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Terminating Lease Contract from Landlords perspective

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  • Terminating Lease Contract from Landlords perspective

    I am looking at purchasing land that is currently tenanted with rights of renewal by tenant for next 4yrs. I am wanting to demolish current bldg and rebuild to my own requirements.
    The current contract is a standard ADLS with no mention of demolition clause, if this clause is not detailed can it be used as a possible out? Is there anyway of terminating the contract? The tenant is disinclined to move. Thanks

  • #2
    Bribery is your only option. It costs heaps for tenants to move - not to mention the inconvenience.

    You could hunt around and see if there is something virtually next door that would suit them.

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    • #3
      ring tenancy tribunal and dept of housing... am on same situation i was advised to fill a form sent by tenancy tribunal and sedn it back to tenancy tribunal and wait 20 days for tribunal hearing bet new owner and current tenant... current tenant ha 90 days to move out legally according to tribunal in the meantime tenant pays u rent,. if tenant resist and wish to claim 4 years stay as stated on right of renewal or contract tenant may go to high court , high court can isuue eviction order in your favor..3 monhts waiting for new owner ... rent may be affected by current tenant not paying new owner..

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      • #4
        Editha, I think we're talking about an ADLS commercial Deed of Lease here, and the tenancy tribunal/90 day notice provisions simply don't apply.

        Sunshine11, the absence of a demolition clause means you are most unlikely to be able to terminate the lease to demolish and rebuild without tenant consent. The usual course in this situation, as Tan said, is to negotiate with the tenant to either buy them out, or perhaps (as an example) relocate them in the interim in comparable premises with a first right of refusal to take premises in the new building. However if they don't want to move and dig their heels in, you usually can't shift them.

        The only carrot/stick you can offer is that if they don't co-operate then once their four year ROR comes to an end they won't get new premises in the new building.......they have to play ball now or never.

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        • #5
          When is the next rent review and what provisions are there governing that? If it has been amended from the standard provisions that may give you some leverage. The standard terms probably won't because they provide for market rental determined by valuation (if the tenant challenges it).

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          • #6
            Hello Alls!

            Need some advise please.

            My tenant has just vacated and gave notice and said she has vacated, she said she is happy to pay for next 3 weeks rent and arrears and repairs needed done, on a payment plan, ie set amount when her salaries (she is a teacher) gets paid , every fortnight to our account.

            I realized i haven't lodged the bond she wants the bond back after her debt (which is more than the bond) gets wiped off after paying fortnightly direct credits to our nominated bank acct for 12 weeks, starting from next fortnight.

            I am aware that we can endorse such a statement of tenant from Tenancy Tribunal by lodging $20 odd and the statement is legally binding, , it's partly my fault that i haven't lodged the bond with them - and she went on arrears too. Hence may I know can I not get her to sign up her statement of 'payment plan' detailing what she is paying and ie, how much, for how long which dates etc, at a 'solicitor' , both she and her 'solicitor' signed doucment to us - and wouldn't this be a 'legal' document to go by - won't this be legally binding? - and she failing to keep to her payment plan , can I not escalate the matter to Small Claims and or Tenancy Tribunal, later on and get an order to recover the debt from Debt Collection or so? Need some advise kindly.

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            • #7
              This is in the "commercial" section. Is this a residential tenancy?

              1. you should have lodged the bond.
              2. you should have lodged the bond.
              3. your bargaining position is weak because.
              4. you should have lodged the bond.

              It would be best to work this out without formalizing it. Go to the tenancy tribunal and risk a $1000 fine for not lodging the bond.

              You can't "endorse" such a statement by the Tenancy Tribunal. It can be done by Mediation though, which is the first step.

              Going to a solicitor will be a waste of money. How will you enforce it? The only way would be to go to court. The disputes tribunal won't be interested. It's a Tenancy Tribunal area. Once in the tenancy tribunal you are open to the tenant cross claiming for non lodgment of bond. (have I stressed that enough yet?)

              Walk away with an informal agreement. Hope the tenant does not lodge a claim in the next 12 months.

              www.3888444.co.nz
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              • #8
                I agree with Keys that you are best sorting this informally if you can.

                Going to a lawyer would likely only be worthwhile in terms of getting your agreement with the tenant checked for written English sense, but you'd have to keep it short and sweet to avoid it being too much cost for the recovery.

                Getting two sets of lawyers to draft up and haggle over an agreement would chew up the amount in dispute. Not cost-effective....not to mention any lawyer engaged by the tenant might pick up on the bond issue. Very bad idea!

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