Problems with tenant transfering from Fixed Lease to Periodic?

[ritchie77]

My tenants are coming to the end of their 12 month lease and have advised they would not be renewing due to plans to relocate - they wish to rent another house in another suburb for children/school reasons. This is fine however I will be very sad as they have been long and very good tenants

Their lease ends in the beginning of November however they have enquired re staying on - either periodic or on a 3 month basis...... The only problem I potentially have is this is a 4 bedroom family house in a family friendly area of North Brisbane (nr Caboolture) where it may be easier to rent properties in Jan/Feb as families are looking to relocate before the school year.

Do others share these thoughts that Jan/Feb would be the best time to look for tenant? If so, I could re-sign the 3 month lease and request they vacate beinning of Jan - give the house a quick lick of paint and then have it back on the market almost immediately!

As a side note, what are the main prblems/issues re a preiodic lease and trying to get tenants out and has anyone had any issues re this?

Thanks in advance,

Rich

 

[jrc77]

I have heard of issues with the landlord insurance only covering certain conditions if the tenants are on a fixed lease. Haven't run into this myself, but might be worthwhile checking out with your insurer.

Regards,

Jason

 

[wylie]

I would sign a fixed time lease (two, two and a half or three months - depending on how much time you need to do the work you want to do before having it ready for inspections at the end of January).

I have always thought people would want to be moved and ready for the start of school, but it seems (from experience) that even early February is a good time to lease. Perhaps people get their holidays over with before tackling the move???

Anyway, a fixed lease will mean your insurance is covered (our insurer requires a fixed period lease).

If you allow them to go month to month, you need to give them two months' notice (possibly three months - check with RTA as this may have changed recently), but within that notice period, your tenants can give you two weeks' notice that they are leaving.

This is fine if you are doing the painting, but if you need to book tradies, you need a specific date to work to.

 

[Lil Skater]

If you put them on a further fixed lease, you should be able to issue them with a notice to vacate for no specific reason. In Victoria, this is 120 days.

Therefore, sign them to a 3 month lease to keep insurance happy, and issue them a 120 notice to vacate straight away, that way they are out by February and there's no chance of them extending their lease or rolling month to month so you're guaranteed a specific date that you can re-lease the property and get someone else in on a further 12 month fixed lease, of course this is if you believe that January/February is a prime time to be letting the property.

Check the QLD legislation though, it may not be the same for vacating tenants, or ask your PM if this is possible (if you have one!).

 

[ritchie77]

Thanks guys

The 3 month lease is a good idea I think - thanks for the input......

So let me get this right - they may not HAVE to leave at the end of this period and therefore I am better to issue 120 Notice straight after the 3 month lease is signed..... At least that way we both know where we stand!

Just want to ensure we got the greatest chance of getting a tenant as it seems there is plenty of competition up that way - but then again it could be just the luck of the draw and who is looking at the time?

Thanks

 

[wylie]

I would check the timing carefully on the Residential Tenancy Association website, and/or call their freecall number so you get it right.

The timings may have changed so you need to get it right.

It used to be two months' notice, but is could not be three months, and I believe you need to allow more time for postal times. Make sure you get in early enough with your notice.

 

[ritchie77]

They would like to sign a 6 month lease now - at least a little bit better..... But they obviously want to move eventually!

The only problem is they want another dog Never mind - the property will need a good clean out anyway!

 

[Ed Barton]

I would check the timing carefully on the Residential Tenancy Association website, and/or call their freecall number so you get it right.

The timings may have changed so you need to get it right.

It used to be two months' notice, but is could not be three months, and I believe you need to allow more time for postal times. Make sure you get in early enough with your notice.

it's two months plus gst (mail time)

 

[bweed]

It's two months regardless of if you in a fixed term or periodical. If you're in month 5 of a 6 month lease they can stay until month 7.

 

[wylie]

It's two months regardless of if you in a fixed term or periodical. If you're in month 5 of a 6 month lease they can stay until month 7.

Of course, the big difference is that on a fixed lease, they cannot just give two weeks' notice and leave you with an empty house, and a six week wait for your pre-booked tradies.