Tenants moved out, 6 months least still remaining

[NSWinvester]

Hi,

We have a self managed property and the tenant has informed us that they will be moving out in 2 weeks time with still 6 months left on their rental agreement.

Not 100% sure what I am entitled to:
-Rent until we find new tenants?
-Advertising costs?

I know that when we advertise the rent price most stay the same.

 

[Sez]

Re-read your lease which should have details regarding a lease break in it. generally tenants are asked for the rent until new tenants are found and advertising costs. As it is self managed you don't need to stress about the pro-rata agent costs.

 

[DaveM]

Rent until the date of commencement of new tenant, and any re-letting expenses (eg agent letting fee, lease preparation fee) that was incurred which otherwise would not be incurred during the term of the tenancy.

 

[laurencei]

Make sure you advertise the property at the same rent the current tenant is paying - or you'll run into issues

 

[Peterw]

You should check with whoever is your rental authority in NSW. In Queenland, a landlord has a duty to mitigate their loss. If that is the same there, you need to understand what are considered appropriate steps to mitigate. Should this end up in the tribunal, and you have not taken the appropriate steps, they may only award you rent for a short period after the tenant has vacated. They will no doubt have a reason, which will turn into a sobstory in the tribunal. Do what you can to let it as quickly as possible.

 

[Scott No Mates]

Lease Break

The tenant is probably on one of the 'old' leases ie pre-Feb 2011 which means that unless there is a break clause in the lease, they are liable for the rent and reletting fees until the tenant moves in. You can also charge them the full lease preparation costs, advertising etc.

 

[Propertunity]

The tenant is probably on one of the 'old' leases ie pre-Feb 2011 which means ...

The new Residential Tenancy Act of 2010 which came into force 31 Jan 2011 over-rides anything written in the 'old' lease I would think.

 

[NSWinvester]

It's been in the news paper for a couple days, still no calls... she's paid 2 weeks in advance. I will be making other arrangements with her to pay up to a month.

This is actually the 2nd tenant that's broken their lease due to personal/financial circumstances and I don't think it's fair I have to put up with the bill. I'm struggling myself, I got 2 mortgages and on minimum wage... but I manage my finances very well. I will be talking to the boss soon about the minimum wage part very soon.

 

[BV]

It's been in the news paper for a couple days, still no calls... she's paid 2 weeks in advance.

Most tenants these days use the internet when they search for a property.
I suggest you consider leasing it through an agent.
If in a few months you like the tenant you can take over the property management

 

[DaveM]

Most tenants these days use the internet when they search for a property.
I suggest you consider leasing it through an agent.
If in a few months you like the tenant you can take over the property management

This.

Put it on gumtree and trading post online.

Also consider an agent for a tenant placement only. They will charge a week + GST + lease preparation fee, you manage thereafter.

 

[shaleejam]

Most tenants these days use the internet when they search for a property.
I suggest you consider leasing it through an agent.
If in a few months you like the tenant you can take over the property management

Hi I wanted to add that as a renter we always looked online (never in a newspaper). We ended up with one from realestate.com.au but we also saw a website where private landlords advertised. I forget what it is called sorry but a quick google should help

 

[SandraL]

Hi NSWinvestor,

I would suggest advertising on-line on domain.com.au and realestate.com.au to reach the most potential tenants. We offer this service plus you would also get a legal pack, which contains an updated lease agreement (with the changes to the Act in 2011).

 

[Lamingtons]

Yes agreed.. get it online right now!
A lot of people actually prefer to rent direct from the landlord so you've got an advantage there.

 

[ACTInvestor]

I agree with all the above posts, but I am wondering why you are having break leases for financial hardship? You may have already done this, but if not.... If you are going to continue to self manage ensure the applicants fill out an application form. Ask for employment references and 2 x recent payslips. Then you should ring the employer and not only confirm they are working there and they earn the money regularly as presented to you, but ask if they are permanently employed there. It shouldn't be too hard to get that information. Always speak with their previous landlord/agent and find out why they left. Some tenants target private landlords as many private landlords do not do thorough checks.

 

[Beau Miller]

I found myself in the same situation this past 6 months, trying to find a tenant without access to realestate.com was very tricky!

In the end I have found two tenants using www.gumtree.com.au although I rejected 3 applicants before I found the right one.

Goodluck - I am sure you will find someone soon, and regardless your lease should say that the tenant is responsible for rent payments untill you find someone.. if worse comes to worst do you have landlord protection insurance? as long as you follow the legislation you would be covered to claim on your insurance for loss of income if it goes over 6 weeks without rent.

 

[BV]

In the end I have found two tenants using www.gumtree.com.au although I rejected 3 applicants before I found the right one.

How do you ensure that the tenant is not already on the bad tenant database and will you landlord insurer cover you if you lease the property to a person like that?

Its probably best to engage an agent to find you a tenant and take over the management afterwards

 

[Beau Miller]

Hi Bill, I used Casual Membership with TICA which means I can check their databases. I will always check references first and go on my 'gut feeling', if I don't like what I see then I don't need to check the database I just reject the application.
I am an advocate for owners using agents but not all owners will and some have had bad experiences with agents and feel they can do a better job.
My insurance is covered, it was something I wasn't sure of so looked into with AON before I started self managing this year.

 

[dbwine4fun]

Hi I wanted to add that as a renter we always looked online (never in a newspaper). We ended up with one from realestate.com.au but we also saw a website where private landlords advertised. I forget what it is called sorry but a quick google should help

There is the rental website www.rent.com.au that lets private landlords place an ad. It offers the same level of services as realestate.com.au.

 

[fisherman]

Hi Bill, I used Casual Membership with TICA which means I can check their databases. I will always check references first and go on my 'gut feeling', if I don't like what I see then I don't need to check the database I just reject the application.
I am an advocate for owners using agents but not all owners will and some have had bad experiences with agents and feel they can do a better job.
My insurance is covered, it was something I wasn't sure of so looked into with AON before I started self managing this year.

Beau,
For interest, what reasons do you give for rejecting an application? Just that I imagine that out Ippy way there would be some who are adept at alleging some form discrimination or other.

 

[Ed Barton]

Beau,
For interest, what reasons do you give for rejecting an application? Just that I imagine that out Ippy way there would be some who are adept at alleging some form discrimination or other.

I think it's wise to give no reason for rejecting applications, leaves little scope for a call of discrimination. unless the applicants a blind African transgender Jewish lesbian breast feeding mother in a wheel chair, in which case you're screwed if they claim discrimination.