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

 

Decluttering before Christmas: tips for managing the toy influx

Deciding how many toys you want to keep and enforcing a limit can help manage the sheer volume of playthings.

86-year-old taught himself to knit, now makes caps for premature babies

'Anything is possible if you put your mind to it' might just be the motto of 86 year-old retiree, Ed Moseley who despite his age and abilities has been gifting handmade knitted caps to premature babies.

Want healthy kids? Let them play in the mud, feed them allergenic foods - and get a dog

If you read about children's health, you've heard a lot of this before.

Photo captures mum's shock at delivery room surprise

Life can be full of surprises, but for this couple a surprise came in a very unexpected way.

Baby's family in law suit over RAAF base chemicals

A 10-month-old baby has been exposed to significant levels of toxic chemicals around a RAAF base near Newcastle, say his parents.

Childcare worker investigated after threatening toddler's mother

An early childhood teacher has been censured for serious misconduct after she threatened the mother of a young child.

Scottish baby names

Scotland, the wind and water-hewn land of the loch, the kilt and the heather. Bedecked in castles great and small, there are many Australians with Scottish heritage who could look to that fair country for baby name inspiration.

Do we need more parking spaces for parents?

The Give Me Space campaign is collecting stories from mums who have had difficult experiences while trying to find safe parking.

Gender neutral parenting: what it's really like

If you want to take a leaf out of Clare's book in gender neutral parenting, her advice is simple: "Follow the children's lead, and you can't go wrong."

The vital question no parent wants to think about

Since becoming a mother I sometimes wonder what would happen to my babies if their dad and I both died.

6 parents to stop judging right now

It's worth looking a little more closely at some common parenting missteps. Could it be these mums and dads are really just like you and me?

Ryan Reynolds shares delivery room tips for expectant dads

If your partner is heading to the delivery room any time soon, you've got to see Ryan Reynolds' video on dealing with the intricacies of the delivery room.

The trials and tribulations of teenage mums, 10 years later

Having her first baby at 16 was a shock for Simone Miller, but it's not something she regrets.

Grandma falls head over heels for baby - literally

Usually Valerie Sharp's plan to put her granddaughter into her cot works just fine, but when things go wrong it is hilarious.

My toddler wants all my attention all of the time - help!

This is a stage, and you and she will move through it. I can (almost) promise it.

Cotton On KIDS' cute new baby prewalker shoes

Oh watch out folks, Cotton On KIDS' baby range has just become even cuter with the release of its first ever prewalker shoe collection.

Why I love the superhero phase

My twins are heading towards three and have officially entered the superhero phase. It happened almost overnight.

I'm caught in a 'mumpetition' with my friend and I'm losing it

My best friend and I had children within a year of each other. She thinks her child is God's gift to the world.

A year of motherhood: my survival story

Motherhood burns you down, but it rebuilds you too.

Five traps to be aware of when reading IVF clinic websites

Clinics provide IVF success rates in often confusing ways because there is no agreed format on how this information should be presented.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

What pregnancy is really like: mums share their honest opinions

We asked real women what surprised them during their pregnancy. They've shared their experiences in the hope of preparing the rest of us better for the ride

The truth about big-headed babies

Research suggests that big headed babies become more intelligent than their smaller peers. One mum shares the positives and negatives of having a big headed baby.

How to encourage your baby's gross motor development skills

There are some everyday things that parents can do to improve gross motor skills and coordination.

'My baby's extra thumb saved her life'

A mum whose daughter was born with an extra thumb says that the extra digit saved her life.

He gave her his liver, she gave him her heart

Heather Krueger and Chris Dempsey's origin story began in a darker place than most: with stage 4 liver cancer.

Toilet training from birth? It is possible

This method, called elimination communication (EC or assisted infant toilet training), is becoming increasingly popular in the West.

Watch hilarious montage of strangest pregnancy questions on Yahoo Answers

Some of the strangest questions about pregnancy - and some of the most bizarre spelling - have made for a hilarious video.

How to reduce your chances of perineal tearing in birth

The use of heat packs, along with other aspects of clinical care, can reduce your risk of tearing in birth.

 

Baby Names

Unusual Celeb Baby Names

Click through the gallery to read the details and see some of the most memorable monikers in show biz families.

 
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.