Ending Fixed Term Lease - Agent Insists I Pay Break Fee - [NSW]

Ljawwns on 23/08/2017 - 00:02
Last edited 23/08/2017 - 11:15 by 1 other user

Hi all

I am on a fixed term lease, which finishes on the first of November. I have to move a different address because of a new job and I am planning to break the lease agreement as of 6 September. When I did some research, I found that I have two options: give 4 weeks rent as termination fee or pay all the expenses until a new tenant is found. However, when I talked to the agent, she told me that I have to pay 4 weeks rent. When I asked her about paying the rent until a new tenant is found, she just said "no, you have to pay 4 weeks rent".

What do you suggest me to do? Considering the agent's attitude, she will not be trying hard to find a new tenant if I force the other option, which might get me to pay more than 4 weeks rent. I live in close to beach within Sydney, and I think (with some doubts) my unit can be rented easily. Regarding my previous contacts with the agent, I can say that she has been indifferent to problems in the unit (the windows and the walls were expected to be painted, but nothing has been done). To be honest, let alone paying the fee, I do not want agent to gain any extra money (I do not know whether she gets any percentage from the termination fee) as I do not think she deserves any.

Should I just pay 4 weeks rent and go on? or can you suggest me another way?

Thanks

Home & Garden

Comments

  • tomclancy on 23/08/2017 - 00:32
    +2

    I found that I have two options: give 4 weeks rent as termination fee or…

    when I talked to the agent, she told me that I have to pay 4 weeks rent

    she just said "no, you have to pay 4 weeks rent"

    Then…

    Should I just pay 4 weeks rent?

    LOL

    Seriously though, I'm assuming you've read your lease agreement, what did it say? It's all spelled out in there

    • jawwns on 23/08/2017 - 10:36

      I have read the contract, and it mentioned to pay 4 weeks rent in there, though I did not read in detail. However, I read at fairtrading website that the other option is also available. So is the other option, paying all the expenses until a new tenant is found, a standard regulation for all tenants or is it about landlord's or agent's decision?

  • PJC on 23/08/2017 - 00:46
    +1

    Considering the agent's attitude, she will not be trying hard to find a new tenant if I force the other option

    Pay the 4 weeks' rent or travel further to work until 1st November.

  • garetz on 23/08/2017 - 00:50

    Do you have a friend who would take on the lease till its finished ? Maybe find someone to sublease it. Anyway its not their choice which option you take, its your choice.

    • jawwns on 23/08/2017 - 10:37

      I will try to find a friend. I hope I can find, but it seems that the process will push me pay the fee

      • foxmulder on 23/08/2017 - 11:14

        Gum tree the place and you may even ask for higher rent if you have multiple rooms to cover the risk. Ask for bond money too.

        • citygal on 24/08/2017 - 02:57

          No - this is sub-letting and it's illegal in NSW unless the owner has consent about the sub-let. But given the agent won't wanna bother, I doubt he will allow the sub-let.

  • whooah1979 on 23/08/2017 - 06:39

    op, you have rights and so does the landlord.
    http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owner…

    • jawwns on 23/08/2017 - 11:05

      I know we both have rights, but I am just irritated by the agent's attitude and I want to learn my options and take your comments.

  • o53djz7qTPY4der on 23/08/2017 - 07:08
    +2

    Your lease will outline your obligations. If the RE is saying 4 weeks, pay 4 weeks. If you push the other direction there's nothing to stop them dragging out a new tenant.

    • jawwns on 23/08/2017 - 10:41

      That seems to be unfair. In an info sheet that they gave me it says that the agent should try to do the best to find a new tenant and to minimize the costs. However, I guess they would not care the hardship I will face.

      • o53djz7qTPY4der on 23/08/2017 - 11:57

        Other than their legal obligations what incentive do they have to find a new tenant if you are paying rent? You are not their customer - the LL is.

  • JimmyF on 23/08/2017 - 10:17
    +2

    Should I just pay 4 weeks rent and go on? or can you suggest me another way?

    Well as you have said, your choices are

    I found that I have two options: give 4 weeks rent as termination fee or pay all the expenses until a new tenant is found

    So do you want to pay 4 weeks rent and be done with it, or pay rent and all expenses until a new tenant is found, this could be up till your 'lease' expires. (hint expenses means lost rent, and advertising costs to etc)

    So OP, which one do you think will be cheaper!?

    • jawwns on 23/08/2017 - 10:31

      I am not sure, but I think waiting for a new tenant seems to be risky and troublesome, especially considering slow process of renting and short time that I have. However, regarding the area of the unit and the rent price, it might be easy to find a new tenant.
      I will most probably have to pay 4 weeks rent, at the same time trying to find a friend who might need a temporary accomodation during that time period.
      Is there any necessary specific time (like 14 days before vacating the premises) to give notice for vacation if I choose to pay 4 weeks rent?

      • JimmyF on 23/08/2017 - 10:36
        +2

        Is there any necessary specific time (like 14 days before vacating the premises) to give notice for vacation if I choose to pay 4 weeks rent?

        At a wild guess, it will be 4 weeks rent from when you give notice, regardless when you move out.

        I am not sure

        Seriously?

        Fixed cost vs an unknown cost that could run on till your lease expires on the 6th Sept.

  • CheapSticks on 23/08/2017 - 10:35
    +1

    Read your lease agreement. The general clause is to make the landlord whole till a new tenant is found. However, sometime agents introduce termination payment of 6 weeks of rent if broken within first 6months and 4 weeks of rent if broken after 6 months of a 12month lease.

    SO it is one or the other. From the sounds of it, your lease has the 4 week lease payment.

    Can you not airbnb till November given it is only 2 months of lease left.

    • JimmyF on 23/08/2017 - 10:39

      airbnb would mean having two places fully furnished, so not worth it really for the short period.

      • jawwns on 23/08/2017 - 11:01
        +1

        I can manage furniture but I will be far away, which will make it hard to manage customers. And I think landlord or agent would make it problem, don't you think so?

    • jawwns on 23/08/2017 - 11:00

      It is 12 month lease and so it has passed 6 months, which gets me pay 4 weeks rent.
      I have thought about airbnb, and I can leave some furniture behind me. However, as My new address will be three hour drive, I fear that managing airbnb customers will be difficult. Also, if agent learns airbnb thing, I guess they will make it problem.

  • MercSal on 23/08/2017 - 11:04

    From fair trading: Where there is a break fee in your agreement that is all you have to pay if you move out early. However, if the landlord or agent find a new tenant quickly it does not mean that you will get any of the break fee back. It is a fixed fee.

    • jawwns on 23/08/2017 - 11:06

      So, if it is not in my contract, the other option is not applicable for me?

      • MercSal on 23/08/2017 - 11:09

        Fair trading sets out a range of options that can be used. In your case, you and the agent agreed at the beginning of the lease to include the optional break fee (you agreed by signing the contract). It's optional to include, but once it's in the lease, that's it.

        • MercSal on 23/08/2017 - 11:10
          -2

          It's totally not fair, i agree. Tenant's rights are pretty shit in Australia.

  • Baysew on 23/08/2017 - 11:12

    What do you suggest me to do?

    Just pay 4 weeks rent and go on.

  • bargainswarrior03 on 23/08/2017 - 14:14

    Like all the other commentators, no one has a definitive answer or solution unless you read the lease.

    If the lease says you pay rent until they find a new tenant then show her the clause and insist that this is honoured. If she refuses speak to her manager.

  • nomunny on 23/08/2017 - 15:11

    If you don't pay the 4 weeks sounds like a good opportunity for the owner to renovate at your expense… However have a read up on subletting: //www.tenants.org.au/factsheet-18-transfer-and-sub-letting.

  • xssive on 23/08/2017 - 19:47
    +1

    if you want to go down the path of paying rent until they find a new tenant.

    You will have to pay advertising, lease preparation fee and a one week letting fee.

    If the agent does go down this path they have to re advertise the property at the same rent you are paying. You can also do the gumtree thing and find an ideal replacement tenant, but they will still have to apply with the agency with their application form and be approved by the landlord.

    Depending on the agent and how proactive they are. It can be done in a week if the property is desirable and the rent is right.

    What area in Sydney are you?

    • bargainbargain on 23/08/2017 - 20:07
      -1

      Advertising fee/letting fee etc are all prorata depending on the number of months left in lease. Remember he has to make the landlord whole only for the term of the original lease.

      • xssive on 23/08/2017 - 20:14

        The owner pays the agent a set advertising and letting fee.

        Reimbursing that cost as a whole and the agent finding a replacement tenant to take a lease till at lease Nov 1st, possibly even longer (12 months)

        Saves the owner advertising and letting fee, which he would of incurred in November when OP vacated.

        You really giving advice after you signed a lease agreement in march without reading it and asked oz bargainers for advice on break leases

        SMH

        • CheapSticks on 23/08/2017 - 23:27

          Pls do the proper research. I have been in this situation and as a result assessed my options and spoke to agent and also office of fair trading.

          Hence, certainly much better informed through the experience!

    • jawwns on 23/08/2017 - 20:43

      Around brighton le sands, but I do not think that the agent will be willing to rent out to someone else quickly, as the house might needs some renovations

    • jawwns on 23/08/2017 - 20:44

      Around brighton le sands, but I do not think that the agent will be willing to rent out to someone else quickly, as the house might needs some renovations

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