Rental empty but witholding keys

[boeman]

So my tenant advised my property manager last week, that as agreed, she would be moving out early but would pay out rent until the end of the lease (8th of May). She didn't want to miss out on another rental. She did try to request leaving early and not paying out the lease, but I denied this and requested she pay out in full since the lease is in writing until May 8th.

At this point she advised I would have the keys "this week sometime" (April 10th or so).

She has now moved out, but has told the property manager that although the property is empty, she is going to keep the keys until May 8th since she is paying rent until then. Fair enough I guess.

I don't care when the lease expires, my concern is the property is completely empty for a month and susceptible to vandalism or theft. I honestly don't see what she has to gain with keeping keys for $380 a week? I did have all my trades booked in for next week so it would at least look busy for a few weeks before I move in. I am fairly worried about this situation.

Can I legally do anything to get the keys, or am I stuck because it is leased till the 8th of May and she is still paying rent.?

 

[luckyone]

Doesn't your property manager have a set of keys? Just notify the tenant at least 24 hours in advance that you will be coming in to perform maintenance (or whatever your maintenance agreement says). Then go in and perform the maintenance as normal.

 

[jerrybee]

Doesn't your property manager have a set of keys? Just notify the tenant at least 24 hours in advance that you will be coming in to perform maintenance (or whatever your maintenance agreement says). Then go in and perform the maintenance as normal.

Exactly, the process and rules haven't changed.

 

[Joe D]

I assume the Bond hasn't been refunded as the keys haven't been returned?

If the property has been left in good condition so that all the Bond will be returned in full AND you definitely know the tenant has moved out then one option is to use your set of keys to enter and then change the barrel on the lock so they can't get back in. You then do your works as intended and continue as normal.

If tenant finds out or makes a fuss you could always justify entry on the basis of a smoke detector going off or suspected break in or whatever .............

Alternatively, if there are a few things that may reduce the Bond to be returned to tenant, it may be worth your while offering to forego this if tenant returns keys.

 

[boeman]

No bond refunded.

I will just leave it I think, the maintenance is repainting internally, new carpet, new blinds, new shelving and sliding robes, new front door and etc.

The property manager has advised me the tenant is being quite difficult since I wouldn't let her leave early without paying out the lease, so she is going to keep an eye on her and has informed her the property is still her responsibility.

Should the lawn die, be left dusty/dirty due to being empty etc, it will be deducted from the bond.

 

[pipsal]

If you didn't care when the lease expires, why didn't you just compromise and let her end it a little early so that it wouldn't be vacant for a whole month, and you could get in and do work while still earning rent (unlikely you would do carpets, painting, etc while a tenant was in place!!)? It was your choice to leave her paying for the property and still on a lease requiring entry notices, etc, so what she chooses to do with the place is not your concern in that time as long as it is left in ok condition at the end of lease, and she won't get Bond back until she hands over keys - has the Exit Inspection been done yet?

I am really interested in what kind of bond money you will be after if the 'lawn dies' while the property is vacant though!? I've never held tenants to that one!

That is an interesting point about it being dusty, etc....if the Exit inspection has already been done and the form completed and signed off, then whose responsibility is it - it could be seen to be like dust that could accumulate even if the property was vacant while waiting for new tenants?

 

[Terry_w]

So my tenant advised my property manager last week, that as agreed, she would be moving out early but would pay out rent until the end of the lease (8th of May). She didn't want to miss out on another rental. She did try to request leaving early and not paying out the lease, but I denied this and requested she pay out in full since the lease is in writing until May 8th.

At this point she advised I would have the keys "this week sometime" (April 10th or so).

She has now moved out, but has told the property manager that although the property is empty, she is going to keep the keys until May 8th since she is paying rent until then. Fair enough I guess.

I don't care when the lease expires, my concern is the property is completely empty for a month and susceptible to vandalism or theft. I honestly don't see what she has to gain with keeping keys for $380 a week? I did have all my trades booked in for next week so it would at least look busy for a few weeks before I move in. I am fairly worried about this situation.

Can I legally do anything to get the keys, or am I stuck because it is leased till the 8th of May and she is still paying rent.?

She still has possession until the 8th. You can only enter if agreed or allowed under the lease.

 

[Joe D]

I will just leave it I think, the maintenance is repainting internally, new carpet, new blinds, new shelving and sliding robes, new front door and etc.

Given the property is now vacant and there is still 4 weeks until 8 May, i think you would be mad not to use the time to do the mini reno you have planned.

You could do the reno in one week and still have 3 weeks to market and secure a new tenant.

After all, If we don't do this to maximise our return on investment why would we have IPs?

 

[boeman]

If you didn't care when the lease expires, why didn't you just compromise and let her end it a little early so that it wouldn't be vacant for a whole month, and you could get in and do work while still earning rent (unlikely you would do carpets, painting, etc while a tenant was in place!!)??

If I let her end the lease early, how would I still be earning rent?

My point isn't to do with money or lease dates, it is the vulnerability of my property being empty for a month as far as security goes. I don't really want to get the keys and go to do my work and find it has been broken into or vandalised.

She is moving out so I can move in (after renovations). I am in no rush, I just do not like the idea of it sitting there, and it all seems rather spiteful on her behalf.

I do have an exceptional PM which makes it a little easier.

 

[thatbum]

If you didn't care when the lease expires, why didn't you just compromise and let her end it a little early so that it wouldn't be vacant for a whole month, and you could get in and do work while still earning rent (unlikely you would do carpets, painting, etc while a tenant was in place!!)? It was your choice to leave her paying for the property and still on a lease requiring entry notices, etc, so what she chooses to do with the place is not your concern in that time as long as it is left in ok condition at the end of lease, and she won't get Bond back until she hands over keys - has the Exit Inspection been done yet?

I agree - if you really wanted some access before the end of the lease, why didn't you cut some sort of deal where you conceded some rent money in exchange for early access? It didn't have to be the whole amount.

It really sounded like a situation where she wanted to negotiate something, you decided to sit on your legal rights, and now she (probably understandably) is now sitting on her legal rights to exclude you from the property.

It sounded like you let by a golden opportunity to renovate and get some rent in at the same time.

 

[Kinnon Bell]

Something also worth considering is your insurance policy may not cover the property if it's vacant for more than a certain period of time.

 

[thatbum]

If I let her end the lease early, how would I still be earning rent?

"Hey tenant, heard you want to leave 4 weeks early?"

"How about you pay me 2 weeks rent for that vacant period as a set "break lease" fee but otherwise give me possession 4 weeks before the end so I can renovate/prep the place for new tenants?"

EDIT: PS. its not too late to cut such a deal.

 

[boeman]

It sounded like you let by a golden opportunity to renovate and get some rent in at the same time.

Like I said, she didnt want to pay rent if moving out early.

I declined, and she said (at the time) that was fine and she didnt want to miss her new rental, so would pay me out and move out early, which would leave me in the "golden situation" of getting the rent whilst being able to renovate. Perfect.

Instead she has gone back on her word at the 11th hour. Moved out, but held the keys and now saying since she is paying rent she will hold onto them.

Was just curious as to any issues that may arise have my property empty for a month since it has gone a bit pear shaped.

No point bargaining with her now, i'll take the rent in my pocket and do some drive-bys for the next month.

 

[Terry_w]

You should notify your insurer and check if you will be covered.

 

[impala67]

Something also worth considering is your insurance policy may not cover the property if it's vacant for more than a certain period of time.

Terry and Kesse raise a good point. Most if not all insurers have this provision, and it is technically vacant. I would be ringing to get some advice from them directly. In case of some sort of weather event, or malicious damage by whoever etc in the empty 4 weeks.

 

[thatbum]

No point bargaining with her now, i'll take the rent in my pocket and do some drive-bys for the next month.

How is there no point in bargaining with her now?

You're still 4 weeks out from the end of the lease. Do you want access early or not? Or you want early access but aren't willing to concede any rent at all?

 

[travelbug]

Sounds like you want to have your cake and to eat it too.

You wouldn't let her leave early to save rent and now you want to get into the place she has paid to occupy.

Maybe you should have thought it out before saying no. That way you both could have had something to gain.

How is there no point in bargaining with her now?

You're still 4 weeks out from the end of the lease. Do you want access early or not? Or you want early access but aren't willing to concede any rent at all?

Because he wants to take it all, while giving nothing.

 

[jakaim]

Surely you have another set of keys? Can't you just give notice of entry to the property and have the work done during the last month anyway?

I don't blame her for doing as she has done tbh, if you were unwilling to give a little as well.

 

[pipsal]

Agreed - check with your insurer just in case...CBA is 60 days vacant from memory. It's not ideal, but sometimes properties are vacant for 4 weeks between tenants, it does happen and I wouldn't worry too much about it.

Perhaps she is being spiteful, but not unreasonable....and she is probably doing it because she believes you were being somewhat unreasonable, especially wanting access to renovate the place to your liking for when you move into the house yourself.

By the way, the things that you listed earlier don't sound like 'maintenence'... more like improvements. You may be aware of this, but if you have only had this place for a matter of months, my understanding is that you won't be able to claim things like painting and floor coverings as maintenence for tax deductions as the condition of these is not likely to have changed significantly since you purchased the property.

the maintenance is repainting internally, new carpet, new blinds, new shelving and sliding robes, new front door and etc.

 

[neK]

Like I said, she didnt want to pay rent if moving out early.

I declined, and she said (at the time) that was fine and she didnt want to miss her new rental, so would pay me out and move out early, which would leave me in the "golden situation" of getting the rent whilst being able to renovate. Perfect.

Instead she has gone back on her word at the 11th hour. Moved out, but held the keys and now saying since she is paying rent she will hold onto them.

You cant it both ways. Have your tenant pay you in full and have access. Like others have said, you should have worked out something that be mutually beneficial for everyone.

I've had situations where a tenant wanted to move out before their lease ended. I told them that as long as I found a new tenant I was happy for them to break. Worked out for everyone because they kept the property in a clean and presentable condition and always made it easy for access.