Tenant breaking lease due to illness

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Don K

Hi there,

My tenant wants to break a fix term lease (till June 2014) due to serious illness and my PM basically advised me I cannot get any financial compensation such as re-letting fee as if the tenant takes it to Tribunal, he is more likely to win. Is this true?

As I understand his hardship, I agreed to let him go with 3 week notice and no further rent required (not in writing yet). All I am asking is that the tenant to pay re-letting fee only. Property is in QLD. Please advise.

Thank you in advance.
 
In VIC at the very least yes, your agent is absolutely correct and they would likely be let out with 14 days notice. You will probably find it is the same in QLD :).
 
Don K said:
Hi there,

My tenant wants to break a fix term lease (till June 2014) due to serious illness and my PM basically advised me I cannot get any financial compensation such as re-letting fee as if the tenant takes it to Tribunal, he is more likely to win. Is this true?

As I understand his hardship, I agreed to let him go with 3 week notice and no further rent required (not in writing yet). All I am asking is that the tenant to pay re-letting fee only. Property is in QLD. Please advise.

Thank you in advance.
Click to expand...

Do you have landlord insurance?
 
Take it on the chin, move on and be glad you don't have a serious illness.

If it is a decent property you will get another tenant, maybe even at a higher rent.

Plenty of worse things can happen and it is pointless wasting effort on something you can't win.
 
Illness doesn't release one from all financial obligations. You haven't said the tenant has pleaded financial hardship. So a relet fee and other costs can still be demanded. He may have the funds. A tribunal would require medical and financial evidence to find in favour of a tenant pleading financial hardship and illness, which honest people provide.
Cheers
good luck
crest133
 
Don K said:
an

I have it with AAMI tenant protection. In this situstion l will have to return bond in full providing nothing to be fixed. Should l still talk to AAMI and see what they say?
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Unfortunately I'm not aware of a specific Hardship clause in the AAMI policy, so I'm not sure you would have much luck. When using the generic type "landlord" policies from some of the major Insurers you will find they simply don't include some of the more industry specific risks. The policies that have been specifically tailored to the industry (such as RentCover) are more likely to include a provision for circumstances such as this.
 
TMNT said:
Can I be let out of my mortgage if I lose my job or serious illness.?

Rhetorical question
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The gubmit did change the rules around financial hardship so you have at least 12 months usually to work something out with your lender these days.....
 
Dazz said:
So having is a lease is worth how much ??
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Sadly for a landlord (in VIC), not necessarily much! On the odd occasion that it means you can take the tenants to the cleaners due to their lease though - makes every hour spent organising leases worth it ;)
 
crest133 said:
Illness doesn't release one from all financial obligations. You haven't said the tenant has pleaded financial hardship. So a relet fee and other costs can still be demanded. He may have the funds. A tribunal would require medical and financial evidence to find in favour of a tenant pleading financial hardship and illness, which honest people provide.
Cheers
good luck
crest133
Click to expand...

Thanks everyone for your input. Spoke to RTA QLD and they said pretty much the same as Crest. Good to know where l stand.
 
brettc said:
Unfortunately I'm not aware of a specific Hardship clause in the AAMI policy, so I'm not sure you would have much luck. When using the generic type "landlord" policies from some of the major Insurers you will find they simply don't include some of the more industry specific risks. The policies that have been specifically tailored to the industry (such as RentCover) are more likely to include a provision for circumstances such as this.
Click to expand...

Does RentCover actually cover this scenario?
 
wylie said:
Does RentCover actually cover this scenario?
Click to expand...

Yes it does. If the tenant is allowed out of their lease by the courts based on Hardship, RentCover will pay up to 6 weeks while you find a new tenant. Terri Scheer I believe pay up to 4 weeks in the same situation.
 
brettc said:
Yes it does. If the tenant is allowed out of their lease by the courts based on Hardship, RentCover will pay up to 6 weeks while you find a new tenant. Terri Scheer I believe pay up to 4 weeks in the same situation.
Click to expand...

Does this mean the landlord actually has to have a ruling from the courts?
 
turk said:
Does this mean the landlord actually has to have a ruling from the courts?
Click to expand...

Yes it does, they need to be allowed out of their ongoing obligations of the lease (they would still be liable for any defaulted rent etc. although that too would be claimable on insurance), but they still need to prove Hardship legally. Otherwise anyone could cry poor and insurance would go through the roof.
 
brettc said:
Yes it does, they need to be allowed out of their ongoing obligations of the lease (they would still be liable for any defaulted rent etc. although that too would be claimable on insurance), but they still need to prove Hardship legally. Otherwise anyone could cry poor and insurance would go through the roof.
Click to expand...

Thus for the owner to claim they cannot let the tenant out of the lease.
 
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