irnbru14

Have found a great lil pad in town and its on a one year lease, haven't signed anything yet, but what are the issues if I, for whatever reasons, decided that I wanted/needed to move out before the lease period was up??

Littletoe

You are not allowed to break a lease. A landlord may decide to release you under mitigating circumstances, but its doubtful. You can be liable for the entire year's rent. A fixed term agreement is binding, unless you have reason to break the lease because the landlord refuses to fix something important. My advice would be try to negotiate a six month's lease, where the last month isn't around xmas (the quietest time). Periodic leases (where you give 21 days notice) are hard to come by these days because landlords want security. Also be advised, that if you manage to secure only a six month's lease, the landlord/agency can look to review your rent at the end and increase it. Check the tenancy tribunal online for further information about your rights.

Littletoe

Just wanted to add, sometimes agencies and/or landlords would consider you breaking the lease for a reason like having to return home, etc. In which case you would be liable for all advertising costs and rent until a new lease begins (literally the day before). Some agents like this because they get another letting fee from tenants. But most agencies/landlords prefer not to have to follow that route because its time consuming. These leases are in place to protect the income of home owners AND tenants (landlords can't kick them out if they decide to sell). One year contracts are common here, so if you can't commit to a year, you're best not to commit at all. The tenancy game can be long and ugly if you try go against the grain. You'll have to trust me on that one!

irnbru14

Cool, thanks for that! Have verbally accepted the place on a year long lease, haven't signed anything as yet though, no problems with committing to a year really, just wondered what the etiquette was

Littletoe

No worries, if you need any other info, just drop me a PM. My first consult is free

turkeys

People must dip out of it by agreement though as we looked at a house where a family was doing just that having bought a place, they said. In the meantime of course they were paying rent on it, so the onus was on the tenants to get a family in....
...it wasn't us though, it was too near the main road and the local shop was a panel beaters

luvwelly

You can always be released if another tenant is found to take it over...they can't take your rent and the new tenant's rent.
I took over another family's lease and it is due for renewal now. I'd happily sign for the full length of our posting as don't want to move unnecessarily but know they will produce another 12 months only...seems the norm here whereas in my last EU country they were happy to tie you in for 2-3 years.

Littletoe

No.

The landlord/agency doesn't have to let you out. As I said before, the agent doesn't usually mind because they get another letting fee. Its in their best interests to let you as opposed to drag it out in court. But certainly the agreement is binding. I have seen people tied into leases, begging to be let out but no go. So never assume its OK that you'll be let out.

irnbru14

Would you get your bond back if you break a lease??

Maz

We wanted out of our 6-month lease. Bought a house 6 weeks into the lease. Had to find new tenants ourselves. Found one new tenant and the letting agency turned her down (looking back, I would have done the same with her circumstances). So had to advertise again. We had to be the contacts. We had problems finding new tenants as it was over the school summer holidays. Got stuck with overlapping 2 months rent and mortgage. Trademe to the rescue though! Just paid for 2 ads on it, did the photos, uploaded them, became the first contact for the place, showed it, gave application to prospective renters, and pretty much told them to fill it in and go to the letting agency, who would then make a decision.

Erm, not sure if that helps at all, but basically we found if you pay the money and take the time to find a new tenant, they're fine with it.

Littletoe

Erm, not sure if that helps at all, but basically we found if you pay the money and take the time to find a new tenant, they're fine with it. [/QUOTE]

No Maz, that's just your experience. Legally, you don't have to be freed from a contract. As I keep saying, its rather in the landlord's best interest for ease, but ultimately they'll make the final decision. Don't forget, if you go through an agency, the landlord still inccurs costs. So, again, never enter into a lease assuming you'll be OK to break it. A lease is legally binding, and when you sign, they anticipate you'll commit to the period of time. Anything other than that, the homeowner will ultimately decide.

Littletoe

A bond can never be held without due cause. Such as non payment of rent, or damage to the property. The bond is held with the department of building and housing. When an agent or property owner wants to claim some of the monies, they have to apply and both parties have to agree. Otherwise it goes to something similiar to a small claims courts. If your rent is completely up to date and the homeowner agrees to take on someone else to finish the remainder of the contract, a bond inspection will happen. Here the representative is checking to make sure you've left the property 'reasonably tidy' and there is no damage. No other deductions can be made. My advice would be, if ever someone is trying to take some of the bond money, fight it out. Unless you caused obvious negligent damage. The representative does need proof of the cost caused to the homeowner. Such as a receipt or quote. Its actually a very good system in NZ. If the person you rent from DOES NOT lodge your bond, they are breaking the law and will get a fine. So always make sure that when you pay a bond, you receive a letter from the bond agency confirming the amount.

Maz

That's why I said we found. Where did I state that's the law's position? I didn't.

Oh, and we asked before we went into the lease, what would happen if we wanted / needed to break it.