Jump to content

Lease Break Question - Victoria


  • Please log in to reply
10 replies to this topic

#1 namie

Posted 30 January 2013 - 01:20 PM

We are unable to continue to rent our current house. Our savings have finally dried up and we have registered with Centrelink. On the payments we are eligible for we simply cannot afford the rent of this house, so we have given the Real Estate agent 28 days notice of our intention to vacate.

The lease doesn't end until 27 Sept 2013 so we are breaking the lease. I knew we'd potentially be responsible for paying rent until a new tenant is found if no one moves in the day after we move out, but I've just been notified of the following and I wondered if this was standard:

'As you are currently on a fixed term lease until 23/09/2013 – there will be lease break fees payable.

These include:
Rent until a new tenant is found.
Pro rata letting fees
Advertising $110
For Lease board $77
NTD checks $13.39 each'


How much are Pro rata letting fees likely to be and what is an NTD check?

We've lived here for 2.5 years and I'm really upset about this. We don't want to move as it is. The rent has gone up $108 since we moved in (the first year was $2492, the second year was $2576, it's now $2600 a month). We simply don't have the money to pay the above-mentioned costs, so I've no idea what we're going to do. If someone would just give DP a job, we'd be fine, but he's really struggling to get work, and now we're being slugged with costs I haven't budgeted for.

If they're standard costs then I guess we just have to try to find the money from somewhere, but if anyone has any suggestions, I'm all ears.

Edited by namie, 30 January 2013 - 01:21 PM.


#2 elizabethany

Posted 30 January 2013 - 01:43 PM

From the Tenants Union Victoria Breaking a Lease

QUOTE
Hardship
If something unforeseen happens and it will cause you severe hardship to stay in the property until the end of the fixed term, you can apply to the Victorian Civil and Administrative Tribunal to reduce the period of your fixed term and allow you to end your tenancy. You should ask the Tribunal to hear your case as quickly as possible. You must continue to pay rent as usual, until the hearing has taken place. If you plan to apply for hardship, you must do so before you move out.

To claim hardship, you will have to prove to the Tribunal that:
> there has been an unforeseen change in your circumstances (eg you have lost your job) and you will suffer severe hardship if the tenancy continues; and
> the hardship you will suffer if the tenancy is not ended will be greater than the hardship of the landlord if the tenancy is ended.

You may still have to compensate the landlord
if you break your lease due to hardship. See
‘Costs’ below.


QUOTE
Costs
Breaking a lease on the grounds of hardship or by giving up possession can be costly. The landlord can claim compensation for any reasonable costs they have to pay as a result of you breaking the lease.
The costs you could be liable for include:
>a reletting fee (usually one or two weeks’ rent). This must be based on the fee that the agent charged the landlord so it is a good idea to ask for a copy of the invoice
>reasonable advertising costs
>rent until new tenants move in or until the end of the fixed term (whichever happens first)

What the landlord or agent may not tell you is that you only have to pay the reletting fee on a pro-rata basis, which means you only have to cover the fee for the remaining term of the lease. For example, if you leave 7 months into a 12-month tenancy agreement, there is only about 40% of the fixed term remaining so you only have to pay 40% of the reletting fee.

Managing the costs
If you want to break your lease, you should give as much notice as possible in writing (keep a copy of your letter). It is a good idea to state the exact date you will be leaving and that you want the landlord or agent to find a new tenant. The landlord is expected to take all reasonable steps to find a new tenant as quickly as possible. The more you can do to help find a new tenant (such as having the property available for inspection, or advertising the property yourself) the less you are likely to have to pay.

You should only pay rent up until the day that you vacate. Once the new tenants move in, you can then pay the landlord compensation for any lost rent.

You should make sure the landlord or agent are taking steps to relet the property after you give notice, and check the date that new tenants move in. The landlord has a duty to keep their loss to a minimum, so if they do anything to make it harder to find a new tenant (such as putting up the rent), or if they don’t make an effort to find a new tenant, you can argue that you should not have to pay them the full amount of compensation.

Check the Properties to Let section in the major newspapers and the Rental Listings available from the agent. If you have internet access, you can also check the agent’s website. If the property is not being advertised or is being advertised at a higher rent, keep this as evidence that the landlord has not tried to keep their loss to a minimum.

If you think the costs that your landlord is claiming are unreasonable, don’t agree to pay. The landlord will then have to make a claim against your bond or apply to the Victorian Civil and Administrative Tribunal for compensation. The landlord must give you notice of their claim and you will have a chance to present your side of the story to the Tribunal. See the Defending a compensation claim and Bonds fact sheets for more information.

For more information, phone the Tenants Union Advice Line on ☎ (03) 9416 2577.


I would seriously look into the hardship claim, it may be able to get you out of those costs.  Otherwise, you may need to ask them to take it out of your bond.  If your new rental is cheaper, there should be something left over that could help defray those costs.

Goodluck OP.

#3 solongsuckers

Posted 30 January 2013 - 01:44 PM

QUOTE (namie @ 30/01/2013, 02:20 PM) <{POST_SNAPBACK}>
We are unable to continue to rent our current house. Our savings have finally dried up and we have registered with Centrelink. On the payments we are eligible for we simply cannot afford the rent of this house, so we have given the Real Estate agent 28 days notice of our intention to vacate.

The lease doesn't end until 27 Sept 2013 so we are breaking the lease. I knew we'd potentially be responsible for paying rent until a new tenant is found if no one moves in the day after we move out, but I've just been notified of the following and I wondered if this was standard:

'As you are currently on a fixed term lease until 23/09/2013 – there will be lease break fees payable.

These include:
Rent until a new tenant is found.
Pro rata letting fees
Advertising $110
For Lease board $77
NTD checks $13.39 each'


How much are Pro rata letting fees likely to be and what is an NTD check?

We've lived here for 2.5 years and I'm really upset about this. We don't want to move as it is. The rent has gone up $108 since we moved in (the first year was $2492, the second year was $2576, it's now $2600 a month). We simply don't have the money to pay the above-mentioned costs, so I've no idea what we're going to do. If someone would just give DP a job, we'd be fine, but he's really struggling to get work, and now we're being slugged with costs I haven't budgeted for.

If they're standard costs then I guess we just have to try to find the money from somewhere, but if anyone has any suggestions, I'm all ears.


Yes it is standard. Letting fee is usually one week's rent, so a pro rata amount of that.


#4 solongsuckers

Posted 30 January 2013 - 01:46 PM

QUOTE (elizabethany @ 30/01/2013, 02:43 PM) <{POST_SNAPBACK}>
From the Tenants Union Victoria Breaking a Lease





I would seriously look into the hardship claim, it may be able to get you out of those costs.  Otherwise, you may need to ask them to take it out of your bond.  If your new rental is cheaper, there should be something left over that could help defray those costs.

Goodluck OP.


What you quoted said even if you claim hardship you may still have to pay those costs, so I'm not sure you can get out of it.


#5 namie

Posted 30 January 2013 - 02:04 PM

Thank you.

#6 MrsLexiK

Posted 30 January 2013 - 02:11 PM

As others have said it is standard but look at a hardship claim.  Goodluck I hope your DP gets offered a job soon.

#7 elizabethany

Posted 30 January 2013 - 02:11 PM

It is up to the tribunal whether you do or not.  If you don't claim it, you will pay.

#8 lynneyours

Posted 30 January 2013 - 03:30 PM

What kind of work is he looking for?  EB should have plenty of leads for him.

#9 namie

Posted 30 January 2013 - 03:51 PM

He's a software developer/computer programmer.

Predominantly in .Net but he knows a little Ruby (amongst other languages) and is certainly willing to learn on the job if required.

He's been out of work for over 9 months now since his last contract ended, and the longer it goes on, the more of a stumbling block it is unfortunately. We were looking at Plan B, which was for him to go to Uni, but we just keep getting financial hurdle on financial hurdle. Just as I get the budget sorted and on track something else pops up to derail us *sigh*

We both know there will be an end to this eventually, it's just hard waiting to get there and doing everything we possibly can in the mean time.

Edited by namie, 30 January 2013 - 03:51 PM.


#10 FeRaL n ScReWeD

Posted 30 January 2013 - 03:57 PM

Could you find someone to take over the lease? My cousin got someone else approved by the realestate to take over!
No penalties payed.


#11 MrsDamonSalvatore

Posted 30 January 2013 - 04:05 PM

I agree with sarah,if you can find someone to take over the lease it will save a lot of $$ for you. Advertise on all homes or gumtree, you shouldn't find it hard to find someone...




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

The popular baby name from the Rio Olympics

"With a pair of athletes who are not only successful, but seen as great role models – combined with a softer sound – it is like hitting the jackpot."

Toy stuck in baby's throat for two weeks

When Jude Atiga's baby son Laith was struggling to breathe the worried mum called an ambulance.

Mum awarded $20 million over birth power struggle with nurses

As a mother of three, Caroline Malatesta thought she knew what she was letting herself in for when it came to the birth of her fourth baby.

'There's a giant picture of BOOBS but I can not feed my child'

A mum was ushered out of an US department store's underwear section after discreetly breastfeeding her baby.

Why fatherhood scares many dads-to-be

Travis Bull vividly remembers discovering his partner was pregnant for the first time.

Free ticket offer

Pinky Mckay joins us again at the Essential Baby & Toddler Show presented by Blackmores with her expert baby settling advice. Register now for your free ticket.

Warning for pregnant women as flu-related deaths triple

A more than three-fold increase in flu-related deaths has sparked a plea for those with the flu to stay away from vulnerable people.

I'm trying to keep my child-free friends in my life, but it's tough

I tried to prove to my single friends that I was the same I'd always been. But marriage did change me - and motherhood has, too

For the festival lover in all of us

Pre-book & Save 50%. Get your tickets now for Kidtopia Festival. 7-9 October 2016 Parramatta Park, Sydney.

Too many parents still putting babies in unsafe bedding: study

A study found that a whopping 91 per cent of four-week-old babies had been placed in cots with unsafe bedding.

Mum's shock as toddler fat-shamed by internet trolls

When a mother uploaded a cute photograph of her 14-month old child online, she did not expect a swarm of internet trolls to write that her toddler was fat.

How an Aldi staff member made one exhausted mum's day

It was a simple act of kindness, but one that made an exhausted mother's day.

The most awww-worthy celeb baby pics of the week

It's been a pretty cute week on Instagram in terms of celebs relishing their babies.

When 'Just Do It' just doesn't cut it

When even Michelle Bridges admits to struggling with her exercise regime, it's time to accept that having small children can be a legitimate reason for exercise not happening.

What life is really like when you have five kids

Life is cute with one, manageable with three, but at times completely impossible with five.

When no one can pronounce your baby's name

In Wales it's a common name, but over here, it's cause for some confusion.

Dad shares horror tale after Roomba's run-in with dog poop

It's the poop story that's been shared hundreds of thousands of times around the world.

How a homemade wheelchair is giving baby Evelyn freedom

Like all one-year-olds, Evelyn Moore is keen to get moving and explore the world around her. But a battle with aggressive cancer left the little girl paralysed from the waist down.

Single to double pram that folds with seat attached

A pram is a large purchase, and you only want to buy once.

Mum-to-be surprises husband with big news in joy-filled photoshoot

When Bri Dow learnt that she was expecting, she immediately knew she wanted to break the news to her husband Brandon in a special way.

Blake Lively: 'Post-pregnancy slim down pressure is so unfair'

Blake Lively has urged women not to feel pressured to lose weight after pregnancy.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

For the festival lover in all of us

Pre-book & Save 50%. Get your tickets now for Kidtopia Festival. 7-9 October 2016 Parramatta Park, Sydney.

Why drinking water can be deadly for babies

H2O is one of the necessities of life, but for babies a seemingly harmless amount of water can be fatal.

5 ways having a baby is different when you have older children

So much parenting advice is geared towards having your first baby, but what's it like having a baby when you already have children?

You can now make your own plush Falkor

Fans of The NeverEnding Story – of which there are certainly plenty – went crazy for these plush Falkors when they first went on sale last year.

Baby steps

10 things that will actually happen after having a baby

I thought I had prepared myself for motherhood. Then my baby girl arrived and knocked everything flat.

Having a baby: expectations vs reality

People love to warn you about what to expect when having a baby, but they can be way off when it comes to the reality.

Are we having fun yet? Thinking positively as a parent

Motherhood is wonderful ... except when it sucks.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

When breastfeeding doesn't go with the flow

Breast is best, except when it's not. And in our case, it most definitely wasn't.

'If you don't vaccinate your kids you're a bloody idiot'

The photos are heartbreaking and almost too difficult to look at, but Kayley Burke is begging other parents to take notice.

Why pregnant women should eat chocolate

In news that will make expectant mums jump for joy - and reach for a block of Cadbury - scientists have revealed chocolate could provide health benefits during pregnancy.

The baby born with an incredible head of hair

If you're in any way challenged in the follicle department, prepare to feel a jolt of envy - at a two-month-old baby.

The push for Medicare to fund lactation consultants

While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.

Parents, this is how to cut grapes to avoid choking

One mum has learnt a harrowing lesson about the best way to cut grapes to make it safe for toddlers and little kids to eat.

Three truths about C-section mums

Lately I've been thinking about the caesarean stories and the brave women who birth their children with strength and beauty.

Help! My baby will only sleep in my arms

It's stressful to be the one who is holding your baby most of the day, but it's even more stressful to wonder, 'am I doing something wrong? Or am I creating bad habits?'

 

SYDNEY SHOW - 23-25 Sept

Essential Baby & Toddler Show - Sydney

The Essential Baby & Toddler Show, presented by Blackmores, will be held in Sydney on 23-25 September. Register for your free ticket now to save $20!

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.