Renew/End Fixed Term Lease (QLD)

[ahkiat83]

Hi All,

What is the minimum days before the Fixed Term Agreement Lease, should i inform the agent if i wish to renew or end the lease?

The agent had sent a new 52 weeks lease from 2011 to 2012 when i still have15 weeks to the end date.

The agent required me to sign and hand it to them by next week.

Im quite sure in QLD, the notification to leave (end) is at least 14 days before the lease end.

But im not sure with the renewal.

Can anyone help me?

 

[kassy]

Hi,

They changed the rules here in QLD a while ago so that you need to give the tenants 2months written notice to renew or end a lease (at the end of a lease) which probably explains your agent contacting you so soon...

Kassy

 

[Ed Barton]

Hi,

They changed the rules here in QLD a while ago so that you need to give the tenants 2months written notice to renew or end a lease (at the end of a lease) which probably explains your agent contacting you so soon...

Kassy

and if you do nothing and go month to month then the two month notice period by the LL still applies.

the tenant only has to give two weeks notice if the lease is up and is running month to month, or within two weeks of the end of the lease.

check out http://www.rta.qld.gov.au/giving_the_correct_notice.cfm for the rules. i suggest you have a good look around the site, it's quite easy to navigate.

sounds like your PM is doing a great job in giving the tenants plenty of notice, and time to think about whether a new lease is for them. likewise plenty of notice to you to consider your options. are you upping the rent? has that been discussed? where is the weekly rent in relation to market? under? at? above?

 

[marg4000]

We have an IP in Queensland with a lease renewal date mid January 2011. Kassy is right, negotiations must be FINALISED at least two months before the lease ends, so we have already had discussions with our PM, however the tenant has notified that renewal will not be needed. We are a bit disappointed as they were paying top rent and things have softened a little lately.
Marg

 

[lura]

Lease renewals with rent increases -

If a lease renewal is sent out with a rent increase and a rent increase letter sent at the same time. If the tenant does not return the lease signed for a Fixed term the rent will still increase but the lease falls into a periodic.

It's all fun and games and not all tenants will return on time - they have the opportunity to return the lease back - but most will take their time deciding what to do.

 

[skippyz]

what if you as a landowner want a fixed term contract, not periodical contract not knowing when tenants move out?

What is the way to 'vacate if not signed a new contract' in QLD?

I saw that you need to send a notice to leave 2 months before without any reason specified - so that means, asking to sign a new contract 2 months or more before contract ends then send a notice to leave 2 months before end date if they don't sign a new contract?

 

[mattysavager]

Hi All,

What is the minimum days before the Fixed Term Agreement Lease, should i inform the agent if i wish to renew or end the lease?

The agent had sent a new 52 weeks lease from 2011 to 2012 when i still have15 weeks to the end date.

The agent required me to sign and hand it to them by next week.

Im quite sure in QLD, the notification to leave (end) is at least 14 days before the lease end.

But im not sure with the renewal.

Can anyone help me?

Hi there,

My background and experience is in QLD property management. I just wanted to clear up some technicalities.

The notice period for an Owner to issue a tenant a notice to leave at the end of the lease, or on periodic is 2 months. A tenant may leave at the end of the fixed term lease, or at any time on periodic, with at least 2 weeks notice.

There is NO minimum notice period for a renewal. You can sign the renewal on the day that the new lease is to start. This includes renewals with rental increases. If the increase is to be commensurate with the start of a new fixed term agreement, or signed periodic agreement, no notice is required - as the tenant agrees to the increase by signing the contract.

If the tenant does not agree to sign the new fixed term, or sign a periodic lease with a rent increase, then the owner must at that point issue a Notice to Leave with 2 months notice, or issue a notice of rent increase for period agreement giving 2 months notice.

This is usually all done at the same time by a competent agent. In property management I issued a Notice to Leave with my lease renewals, on the condition that the notice to leave would be enforced if a new lease was not signed by both parties before the expiry of the current lease. This minimises risk to the owner by reducing the chances that at the end of the lease the tenant gives 2 weeks notice.

Hope that all makes sense!

Matt

 

[skippyz]

This is usually all done at the same time by a competent agent. In property management I issued a Notice to Leave with my lease renewals, on the condition that the notice to leave would be enforced if a new lease was not signed by both parties before the expiry of the current lease. This minimises risk to the owner by reducing the chances that at the end of the lease the tenant gives 2 weeks notice.

Hope that all makes sense!

Matt

Thank you Matt, your explanation provides perfect explanation.

Just one last question. When tenants decide not to renew (and leave).
Suppose they don't sign a renewal contract, or don't reply to you at all.
Tenants only provide 2 weeks notice at the end of the lease then leave? Do you have enough time to advertise your property for rent to avoid vacant period?

 

[mattysavager]

Thank you Matt, your explanation provides perfect explanation.

Just one last question. When tenants decide not to renew (and leave).
Suppose they don't sign a renewal contract, or don't reply to you at all.
Tenants only provide 2 weeks notice at the end of the lease then leave? Do you have enough time to advertise your property for rent to avoid vacant period?

No, usually not. That's why the agent should be advertising a month out from the end of the lease, and as the tenant hasn't signed - they can enforce ehte Notice to Leave that should have been sent 2 months out.

Vacancy is a natural part of being a landlord, and as an investor and experienced PM, I will tell you to expect around 2 weeks turnaround between tenants.

Obviously the PM aims to reduce this, as it's in everyone's best interests, but learn that tenants cannot be relied upon to make their mind up immediately, and factor in 4 weeks vacancy/year in your calculations.

This will hijack the thread a bit, but:

Many owners expect a tenant to move out on Saturday and the PM to put a new one in on Monday, the problem with this is that leases are signed in advance normally, and what happens when the old tenant leaves it dirty and is given 'reasonable time to return and clean', and the new tenant cannot move in to the property. They have to delay movers, are often then rendered homeless and usually request compensation from the owner.

Just a word of warning, budget on vacancy, and if you get lucky, you get lucky.

Matt