[NSW] Fixed Term Rental Lease Coming to End

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  tryagain on 20/03/2018 - 11:05

  +1

  How long are you likely to want to stay there? You could go quiet and the wait for them to instigate the renewal, if they do just drag out and let them think you intend to sign a renewal but never quite get to do it, depending on the real estate/owner though, you could run the risk of them terminating your lease at the end of the contract with the 30 days notice prior to it, or if you successfully delay until after the contract is over, then 90 days after that. I think it probably depends a lot on how on the ball the real estate agent is.

  • 

    dingdong3000 on 20/03/2018 - 11:24

    I say we intend to stay maximum 5 months due to my frd uncertainty with his sponsership contract and when he wants to leave. I’m not sure if I should talk to agent. It actually might be perfect if they give us 90 days notice on periodic agreement. They have until 22nd March to issue us with 30 days notice.
    They want to know our intentions now they told us about ‘only operate 12 month leases and landlord looking for 12 month contract’

    Should I ask them to speak to landlord and explain my friends sponsor contract situation? Perhaps this way they may let us stay on longer..

    • 

      tryagain on 20/03/2018 - 11:55

      Maybe explain some of your situation, like that there is the small possibility that a work contract may change in 5 months time and that you prefer to only sign a 6-month contract, this would delay a bit longer as they would then have to take it back to the owner, then if you actually have to sign it wouldn't be too different to what you want, Unless your contract ends on the 22nd March I think they can give you 30 days notice up until the end of your contract but if your contract actually finishes then I would hold out for a couple of days.

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  Seraphin7 on 20/03/2018 - 11:25

  +1

  So, what you're saying is you'd like the flexibility to have a month-to-month arrangement so you can walk at any time subject to a stipulated notice period? This must therefore be worth something to you? Have you considered offering additional rent as an inducement for the landlord to offer you this flexibility?

  • 

    dingdong3000 on 20/03/2018 - 11:33

    -1

    Yes we like to have this flexibility. They’ve given us 60 days notice about increased rent and it’s already really expensive. I’ve looked in my area the new rate is above what others are offering for 2 bedroom apartment. We can’t commit to new rate for additional 12 months due to this increase.. only if it was say maximum 6 months.

    • 

      Seraphin7 on 20/03/2018 - 12:09

      +3

      The point is you need to negotiate.

      The landlord clearly prefers tenants on 12 month leases. Fair enough.

      In your situation, you'd prefer to have month-to-month flexibility. Fair enough.

      The landlord appears to be willing to look for a new tenant, all else being equal than move into this month-to-month arrangement. You may want to consider what you can offer to make it worth their while to move from their preferred position.

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  theHMASfriendship on 20/03/2018 - 11:26

  +2

  How long will you be staying?

  Why don't you explain your situation to them. The landlord will likely prefer to keep a tenant for another 9 months or whatever term you agree rather than evict and find a new tenant (relisting fees, no rental income while unoccupied).

  • 

    dingdong3000 on 20/03/2018 - 11:47

    I would say maximum 6 months but this depends when my friend wants to leave his work contract. He doesn’t expect to stay for more than 6 months.

    I thought normally you automatically switch to periodic agreement if no new lease is signed however in light of agent informing me landlord looking for 12 month contact it makes it little complicated for us.
    I can’t see on the contract that agent only operates 12 month contracts either so not sure if is some kind of tactic they use to sign new one.

    • 

      theHMASfriendship on 20/03/2018 - 14:04

      Depends on the real estate agent/landlord.

      Option B is you sign 12 months and end the lease early. You'll be up for covering the re-letting fee (usually a weeks rent) plus rent up until they secure a new tenant.

      Not sure about NSW but in QLD at least the real estate agent or landlord must take reasonable measures to secure a new tenant, if they are dragging the chain you can submit a claim to the tenancies authority.

      • 

        CheapskateQueen on 20/03/2018 - 23:04

        +1

        Don't sign a 12 month lease with the intent to break it early. It'll cost you a fortune

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  cogiblab on 20/03/2018 - 11:57

  +1

  I would get in contact with either Fair Trading NSW, or the NSW Tenants Union to confirm if this is legal.

  I know, in other states, ACT and Victoria, you don't have to sign a new fixed term tenancy agreement at the end of an existing one. If the landlord wants to prevent a periodic tenancy from starting, they have to give you written notice to move out at the end of the lease, and they must give this to you at least 26 weeks in the ACT, and 90 days in VIC before your lease ends.

  • 

    dingdong3000 on 20/03/2018 - 12:49

    It looks like agent/landlord need to give at least 30 days notice before fixed term is finished if they want us to leave. Only when on periodic agreement is it 90 days according to here. This is going to suck if they won't allow us on monthly-monthly agreement and be forced into x amount a month agreement. I just feel they are forcing us to sign a new agreement or face eviction..

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  funkybamboo on 20/03/2018 - 12:16

  ^^Call Fair Trading or NSW Tenants. To my knowledge they can't legally force you into a fixed term, you are entitled to let it roll in to periodic….but I am no lawyer. Calling above as suggested would be the best legtimate, official and free advice you can receive on this.

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  SmiTTy on 20/03/2018 - 14:03

  +1

  I'd be surprised if landlord willing to evict u just cos u want to go month to month. It means they risk the property being unrented for an unknown period (even 1-2 weeks is a big blow).

  If u know the market, and you're willing to move.. I would hold your ground. Or sign a 4-5 month lease …whatever time period suits u. If they still insist on a 12 month lease plus rent increase, then give your notice.

  As others have suggested, u should also try to delay so that your lease expires and they're mandated to give u 90 days instead of 30.

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  dingdong3000 on 20/03/2018 - 15:01

  Thanks for all your advise! They have until 22nd March to give termination notice if they want to evict us with our tenancy ending 21st April. If not then 90 days be rather good for us. We're planning to head over to agents either tomorrow or Thursday to try sort some kind of agreement and try hold our ground on the situation..Was thinking Thursday since it be the last day for them to give us eviction notice.

  • 

    sly on 20/03/2018 - 20:58

    +2

    Hi,

    I'm not an expert in this but I'm not sure your assumption is correct.

    My understanding is that the landlord can give you 30-day notice at the end of term as long as the periodic (month-to-month) agreement has not started.

    That means that any day from 22nd March until 21st of April, the landlord can give you a 30-day notice to evict you. They can, if they want to hand a eviction notice on the 20th April and you have to leave by 19th May.

    If no notice is given until the fix term agreement ended (21st April), you then move into periodic agreement which mandates the landlord to give a 90-day notice if they want to evict you.

    That's just my understanding, you might want to check with Fair Trading.

    • 

      dingdong3000 on 20/03/2018 - 21:17

      Thanks for the solid advice and info. I didn’t know about they can give 30 days to evict up until contract officially ends.

      • 

        funkybamboo on 21/03/2018 - 10:01

        +1

        https://www.tenants.org.au/contact-us
        Quick phonecall and it's free advice.

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  mrsi on 21/03/2018 - 11:23

  Just a thought - the agent gets fees from the landlord for "preparation of a new lease".

  I really don't see how the landlord would care if you're going to be there longer than your 12 months - its only delaying when they need to look for a new tenant.

  Maybe it's actually the RE wanting the new fees (which they don't get if you don't re sign and just go month to month)