Whether you are a tenant, property manager or someone with investment property in Perth, you need to know about how best to handle a break lease situation so that you have smooth transition to a new tenant, with as little strain on everyone as possible.
Communication is the Key
If you are a tenant and considering breaking lease the most important thing to do is to communicate with your property manager well in advance so that you can both jointly put a plan together, leaving plenty of time to find a replacement tenant.
Here is a summary of expectations and consequences that investors and tenants need to be aware of.
Consequences of Breaking a Fixed Lease
If as a tenant you break a fixed lease, you are responsible for paying a portion of the cost to re-lease the property. This portion is calculated in line with the percentage of time left remaining in your lease term. In addition, it is your responsibility to pay rent until the owner is able to find a new tenant to take over your lease or if your lease expires, whichever happens first. You are also responsible for any damages or any changes in the property from the original Property Condition Report (PCR) up until this time.
You are also responsible for water expenses, cleaning expenses, gardening and other costs until the new tenant takes over.
How to Lower the Costs of Breaking Your Lease
When you have no choice but to break a lease, the first thing you must do is to inform the property manager as soon as possible. Even in Perth and its active rental market, you must give the property owner as much time as possible to find a suitable tenant. This should be done by telephone and must be confirmed in writing.
In addition, we recommend that you allow for home opens. You can also help by presenting the property to prospective tenants in the best possible light. You want the owner to find a tenant as soon as possible. The last thing to remember is to always stay in contact with the property manager. Our property managers have helped plenty of Perth area owners and tenants minimise vacancy time and have a smooth transition to a new tenant.
Call 1300 472 427 to learn more.