All Topics / General Property / Breaking a Rental Lease

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  • Profile photo of maree_bradrossmaree_bradross
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    Hello – just wondering what the normal turnaround time is for a application to terminate a lease. ie. application received, property owner advised then tenant informed of the decision? I know a months notice has to be given by the renter. Thanks in advance

    Profile photo of elkamelkam
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    Hello Maree

    By your title I assume that the lease is still current in which case you, as either the renter or the owner, need a very good reason to be able to terminate a lease. After all it's a binding contract. 

    If it's only because the tenant wants to move then I think the usual procedure is for the tenant to advise the agent and ask permission to terminate the lease. Most owners will then agree subject to the current tenant paying the rent until a new tenant is found plus all the costs associated with re leasing the property (advertising, agents re leasing fee etc.).

    Depending on how long the lease still has to run, the tenant may be able to negotiate some of this. If it's a new 12 month lease then I can't see much room for negotiation but if it only has a couple of months to go then that's a different story. At least it would be for me. 

    If the lease has actually expired then you are usually on month to month tenancy which means that both parties only need to give each other a months notice, in writing, to vacate. 

    Hope this helps
    Elka

    Profile photo of maree_bradrossmaree_bradross
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    @maree_bradross
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    Hi Elka – thanks for your reply. In this case I am the tenant. I lodged my application to terminate my lease over a fortnight ago – giving 6 weeks notice. I signed a 12 month lease and have occupied for 5 months.
    I am breaking the lease on the grounds of the property is uninhabitable and  the tenancy agreement has been induced by false and misleading information from the landlord. (obviously there is a bit involved).
    I contacted the agency mid last week and was advised I would have an answer by yesterday – I'm still waiting……………..
    Hopefully I will hear today, the real landlord is preparing to demolish this property and commence building x2 townhouses shortly. Kind regards

    Profile photo of Scott No MatesScott No Mates
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    Contact your state residential tenancy tribunal to discuss the matter – they will have heaps of useful information

    Profile photo of maree_bradrossmaree_bradross
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    Update: still no response from Real Estate Agent PM.

    Profile photo of Scott No MatesScott No Mates
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    Maree, have you sought to find an alternative tenant and assign the lease yourself, afterall you will be bearing the cost associated with finding a replacement tenant (regardless of who finds the tenant) and the landlord is under no obligation to let you out or find another tenant until lease expiry? ie the managing agent probably hasn't lifted a finger as this only creates more work for them – finding a new tenant, new lease etc.

    If you are in an area with a tight rental market and are paying an attractive rent at the moment, then the incoming tenant will more than likely be paying more than yourself (thus making it more attractive to the agent to transfer the lease).

    Profile photo of maree_bradrossmaree_bradross
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    @maree_bradross
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    Thanks for your thoughts Scott.

    Basically in a nutshell the property has always been privately rented. with no lease, just week by week verbal contract.  The previous tenant has approached the real estate as the landlord (not as a sub-letter) with no knowledge from the owner. The owner is none the wiser as the previous tenant is still paying the rent (obviously less than what I am paying). He wanted to keep his safety net in case moving in with his girlfriend didn't work out.

    There are other issues as well no mail delivery (Bayside Melbourne), noise problems, access problems, reported gas leak – I could go on lol.

    A plannig permit has gone in to demolish the dwelling and construct 2 townhouses.

    I have spoken to consumer affairs victoria and they have advised I have grounds to break the lease.

    I have signed another lease on another property on Tuesday. I was assured by the agency I would have a reply on Monday and I couldn't risk delaying,

    I just don't need the hassle of a VCAT hearing – but will if I have to.

    In light of the above I don't think I can source another tenant – basically I wouldn't wish it on my worst enemy.

    Profile photo of Scott No MatesScott No Mates
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    No lease, (this is a breach of the tenancies act), in this case the tenant will have more rights to break the agreement. Bond would not have been lodged with the bond board – another breach (the tenant may lose his bond if the landlord holds on to  it but does the landlord want to risk going to the tribunal for not lodging a bond and not releasing it?)

    Sounds like you can break it and walk, all the risk of proof lies with the landlord and VCAT would come to your rescue if they chose to prosecute for not having a lease and not lodging the bond (laws put in place to protect tenants).

    Profile photo of maree_bradrossmaree_bradross
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    Sorry – I may not have explained it correctly. Yes I have signed a lease with a real estate agent. The agent believes the landlord of the property is Mr X. Mr X is in fact the previous tenant. Mr X has a verbal agreement with MR Y. Mr Y is in fact the landlord. Mr Y has always rented the property privately on verbal agreements. Mr X has not informed MR Y that he has "sub letted". Mr X is still paying his rent to Mr Y and pocketing the difference.

    Funny that you mention the bond. I did pay bond and have the yellow form from the agent. When I checked it the other day it says on the back I should of received something in the mail from the Bond Board – which I haven't, but as I mentioned there is a mail delivery problem.

    Profile photo of Scott No MatesScott No Mates
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    Maree, as Mr X has sublet the premises illegally (ie he has not sought the consent of the owner/agent hasn't sought this consent and assumed that Mr X was the owner) it would be up to the tribunal to determine whether they would honour this sublease (and ping the owner for his breaches of the Residential Tenancy Act, and the agent for breaching the conditions of his licence).

    As far as the bond goes, contact the Bond Board, advise that you have not recieved the copy (possibly in the "dead letters" section of the post office) ask the agent for the bond number (they will have recieved their copy of the deposit) – get them to reissue the receipt and have it sent to your work or other contact address.

    Make a call to VCAT to find out what you can do to escape this predicament.

    Profile photo of maree_bradrossmaree_bradross
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    Update – just got a reply from Agent and have also spoken to them on the phone. I have agreed to pay a break lease fee of one weeks rent plus gst = $ 231.00 and the re advertising cost of $49.50, as I have given over a months notice.

    The agent said they have a copy of the Bond Board Receipt on file – I have advised the agent that they can deduct these expenses from my bond.

    Basically I still think is totally unethical but I am glad to walk away from it!!

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