To my beloved community, I reach out to you, once again, to provide direction on how to proceed with another (weekly) Real Estate problem.
Quick background:
2012 - Built and moved into dream home.
Late 2014/ Jan 2015 - Relocated interstate for work (occupation requires our family to move quite frequently)
Jan 2015 - Rented property out for an initial 12 month period. REA advised (repeatedly) to renew lease on monthly basis upon completion of initial 12 months as depending on work availability, we may dispose of the property early 2016.
Jan 2016 - REA renews lease for additional 12 month period. REA subsequently fired and property moved to new REA.
Now:
Unfortunately, due to personal and financial constraints, we have arrived at the point that we are unable to continue the lease and must dispose of the property sooner rather than later. We have been advised by the REA that due to the location and "executive" style of the property, if untenanted would be lucky to last a fortnight on the market, however as expected, this would increase exponentially tenanted.
In an effort to achieve the best possible outcome for both the tenants and my family, I have spoken with our REA and NSW Fair Trading. After our little chat, Fair Trading has left with the following options:
- Apply to the tribunal for termination of the lease under "Hardship"; or
- Provide an incentive to the tenants to move out either within an x period or prior to settlement (example given: offer to pay for the "disconnection and reconnection" of services at the vacating and new property).
Idealistically, I would like to offer the tenants an enticement to move from the property so that I can list and sell vacated. However, due to their circumstances they are not willing to move immediately, the advice I have been given by the REA, is that they will start to search in August/September (lack of suitable properties/working away).
I have no intention of insulting the tenants with an offer mirroring the example I was given. At the moment, I am thinking more along the lines of a monetary payment, continued payment of water usage (not in lease, however I've always paid as part of the water rates) and possibly the maintenance of the lawns. The underlying issue is that the payment of any monies would be made on successful sale and settlement of the property.
I have spoken to a few friends regarding the amount of money to offer and have come across conflicting suggestions. As it stands I am willing to go to a maximum of "X" which is what I consider to be a substantial amount of money (000's). Some friends have suggested a lower offer and negotiate towards the maximum figure, whilst others believe offer the maximum amount straight up to shock them out.
Ultimately, I am just after advice as to which direction I should take Hardship vs. enticement. If enticement - partial or full amount.
For bonus points:
Would it be better for me to approach the tenants directly (through email) to explain the circumstances and make the offer/enticement, or do I have the REA undertake this on my behalf.
Side notes:
Whilst unfortunate, it has come to the point where the welfare of my family outweighs the welfare of our tenants.
Both the tenants and I come from an organisation that our housing and removals are covered by the organisation, therefore the tenants theoretically would not be out of pocket by vacating the property.
Do the tenants keep the property neat and tidy? If so they can help sell the property and they won't need to move out.
If you do need to kick them out I would try offering enough money to hire a removalist plus say $500 or so as an incentive.