Seems to be happening recently these days.
Are lot of humourous sarcastic posts are being taken quite seriously.
Rescinding a rental application after accepting
- Thread starter lovestruck
- Start date
Seems to be happening recently these days.
Are lot of humourous sarcastic posts are being taken quite seriously.
Lovestruck....................where are you????? I somehow dont think he will be back for more on this!
The replies seem a bit harsh - it is quite a reasonable question to ask.
I agree that having a tenant lined up for 2 weeks after settlement is a pretty good situation to be in.
It gives a bit of time to manage any settlement delays as well as get any necessary repairs done.
Sounds a bit dangerous to me to have any tenants lined up pre-settlement. What if the property doesn't settle on time, or doesn't settle at all?
I think the replies would have been less harsh of it was 4 weeks or more
But regardless, morally its wuestionable
But if they haven't signed anything and if its a high demand area the tenants should be doing their best to get all documents signed and delievered
I think it's a valid question.
Not because I would do it, but because it improves my understanding of all things property. I might be me on the receiving end of this situation one day and because of the OP's questions I will be better informed.
BR
Not because I would do it, but because it improves my understanding of all things property. I might be me on the receiving end of this situation one day and because of the OP's questions I will be better informed.
BR
I think some of the reply's have been a bit harsh, and it may be that the OP has not responded for fear of being further berated.
From my understanding, verbal acceptance of an application, does not make it binding. In reality, both parties can change their minds, up to the time when the lease documents are signed, and each receives their copy.
Now if I read the OPs post correctly, their position changed, after they gave verbal approval. I think they phrased the post badly, and came across as being unreasonable.
The best advice would be, hey get on the phone and talk to the tenant, and see if there is any flexibility on their side, now that this now situation has arisen.
In QLD we have certain steps to go through, and if we do not go through those steps correctly, the tenant can withdraw at any time. Not sure of other states. If they have paid the deposit, our application form allows us to retain, if they withdraw after acceptance. Would we lose if taken to QCAT not sure, depends on which adjudicator you see, and what sob story the tenant shares.
Hope that helps
From my understanding, verbal acceptance of an application, does not make it binding. In reality, both parties can change their minds, up to the time when the lease documents are signed, and each receives their copy.
Now if I read the OPs post correctly, their position changed, after they gave verbal approval. I think they phrased the post badly, and came across as being unreasonable.
The best advice would be, hey get on the phone and talk to the tenant, and see if there is any flexibility on their side, now that this now situation has arisen.
In QLD we have certain steps to go through, and if we do not go through those steps correctly, the tenant can withdraw at any time. Not sure of other states. If they have paid the deposit, our application form allows us to retain, if they withdraw after acceptance. Would we lose if taken to QCAT not sure, depends on which adjudicator you see, and what sob story the tenant shares.
Hope that helps
Honestly was not expecting such hostile replies! Goodness me I've been busy all day and come back to this!
I was simply asking a question, not demanding that the agreement be 'rescinded' (for a lack of a better term).
I phoned the property manager earlier today and asked if they could ask the tenant to move in 1 week earlier for a $5/pw deduction or 2 weeks earlier for a $10/pw deduction, they have not replied yet. In more bad news it seems the property manager (recommended by the forum) signed a 1 year lease without permission when we had discussed earlier a 7 month lease.
I was simply asking a question, not demanding that the agreement be 'rescinded' (for a lack of a better term).
I phoned the property manager earlier today and asked if they could ask the tenant to move in 1 week earlier for a $5/pw deduction or 2 weeks earlier for a $10/pw deduction, they have not replied yet. In more bad news it seems the property manager (recommended by the forum) signed a 1 year lease without permission when we had discussed earlier a 7 month lease.
If your first concern was a 2-week vacancy, and now you're concerned about getting a longer fixed-term lease - which I would certainly be rapt about - I predict this property investing thing is not going to be a fun game for you.In more bad news it seems the property manager (recommended by the forum) signed a 1 year lease without permission when we had discussed earlier a 7 month lease.
Now Im suspicious, after giving benefit of doubt.
7 months you wanted...? Why?
Also, I would have offered way more than $5 or $10 reductions respectively. More like $60 or $90...geeze it's only 2 weeks.
Seems like Scottnomates can now take tongue out of cheek.
Really don't know what you're trying to get at here? 7 months is because the lease would end at a time which is a peak time for people wanting to rent (or so I've been told).
I don't understand why you feel that I should offer a 60-90 dollar per week decrease in rent? All I have done here is ask a question, I haven't gone and threatened the tenants, I haven't gone and actually attempt to cancel the agreement, I have just asked a question to the forum. You make it sound like I've gone out and killed some kittens or something, I don't feel these prospective tenants or anyone for that matter deserve a 20% decrease in rent just because I've asked a question
Ha aha you've lost the plot.
I said you could ask the tenant to rent 2 weeks earlier for a bit less for those 2 weeks only.
You seem to think you can dictate to them willy nilly.
I think you are killing kittens now. Holy dooly...
The answers to your question are printed in B & W above.
Hope it helps.
I said you could ask the tenant to rent 2 weeks earlier for a bit less for those 2 weeks only.
You seem to think you can dictate to them willy nilly.
I think you are killing kittens now. Holy dooly...
The answers to your question are printed in B & W above.
Hope it helps.
If you have an existing tenant who pays on time and looks after the place, why would you want the lease to end during a peak time? (Serious question) It seems counter-intuitive.
Regardless though, I personally would make a quick note of the oversight to the PM to improve communication between you down the track... I mean, if you specifically requested something that they acknowledged but then didn't action, it could get annoying after a while if it keeps happening.
$90 decrease in rent of say $400/week rent for 2 weeks = $180 loss
If you offer $10 a week and they say no, you lose $400/week x 2 = $800 loss
They may not deserve a decrease in rent because of a question, but if you've made an error and are asking them a favour and to change their plans, then maybe some people would say that they are entitled to a decrease.
I think there is a misunderstanding here possibly.
I was suggesting to the PM to offer a 5-10 dollar decrease per week for the life of the 1 year lease = 250-500 dollar loss, however if the tenant can move in either 1-2 weeks earlier (where I can make back 340-680 dollars for those two weeks) I can mitigate or completely cancel out the longer term loss (indeed even claw back those 2 weeks).
But what you guys are suggesting is a massive decrease for 2 weeks (absorb a 180-200 dollar 'one off loss') if they can move in 1-2 weeks earlier and then keep the rent the same.
I'm not sure which method is better at this stage? Either way it depends on whether the tenant is agreeable to anything. The biggest mistake I made was actually NOT in mistaking the settlement dates (which lead to the 2 week vacancy), but allowing the PM to get away with communicating via email for such a big decision. It's probably part of their cost cutting which allows the management fee to be so cheap. I will make sure that phones are used for major decision in future.
I was suggesting to the PM to offer a 5-10 dollar decrease per week for the life of the 1 year lease = 250-500 dollar loss, however if the tenant can move in either 1-2 weeks earlier (where I can make back 340-680 dollars for those two weeks) I can mitigate or completely cancel out the longer term loss (indeed even claw back those 2 weeks).
But what you guys are suggesting is a massive decrease for 2 weeks (absorb a 180-200 dollar 'one off loss') if they can move in 1-2 weeks earlier and then keep the rent the same.
I'm not sure which method is better at this stage? Either way it depends on whether the tenant is agreeable to anything. The biggest mistake I made was actually NOT in mistaking the settlement dates (which lead to the 2 week vacancy), but allowing the PM to get away with communicating via email for such a big decision. It's probably part of their cost cutting which allows the management fee to be so cheap. I will make sure that phones are used for major decision in future.
I'm not sure what you mean by the mistake of "allowing the PM to get away with communicating via email for such a big decision". Did you get the email? Did you answer it? To be honest, I think it is better to have a paper trail. If you "make sure that phones are used for major decisions in future" you have nothing but your word against the agent's word.
I would be annoyed to be missing out on two weeks' rent, but if settlement is soon, then even if you didn't have a signed lease as yet, or a verbal contract, the bigger risk is that the agent starts again to find a replacement tenant, and you might find you have an empty house for the same time or longer.
Last time we allowed an agent to find us a tenant, it was a condition of a sales contract, and the agent took direction from the buyer (not yet settled) with no consultation from us (the owners!). We were to get the rent until settlement (great), but it turns out that the agent took direction from the (not yet) new owner (NOT GREAT!). He chose a very high rent, and it took a while to find a tenant. We were informed a tenant had been found and in the same call, we learned the buyer had chosen the rent amount. We had (naturally) assumed the rental agent would be setting the rent, but no... it was the buyer making that decision.
To say I was furious is a huge understatement, and worse still, the tenant had chosen to move in three weeks after she was accepted. We ended up getting two weeks' rent, which was better than a poke in the eye, but we "could" have received seven weeks' rent had we even been consulted as to the asking rent, and there is no way I would have accepted the tenant who was calling the shots and wanting to wait another three weeks before moving in.
This same tenant started requesting improvements
. We soon put a stop to that nonsense. I was beyond furious with the whole debacle actually. So, at least you got an email. We got nothing. I learned a lesson though.Regarding the seven month lease, I do this too. Regardless of whether the tenant is good or not, I manipulate my leases so that they end in January/February.
Has the agent signed a lease agreement on your behalf?
If so, and you are unable to settle, or settle late (and after the tenants are supposed to move in), what is your back-up plan with regard to your legally binding agreement to house the tenants from that date?
Or were you smart and made the lease agreement subject to settlement happening?
If so, and you are unable to settle, or settle late (and after the tenants are supposed to move in), what is your back-up plan with regard to your legally binding agreement to house the tenants from that date?
Or were you smart and made the lease agreement subject to settlement happening?
I'm not sure what you mean by the mistake of "allowing the PM to get away with communicating via email for such a big decision". Did you get the email? Did you answer it? To be honest, I think it is better to have a paper trail. If you "make sure that phones are used for major decisions in future" you have nothing but your word against the agent's word.
I would be annoyed to be missing out on two weeks' rent, but if settlement is soon, then even if you didn't have a signed lease as yet, or a verbal contract, the bigger risk is that the agent starts again to find a replacement tenant, and you might find you have an empty house for the same time or longer.
Last time we allowed an agent to find us a tenant, it was a condition of a sales contract, and the agent took direction from the buyer (not yet settled) with no consultation from us (the owners!). We were to get the rent until settlement (great), but it turns out that the agent took direction from the (not yet) new owner (NOT GREAT!). He chose a very high rent, and it took a while to find a tenant. We were informed a tenant had been found and in the same call, we learned the buyer had chosen the rent amount. We had (naturally) assumed the rental agent would be setting the rent, but no... it was the buyer making that decision.
To say I was furious is a huge understatement, and worse still, the tenant had chosen to move in three weeks after she was accepted. We ended up getting two weeks' rent, which was better than a poke in the eye, but we "could" have received seven weeks' rent had we even been consulted as to the asking rent, and there is no way I would have accepted the tenant who was calling the shots and wanting to wait another three weeks before moving in.
This same tenant started requesting improvements
Regarding the seven month lease, I do this too. Regardless of whether the tenant is good or not, I manipulate my leases so that they end in January/February.
With the email thing I mean, I should have read the email, phoned her to double check everything before proceeding by email. She is now claiming that I agreed to a 1 year lease, which I did not. I went back and read the email and it did not stipulate any timeframe of lease, but previously we had discussed a 7 month lease with the 'senior property manager' which I thought would be good because it would end at a peak rental period which would give me options in terms of both seeing if this was a good tenant and/or possibly increasing rent.
I am afraid of empty house too so I accept that it was my mistake obviously to overlook the dates. I just want to know the best way to fix this issue now, is it to offer them a large lump sum decrease to move in earlier, or a smaller weekly decrease or move in earlier? Sounds to me like you guys are recommending the bigger lump sum discount offer, something which I hadn't thought of earlier.
Reading your experiences I think another lesson learnt is to be really more careful in vetting property managers and basically micromanaging them and being extremely clear with commmunication so that both sides are on the same page. Basically they should just be your 'puppet' and you directing absolutely everything.
