Hi All,
Our tennants have announced that they would like to move out as their parents are prepared to provide cost free accomodation so they can save for their own home. All fair and reasonable so far!
We have handled the property from the outset, relations and communications have always been positive.
They signed a twelve month lease and now want to leave 4 months into that agreement.
Where do we stand as landlords. Ultimately we don’t want to stand in their way, but what are some suggestions with regard to reletting, advertising costs, bond etc.
Any suggestions would be welcome.
Matt
Here in NSW the tenants will be responsible to continue paying rent until new tenants are found. Also for the costs of advertising and reletting. However you must make every reasonable effort to retenant it.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter,
Firstly thanks – similar expectation here in Tassie – continue top pay rent until it is retennanted, pay for advertising etc.
We have prospective new tennants already – but current tennants (ones moving out) have suggested we keep bond (4 weeks rent) as a buffer to help with the transition – sound like a win – win to us?
Probably will now also let an PM look after the property from now on. Hasn’t really been too much hassle but I now just feel its better to leaves things purely on a business basis?
Anyone know of a great PM in Hobart and surrounding area?
Thanks heaps
Matt
What abour wrapping the house to them ?? Do they like the house ??? It’s an option…. will also increase your return……
Just a thought…
Thanks Pelican,
Would be a great idea if it was a regular old IP.
However, we bought it based on position and renovation potential (its by no means a dump, just small when you have 4 kids) and one day it will become our PPOR. So it was an emotional purchase – we are currently letting it to gain some tax breaks and use others to help pay the mortgage!!
Matt
Hi Matt,
OK… anyway, as I said, just a thought…
As renters they should be liable for the rent until you find another tenant…. ( but I guess you will need to check tenancy laws…. )
Suggest you start advertising !!!
Cheers
Scott
I believe that they are only liable for the outstanding rent as long as the asking price is the same. If they pay $200 per week now, you can ask them to pay the remaining rent/advertising costs as long as you are advertising for the same amount or less.
Matt,
If the old tenants have offered you to keep their bond (4 weeks rent) and you have new tenants ready to move in, sounds like it’s a perfect situation :o))
And yeah, I think having a PM to look after your place in the future is a wise move- I consider PM’s second only to tenants in ensuring the success of RE, and keeping me not stressed out.
kay henry
Originally posted by Baloo:I believe that they are only liable for the outstanding rent as long as the asking price is the same. If they pay $200 per week now, you can ask them to pay the remaining rent/advertising costs as long as you are advertising for the same amount or less.
Hi Baloo,
In WA the same law applies – a tenant breaks a lease and the landlord is only able to advertise the vacancy at the same rate as before. If there is a rental increase the requirements for the departing tenant to pay advertising and lost rent are null and void.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
I think that’s the same here (ACT) – although we’ve been able to ‘up’ the rent a couple of times when tenants have broken their lease.. I guess it was lucky that the new tenants were ready to move in the day after departure…..
Cheers
Mel
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