Tenants seeking compensation

J

jlkkbn

Hi All,
We had a rental proprty in NSW with an expiered lease. When the tenant was requested to renew the lease, he informed that he is unable to renew the lease as his finacal situation changed. during this period, we planned to construct a grannyflat, in the back yard of a rental property. To compensate the construction hazzel, we reduced the rent of the front house by 30$ but asked the tenant to agree to supply water and eleticty for the construction.

The tenant started complaining about construction, tadies etc. from the first day of the construction and every complain was passed to the builder to deal with. However,the tenant vacated the property after an incident that concrete truck blocked his access. The agent told us that the tenant moved in with his mother. We belived it mostly due to his financial situation. Now we have received a claim for compensation from the tenant under breach of clauses 1,7,14 &18.4.

Could any one help me to address tenant's complain please?
Thanks & regards,
JLK
 
They would appear to be the grounds on which they seek to terminate but not the grounds for seeking compensation.

Did the tenant sign a new agreement accepting that they would pay for water & electricity on a smaller block? Have they provided any evidence of the increase in usage due to the construction? Is the premises water efficient ie compliant to permit recovery of water usage?
 
What does the tenant want in compensation?
How much?

Was appropriate notice given when they vacated - non renewal of lease means it was periodic?
 
Thank you for your quick responses.

The claim made on the ground that "The owner hired the builder and is therefore responsible for the action of the builder"

Actions of the builder: The tradies blocked his drive way
The front yard turned into a building site.
Left the toilet at the front yard
Harresment by the tradies
 
Hi Xenia,
Yes, it's periodic agreement. compensation seek for $5000. The teant choose to voluntary vacate the property
 
Those are complaints and allegations.
There is nothing blocking his access and harassing him now so you cannot take action on things in the past

What is he asking for?
Lease is over?

People who think they have been mistreated always ask for money to make things better!

He would ask for a refund in rent to compensate for that time and for the hassles. If you find out that amount then you can negotiate from there - or let a tribunal judge work it out!
 
J
What was rent per week?
Time period for construction?
Lease term and start and end date?

Did tenant break a fixed term lease or did they leave at end of fixed term.

$5000 is excessive and it looks like tenant is seeking compensation beyond reduction in rent for that term - which they are not likely to get.
 
jlkkbn said:
Hi All,
We had a rental proprty in NSW with an expiered lease. When the tenant was requested to renew the lease, he informed that he is unable to renew the lease as his finacal situation changed. during this period, we planned to construct a grannyflat, in the back yard of a rental property. To compensate the construction hazzel, we reduced the rent of the front house by 30$ but asked the tenant to agree to supply water and eleticty for the construction.

The tenant started complaining about construction, tadies etc. from the first day of the construction and every complain was passed to the builder to deal with. However,the tenant vacated the property after an incident that concrete truck blocked his access. The agent told us that the tenant moved in with his mother. We belived it mostly due to his financial situation. Now we have received a claim for compensation from the tenant under breach of clauses 1,7,14 &18.4.

Could any one help me to address tenant's complain please?
Thanks & regards,
JLK
Click to expand...

Has the agreement been documented and signed by the tenant?

Have the complaints made by the tenant been documented and acted on in a reasonable time frame.

If not, best to start discussions with the tenant now.

Was this self managed?
 
Thanks for your time.

Hi Xenia Im,

What was rent per week?
Rent was $480.

Time period for construction?
4 months

Lease term and start and end date?
6 months lease finished in august and tenant was not interested in signing a new one.

Did tenant break a fixed term lease or did they leave at end of fixed term.
There was no agreement at the time.

Hi Chilliblue,
Has the agreement been documented and signed by the tenant?
No agreement as stated above, However, the terms during the constructions were communicated to them in writing.

Have the complaints made by the tenant been documented and acted on in a reasonable time frame.
First complain was documented and acted with in 2-3 days. Other complains were not communicated to us until now.

If not, best to start discussions with the tenant now.

Was this self managed?
No- We have a REA.

JLK
 
Hi JLK

Thanks for responding to the questions. Here is my view point on it.

If you had discounted rent by $100 per week for the 4 months - which is more than reasonable, compensation would be in the order of $1800 in total.

I would be inclined to allow this to go to tribunal - let tenants take it there, only because tenants argument is weak and there is no logic to the $5000 in compensation.

At tribunal I would be arguing that zero compensation is to be given and that it was already given in the $30 per week discount.
The fast action of complaints also stack in your favour and the fact that the tenant knew about construction does also.

In addition I would charge tenant 3 weeks rent for not giving enough notice to leave a month to month lease - there is always a lease whether written or not. That is if it's applicable I your state - basing this on SA

If your pm goes in with a strong case against tenant then you negotiate from that point. Compensation could be to offer to pay a portion of electricity bills or water invoices.

I've had tenants come up with phantom $5000 figures with no logic behind it in the past. They were awarded exactly zero!

Others have come in with not wanting to pay $1000 of water bills because the plumber took a few weeks to rectify a leaking tap - we worked out total water loss given that each drip is 1ml approx and drips per minute - total calculation on spreadsheet was $30 of water due to our plumbers delay. We offered $50 in compensation and judge ruled in favour - can't argue against logical manthematics. The tribunal case would have cost the tenant $55.

Be strong, be logical I don't think you have anything to worry about!
 
Last edited:
Xenia IM said:
Be strong, be logical I don't think you have anything to worry about!
Click to expand...

I strongly disagree with this. You can't just extrapolate case results from other cases that are nothing like the current fact scenario and presume the outcome will be the same.

I know of many cases where tenant compensation was ordered in the thousands, and even in cases where the tenant already was offered a rent reduction - because the disruption was much greater than originally disclosed.

I would move with some caution - there is obviously a risk here. Get some legal advice if possible.
 
thatbum said:
I strongly disagree with this. You can't just extrapolate case results from other cases that are nothing like the current fact scenario and presume the outcome will be the same.

I know of many cases where tenant compensation was ordered in the thousands, and even in cases where the tenant already was offered a rent reduction - because the disruption was much greater than originally disclosed.

I would move with some caution - there is obviously a risk here. Get some legal advice if possible.
Click to expand...

True - if you are treading with caution then you need legal advice. No other proactive action can be taken from this position.
 
Thanks guys for advice- special thank to Xenia. Did not had time to update on this earlier. But we asked the tenant to go to the tribunal. The case was heard last week was closed in our favour. We did not have to give any compensation.



Regards,
Jlk
 
jlkkbn said:
Thanks guys for advice- special thank to Xenia. Did not had time to update on this earlier. But we asked the tenant to go to the tribunal. The case was heard last week was closed in our favour. We did not have to give any compensation.



Regards,
Jlk
Click to expand...

Any other than the rent reduction you already offered?
Or any as in none?
 
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