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Tenants wanting to terminate fixed-term lease 3 months early.

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  • Tenants wanting to terminate fixed-term lease 3 months early.

    I received an email from one of my tenants stating that she wants to terminate a one-year lease at the end of Spetember because one of the other flatmates has become unbearable to live with.
    Apparently she has asked this flatmate to move out, but she has refused.
    The two remaining flatmates say they have advised a lawyer about the situation and if I am not willing to let them out of the lease "they have ways to get the lease terminated".
    I am living in London at present, which makes things difficult, and have entrusted the management of the property to a friend, but none of the tenants have contacted either of us about the problems that have, according to her, been going on for most of the year.
    She has given me only one day to respond before sending through her terms for terminating the lease.
    Legally, they are obviously committed until the end of the year, unless both parties agree on a termination. In this case,if the tenancy is ended early, is reimbursement an option? Would they be able to terminate the lease using their annoying flatmate as the reason? Would it be advisable to ask them to try and find replacement tenants?
    Any ideas on the best way to deal with this would be much appreciated.

  • #2
    Hello johnny,

    My first advice is that you need somebody hands on in NZ to deal with this. Your friend should be that person if that friend knows about tenancies. Failing that engage a PM.

    Without knowing the details it does sound like they are trying it on, but you do need somebody else to deal wiuth it quickly.

    Don't do anything until somebody knowledgeable takes over.

    xris

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    • #3
      Who is the actual Landlord on the paperwork?

      Agree with xris.


      Keys

      www.3888444.co.nz
      Facebook Page

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      • #4
        I've been in this situation before, and suggested to them that they all find somewhere else to live.

        I was happy for them to break the lease on the condition that I find other suitable tenants, and that they are responsible for any loss of rent to myself and for any advertising costs to relet.

        I found other tenants straight away(signed them on a 2 year agreement), the bitching girls all moved out,and everyone was happy.

        It's a pity for you though that your unhappy tenants hadn't contacted you earlier with their concerns, as problems don't just go away do they!?

        Good communication goes a long way.

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        • #5
          I'm on the lease as the landlord. My friend, who has some knowledge of the property market, has been acting as the contact point for the tenants to remedy any problems with the property.

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          • #6
            Originally posted by johnnyschnitzel View Post
            I'm on the lease as the landlord. My friend, who has some knowledge of the property market, has been acting as the contact point for the tenants to remedy any problems with the property.
            'some knowledge on the property market' doesn't necessarily mean that they are competant in managing properties though.

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            • #7
              Originally posted by johnnyschnitzel View Post
              I'm on the lease as the landlord. My friend, who has some knowledge of the property market, has been acting as the contact point for the tenants to remedy any problems with the property.
              You need to have someone in NZ who is prepaired to become the LL.

              Distance can make things a little harder. Enforcement even worse.


              Keys

              www.3888444.co.nz
              Facebook Page

              Comment


              • #8
                johnnyschnitzel wrote:
                I am living in London at present, which makes things difficult, and have entrusted the management of the property to a friend,
                The legal expert in New Zealand relating to Tenancy Law is Scotney Williams. Scotney runs a consultancy for providing advice on the 1986 Residential Tenancies Act and associated tenant management.


                From memory, Scotney was the original solicitor responsible for drafting the 1986 Residential Tenancies Act.

                I used him for ~15 minutes of phone advice when I had a tenant breaking a 12 month fixed term tenancy.
                His contact details are:- ph (09)4255969, 0800 4 TENANCY

                Scotney advertises the following service which may be of use to you/your friend -
                Tenancy Consult/ Document Perusal:-You will receive the highest quality advice and guidance relating to Tenancy issues and property management. This is very helpful for Tenancy Tribunal application and hearing preparation.
                Price: $200 Per Hour

                Comment


                • #9
                  Agree with the others

                  You need to have a person here in NZ who is named as the landlord and prepared to do this kind of work for you. If the case ended up at mediation or tribunal for what ever reason it is the landlord named on the agreement that needs to be present not a friend whose looking after it.

                  With tenants wanting to get out of a fixed term tenancy I usually inform them in writing that they are required to find a replacement tenant that I ,as PM ,find suitable in all respects. They are required to do all advertising and pay all advertisng costs. They are to hand the applicant an application form which the applicant returns to me for the usual checking. I also state that they remain legally responsible for the rent until the start date of the new tenancy.

                  Also agree that the tenant is having you on by mentioning lawyers.. as lawyers are generally not involved in tenancy matters. They are hoping to scare you with these not so veiled threats.

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