notice to terminate prior to starting tenancy

[Busy wife]

Hi all, I have been a reader of forums for a while, now a situation has come up that I feel compelled to post - hopefully for some solid feedback. A few weeks ago we entered an agreement (periodic) to rent our place to new tenant as previous tenants moved overseas. New tenant to move in next week. At this time of transition we had every intention of keeping the place at least a year or two. Suddenly personal situation has changed and we need to sell asap. My understanding is that legally we are required to give our new tenant 42 days notice. Morally though this does not feel good. This is a horrible situation and I empathise fully with the situation and stress that this will put the new tenant in. Not sure now what is the best course of action...we thought about offering 50% off the rent while she looks for another place, and pay the finders fee? Any other suggestions?

[Re@der]

Quick action is the best. You have to give notice to protect your own position.

You can offer what ever you want. But probably the best position for you and the tenant is that they dont move in at all. You need to have this discussion with them when you give notice to determine what options they have and how you could facilitate any of these options.

[Busy wife]

Thanks for the reply Doug. Agreed. Currently not able to contact her, meanwhile hoping that there are other options.

[jenni_nextplace]

She might be happy to stay on until you sell. Also is your property target market for investors, if so you will want her to stay. Have a chat with her she will tell you what she wants and you might find your 50% a bit generous.

[flyernzl]

A contract is a contract. You are bound.
Bribery may work. You can but try.

Certainly a 42 day notice needs to be issued ASAP.

[Eugene]

Give her the 42 day notice even if you feel bad. It could be an advantage to the new purchaser to have vacant possession even if they are an investor and want to keep the tenant on, as that way they don't need to wait 90 days before they can alter the tenancy agreement, should they need to. It could still work out fine for your new tenant if an investor buys the property. Give the notice now, then talk to them. Then you can think about any generous offer you might want to make, eg a rent reduction.

[Keys]

OK. Bad situation.

1) inform the tenant in writing that the property is to be put on the market for sale.
2) negotiate access provisions for showing the property.
3) ensure you are pedantic on the possession date as you can not issue a 42 day notice until the contract goes unconditional.
4) obviously, chatting with the tenant first is the best course of action.

(just a thought)

The tenancy offeres was a periodic? Otherwise you could be facing different problems.

[Busy wife]

Thanks, appreciate the replies all. Have managed to contact her and she still needs to move in. Agreed to pay the letting fee for her and we take it from there...I will issue notice in writing tomorrow. Jenni_nextplace I think the property is more of a first buyers family home than IP target market but who knows? Thought about the 50% and yes, it could become too much expense if she stays on till the end. Not nice to spoil a person's day like this.

[Busy wife]

Hi Keys. Yes, periodic tenancy so the first notice will be 90 days. It will most likely go to auction.

[Rentex]

Good one Keys. The 42 day notice clause gets misinterpreted a lot.
Hope all works out quickly OP. Good luck.

[mrsaneperson]

There's a very good chance the eventual new owner may be buying it as a rental, in which case its a win win for both tenant , existing owner & new owner;as they may well want to keep the tenant on. Its a big possibility in todays market.

[moongirl]

I like this advice, I think that Keys is right and that trying to appease the tenant but have them stay may be best. But once again move quickly to give them the option never to move in in the first place. You sound like you're trying to work for the best of your tenant but they may just decide to never move in and problem solved. Good Luck!