2012 Summer

Terminating Tenancy Agreements
In previous publications of our Property Review we
have covered aspects of the changes to The Residential
Tenancies Act 2010 enacted on 31 January 2011. One area
of the legislation which saw marked changes is the process
for which a landlord or tenant can terminate a tenancy
agreement.
In the instance of a fixed term tenancy:
A landlord can now provide 30 days’ notice prior to the
end of the fixed term should they wish to terminate the
agreement for any reason.
A tenant in the same situation can now provide 14 days’
notice prior to the end of the fixed term should they want to
vacate on the last day of their lease.
If the fixed term period has expired and the lease is now
periodic/month to month:
A landlord must serve the tenant with 30 days’ notice if the
property has been on the market for sale & the contracts
have exchanged between vendor & purchaser.
A landlord must serve the tenant with 90 days’ notice for
the tenant to vacate for any other reason except for nonpayment
of rent or any instance ordered by the Consumer
Trade & Tenancy Tribunal.
In the instance of non-payment of rent, a landlord may issue
a tenant with a Notice to Vacate once the rent has reached
14 days in arrears. However, the tenants are given a further
14 days to pay all rent owing.
One change which benefits the landlord is that we are no
longer required to wait the additional 14 days to apply to
the CTTT. An application can be made on the 15th day,
however if the tenant pays all rent owing by the 28th day
the Termination Notice and Application would be cancelled.
An exception to this exists only in situations of habitually
late paying tenants and a clear history of rent arrears can be
demonstrated.
In the event that a tenant instigates a lease break during
the fixed term period
The new legislation has introduced a lease break fee for
which tenants pay to vacate a property during a fixed term
period.
If the tenants vacate the property in the first half of the
lease, the tenant is liable to pay a fee equivalent to 6 weeks’
rent. If the tenant vacates in the second half of the lease, the
fee payable is equivalent to 4 weeks’ rent.
This fee is absolute. The tenant is not liable for rent until
another tenant is found, as previous legislation required;
the landlord would have to pay agent’s letting fee and any
other expenses related to reletting the property. The tenants
are not required to cover any advertising or reletting fees
incurred by the landlord in securing a replacement tenant.
Should the Lease break fee not be included in the tenancy
agreement the terms outlining the financial liability to the
tenant must be expressed clearly and agreed to by both
parties at the time the agreement is signed.
Please note this information is provided as a guide and
covers only a section of the Residential Tenancies Act 2010.
Please feel free to contact me at any time should you have
any queries regarding these changes, or any other tenancy
issues. Additionally a full copy of the Act can be found at
www.legislation.nsw.gov.au
Brie Purnell
Senior Property Manager
Tower & London
What can Tower & London do for you?
Executive Leasing
The main thrust of the business is its leasing department. The majority of the residential leases are negotiated
to company executives, general managers and diplomats. The properties leased are middle level to exclusive
apartments, most with prime harbour views. Many major Australian and international companies have entered
into leases with Tower & London.
Property Sales
Apart from considerable private treaty and auction experience Tower & London assist in decorating the property
for sale or auction in order to realise the highest possible sale price. The sale price often exceeds their valuation.
Tower & London have sold every property listed within the exclusive agency period.
Property Management
Our property management Team comprises of our Senior Property Manager Brie Purnell. Brie came to Tower &
London with 8 years of residential property management experience and a strong family background in property.
Brie is driven by her strong commitment to customer service, this means our client’s best interests are always
our focus. Brie is supported by Jessica Brincat in leasing & marketing. At Tower & London we have a full time
Trust Account, Sophie Wang. Sophie is dedicated to ensuring our clients financial matters are given the attention
they deserve.
Property Refurbishment
Tower & London manage small refurbishment projects. Often apartments in prime locations require upgrading
in order to maximise returns and increase owner’s equity. Over the years, Tower & London have accumulated an
efficient team of tradespersons to undertake such projects with high quality and care.
Valuations
Property valuations for any purpose are prepared within 48 hours. Expert advice is provided on many technical
issues concerning property values. Comprehensive feasibilty studies and Discounted Cash Flow analysis (DCF)
are conducted on small to medium developments and refurbishment projects.
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