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...




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

A mum's tragic battle against inflammatory breast cancer

At just 37 years of age, with two young sons, Vicki was diagnosed with inflammatory breast cancer. Now her family wants all women to know the symptoms.

The business of babies around the world

Pregnancy and birth is an intriguing process no matter where you are in the world. One soon-to-be father gleans wisdom from a new guide.

Finding a positive path through IVF

It’s not surprising that IVF is often seen as a negative journey towards the ultimate positive, but having a glass-half-full approach can make a big difference to the experience.

Giving strangers the gift of parenthood

A mum explains why she and her husband are choosing to gift their leftover embryos to help strangers achieve their dream of parenthood.

Does morning sickness get better or worse with each child?

Just as every baby is unique, so is every pregnancy. And that means morning sickness can vary a lot, too.

What's so wrong with looking 'mumsy', anyway?

Why is it that the word ‘mumsy’ has connotations of such a negative nature – but seems to be the only other option apart from ‘yummy’?

Trying to speed up the inevitable

As the waiting game of late pregnancy continues, this mum considers a few things that might hurry things up a little.

One month later: where is William Tyrell?

It has been a little over a month since William Tyrell disappeared from his grandmother's home, 33 long sleepless nights for his family as they mourn the absence of their cheeky young boy.

Winter's child less likely to be moody: study

Babies born in the summer are much more likely to suffer from mood swings when they grow up, while those born in the winter are less likely to become irritable adults, scientists claim.

Single mum of two creates award-winning baby app

Suddenly single with a baby and an 11-year-old son, Tara O?Connell developed an app to improve the lives of mothers who were similarly overwhelmed.

Food for thought: looking after yourself as a new mum

As soon as your baby enters the world, everything else takes a back seat - even the necessities of daily life such as eating are severely compromised, right when you need energy the most.

'Grabbable guts' campaign aims to cut toxic fat

The Live Lighter campaign will take people inside the human body to show the internal dangers of being overweight.

The best and worst month of my life

A new mum's first month of motherhood didn't pan out as expected when she lost a family member weeks after her baby's birth.

Facebook and Apple offer to pay female staff to freeze their eggs

Facebook and Apple are hoping to provide women with the freedom to build their careers without the added pressure of having children at or by a certain age.

How a pregnancy contract could work for you and your partner

The idea of making a 'pregnancy contract' with your partner may sound a bit silly at first, but it can help make the transition to parenthood a lot smoother.

Finding a mum-friendly personal trainer

Burping babies vs burpees – yes, new mums and personal trainers live in different worlds. But they can work together - once you find the right match for you and your lifestyle.

Alleged baby snatch incident a ?misunderstanding?, say police

Police say that an incident in which a man pulled on a woman?s pram while walking a popular Sydney route late last month was a misunderstanding.

Ebola killed my aunt and is shutting down my country

Three weeks ago, my auntie, a midwife, developed a fever. Sitting here in Sydney basked in Australian sunshine, that shouldn't be big news.

The night my ovary burst

One mum shares her frightening experience and vows to never take her health for granted again.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win 1 of 5 Canon Powershot D30 cameras

Capture life more easily with the Canon Powershot D30. Shockproof, waterproof and dustproof, you can take it almost anywhere and shoot beautiful images, time after time. Enter now!

16 parenting truths you won't find in the baby books

I am five years into this parenting gig and I’ve learnt that sleepless nights and changing dirty nappies are child’s play.

Best and worst potty party cakes

It's nice to celebrate a child making the shift from nappies to 'big kid' undies, but do we really need a semi-realistic used toilet cake to do it? Here are some of the best and worst cakes parents have used at 'potty parties' around the world.

7 tips for a financially festive Christmas

Plan ahead - and do it now - to ensure festive season expenses don't break the bank.

'Go the F*** to Sleep' author's new book for frustrated parents

A sequel is coming soon to the 2011 hit book 'Go the F*** to Sleep' - and this time, it's about mealtimes.

Great birthday party buys from Etsy

Handmade crafts to decorate and personalise your child's next birthday - from banners to cake decorations, we've got gorgeous party finds from Etsy.

Creative storage ideas for the kids' rooms

Creative and practical storage ideas for the kids' toys and books can also add some stylish decor to your home. Visit babyology.com.au for more stylish modern finds for hip kids & parents.

The mum who never met her baby

There was one more thing Kymberlie Shepherd wanted to experience in life - motherhood. But a rare illness took her first.

To the mum in the doctor's waiting room

Maybe the mum I saw in that waiting room, seemingly disconnected from her baby, doesn’t have the support she needs.

10 space-saving nursery ideas

Starting a family doesn't always mean moving into a bigger house - not yet, anyway.

 

What's in a name?

Baby Names

Looking for a classic name, or an unusual name? Our Baby Name Finder is for you, search or browse to refine your shortlist.

 
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.