Tenant offering to find replacement...

[Owen]

I’ve just had a call from one of my tenants who has informed me that she wants to move out however her lease isn’t up until mid-January. Because of this she has offered to advertise for a replacement tenant now, show them the apartment and take applications all at her cost. In return she has asked that if one is found that a new lease be written for this person and that she gets out of her lease. How do I handle this?

Obviously I would have final OK on this new tenant, everything will be in writing and bonds will be swapped about appropriately. This is technically not a sub-let but a ‘cancelling’ of one lease and a replacement with another.

My current tenant is excellent, has great integrity and I don’t want to loose her but she is offering to pay all costs and I would have rental continuity in return for her getting out of her lease. This is a genuine offer on her part but just because she is nice doesn’t mean I want to accept it. A lease is a lease. I would just have re-let myself in January anyway so her offer OK if it works out? Worse case scenario I can see is she can’t find a replacement and moves out in January. I’m just wondering what legal responsibility I have if I say it’s OK for her to advertise on my behalf?

Strange one I know so any help or advise would be welcome.

Owen

 

[Desto]

Can't imagine any problem with this scenario.

Except be sure that you still do the usual background checks with the proposed new tenant.


Desto.

 

[Jas]

This is what happened on a place of mine. Tenant wanted out. PM sent out ads, found a new tenant, and we all signed a new lease. Old Tenant got bond back minus advertising costs and rent for the two weeks vacant.
The lease is a contract between you and the tenants. They have to pay rent every week/fortnight/month until the lease expires.

Be professional, and you'll have no problem.

Jas

 

[Owen]

Good point Jas. Maybe I should place the ads and do the viewings and then just deduct it from the tenant bond rather than get the tenant to pay and do everything up front. On the other hand if the soon-to-be ex-tenant is showing people it is he incentive to do a good sales job because then she can move on. As I said before, she has high integrity and I trust her to do as good a job as I could (she is in sales) so maybe I should sit back for a bit and see what happens. Until she gives written notice she is still under lease.

 

[ruk]

when i was p.m. i charged the vacating tenant 1 weeks rent as a reletting fee for breaking the lease - because you have to do twice the work and you've already charged the landlord once for it and also charge advertising costs.

 

[Ross Sneddon]

Hi Owen and others

Your address is SYD so I will assume for this debate that your IP may also be in NSW. Different States, therefore different laws.

None of us like to lose a good tenant and when it happens I believe that we should just make the best of a situation.

A couple of points:

Firstly you have a tenancy agreement with the tenant, NOT a lease. A lease can be argued in Court under Common Law and if you win you may be paid costs. Leases are hard to break and penanlties apply.

Residential properties are let under a Tenancy agreement and if you are in your opinion wronged, you may appeal to a tenancy tribunal for a decision. It cannot be argued in Court under Common Law.

Whilst a tribunal is a fair system favouring neither party, the most common result is that the Bench will often send the parties outside the Courtroom to attempt to arrive at a mutual agreement, i.e. a middle ground. The Bench can make a decision but prefers to adopt a position where both parties are at least partially satisfied.

To take your tenant to the Tribunal will take many weeks and it certainly will be long after the Tenancy agreement expires.

The purpose of a bond is to offset any damage costs caused by the tenant. It is not designed to be a "bank" against the tenant not paying all the rent.

Any money taken from the bond for rental arrears, may only be done if the tenant is in agreement.

As you say, you have a good tenant, she has offered to assist in finding another tenant. Accept this and find a new tenant yourself as soon as you can.

As JAS said, be professional, and you'll have no problems.

Keep out of Tribunals, they are a heartache and not worth the agro.

Regards

Ross

 

[Owen]

Cheers Ross. Good advice.