Hi All,
Can any one suggest some good clauses to include in the lease agreement so the landlord is protected if the tenant breaches the agreement.For instance if a tenant does a runner owing a substantial amount of rent without the landlord knowing the new address, he/she is protected by the powers that be under the privacy laws. The only way to find them is by using a private detective who charges 20 percent of the amount collected, which can only legally be added on to court costs if it is included as a clause in the lease.
Another useful clause is to give the landlord the right to review the rent after six months of a lease.
Can you think of any others?
Many thanks SummoSummo,
Governments have legislation on which clauses are illegal & in certain cases what you can put in a lease legally.
I suggest you look through the available brochures on this topic so you’re not writing an illegal lease.
Cheers,
Aceyducey
Summo,
You can do a rental review after 6 months of a lease- sure you can. Re your fear of the tenant doing a runner… well, maybe you shouldn’t get that particular tenant in if you fear they are going to nick off before the lease is up! That’s what Landlord’s Protection Insurance is for- to cover such situations.
As far as outdoing the Privacy Act by inserting a clause such as “Mother’s address” so you can hunt them down when they do their expected runner… forget it. Landlords are unable to undertake such surveillance. You’ll have to go through the usual channels such as the Tribunal if something goes wrong.
I hope you’re checking past references before you have this tenant sign a lease.
kay henry
G’Day Kay & Acey, Unfortunately the tenant has already done the runner despite all the pre lease signing checks & L/L Insurance will only cover part of outstandings. I dont think anyone would knowingly lease a property to someone they suspect would not pay the rent. My reasoning is once bitten twice shy, learn from your mistakes, and put in the clauses for everyone. To use the cliche, dont close the door after the horse has bolted.So thats why I want to know if others have used clauses to good effect. As far as a rent review clause, it must state that the review is for a possible rent increase or it is not valid. A landlord can reduce the rent at any time without notice.On my Tenancy Application form I can legally ask for the Name, Address & contact Phone number of the nearest relative, so that if anything serious happens to the tenant the next of kin can be notified. Any other clauses anyone?
Thanks summoHi Guys, c’mon, surely the is some landlords who have used clauses to good effect.
Regards SummoHi Summo,
Can I suggest that for future protection I would talk to your home insurance provider about extra cover. I know that my insurance covers some things with tenants (and the bad things that can happen) and there may be a policy that suits this scenario. I wish I could rack my memory to when I knew more about it, but it is v. late!
Try calling the 13 no.s and ask about extra cover for investment property insurance, there are many different levels and types of course.
Hope this helps,
Lizzy
Liz Wilson
Mortgage Lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
