Should I be worried ?

[whitehope06]

I know it’s been a long time that I haven’t posted anything, but I need your help or better to say your confirmation !

Finally we changed our PPOR to IP . We moved out and rented somewhere else. We found a tenant for our IP and they moved in last Tuesday and they asked us if it’s going to be for a long lease (more than a year ) and we gladly accepted and we signed a contract for a year.

But today I’ve received a phone call from my PM saying tenant broke the lease and they are going back to their house (!), but they will pay the rent till you get the new tenant. My PM keep saying “you’re not loosing anything , they will pay the rent till we find someone “ . My question is for how long they are going to pay the rent ? what if it takes more than we thought.

worried landlord

 

[Propertunity]

.....they will pay the rent till we find someone “ . My question is for how long they are going to pay the rent ?

If they signed a 12 MONTH LEASE and in the unlikely event that a suitable new tenant could not be found for 12 moths, then they get to pay for 12 months, it being a 12 month lease and all.

Your PM is right - don't worry. These kind of tenants are the best kind - they pay rent and don't cause any wear & tear

 

[Aaron Sice]

mate - your property is vacant AND they are paying the rent!!!

law is on YOUR side here buddy - for once!

 

[whitehope06]

If they signed a 12 MONTH LEASE and in the unlikely event that a suitable new tenant could not be found for 12 moths, then they get to pay for 12 months, it being a 12 month lease and all.

Your PM is right - don't worry. These kind of tenants are the best kind - they pay rent and don't cause any wear & tear

Thanks God for that !
there's only one thing I'm worried about.
When we advertising for the first time , PM didn't mention any inspection time on the webiste and they would wait till someone call them and ask them regarding our property. I begged them to make a couple of inpection time and put them on webiste, which finally they did. Or some signs to let people know that our IP is for lease.

Now I'm worried I have to go through that hassel again for new tenant.

But I suppose I shouldn't care ,because this tenant is going to pay me anyway !!

I don't know, everything is so new for me ! and probably I'm thinking too much !!!

thanks Propertunity

 

[whitehope06]

mate - your property is vacant AND they are paying the rent!!!

law is on YOUR side here buddy - for once!

Maybe I DID have a good start !

 

[Philip Thomas]

Terminating a Lease & Paying ongoing costs

Assuming there is an appropriate signed tenancy agreement for a 12 month term & its binding.

In most contracts not only will the tenant have to pay rent until a suitable new tenant is found, the existing tenant will have to pay advertising & possibly letting fees & any other costs associated with the current lease contract.

Once again this is dependent on the conditions within the lease contract.

While this may sound great, usually the best thing is to get a suitable replacement tenant ASAP.

 

[whitehope06]

Assuming there is an appropriate signed tenancy agreement for a 12 month term & its binding.

In most contracts not only will the tenant have to pay rent until a suitable new tenant is found, the existing tenant will have to pay advertising & possibly letting fees & any other costs associated with the current lease contract.

Once again this is dependent on the conditions within the lease contract.

While this may sound great, usually the best thing is to get a suitable replacement tenant ASAP.

Hi Philip
The contract is the normal contract between the agency and tenant (!) and it calls for 52 weeks.
what do you mean by "existing tenant will have to pay letting fees and any other cost " are we talking about the one week letting fee which I have to pay as soon as I've got the first tenant in ?

 

[Philip Thomas]

"existing tenant will have to pay letting fees and any other cost "

This means that what ever the cost are to get a suitable new tenant will be paid by the existing tenant.

Time to stop worrying.

You’ve got a very low maintenance tenant with no wear & tear on your property until someone else can be found.

Philip

 

[inv99]

Just to throw a spanner in the works.

Will this affect insurance? I remember reading that some policies need to be told when a property is vacant.

I'm not sure of the difference between paying rent + vacant and not paying rent and vacant though.

 

[joanmc]

All my policies allow for 60 days vacancy, so hopefully you will have a new tenant in before that.

 

[whitehope06]

All my policies allow for 60 days vacancy, so hopefully you will have a new tenant in before that.

I've just got my LL insurance last week, I think I better check the paperwork.
I hope we get someone soon ,too.

 

[tarah]

Hi WhiteHope06,

I'm not sure if it's the same in NSW but in SA when a tenant breaks the lease we landlords still end up paying a portion of the advertising fee and re-letting fee (portion of 2.2 wks rent).

Good luck
Tarah

 

[whitehope06]

how about army people ?

Hi,
Just an update on my situation.

I got 2 applications:

1- Army, single male ,22 years, no history of renting (and his friend)

2- Army, single male, late 20's , had two previous renting

the question is , should I accept any of these applications? I heard the army people can move out any time and by law they don't have to pay the rent till I find a new tenant !!

is that true ? what you think?

 

[Propertunity]

I heard the army people can move out any time and by law they don't have to pay the rent till I find a new tenant !!is that true ?

No, not true - you heard wrong. Being in the army only lets you shoot, bomb & kill people. It does not entitle you to break your resi lease without penalty.

They may well break their lease if the Defence Dept deploys them elsewhere and in that case the army will pick up their tab. (so "they" will not be paying you rent, their employer, the army will - maybe that is where you heard 'they don't have to pay rent')

 

[rugrat]

I would check out the tenant applicant who had previously rented. If they have good references I would go with them.

 

[Nathan]

I would check out the tenant applicant who had previously rented. If they have good references I would go with them.

i would accept them too.

 

[Collector]

First of all; relating to the tenant breaking the lease - sure you are safe in the fact that the tenant is required to pay rent until the end of the tenancy or unit a suitable replacement tenant is found - But I would still worry, what will happen if the tenant simply stopped paying rent etc, the tenant will then be in breach - do you terminate because of arrears?


In regards to army tenants: they normally add clauses that say along the lines that the lease can be terminated with 30 days notice at any time due to deployment or relocation.

 

[whitehope06]

In regards to army tenants: they normally add clauses that say along the lines that the lease can be terminated with 30 days notice at any time due to deployment or relocation.

so, in case of their relocation,we have only 30 days to find a tenant and not till the end of lease ! right ?

 

[Jazza]

An ex-friend of mine found out how 'binding' a binding legal rental lease agreement was when she first moved out of home.

I laid down the law of pulling your own weight around the place after 4 months of silliness on her behalf and she had a dummy spit and moved out.

PM of unit was happy for me to stay put, continue paying my 1/2 the rent and chase her for her 1/2 rent.

In no way would/did it affect my rental history as I paid my rent.

I ended up getting the best end of the stick by signing my 1/2 over to her boyfriend by rewriting the lease in their joint names and I happily went elsewhere!

 

[whitehope06]

In regards to army tenants: they normally add clauses that say along the lines that the lease can be terminated with 30 days notice at any time due to deployment or relocation.

You are right.
I've got a phone call from my PM this morning and he said the second application has a good reference, and as you said there's a clause saying the lease can be terminated with 30 days.
this guy has been renting the last place since last July and he's moving because the landlord is selling the house.

I don't know what to do !!
In one way I shouldn't be in rush, because someone else at the moment is paying the rent for my unit , but I don't want to drag this thing for long time.