Tenant wants to break contract

[nfung]

Just received an email notification from my tenant that they want to break the 1 year fix-term tenancy, which due April next year. They want to move out December.

Shocked. I don't want to sue them with tribunal if I can avoid. I don't think I can force them to stay as they just need to go leaving the country.

Any experienced friends here can give me some advice?

Can I charge them some penalty, like a months rent?

What are my rights? and what are their obligations?

I know I got to prepare myself to find the next tenant, but just like to minimise the loss...

please help.

[Keys]

Just received an email notification from my tenant that they want to break the 1 year fix-term tenancy, which due April next year. They want to move out December.

Shocked. I don't want to sue them with tribunal if I can avoid. I don't think I can force them to stay as they just need to go leaving the country.

Any experienced friends here can give me some advice?

Can I charge them some penalty, like a months rent?

What are my rights? and what are their obligations?

I know I got to prepare myself to find the next tenant, but just like to minimise the loss...

please help.

Your rights are that you can take them to the TT and enforce the lease.

Hardly a workable solution.

Their obligations are to pay the rent until the end of the lease. Again, not easily satisfied.

My suggestion is that you talk to them (are they in the same city as you? Do you have the property managed?) and agree that they are responsible for the rent. Usually, outgoing tenants in this situation pay for all expenses incurred by the LL in reletting the property. Such as advertising, credit checks, down time etc.

Don't forget that you have the bond which you can claim against.

Keys.

[tricky]

Reality time.
Sometimes tenants do this. And get away with it.
Find another tenant - quick.
By all means try to extract extra money out of them to cover the time your property will be empty.
But don't sit around wringing your hands and quoting the law.

For what it's worth, you won't be quite so shocked the second time it happens. And by the third time, you'll be well practised and quite relaxed about it.
Selling up and getting out of real estate may have crossed your mind by now. But don't panic. Steady those nerves.

[artemis]

I don't do fixed term tenancies, on the basis that people need to live their lives and circs change.

Have had a couple of very short term tenancies but generally these are not a problem as my places are easy to let.

One tenancy didn't even start - a couple moving in together for the first time, and one got cold feet and ended the relationship. They paid a couple of weeks rent though.

Another couple moved out after 3 weeks. They had just arrived in NZ from the UK, worked locally and loved the place (flat and NZ). But they left to go back to the UK due to a family emergency (terminally ill family member).

A bit of extra hassle but I was not going to be the one putting the screws on for a few extra bucks in these circs.

[nfung]

Thanks guys

Keys: Am I entitled to get the bond fully recovered?

I am planning to reply to my tenant that although they are breaking the fixed-term which means it is not a good thing and we will suffer loss, but we repsect their decision etc etc. (politics stuff). Therefore "you cannot recover your bond in this situation"...etc.

maybe a bit too unfriendly?

Is it legal to say so to them?

How would you guys reply to your tenant in this situation, smoothly, so that everyone feels comfortable, even if not too happy?

[GJB68]

Have a look at Tricky's reply and heed what is being said.

The outcome here is how you are going to approach it.

When it happened to me the tennants offered to pay for the two months that they would have paid in rent (unusual I know) but I found another tennant and the original tennants paid for the week that it was empty so everyone was happy.

In this case explain to the tennants that they are liable until the end of the term and that they did sign up for the fixed term, which protects them from you selling it and gives you consistency (well supposedly anyway) incase they don't understand and that you want to sort it out in the quickest and most ammicable way for both parties.

As already discussed this won't be the last time this happens to you and you are fortunate they just didn't do a runner, which happens when people don't want to front the landlord.

Try and get another tennant ASAP or get them to get one which you agree with and there should be no need to get a bond refund etc.

If you get heavy handed it could all get messy and if they are going overseas you would want to get a nice resolution soon.

[Lynda]

Ditto, pretty much, to what everyone's said so far.

This has happened to me a few times, and never been a problem.

My philosophy is that as long as it doesn't cost me anything, it's acceptable.

So I always stress to the outgoing tenant that I am doing them a favour, and I'm prepared to release them from the contract with certain provisos. They pay for advertising, and any vacant period, and cover any reduction in rent for the remainder of the fixed term (all comes out of the bond).

In many cases, I end up being able to rent for more than the old tenant was paying - so that's a win for everyone. I also get the outgoing tenant to assist with showing people through - they'll make the place sound really good!

So far, I haven't had any of these situations end in a vacant flat. Once, I've had to put the rent down by $5 a week, but that is multiplied by the number of weeks left in the fixed term, and taken off the bond.

I don't think it's necessary to apply any punitive measures to the outgoing tenant (i.e. keeping the bond), so long as there has been no cost to me.

Hope that helps.

Cheers,
Lynda.

[SuperDad]

I am planning to reply to my tenant that although they are breaking the fixed-term which means it is not a good thing and we will suffer loss, but we repsect their decision etc etc. (politics stuff). Therefore "you cannot recover your bond in this situation"...etc.

maybe a bit too unfriendly?

Is it legal to say so to them?

Have you phoned tenancy services and discussed the situation with them?

Paul.

[Keys]

I don't think it's necessary to apply any punitive measures to the outgoing tenant (i.e. keeping the bond), so long as there has been no cost to me.

Hope that helps.

Cheers,
Lynda.

Punitive damages are not yours to charge. You could go to the TT for them but at what effort. However, as Lynda said ... as long as there is no cost to you then the bond is theirs BUT, If you incurr costs then the bond is there to claim against.

It'll happen often.

Just a thought for you. If you are a little worried about a prospective tenant then put them on a 6 week fixed term. If they pan out as good tenants nothing lost. If they are ratbags then you can boot them out after 6 weeks.

Keys

[Perry]

Brings up the matter of throwing good money after bad,
the effort involved and having a float big enough to cope
with adversity. Get another tenant ASAP and negotiate
the best deal you can with the soon-to-be defaulters.
More-or-less what others aver - prudent advice.

I've had the o'seas family death (parent) sceanrio akin
to Artemis' comment. I'd've been heartless to get down
to legal details. I said how sorry I was, wished them well
and just got on with the next application process. I suspect
many PTalkers would do the same. Whatver the cost was,
I've no idea, now, and it doesn't concern me one bit.
What goes round comes round. I hope

[sweetpea]

Lynda's approach sounds the best. You can't force them to stay and you can't recover money if they leave the country so your best option is to negotiate. Just sit down with them explain their legal obligations and come to an agreement. you might also suggest that they try to find the replacement tenant. they may know someone who is interested in renting.

good luck

i'm just coming out of my first fixed term tenancy that is going to be renewed (i hope). the last one the tenants had a change of circumstances (the daughter moved out so they couldn't afford rent as she was contributing) so they weren't able to renew. it happens LOL