Tenant Retrenched

[Dolby]

What do you do?

I assume they can therefore legally give notice to seek cheaper accommodation - but what is this notice?
Are there penalties involved for a cancellation?
What about deposit held - forfeited or penalty?

 

[atomcrusher]

I assume you have a rental agreement in place, which details all the terms of the lease? Your tenant being retrenched does not change that agreement, so

I assume they can therefore legally give notice

does not mean they can ignore the lease terms, as a lease is a legally binding document. You as the owner of the property, you are entitled to hold them to the T&Cs of the agreement, and to take legal action if they renege of the lease .. whether or not you do that is of course up to you.

 

[bwana]

Ask yourself if you'd rather spend the time and effort trying to enforce the lease or would you prefer to get him out, and someone else who can pay in?

 

[Arthur]

For short-term leases (less than ten years) the normal notice period is the typical payment cycle, unless otherwise agreed in writing. So, if your tenant pays monthly, their notice period is a month, unless your written agreement states otherwise.

 

[koeksGHT]

There is no way a lease does not cover in his favor if something like retrenchment happens which would allow him to cancel early.

Would you rather have a tenant who wants to go or one you need to seek a legal eviction to get them out for a new tenant.

 

[Dolby]

Obviously I'd prefer to get them out - it works for both them (getting a cheaper place and/or not being held to a fixed rental) and myself (having a paying tenant).

But bear in mind I paid R9,000.00 finders fee initially - and letting out the house is tougher than an apartment. Which means I'll probably lose out 2 months rent and pay another finders fee. All in all I would R36,000.00.

While I feel her pain, one assume that in a case like this a landlord could do something ie keep deposit or charge penalties?
Or - once again - would a landlord lose the entire way?

 

[deweyzeph]

There is no way a lease does not cover in his favor if something like retrenchment happens which would allow him to cancel early.

Would you rather have a tenant who wants to go or one you need to seek a legal eviction to get them out for a new tenant.

I've never seen a lease agreement that allows the tenant to break the contract because of financial difficulties.

Having said that, if the tenant has hit financial difficulties and voluntarily wants to break the lease then you should definitely be pragmatic and allow them to do so. It's almost certainly better than sitting with a non-paying squatting tenant that will take months and months to evict. You will not struggle to get another tenant.

 

[deweyzeph]

Obviously I'd prefer to get them out - it works for both them (getting a cheaper place and/or not being held to a fixed rental) and myself (having a paying tenant).

But bear in mind I paid R9,000.00 finders fee initially - and letting out the house is tougher than an apartment. Which means I'll probably lose out 2 months rent and pay another finders fee. All in all I would R36,000.00.

While I feel her pain, one assume that in a case like this a landlord could do something ie keep deposit or charge penalties?
Or - once again - would a landlord lose the entire way?

If you think losing out on 2 months rent is bad, just wait till you have to lose out on 6 or 12 months rent while you try to evict a non-paying tenant. If the tenant wants to go then let them go, it will be quicker and more painless than the alternative.

 

[MKFrost]

All I'll say is never kick a man when he's down.....

 

[koeksGHT]

I've never seen a lease agreement that allows the tenant to break the contract because of financial difficulties.

Having said that, if the tenant has hit financial difficulties and voluntarily wants to break the lease then you should definitely be pragmatic and allow them to do so. It's almost certainly better than sitting with a non-paying squatting tenant that will take months and months to evict. You will not struggle to get another tenant.

It's just common sense

 

[Dolby]

Having said that, if the tenant has hit financial difficulties and voluntarily wants to break the lease then you should definitely be pragmatic and allow them to do so

Which is exactly what we both want.

So I take the finders fee loss of finding them - as well as the next finders fee - miss out on the rent during the process and then transfer the deposit as well? It hardly seems fair tbh and I'd think at the very least the deposit can be kept to reclaim?

You will not struggle to get another tenant.

I will and have. No one wants a house in this day and age.

 

[koeksGHT]

Which is exactly what we both want.

So I take the finders fee loss of finding them - as well as the next finders fee - miss out on the rent during the process and then transfer the deposit as well? It hardly seems fair tbh and I'd think at the very least the deposit can be kept to reclaim?



I will and have. No one wants a house in this day and age.

I would definitely assume a penalty/ cancellation fee would be applicable

 

[Dolby]

All I'll say is never kick a man when he's down.....

I haven't and won't - I've been in a similar situation.

However - that said, I can't help her out if it's going be dragging me under. At the start, I lost on many months salary to keep her happy and when my cat urgently needed a R10,000 operation as she was hours away from dying, I had no funds and needed to borrow to save her. I've kept an already low rent the same for 2 years as she couldn't afford an increase

In a nutshell, I think I've been more than fair in the past and gone beyond what I should do. In this case I'm trying to sort both of us out with an outcome that'll help both

 

[Mephisto_Helix]

All I'll say is never kick a man when he's down.....

only this ......... you want to penalise someone for losing their job by taking their deposit? Ok, hopefully it comes back on you then. Going the legal route will keep you losing income for longer than letting them go.

 

[AlmightyBender]

My lease includes provision for these situations. If I cancel the lease for whatever reason I am liable for the remainder of the agent's commission prorated. Simple as that. Other than that it is one months notice.

I don't think it is fair for you to complain about the next tenant's finder's fee as this is a cost of doing business in the rentals market, and this is how you should see it. It has nothing to do with the current tenant.

 

[Dolby]

only this ......... you want to penalise someone for losing their job by taking their deposit? Ok, hopefully it comes back on you then. Going the legal route will keep you losing income for longer than letting them go.

You obviously have not read the thread ....

 

[Dolby]

If I cancel the lease for whatever reason I am liable for the remainder of the agent's commission prorated. Simple as that. Other than that it is one months notice

That's what I'm asking - to me that is some type of penalty.

 

[KleinBoontjie]

Am I the only one who saw that 'R10 000 for a operation on a cat'? More compassion for a dying feline than a human being in need.

 

[buyeye]

Sounds like you might have to consider selling the house and taking investments that won't leave you in debt trying to maintain them.

 

[deweyzeph]

Why are you even paying a finders fee in the first place? Can't you rent out the place yourself and cut out the deadbeat estate agents? They're bloodsuckers.