Tenant broke lease, my rights as landlord

SupaRex

SupaRex

Hi Guys,

For the first time, I've got (slightly) bad tenants. They've broken their lease, the property has been vacant for five weeks, during this time, they have continued to pay the rent like they are supposed to.

Now, they want to be released from the lease and they want their bond back because (a) they are now claiming that the carpet has dust in it and smelt like dog (previous tenants did have dogs inside, but it was steam cleaned at the end of their lease) which affected one of their allergies causing asthma and (b) because I have knocked back a couple of people who have applied for the property since (they have been crap/unsuitable prospects).

They are also threatening to get their lawyer involved.

After about a month, the property hadn't been rented, so I went over for a look and discovered they had not been maintaining the garden (trees overgrown, lawn needed mowing, leaves and crap all over the verandah). I've spent the last few weekends cleaning all this up, even though (as I understand it) it is their job. Stupidly, I didn't take any before/after photo's, but my PM did see the property how it was (messy).

Questions:
Is there any way I could end up having to pay their legal fees? (for their lawyer). I'd imagine not, since this will be heading to the tenancy tribual, not court.

The carpet was steam cleaned when the last tenant left. They accepted the property the way it was when they signed up. Surely it is up to them to clean the carpet if after some time (months) they believe it to contain dust and "dog smell". They did email my PM about this, but I don't think they actually requested I clean it - and even if they did, I'm not obliged to, am I?

Can I bill them for my time spent cleaning up the outside of the house? I kept a diary of when and how long it took me to do.

Any thoughts on the above would be much appreciated, as well as any further suggestions.

Cheers,
Brad
 
Prob easiest to just let them go.

If you do go to a tribunal then you probably won't be up for their legal costs. But things can progress to higher courts.

Tribunals are supposedly biased against landlords and you have taken a long time to find a replacement tenant and have rejected some applicants so this won't work in your favour.

You couldn't bill them for your own work, but could possibly if you had someone else do it and paid them.
 
If you have tried to mitigate your losses, and followed your obligations as described in the ACT, you have nothing to be worried about.

Yes, the easiest thing is to let them go.

Would we? Not on your life.
 
You have to prove that you have made every attempt to find a new tenant - this includes dropping the asking rent, open days, print and digital media advertising etc.

If you have done all this - then no probs. If you haven't (the dropping rent is a biggie) then you won't win the case.
 
Last edited:
SupaRex said:
Hi Guys,

For the first time, I've got (slightly) bad tenants. They've broken their lease, the property has been vacant for five weeks, during this time, they have continued to pay the rent like they are supposed to.

Now, they want to be released from the lease and they want their bond back because (a) they are now claiming that the carpet has dust in it and smelt like dog (previous tenants did have dogs inside, but it was steam cleaned at the end of their lease) which affected one of their allergies causing asthma and (b) because I have knocked back a couple of people who have applied for the property since (they have been crap/unsuitable prospects).

They are also threatening to get their lawyer involved.

After about a month, the property hadn't been rented, so I went over for a look and discovered they had not been maintaining the garden (trees overgrown, lawn needed mowing, leaves and crap all over the verandah). I've spent the last few weekends cleaning all this up, even though (as I understand it) it is their job. Stupidly, I didn't take any before/after photo's, but my PM did see the property how it was (messy).

Questions:
Is there any way I could end up having to pay their legal fees? (for their lawyer). I'd imagine not, since this will be heading to the tenancy tribual, not court.

The carpet was steam cleaned when the last tenant left. They accepted the property the way it was when they signed up. Surely it is up to them to clean the carpet if after some time (months) they believe it to contain dust and "dog smell". They did email my PM about this, but I don't think they actually requested I clean it - and even if they did, I'm not obliged to, am I?

Can I bill them for my time spent cleaning up the outside of the house? I kept a diary of when and how long it took me to do.

Any thoughts on the above would be much appreciated, as well as any further suggestions.

Cheers,
Brad
Click to expand...

The laws vary greatly in different states, your saying "after one month that the property wasn't rented you went over to look at it", ????
The tenant left/ broke lease, any garden would look like that after one month of no one tending to it.
What does the agents final exit inspection say about the garden ?
 
SupaRex said:
***** dropping the rent.
Click to expand...

Then you haven't made every attempt to get the place rented as the "market" is saying that your rent is too high (otherwise it would be already rented) ... if you did drop the rent, then the outgoing tenant would only have to pay the difference between what the new tenant is paying, and what they paid, until the end of their lease period which may have been as little as $10/wk

Don't think you'd win "not dropping the rent" at tribunal.

Someone on another thread mentioned higher vacancy rates around various parts of Melbourne. If your IP is in Melbourne you may have no choice but to drop - considering this is the prime rental period.
 
Five weeks is far too long for a reasonably presented property asking a reasonable rent to be vacant.

I doubt you will have much luck with the tribunal.
Marg
 
Who has all the obligations in finding the new tenant?

Is it only the landlord?
If that was the case, wouldn't the RTA state 'if it isn't rented in xx time, the tenants are released'?

I would argue that the tenants did not try to mitigate their losses.
They did not keep the garden presentable to entice new tenants, and it states that is part of their lease.

The only applications received, were not acceptable..and give reasons.
Show where you have it is advertised online, in the PM's office.

State the tenants should be also putting ads in the newspaper and Gumtree (or equivalent) to mitigate their losses, and see if they lowered the rent too?

Why should the OP lower the rent, he is already renting the property at 'market rent'. The tenants are the ones not holding up their end of the lease.The tenant's haven't broken the lease. They just want to be released.

Follow the RTA for your state.
YOU need to read it, and not rely on what other uninformed people tell you.
 
Terryw said:
Prob easiest to just let them go.

Tribunals are supposedly biased against landlords and you have taken a long time to find a replacement tenant and have rejected some applicants so this won't work in your favour.
Click to expand...

You bet ya. In Qld, I try and stay away from court proceedings, as the Tennancy and Rooming Accomodation Act is certainly biased towards the tenant.....

I still think the 'general' public believe that if you have an investment property, you are loaded and are a greedy landlord trying to screw the tenant and deprive them of a std of living. I am sure thats the view of some of the judges I have been up against in court.

Terryw said:
You couldn't bill them for your own work, but could possibly if you had someone else do it and paid them.
Click to expand...

I reckon you can charge them for any materials purchased, but not your own labour.

F
 
Last edited:
Suparex,

Firstly, I would disagree with you and say they're pretty good tenants..... they did 'an elvis' and are still paying rent after 5 weeks!!

Few questions.....

1. I get the impression that you are managing your property?
2. Is it a fixed tenancy and do you have a contract signed by both parties.
3. Where is your property?
4. Do you have insurance for rent default / vacancy?

If you have a PM, having the property that long on the market is unacceptable, and whenever they moved out, it should have been inspected, inventory report prepared, things fixed up and put back on the rentals market straight away.

If it is a fixed tenancy in QLD, the tenant is responsible for your property unless you both agree to a variation to the agreement. They are responsible to pay rent until the expiration of the lease. It is a binding contract. There are a couple of provisos to this, such like the tenant claiming hardship and then has "all the time in the world" to get out of your property without paying any rent, but from what I am interpreting, it is not a case like this.

If your agreement has reverred to a periodic lease, then the tenant can jump ship given 2 weeks written notice. Unfortunately the landlord still has to give 60 days notice for both types of leases.

I would be keeping their bond at present, as the actual tenancy is still in their name. Have they provided you with any abandonement paperwork or written correspondence? Even though the bond is specifically for any damage caused to the property, it can go to loss of rent if tenants have done a runner.

Even though you could get insurance cover for this type of thing (or put a claim in) I wouldn't want to get these guys involved when you are recieving your rent.

I would:

a) get up your manager (or change managers ASAP and get it up to scratch)
b) let the tenant keep paying rent.
c) inform the tenant that you / your PM is working hard to find new tenants, which in turn will ease thier mind a little, considering that their rent will stop once you find suitable tenants.
d)get some advice from the RTA in your state. I find these guys helpful with landlord questions as well. They know the tenants rights and obligations, so can shed more light on the issue.
e) with regards to their lawyer, I don't think they have a leg to stand on. Hopefully, you have a fixed tenancy agreement signed by both parties, and if they are not claiming hardship, then what good is a lawyer? (check this out though)

Cheers,

F
 
Just had a similar experience, tenants up and left. In my case the pm told them they could give 2 weeks notice then did not see the email so I found out the day they moved out.....
All this with a solid lease in place until April. Along with a multitude of other shoddy things I decided to just change pm's to someone recommended on the forum and move on. The new pm advised that due to the behaviour of the previous pm even a landlord insurance claim would be a hard sell...
At $420 a week and the wife getting layed off the same week it has not been a highlight but has given me a chance to review the rent and do some maintenance :eek:
 
but you're not allowed to

....this is where a great big fat wodge of 6 months cash bond sitting in your bank account of the Tenant's money comes into play....keeps them on the straight and narrow.

....but you're not allowed to do that.....and so the Law makers make you swim thru this **** at your time, cost and stress.


For the first time, I've got (slightly) bad tenants.
Click to expand...

Of course, we never need to consult the rule book when Tenants look after the property and pay their rent on time.

The only time we ever need to consult the rulebook is when the **** hits the fan, only to discover the 'decent right thing' assumed as a Landlord has absolutely no bearing whatsoever on what the Tenant is actually forced to do.

Not a good time to find out what your rights really are. Of course, that is the wrong question to ask.....you should of asked what the Tenants responsibilities are. You'll only need a line or two.
 
Dazz said:
Of course, we never need to consult the rule book when Tenants look after the property and pay their rent on time.

The only time we ever need to consult the rulebook is when the **** hits the fan, only to discover the 'decent right thing' assumed as a Landlord has absolutely no bearing whatsoever on what the Tenant is actually forced to do.
Click to expand...

You're right Dazz........ It is the same when we can't figure out how to set up the DVD or PVR. We all know it wouldn't be hard, but half the time, have to refer back to the rule book for the answers.

F
 
8fold said:
Just had a similar experience, tenants up and left. In my case the pm told them they could give 2 weeks notice then did not see the email so I found out the day they moved out.....
All this with a solid lease in place until April. Along with a multitude of other shoddy things I decided to just change pm's to someone recommended on the forum and move on. The new pm advised that due to the behaviour of the previous pm even a landlord insurance claim would be a hard sell...
At $420 a week and the wife getting layed off the same week it has not been a highlight but has given me a chance to review the rent and do some maintenance :eek:
Click to expand...

Must have been on a periodic lease for the fixed term to revert back to a periodic. With periodic leases, in Qld, the tenant only has to give 2 weeks notice, but the poor landlord needs to give 2 months notice.

Can't start a resi lease on periodic, but can revert to one after a fixed lease terminating.

F
 
Fudge said:
Must have been on a periodic lease for the fixed term to revert back to a periodic. With periodic leases, in Qld, the tenant only has to give 2 weeks notice, but the poor landlord needs to give 2 months notice.

Can't start a resi lease on periodic, but can revert to one after a fixed lease terminating.

F
Click to expand...

Unfortunately the lease was a fixed term ending on 22/05/2012 hence my frustration....
 
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