Help! I'm Not Allowed to Move out for 6 Month?

Hi guys, this is my first time to post here. I have a question to ask. I bought a house at the end of February this year. The settlement was for 3 months and the settlement date is on 29th May. I sent notice to vacate to my rental agent about 1 month ago to notify them that I'm moving out on 31st May. (I'm not breaking the lease contract.I'm currently on month to month lease contract) Today, just now, I received an email from the property manager and she told me that there are new regulations launched and my notice to vacant is no longer accepted because of below:

"As the new COVID-19 Omnibus (Emergency Measures) Bill 2020 passed, the tenant cannot vacate the premises unless specific reasons are given to us.

545 When a tenant can give notice of intention to vacate—tenancy agreements

(1) A tenant must not give a landlord a notice of intention to vacate rented premises under Subdivision 3 of Division 1 of Part 6 unless—

(a) the tenant requires special or personal care and needs to vacate the rented premises in order to obtain that care; or

(b) the tenant has received a written offer of public housing from the Director of Housing; or

(c) the tenant requires temporary crisis accommodation and needs to vacate the rented premises in order to obtain that accommodation; or

(d) the tenant, who is an SDA resident, has been given a notice under section 498DA; or

(e) the tenant is suffering severe hardship.

She also told me that according to the new regulation, the date starts from March 29 and counts for 6 months. I cannot move until September 29, or I can move, but I have to pay for the full rent for this period.

Has anyone encountered this problem? Is this reasonable?

Comments

  • -6

    Under old rules, you could move out except you'd be up for the costs involved in finding a new tenant (advertising and rent costs while it sits vacant). You can't just break lease and get away scot-free.

    Contact the Tenants Advice department in your state.

    • +12

      "(I'm not breaking the lease contract.I'm currently on month to month lease contract)".

      • +3

        Wasn't there at time of writing

        Sounds like the reply was just cookie-cutter then.

        Jump on the phone and bring that to their attention

        • The agent's correct though; the emergency measures apply to both fixed term and periodic leases, which is clarified in the next two clauses (2 and 3).

  • when did you sign your rental lease and what was its duration?
    Are you still within your lease period or are have you moved onto a periodic agreement?
    if you are within your fixed lease period you will generally be liable for the associated costs….

    • I live in this place for 3 year. My rental lease was first signed up for 12 months. so I'm on month to month at the moment.

      • +10

        I don't think this apply to your case. New rules is to protect the tenant not to get tick out, not for landlord restrict tenant to move out.

        Ask what penalty if you want to vacate. Also you lease had expired so you have right to terminate the month to month th contract by giving 30 days notice.

      • +1

        victoria? or another state? i see now in VIC : heres the document in question anyway https://content.legislation.vic.gov.au/sites/default/files/2…

        page 166

  • +7

    OP I tried to understand the new Victorian laws… I can't wrap my head around them.
    I strongly suggest contacting https://www.tenants.org.au

    • +2

      This, and if you're on a monthly lease contract then I doubt the new rules apply to you as tenant wanting to move out, after giving the appropriate notice under the contract you has signed.

    • +4

      https://www.theage.com.au/politics/victoria/we-re-stuck-here…

      Laws rushed through by the Andrews government to protect renters have blocked tenants from moving out before their lease ends, unless they hand over their bond or go to the state planning tribunal to prove they are in “financial hardship”.

      The government has conceded the error, and a spokeswoman said new regulations would be passed to provide “clarity” to the laws. She said those laws were intended to increase options for tenants who wanted to end a lease early during the coronavirus pandemic.

  • +10

    Apparently it is an error they are going to correct soon

    “The way [the laws were] written, it is saying no-one can vacate a property unless they are going into government housing, emergency accommodation or in severe financial hardship,” said the REIV’s president, Leah Calnan.
    “It has created some headaches,” she said, but added that Consumer Affairs Victoria had committed to fixing the problem urgently.

    https://www.theage.com.au/politics/victoria/we-re-stuck-here…

    Here they suggest they will correct it by mid-May
    https://www.consumer.vic.gov.au/resources-and-tools/advice-i…
    Could be worth calling them in the morning

    • +5

      Yes the above is correct. I think many people have being trying not to draw attention to it but it is a monumental stuff-up by Dan Andrews.

      That said, in practical terms it should have limited effect. You should not accept the advice of a random on a forum. But I personally would:

      1. Submit notice around May 1st.
      2. Reply stating I am proceeding with plans as-is - possibly noting some background information.
      3. Triple-check that all recurring payments have ceased.
      4. Move out and return the keys on the 31st of May by registered post if required.

      Trapping a tenant via this measure in short-sighted and unlikely to work. The Victorian Government is working to fix the issue.

      • I would say it is better to go with what is currently in law. In other words make an application to VCAT immediately to obtain an order to terminate the lease under the 'reasonable and proportionate' provisions of the new laws. Then get in line. VCAT are aware of the stuff-up and are likely going to be handing out a bunch of termination orders in the interim.

    • What a stuff up.

      It's interesting on the VCAT link where the protection of the 'rental market' was tacked on right at the end there at the last minute. The temporary laws were sold to the public as protecting tenants and landlords. At some point someone snuck in 'rental market' to that qualifier. We were hoodwinked

      "New temporary laws exist to protect Victorian tenants, landlords and the rental market from the impact.."

  • +14

    (e) the tenant is suffering severe hardship.

    This is your get out of gaol card. With settlement date of May 29th, you will be under financial hardship having to pay rent and a mortgage.

    • +1

      Play that card, or play the walk away and stop paying rent card. You bought a house so no need to worry about rental references for a while I imagine.

      • And lose the bond?

        • +1

          6 weeks is cheaper than 6 months rent.

        • -3

          Let them keep the bond in lieu of the last month of rent.

        • Go to VCAT for the bond, the law is literally wrong in this case.

  • +3

    You're month to month so none of what they have said applies to you.

    Unless you clicked one of their sneaky links to agree to a new lease.

    Find out when your lease ends, if you are indeed month to month then you're all good.

    • That's not true, the new changes include specific clauses for both fixed term and periodic leases:

      (2) A tenant referred to in subsection (1)(a), (b),
      (c) or (e) may give a landlord a notice of
      intention to vacate rented premises under a
      fixed term tenancy agreement specifying a
      termination date that is on or after the end of
      the term of the tenancy agreement if the
      period between the date on which the notice
      is given and the termination date is not less
      than 14 days.
      (3) A tenant referred to in subsection (1)(a), (b),
      (c) or (e) may give a landlord a notice of
      intention to vacate rented premises under a
      periodic tenancy specifying a termination
      date that is not less than 14 days after the
      date on which the notice is given.

      So if you don't satisfy any of conditions 1(a),(b),(c) or (e) as listed in OP's post you're stuck, regardless of the lease timeframe.

  • +1

    You are fine. Pack your things, move your things, return key. Enjoy your new house.

    • Hopefully OP hasn't paid the next month as yet. The bond will pay for the last month, just leave it in good shape as it's not the owners fault the agent is a dick.

  • +1

    The COVID-19 Omnibus (Emergency Measures) Bill 2020 was introduced on 23 April and passed on 24 April.
    As you claim to have given your intention to vacate prior to the bill being passed then I doubt it would apply to your case. That is, the bill was not made retrospective

    • +1

      This makes sense.

      Op, take your dispute to your state CAT.

    • The bill is retroactive to 29th March

  • +17

    Your property manager is an idiot. Either that or they are deliberately trying to trick tenants that they cannot move out. You should name and shame.

    That legislation doesn't apply to you, and will be amended shortly for more clarity. The very next section specifically states s545 was amended in relation to fixed tenancy agreements. Which you do not have. You have a periodic tenancy.

    Email the "property" manager back and link them this. Tell them you'll happily attend VCAT if they refuse to accept your Notice to Vacate:

    http://www5.austlii.edu.au/au/legis/vic/consol_act/rta199720…
    (1) A tenant is deemed to occupy rented premises under a periodic tenancy agreement if—
    (a) the term of a fixed term tenancy agreement to which this Act applies ends;
    (2) The rental period under the periodic tenancy agreement created by subsection (1) is—
    (a) if the rental period under the fixed term tenancy agreement was more than 1 month, a monthly period;

    http://www5.austlii.edu.au/au/legis/vic/consol_act/rta199720…

    (2) A tenant referred to in subsection (1)(a), (b), (c) or (e) may give a landlord a notice of intention to vacate rented premises under a fixed term tenancy agreement specifying a termination date that is on or after the end of the term of the tenancy agreement if the period between the date on which the notice is given and the termination date is not less than 14 days.

    https://www.consumer.vic.gov.au/resources-and-tools/advice-i…

    We understand that changes to renting rules in response to the coronavirus (COVID-19) pandemic have created some uncertainty regarding the ability of tenants to terminate their tenancy agreement. New regulations clarifying breaking a lease are expected to be in effect by mid-May.

    • Did you read the very next clause (3) which specifically refers to periodic tenancies? The agent is correct. The emergency measures may not be sound but that doesn't make the agent "an idiot" for following them, on the contrary it means they understand how to do their job.

      • -4

        Their job is to try and lock in unsavvy tenants into periodic Leases due to a legislative blunder that is about to be corrected?

        What a job!

        "Clause" 3 is the exact clause that will be amended. That's why I didn't refer to it. Periodic tenants should not be limited by the application of subsection 1.

    • That legislation doesn't apply to you, and will be amended shortly for more clarity.

      It seems that it does even though it was its intention. It's needs to be corrected for its actual intended purpose, not for clarity.

      The government done goofed here.

  • +2

    Sounds like they are trying to scam you.

  • I bet your glad you dont have to put up with that sh*t for much longer!

  • +2

    You have to love how this legislation was passed in lightning fashion - so fast, in fact, that they’ve attributed this error to their haste - however the slated, but undisclosed, “corrections” mysteriously require weeks to enact.

    A thinly-veiled attempt to stem the bleeding rental market prices by preventing those on month-to-month leases from moving across the road for fifty fewer dollars per week? Perhaps.

  • +3

    In this thread, a lot of people not understanding the laws the Victorian government put together. The state government have said that they are intending to reverse that part.

    The agent can do that but morally it's pretty shit. If I were you OP I would start to argue that paying rent and a mortgage would put me under severe hardship. I would even threaten to take it to VCAT. Hopefully this would help the agent work with you to find a new tenant.

    I also would only be paying rent up to the 4 weeks notice date.

  • +2

    So it's a drafting error eh - oops. Funny that. The intention of the legislation looks perfectly clear to me - to protect landlords by stopping tenants from moving.

    • You mean protect the banks. 90% of landlords are on the hook to the banks. Nobody pays off their property in full, we're got through a big refinancing / redraw bubble so people can leverage up and leverage into the housing market.

    • Protect the "rental market", aka protect the banks.

  • -1

    emergency powers have ceased now. resubmit the notice to vacate

  • Yes you can move out, you are well within you're rights.
    Don't let the agent bluff you,
    they are desperate to keep tenants because there is now a massive oversupply of rental properties.

  • +1

    Move out and sort it out later. Either way the max you would have to pay would be 1 months rent. More likely that this whole thing will be forgotten. Even under the ruling it says leaving under severe hardship. Paying rent and paying a mortgage would qualify. Get out of there!

  • +1

    I think you might qualify under point 'e' severe hardship considering you now have a mortgage to pay as well. It’s not like you’re moving to another rental property. Try this argument.

  • +3

    @stpa
    Just received this via another source - hope it helps.

    The new laws, which apply from 29 March 2020 until 26 September 2020, previously contained an error preventing many tenants from giving a Notice of Intention to Vacate to move out of their homes.

    This error has now been fixed with the introduction of the Regulations, which reinstates the usual rights tenants have under the Residential Tenancies Act 1997 to give a Notice of Intention to Vacate.

    This means you have the right give a Notice of Intention to Vacate with no less than 28 days’ notice, if the vacate date in your notice is on or after the end date in your lease (end of the fixed-term).

    It also means you have the right to give a Notice of Intention to Vacate with a reduced notice period of no less than 14 days to end your lease for these reasons:

    • you need special care
    • you have received and accepted an offer of public housing or - - housing from a registered housing agency
    • you need to move into temporary crisis accommodation
    • you live in special disability accommodation resident and the landlord’s registration to provide this accommodation has been revoked.

    The new laws also add two more reasons that you can give a 14-day Notice of Intention to Vacate:

    • you are suffering severe hardship (for example: financial reasons due to COVID-19) or
    • the landlord has made an application to VCAT to terminate the tenancy.

    Source ~ Consumer Affairs Victoria

    • That's helpful,thanks for sharing.

    • The regulation is here: https://content.legislation.vic.gov.au/sites/default/files/2… section 39 (page 44 of the pdf). A bit hard to read. Looks like it means the relevant provision should now be read as:

      545 When a tenant can give notice of intention to vacate—tenancy agreements
      (1)In addition to giving a notice of intention to vacate in accordance with Subdivision3 of Division1 of Part6, a tenant may give a landlord a notice of intention to vacate if
      (e)the tenant is suffering severe hardship; or
      (f)the tenant has been given notice of an application to terminate a tenancy agreement made to the Tribunal under section 548(1) by
      (i)the landlord under the tenancy agreement; or
      (ii)a mortgagee in respect of the rented premises."

      (2)A tenant referred to in subsection(1) may give a landlord a notice of intention to vacate rented premises under a fixed term tenancy agreement specifying a termination date that is not less than 14days after the date on which the notice is given, irrespective of the date of the end of the fixed term.

      (3)A tenant referred to in subsection (1) may give a landlord a notice of intention to vacate rented premises under a periodic tenancy specifying a termination date that is not less than 14 days after the date on which the notice is given.

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