Has anyone had experience of breaking a lease. I’m currently renting a 2 bedroom townhouse with one daughter & now my other daughter wants to move in but there’s no room so I was considering breaking my lease to hopefully find a bigger place. Is there any way of getting out of one with minimum or no cost at all? Please only sensible replies from people with past experience… I don’t need to be told how to “suck eggs”!
Breaking Lease on Rental Property
Mary Poppins on 20/03/2020 - 10:21
Last edited 20/03/2020 - 10:49
Last edited 20/03/2020 - 10:49
Comments
Thanks Crawfish. Sound advice!
Buy a bunk bed so there is more room for activities
Is there any way if getting out of one with minimum or no cost at all?
Not a chance, you signed a lease and agreed to pay $xyz/wk for 12 months. Guess what, you have to pay $xyz/wk for 12 months. Simple as that.
Choose your favourite daughter. It will be cheaper.
You're pretty much stuffed, No way out of the lease usually. And you'll have to pay the rent until they find another tenant. Which they wont try very hard to do because you're paying. So you'll have to do all your own advertising and constantly abuse the real estate agent to hold open houses while they sit on their hands. It's not a fun time.
Then if they get a tenant at a lower weekly rate, you'll have to pay the difference for the rest of the term of your lease.
Thanks Fergy
While I boradly agree with the above in most experiences I know of the Agent does in fact try relativly hard to find someone. If the current rental isn't overpriced theres normally plenty of people looking for places. You're still up for agents fees, advertising fees and any rental gap though.
To be fair to landlords and agents, renting out a place can be a process. From advertising to open houses, at times prospective tenants who apply change their mind last minute before paying deposit and signing on the dotted line which can extend the time period for finding new tenants if there are not many applicants. Then there is the question of finding tenants with good rental history and reference. There are a lot of variables!
I have more people in my investment unit than stated in the contract, but I don't even bother to chase my REA for it. Some people might be just like me, too lazy to do anything :D
Rent a room nearby for your 2nd daughter and stay on for the remaining lease.
Let me help you a bit with my experience.
I was in similar situation with you before (tried to break the lease earlier than what's agreed), talked to the agent, agent said he would talk to the owner first.
Apparently the owner was nice enough and became very understandable, so he let us go 2 months earlier.
Point of story is, try talk to your agent first and be honest about your situation.
Sometime it's not always black&white.assuming your daughter is going to stay with you for a while? Or are you going to break lease again once she moves out?
(Not a lawyer) But have you checked your lease, many rentals I've been to typically has this as part of a clause, sometimes its similar to you have to pay x amount, or you have to pay x amount up until a new tenants is found, or two months or something.
For example in NSW, many companies just use the template given from fair trading, so that they don't even have to make their own, for example this one:
https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/00…
Additional term—break fee
41. The tenant agrees that, if the tenant ends the residential tenancy agreement before the end of the fixed term of the agreement, the tenant must pay a break fee of the following amount: 41.1 if the fixed term is for 3 years or less, 6 weeks rent if less than half of the term has expired or 4 weeks rent in any other case, or … …Also I think theres special consideration for certain groups, I don't know the details but I think its one such as escaping domestic violence, bankruptcy etc.
Or possibly talking to your agent, they may be nice enough to sort something that works better for both of you?
you can stop paying rent - get termination notice, move out on the termination date - pay what you owe and be clear
this depends on state though so double check that
Great advice, there will be landlords lining up around the block to give op, now with a history of non-payment of rent and eviction, a lease.
well, i never said to do it…he asked for cheapest way …thats it - not my fault the law is the way it is, besides new legislation is coming in when lease break is cheap as chips….there is just no landlord protection anymore
pay what you owe..
This will not just be the rent you owe when you've lived there. It'll be the amount you owe under the terms of the contract, including marketing and the amount of rent for the time the property was empty while they were looking for a new tenant.
no sorry - not in NSW, its as i said above
OP is in Victoria, according to their profile.
Location
Langwarrin, Victoria
I've broken a lease before in Victoria. This was my experience.
You will have to pay for marketing costs (if you can't find someone to take over the lease yourself. This is subject to the landlord's consideration) and any rent up until a new tenant is found.
Dont do it, the economy has come to a standstill. The job losses have started. If you are liable for the rent until a new tenant is found, there might not be any new tenant and you end up liable for the maximum amount.
yes there could also be increased rental demand if people have to dump property
I can understand why you say that but I think the only people that will dump property are people who lose their jobs and cant service the loan. If they dont have a job they cant pay rent either.
Although I do think there will be measures taken by government and the banking industry aimed at preventing people losing their homes.
A lot of rental demand comes from international students and those on temporary visas, obviously that demand has been halted in its tracks. We had already reached a stage in most of the cities where vacancy rates were rising due to increased supply and rents were falling. I think that situation will worsen.
For those reasons I dont think rental demand will increase.
Yes I agree that any drop in demand would outweigh anyone unable to pay their mortgage. On the affordability point though, renting is usually cheaper than a mortgage so someone struggling to pay a mortgage could often more easily pay rent.
Try contacting the agent and find out if they allow you to find a new tenant yourself. I have done it once with the owners approval. Found a new tenant myself and got out of the lease without paying any fees.
This is, of course, if they like the tenant you found…
Be sure you can find another place first……
Besides that… you simply inform your landlord IN WRITING giving them the "stipulated" period of NOTICE.Then that's it… move out
get BUNK BED Its cheaper & when they start earning, they can share rent on a bigger place
Do not go with OzHunterNSW advice.
Clearly the law is simple. You can move out BUT need to continue paying rent. Depending on the length of lease remaining , a percentage of advertising fees (( if 6 months left on lease landlord may seek 50% of fees )) etc are your liability as well PLUS the landlord can make a claim on your bond, OR did he forget that minor detail!!
https://www.tenantsvic.org.au/advice/breaking-your-lease/