I have a tenant who moved in May 9, 2005 for a year’s lease. Tenant gave notice this morning that he is moving out because his wife and kids just left him and is suing for divorce, i.e. he will not be able to afford the rent. I know he is liable for the whole year’s rent, but what are my rights and what should I do?
You could probably sue the tenant (btw did you mean 2006?), but it may be better just to find another – easier and you will be helping him out.
Terryw
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Hi there
each state has slightly different lease provisions but in QLD they are as follows7 Costs may apply to early ending of fixed term
agreement – s 96(1A)
(1) This clause applies if –
(a) this agreement is a fixed term agreement; and
(b) the tenant terminates it before the term ends in a way not
permitted under the Act.
(2) The tenant must pay the reasonable costs incurred by the lessor in
reletting the premises.
Note: For when the tenant may terminate early under the Act, see
clause 36 and the information statement. Under section
230, the lessor has a general duty to mitigate (avoid or
reduce) the costs.Basically this means you need to take steps to relet your premises and try to recover reasonable costs for the breaking of the lease from the tenant. At that stage you may need to weigh up the costs of chasing the tenant for funds – it may not be cost effective. If you have landlord’s insurance – you may be able to recover some of those costs from your insurer.
If he is a reasonable chap to deal with and will co-operate with you in minimising the time the house is empty, why not cut him some slack and advertise NOW for a new tenant, house available from say, next Saturday, if he can get his gear out by then. If he is in advance with his rent and paid up until the weekend, you may well find a new tenant and not lose any money, specially in the current rental market.
If he is uncooperative or surly, I’d still advertise NOW for whenever his stuff is out and claim whatever is owed to you from the bond.
For me, it would depend on how his attitude is, as to what I would claim from the bond. Perhaps if you can afford to cut him this slack, it might just make him feel a bit better about his situation, but of course, it depends on your ability to wear a small loss, and of course, his attitude.
Don’t forget that you will more than likely be able to ask substantially more rent from the next tenants as rents have increased in many places (not sure where your IP is).
Wylie
Keep his deposit & last month’s rent, I hope you have this but if you have not better do this next time. Just get a form called residential lease agreement for your new tenant. Get to work finding a new tenant ASAP, and sue for any rent money you lose by having it vacant that isn’t covered by his deposit. Remember, the bank does not accept excuses for nonpayment/breach of contract (no matter how sad or creative) and neither should you. You are running a business, not a charity! If you need the forms for this. There is a site which contains all type of forms. I think it’s ezlandlordforms.com
Hope this helps.Joseph,
We do this work for landlords all over Australia. Send me an email and I’ll contact you I’m happy to provide you with all the adive you need (free of charge). But in the short term here are some key points;
1. MAKE SURE YOU GET A FORWARDING ADDRESS, did you take a tenancy application form, did you take a bond
2. when is the lease due to expire
3. you need to make a appilcation to the small cliams tribunal in your state for a Oder for monies out standing, remmeber to include things like reletting expenses, cleaning, removal of any goods which real needs to be handled by someone like us so as to not get you in trouble.I can help you with preparing all this stuff and if need be the colection of rent send me a PM this is easly fixed.
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