Hi all
One of my fantastic tenants wants to end their fixed term tenancy (in WA) early. The lease expires at the end of August but they've found another property they'd like to rent coming up at the end of May. They approached me last night to ask if I'd consider letting them out early so they can apply for the new property.I've told them I'll think about it and get back to them. I've mentioned that if it were agreed on then rent would need to be paid until a new tenant was found and any advertising expenses, etc. would also be due.
I know I don't have to let them out of the lease. In fact, my first thought is to say no. Its not like they have unforeseen circumstances to contend with … its a 'want' not a 'need'. I'm not about being a hard-head about this … its just bloody inconvenient to lose them now and have to find someone else when I don't have to (and yes, I realise I'd have to do that when the lease expires in August anyway).
However, I'm mindful of the vindictiveness of some people if they don't get what they want … and they're in my property. These tenants have been with me for many years and are really nice people (if a little naive I think).
I wondered what everyone else thought … would you let them end the lease early and move on … or make them stay.
Hi Ouchiemama,
Personally I would (and have done in the past) let them out early. Chances are if you do a good turn and let them go, then a good turn will come your way. Our WA property has never been empty and we have let people out early, allowed 6 mths leases and month to month leases. I would hope that your property would go the same sort of way rental wise and not be empty for long.
Why do they want to move? If they are moving for location, (ours were buying) or something you can't control new property then let them go, staying wont help either of you. But if they are moving just coz maybe there is something you can do to the property to get them to stay.
Good luck, keep us posted!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeHi D, they're moving because they've found another property they want to rent. I'm not sure of all the details. They mentioned on signing this lease that they might want to move after this lease expires and were looking to buy. I get the impression its 'just because'.
I don't anticipate in this market that we would have trouble getting another tenant. We've always done well in the past. I also appreciate your viewpoint of one good turn is rewarded with another … I wouldn't force anyone to stay if they really didn't want to. However, it would be good if people appreciated what a fixed term lease is all about …!
We had the same thing happen to us and we from Perth too. The tenants built their own home so needed to break their fixed term lease. We told them they needed to pay rent until new tenants were found and also advertising fees (as you have done). In the end, we asked the tenants if they knew anyone that were interested in renting and they did (so we got lucky) and I suppose they did too. In the end they had to pay 1 weeks rent to cover the time in between tenancy. Maybe u could try that.
They may reconsider if they know they have to pay the rent until a new tenant is found
Good luck
Hi Ouchiemama,
We had the same thing ages ago and it is very annoying, especially when you look back and think of the other potential tenants that you could have chosen. However, it happens to everyone eventually and I think the advice to be accommodating is good. I am sure they will be happy to let you show other people through and you probably won't even miss a day's rent. When we had the experience we discovered that they could break the lease anyway, and only had to pay a day's rent for every month they were leaving early, which was six days rent for a six month period!!! This was not WA though.
All the best,
GHi all, thanks for your responses. I just thought I'd update the latest news. I sent the tenant an email last night saying that whilst we'd prefer they commit to the lease we would let them out of it with all advertising expenses and rent paid until another tenant was found. I was very 'nice' about it; they are nice tenants after all. Anyway, I got an email today saying that they'd reconsidered and would look at it again when the lease expired. I guess some people are perhaps a little 'naive' in what a fixed term lease really means and it just needed to be reiterated. I would have let them out of it … just thought the point needed to be made that leases are in place for a reason and not usually broken because you think you want to move somewhere else (I think a house in the same area too).
It makes me wonder though … what's the point of a fixed term lease if one of the parties can break it … but that's probably just my black and white view of life!
Good on you for resolving it in a nice way. I guess a fixed term lease can be broken so if there is a problem then then tenant can leave and you can have you property back. One of my friends separated from her husband and had to break the lease. I think in that case you would prefer to have them vacate the property to give you certainty. Who will pay the rent, who will be living there? All these questions and potential problems are taken care of because they take their problems elsewhere.
I think that while it is not good for the landlord sometimes it is going to happen as these are people and we all know they have minds of their own.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeYou're right D, there are definitely circumstances where it would be appropriate to end a lease … I wouldn't want unhappy tenants and it seems my tenants don't want an unhappy landlord either! LOL.
I've maintained an approachable friendly relationship with all my tenants. I like to be flexible … just in this case, I think I needed to make the point that a fixed term lease is there for a reason; having agreed to letting them out of the lease the decision was up to them. In my opinion, they made the right one!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
