If you were going to look for new tenants this would be how you go about it but if you are moving back in, I'm not sure if your lack of advertising for a new tenant would give them grounds for say you are simply not trying to fill the vacancy they have created by breaking their lease.

Your PM should be able to help you.
 
Got in touch with my PM. She explained everything to me.

Tenants will leave mid July. Lease runs to mid August. I'll advertise for a 6 month lease with no chance of extension. I also might reduce the rent by $20 below what others are asking because I hear a lot of rentals are still on the market. Hopefully I can find someone.
 
Could be rented short term if furnished, like a serviced apartment, depending on what it is and where. Short term moving is expensive for tenants but can suit some. Good luck
Cheers
crest133
 
Could be rented short term if furnished, like a serviced apartment, depending on what it is and where. Short term moving is expensive for tenants but can suit some. Good luck
Cheers
crest133

Thanks, yep it's furnished...

Tenants have agreed to show people through to inspect the property. That way if they can get someone in the day that they leave they won't have to pay any costs.

Currently property is being rented at $340 per week and PM says it'll only achieve around $300 now. Comparables are asking $350 per week and haven't been leased yet.

Looking at comparables I reckon I'll ask $320. Anyhow worst case scenario if Im only able to get just $300 per week that is $1200 per month with a $750 per month mortgage. I'll still be cash flow positive. :)
 
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