Early termination of lease - implications & questions
Jul 13th 2008, 10:47 pm
#1
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Joined: Jul 2008
Posts: 4
Early termination of lease - implications & questions
I have a quick question. I'm a UK national working in Sydney right now on a work visa. For reasons I won't get into, it's become necessary for me to leave Australia sometime next month, and I don't ever plan on returning.
My lease isn't up till November. If I early-terminate it, the landlord has the right to charge me:
1. Rent until it's been re-leased.
2. 2 weeks "letting fee"
3. Cost of re-advertising
What are my options? What the worst that can happen to me if I leave, close my bank accounts, return the keys, other than I forfeit my bond? Basically, I posted 4 weeks bond, so if it takes > 2 weeks to re-let, I've already forfeitted my entire bond.
My lease isn't up till November. If I early-terminate it, the landlord has the right to charge me:
1. Rent until it's been re-leased.
2. 2 weeks "letting fee"
3. Cost of re-advertising
What are my options? What the worst that can happen to me if I leave, close my bank accounts, return the keys, other than I forfeit my bond? Basically, I posted 4 weeks bond, so if it takes > 2 weeks to re-let, I've already forfeitted my entire bond.
Jul 14th 2008, 1:44 am
#2
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Joined: Jul 2008
Location: Central Queensland
Posts: 16
Re: Early termination of lease - implications & questions
Well, if the place is re-let quickly and all costs (rent, cleaning, advertising, letting fee) are covered by the bond then there is no issue.
However if you end up owing money it depends on the tenacity of the property manager, they can put you down on a tenant default database which will only be a problem for you if you come back. Or they can track you down back to the U.K. - I have managed to track down defaulting tenants to the UK much to their embarrassment as I generally find them through their friends or past employers.
The two weeks letting fee certainly does not sound correct you would be best to check on that, I think it might be more around the half a weeks rent, I think the agent might be trying that on. Another option is for you to find a tenant yourself keeping in mind that the landlord/agents has final approval.
Hope that has helped you a bit.
However if you end up owing money it depends on the tenacity of the property manager, they can put you down on a tenant default database which will only be a problem for you if you come back. Or they can track you down back to the U.K. - I have managed to track down defaulting tenants to the UK much to their embarrassment as I generally find them through their friends or past employers.
The two weeks letting fee certainly does not sound correct you would be best to check on that, I think it might be more around the half a weeks rent, I think the agent might be trying that on. Another option is for you to find a tenant yourself keeping in mind that the landlord/agents has final approval.
Hope that has helped you a bit.
Jul 14th 2008, 2:16 am
#3
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Joined: Jul 2008
Posts: 4
Re: Early termination of lease - implications & questions
All right. I'm afraid my place won't re-let quickly. This part of Sydney has been in a bit of a slump lately. Besides, I have high doubts that my landlord will be reasonable - she's a property investor who is based in Indonesia and leased it out with an agency.
Let's say I go back to the UK and don't ever, as in ever, plan to return to Oz. My employer certainly won't give them my whereabouts, but if they do track me down (again, unlikely), what can they do? Sue me in UK courts? I thought once they claim the bond, the issue's resolved...
Basically:
2 weeks letting fee + advertising cost + 2 weeks rent > cost of bond since my bond is 4 weeks
Sounds like simple math to me... just don't want to be hit with a lawsuit if I ever decide to holiday in Oz in the future.
When should I give notice to vacate? The morning I leave? After I close my bank accounts? When?
Thanks!
Let's say I go back to the UK and don't ever, as in ever, plan to return to Oz. My employer certainly won't give them my whereabouts, but if they do track me down (again, unlikely), what can they do? Sue me in UK courts? I thought once they claim the bond, the issue's resolved...
Basically:
2 weeks letting fee + advertising cost + 2 weeks rent > cost of bond since my bond is 4 weeks
Sounds like simple math to me... just don't want to be hit with a lawsuit if I ever decide to holiday in Oz in the future.
When should I give notice to vacate? The morning I leave? After I close my bank accounts? When?
Thanks!
Jul 14th 2008, 2:22 am
#4
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Joined: Sep 2004
Location: Hampton, Victoria
Posts: 1,381
Re: Early termination of lease - implications & questions
Anyway, you might want to have a look at this current thread too
http://britishexpats.com/forum/showthread.php?t=548247
Al
Last edited by bigAPE; Jul 14th 2008 at 2:27 am.
Jul 14th 2008, 2:26 am
#5
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Re: Early termination of lease - implications & questions
Haha! No offence taken.
I read that thread... Hence my concern. Just thinking about the best way to strategically do this -- and not get stuffed like that poor couple. Basically, close bank accounts, claim superannuation, cancel credit card, sell furniture, etc. Be packed, give notice shortly before departure. Hand over keys, "sorry, got laid off, being deported now, bye"? If it takes more than 2 weeks to let my place, I will have already forfeitted the full amount of my rent. If I am going back to the UK permanently, what can they do to me?
I read that thread... Hence my concern. Just thinking about the best way to strategically do this -- and not get stuffed like that poor couple. Basically, close bank accounts, claim superannuation, cancel credit card, sell furniture, etc. Be packed, give notice shortly before departure. Hand over keys, "sorry, got laid off, being deported now, bye"? If it takes more than 2 weeks to let my place, I will have already forfeitted the full amount of my rent. If I am going back to the UK permanently, what can they do to me?
Jul 14th 2008, 2:29 am
#6
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Joined: Sep 2004
Location: Hampton, Victoria
Posts: 1,381
Re: Early termination of lease - implications & questions
Haha! No offence taken.
I read that thread... Hence my concern. Just thinking about the best way to strategically do this -- and not get stuffed like that poor couple. Basically, close bank accounts, claim superannuation, cancel credit card, sell furniture, etc. Be packed, give notice shortly before departure. Hand over keys, "sorry, got laid off, being deported now, bye"? If it takes more than 2 weeks to let my place, I will have already forfeitted the full amount of my rent. If I am going back to the UK permanently, what can they do to me?
I read that thread... Hence my concern. Just thinking about the best way to strategically do this -- and not get stuffed like that poor couple. Basically, close bank accounts, claim superannuation, cancel credit card, sell furniture, etc. Be packed, give notice shortly before departure. Hand over keys, "sorry, got laid off, being deported now, bye"? If it takes more than 2 weeks to let my place, I will have already forfeitted the full amount of my rent. If I am going back to the UK permanently, what can they do to me?
Jul 14th 2008, 2:33 am
#7
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Re: Early termination of lease - implications & questions
I understand. Believe me, it's not how I want to go out. This rental accommodation hasn't been ideal either: for example, my landlady rented me a place without a phone jack, and when I asked her to get one installed, she 1) refused to pay for its installation, and 2) said if I paid to get a phone line installed (out of pocket, no reimbursement or one-time reduction of rent), I had to post an additional bond against damage to the premises.
Oh and all this was processed through several layers of interpreters.
I ended up using my mobile and getting a cable modem instead of DSL.
Oh and all this was processed through several layers of interpreters.
I ended up using my mobile and getting a cable modem instead of DSL.
Last edited by Departee2008; Jul 14th 2008 at 2:42 am.
Jul 14th 2008, 2:53 am
#8
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Joined: Jul 2008
Location: Central Queensland
Posts: 16
Re: Early termination of lease - implications & questions
Yes I must admit that I eventually was definately not keen to promote an UK applicant when I had others due to the default situation.
If you are going to do a runner, make sure the place is really clean, carpets shampooed etc. Get a bond release form and sign it over - I think maybe you can download it from the Govt. website. Drop all the keys off at the office, with your bond release form in an envelope with a letter stating you are leaving the country due to family reasons. Just leave it on reception desk or under the door.
Otherwise it takes a few weeks for the landlord to get the bond whereas its a few days if they have the signed form. Also not dropping off keys causes delays which is not helpful when the agent will be trying to mitigate the landlords loss.
Whether they take it any further is their call.
If you are going to do a runner, make sure the place is really clean, carpets shampooed etc. Get a bond release form and sign it over - I think maybe you can download it from the Govt. website. Drop all the keys off at the office, with your bond release form in an envelope with a letter stating you are leaving the country due to family reasons. Just leave it on reception desk or under the door.
Otherwise it takes a few weeks for the landlord to get the bond whereas its a few days if they have the signed form. Also not dropping off keys causes delays which is not helpful when the agent will be trying to mitigate the landlords loss.
Whether they take it any further is their call.
Jul 14th 2008, 3:44 am
#9
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Joined: Jun 2006
Posts: 106
Re: Early termination of lease - implications & questions
Personally I would act responsibly, give them the appropriate notice and explain your situation, play along with you know you are leaving early and the contract is for a year but have the place cleaned etc and hand over the keys with a signed bond release form. The less dramatic you make things the easier it will be all round. Of course they can come after you seeking compensation, but as previous posters have said is it really going to be worth their effort if you are in the UK.
Jul 14th 2008, 3:57 am
#10
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Location: Sydney, Australia, but home to EU in 2009 for good!
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Re: Early termination of lease - implications & questions
Nothing will happen to you! Worst is you will lose your bond.
While Australia has extradition treaties with the UK, it’s NOT for lease or debts (heck, it’s even a hassle to try get a murderer back).
Heck, non payment of rent can’t even affect your credit rating here in Australia.
Just be nice and do the decent thing, give notice, make sure the place is clean, let them keep the bond and that’s it.
Your here on a working Visa – ie: a Backpacker, the landlord was probably expecting this anyway. Lol
Mikey
Oh and PS: as for that tenant database, I wouldn’t stress about it. Most don’t put people on it, then most agents don’t actually check it, and then there are different databases.
One of my mates moves every 3 months because he gets evicted and put on the “database” he still has no problem getting a new place.
While Australia has extradition treaties with the UK, it’s NOT for lease or debts (heck, it’s even a hassle to try get a murderer back).
Heck, non payment of rent can’t even affect your credit rating here in Australia.
Just be nice and do the decent thing, give notice, make sure the place is clean, let them keep the bond and that’s it.
Your here on a working Visa – ie: a Backpacker, the landlord was probably expecting this anyway. Lol
Mikey
Oh and PS: as for that tenant database, I wouldn’t stress about it. Most don’t put people on it, then most agents don’t actually check it, and then there are different databases.
One of my mates moves every 3 months because he gets evicted and put on the “database” he still has no problem getting a new place.
Last edited by Mikeyc; Jul 14th 2008 at 3:59 am.
Jul 14th 2008, 4:15 am
#11
Forum Regular
Joined: Apr 2007
Location: Lake Macquarie
Posts: 83
Re: Early termination of lease - implications & questions
I have a quick question. I'm a UK national working in Sydney right now on a work visa. For reasons I won't get into, it's become necessary for me to leave Australia sometime next month, and I don't ever plan on returning.
My lease isn't up till November. If I early-terminate it, the landlord has the right to charge me:
1. Rent until it's been re-leased.
2. 2 weeks "letting fee"
3. Cost of re-advertising
What are my options? What the worst that can happen to me if I leave, close my bank accounts, return the keys, other than I forfeit my bond? Basically, I posted 4 weeks bond, so if it takes > 2 weeks to re-let, I've already forfeitted my entire bond.
My lease isn't up till November. If I early-terminate it, the landlord has the right to charge me:
1. Rent until it's been re-leased.
2. 2 weeks "letting fee"
3. Cost of re-advertising
What are my options? What the worst that can happen to me if I leave, close my bank accounts, return the keys, other than I forfeit my bond? Basically, I posted 4 weeks bond, so if it takes > 2 weeks to re-let, I've already forfeitted my entire bond.
Jul 14th 2008, 8:23 am
#13
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Joined: Jun 2008
Location: Sydney, Australia, but home to EU in 2009 for good!
Posts: 514
Re: Early termination of lease - implications & questions
Oh, he's just one of those "mates" I can't stand, you know the type? lol. How he manages to get a new lease all the time I have no idea, but obviously the datebase does'nt do the job it's supposed to.
Mikey
Mikey
Jul 14th 2008, 8:48 am
#15
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Location: where else but Queensland
Posts: 474
Re: Early termination of lease - implications & questions
How about this: Let them know right now that you will leave sometime next month due to circumstances outside your control. Tell them you'll be helpful with showing the place to new tenants, and negotiate a deal. If they don't offer any deal they're pricks! Leave the place nice and tidy, and leave them with the bond. That way they've had 2 months or so before they lose any money, and should easily be able to find a new tenant. Unless they overcharge or the place is a dump, neither of which are your problems.
