While most end of leases finish on good terms, some can be an absolute nightmare for everyone involved.
It’s not unusual to see disagreements and disputes end up before tribunals costing everyone time, effort, energy and money which could have all been avoided.
At the end of a lease, tenants should comply with both yours and the agent’s reasonable requests to vacate the property in the same condition as when they first moved in.
This includes tenants giving the property a full and thorough clean (including fitted items, objects and appliances that were included with the property) and removing any items that weren’t originally at the property when they first moved in.
It’s important to note that tenants can leave the property in a state of general, fair wear and tear that is consistent with the time they spent in the house.
However, where possible, the vacating tenants should make a fair and reasonable attempt to get the property back to a similar condition as when they first moved in.
If the vacating tenants leave the property in a clean, tidy and presentable condition and in a way that is consistent with the requirements of the tenancy agreement, then there should be minimal to no reasons to claim money from the bond.
The bulk of all disputes usually revolve around bond claims by the agent / landlord for either reasonable or unreasonable claims.
While the type of unreasonable requests some agents / landlords can make is limitless, some reasonable bond requests may involve things like;
Unpaid rent, bills (outstanding bills owing), fees (relevant fees like break lease fees if applicable) and charges (repairing or replacing locks, damaged fittings or fixtures) that tenants are responsible for paying
Removing or taking fittings or fixtures that belong to the property
Not leaving the property in a reasonably clean state
The above list is non-exhaustive and could include many other factors that cause for a reasonable and legitimate claim against the tenants bond.
Also note that if you are claiming against the tenants bond, the tenants are within their rights to dispute the bond claim. If an agreement isn’t reached between either parties, the matter will be heard by the tribunal for a third party to ultimately decide.
Another important note to remember is that if, for whatever reason, tenants want or need to vacate before their lease is up, they do have the option to break the lease.
Depending on their situation and the reasons for why they’re breaking the lease, they could be up for additional break lease fees.
For example, in NSW, if the fixed term of the leasing agreement is for three years or less than;
Six weeks rent will be charged if the tenant moves out during the first half of the fixed term
Four weeks rent will be charged if the tenant moves out during the second half of the fixed term
For leases longer than three years, a break lease fee can be negotiated and agreed to by you, the landlord, or agent on your behalf, and the tenant and be written into the agreement.
If the tenant does need to break the lease early, it’s best to hear them out and try to co-operate as much as you can with them to make for an easier, smoother process for everyone.
While the tenant looks for a new home or already has one to move into, both you and the agent now need to look for someone new to lease the property.
In this situation, if everyone works together, everyone will benefit.
For example, if the old tenant agrees to stay until you’ve found a new tenant to move in, co-ordinating an efficient moving process for both the old and new tenants may help to avoid, or at least minimise, a loss of rental income for you.
Or if the tenant gets the property in a presentable condition and assists with releasing the property by allowing rental inspections while they’re still living there, will also benefit everyone.
Better yet, the tenant may know someone who would like to move in.
Any of these situations could help to have a new tenant in place sooner, meaning that you’ve lost little or no money in the process, the old tenant gets all or most of their bond back and both parties end the lease in a win-win situation.
Finally, it’s important to note that there are limited circumstances where a lease can be broken without penalty, provided that the tenant gives at least 14 days’ notice and the tenant;
Has accepted an offer of social housing from Housing NSW
Is going into an aged care facility or a nursing home (not a retirement village)
Or if you put the property up for sale and the tenant was not told prior to them signing the lease that the property would be sold
Tenants can also give 21 days’ written notice to end an agreement early if;
They have a fixed term agreement of more than two years and they have been given a rent increase notice or;
Their co-tenant passes away
Leases can also be broken without penalty if both you and the tenant mutually agree.
Another reason leases can be broken is if tenants need to escape the property due to domestic violence.
If a tenant is experiencing domestic violence, they can provide a domestic violence termination notice attached with any one of the following forms to the managing agent or landlord.
Certificate of conviction for the domestic violence offence
Family law injunction
Provisional, interim or final domestic violence order
Declaration made by a medical practitioner in the prescribed form
The tenant will also need to give each co-tenant a domestic violence termination notice but does not need to attach any supporting evidence. None of these need to be given in person.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
