There are times that a resident will have to end their lease earlier from the contract agreement.
We need to understand that tenancy agreements are legally binding. If these agreements are broken then most likely there will be a compensation that are needed to be paid.
As agents, we are often asked by Tenants for the compensations required and what are those compensations needed for. For assistance, we have designed a list of reasons as to why a compensation is required from the Lessee and what are those amount of compensation needed for by the Lessor.
Below are the duties in finding a replacement tenant which includes but not limited to:
1. Processing an application form which can take anything up to a day to gather and check all information including:
- Sighting proof of ID
- Proof of address
- Proof of income to support the weekly rent
- Obtaining rental history including rental payment history and relevant checks
- Obtaining proof of employment
- Searching tenancy defaulting databases
- Possibly getting guarantor letters
2. Once an application got an approval from the office then it will be forwarded to the Lessor for approval.
3. After approval from the Lessor, all applicants will be emailed to reference check all the information from the application to ready for the next step.
4. Then, rents and bonds are needed to be receipted.
5. All relevant documentation needs to be drawn up.
6. Schedule an appointment for Sign-Up.
7. Meet the tenant for half an hour sign up appointment explaining the terms and conditions for their lease.
8. Copies will be made, e-filed and sent it to all relevant parties.
9. Bond lodged with RTA.
10. Prior to the new tenant moving in, a comprehensive Entry Condition Report needs to be completed accompanied by internal and external property photos (this process usually takes between 1 and 2 hours).
11. The tenant has 3 days to complete their side of the ECR and send it back to the Agent.
12. If there are discrepancies, then we usually arrange a time to meet the tenant onsite to collaborate.
13. Once signed off on, then these are entered into our software and emailed to all parties concerned.
Above is the first part of how to onboard new tenancy.
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The other part of our duty for both the exiting tenant and the Lessor, is to Perform a full vacate on the property, which includes the same as the ECR but in reverse. We then have to compare the original ECR to the vacating tenant to see if there are any discrepancies. If so, then we need to arrange to have the outgoing tenant attend to these items, or Project manage the rectification with tradespeople, cleaners and the like. Once completed, we then arrange for you to sign your bond refund then lodge the refund with the RTA.
These items are but a few of the tasks that an Agency must complete with any outgoing/incoming tenancy. As such, a Letting Fee applies to the Lessor for this work, including any advertising/marketing fees that might pertain.
Below is a link to the Residential Tenancies website with further information about ending a lease early.