View Full Version : Advise needed- Tenant break rental contract
Dear all,
Need advise for the above. My tenant commenced his rental in May 11 for an one year term. However, was being informed earlier that he wanted to terminate the contract and move out in Aug 11. May I ask, what can I do besides holding on to his one month security deposit?
Thanks
devilplate
26-07-11, 16:32
Dear all,
Need advise for the above. My tenant commenced his rental in May 11 for an one year term. However, was being informed earlier that he wanted to terminate the contract and move out in Aug 11. May I ask, what can I do besides holding on to his one month security deposit?
Thanks
Ask him to compensate the pro rata of ur agt comm
Ask him to compensate the pro rata of ur agt comm
Ok. Anything else besides holding the security deposit and the above that you mentioned?
devilplate
26-07-11, 16:39
Ok. Anything else besides holding the security deposit and the above that you mentioned?
Nothing liao....end the thing peacefully and do a proper inventory check on the last day together wif ur tenant n agt
Gd luck
iwantgizmos
26-07-11, 16:50
Dear all,
Need advise for the above. My tenant commenced his rental in May 11 for an one year term. However, was being informed earlier that he wanted to terminate the contract and move out in Aug 11. May I ask, what can I do besides holding on to his one month security deposit?
Thanks
Wah, this sounds like he needs our support during a breakup. lol. @Scary:Breakups can be painful. Breaking up with someone you love can be one of the toughest emotional struggles you'll go through. :tongue3:
Nothing liao....end the thing peacefully and do a proper inventory check on the last day together wif ur tenant n agt
Gd luck
True. Unless you have a solid contract that specify what to reimburse if agreement is breached...
If don't have, just settle amicably. End things well and move on. Find new tenants. If things end sourly, your unit might end up getting thrashed by them.... No win situation... More money needed for lawsuits... LOL...
Check your TA. Can ask tenant to pay rental till end of contract term (12 mths minus no. of mths consumed). Obligation works both ways ie if you (landlord) break contract or tenant break contract, either party pays the other as part of compensation. If tenant pays up, release 1 mth deposit if no other damages or outstanding costs to account for.
Mine is the "standard" TA. Even if it does specify compensation for unconsumed months, i guess it will also be very difficult to get him to pay...
devilplate
26-07-11, 17:28
Mine is the "standard" TA. Even if it does specify compensation for unconsumed months, i guess it will also be very difficult to get him to pay...
No tenant will pay....all jus pack bag n run! Whahaha
also take back your agent's commission as well
also take back your agent's commission as well
He already said he gonna hold 1 month deposit...thats good enough..
He already said he gonna hold 1 month deposit...thats good enough..That depends on whether the house is still in tact as well as how long before you get your next tenants. He must also pay the remaining 9 months worth of agent fee paid earlier (which is 75% of what was paid) May not be enough! :D
That depends on whether the house is still in tact as well as how long before you get your next tenants. He must also pay the remaining 9 months worth of agent fee paid earlier (which is 75% of what was paid) May not be enough! :D
Thats perils of being LL :D
This reminds me of my colleague case when he sold a 3 room HDB flat to someone around 50 yrs old. The man paid the downpayment but later did not want to carry on the deal. My colleague went on to sue him for breaching of contract. He wanted him to pay the difference between the contract value and the current market value because if he would to sell his unit to another person, he might not be able to get back the same price or he might not be able to get another buyer so soon. In the end, my colleague not only lost the case but also incurred a hefty sum of lawyer fee.
Pay downpayment means signed the S&P or just OTP? If S&P then sure win one right? Oh I forgot, if HDB flat than may be different story. If private property seller sure win. Didn't win means must sack that bloody lawyer who is not doing proper job! :banghead:
This reminds me of my colleague case when he sold a 3 room HDB flat to someone around 50 yrs old. The man paid the downpayment but later did not want to carry on the deal. My colleague went on to sue him for breaching of contract. He wanted him to pay the difference between the contract value and the current market value because if he would to sell his unit to another person, he might not be able to get back the same price or he might not be able to get another buyer so soon. In the end, my colleague not only lost the case but also incurred a hefty sum of lawyer fee.
Why only one month deposit? I thought usually it's two months?
This reminds me of my colleague case when he sold a 3 room HDB flat to someone around 50 yrs old. The man paid the downpayment but later did not want to carry on the deal. My colleague went on to sue him for breaching of contract. He wanted him to pay the difference between the contract value and the current market value because if he would to sell his unit to another person, he might not be able to get back the same price or he might not be able to get another buyer so soon. In the end, my colleague not only lost the case but also incurred a hefty sum of lawyer fee.Forfeiting the downpayment would be the only conceivable consequence for pulling out of the deal. Are you saying your colleague actually got a deal that was higher than the market value by more than 1% or whatever the downpayment was? What about COV?
Forfeiting the downpayment would be the only conceivable consequence for pulling out of the deal. Are you saying your colleague actually got a deal that was higher than the market value by more than 1% or whatever the downpayment was? What about COV?
Not sure about how much is the difference, didn't ask him. That was quite sometimes back. If I'm not wrong, I think the man had put a $5,000 deposit. The market value started to drop after the sales, that was why he wanted to sue the man for the lost in the ppty value. If he would find another buyer, he would not be able to get back the same price. :tsk-tsk:
Not sure about how much is the difference, didn't ask him. That was quite sometimes back. If I'm not wrong, I think the man had put a $5,000 deposit. The market value started to drop after the sales, that was why he wanted to sue the man for the lost in the ppty value. If he would find another buyer, he would not be able to get back the same price. :tsk-tsk:He could have made enquiries with lawyers before embarking to sue the man. The system in our land is very clear and it provides for buyers to pull out of the deal at various points and so forfeit the downpayment. No point pursuing if its still within that window period. I also know of people who paid the downpayment but because he cannot secure a bank loan, he had to painfully curtail that deal and so forfeit that downpayment. Can the owner sue this buyer, I don't think so. That's our housing policy when it comes to purchasing. :o
Why only one month deposit? I thought usually it's two months?
One month deposit for 12 months rental
Two month deposit for 24 months rental
Owner is always at the losing end, TA never specifically states type of 'compensation' should tenant break rental agreement. Owner tends to give in to leaving tenant so to ensure their home is still in good tenable condition. We should propose agent take monthly commission instead of 1-off payment for the said rental period.
Fixed period means fixed period. Terminate early have to pay until end of tenancy. If foreigners run away then no choice. So govt need to do something here, like with-hold their pay for 1 year and make sure no claim for rentals, utility bills, telephone bills etc against these foreigners before refunding to them? If locals then easy lah, sue them and make them pay for agent fees and lawyer fees as well. :simmering:
One month deposit for 12 months rental
Two month deposit for 24 months rental
Owner is always at the losing end, TA never specifically states type of 'compensation' should tenant break rental agreement. Owner tends to give in to leaving tenant so to ensure their home is still in good tenable condition. We should propose agent take monthly commission instead of 1-off payment for the said rental period.
same thing happened to me.... twice.... asked tenant to find me a tenant to replace him for equal or more rental and compensate for agent's commission.
For tenant no1, had increase in rental... so i'm happy:)
For tenabt no2, had free furniture, but no increase in rental....:(
He could have made enquiries with lawyers before embarking to sue the man. The system in our land is very clear and it provides for buyers to pull out of the deal at various points and so forfeit the downpayment. No point pursuing if its still within that window period. I also know of people who paid the downpayment but because he cannot secure a bank loan, he had to painfully curtail that deal and so forfeit that downpayment. Can the owner sue this buyer, I don't think so. That's our housing policy when it comes to purchasing. :o
We also told him that but he insisted to carry on. Sighhhh...:doh:
I believe as LL, we must always be prepared for worse case scenario like runaway tenants or damaged properties so we'll be elated should we get a really nice tenant. Always remember our laws usually protects the tenants more than landlords. Also, must always declare rental income otherwise you'll regret it. :D
H,mmm.. Like tat also can... So even in contract.. also lost ! Then Landlord how ? no win le.. sure lost.. :doh:
A 28 year old PRC machinist sued his Singaporean landlord over his forfeited deposit and was awarded damages by the court, a Chinese tabloid reported lately.
38 year old Madam Goh initially rented her four-room flat in Ang Mo Kio to a group of six China nationals, but they breached the terms in the contract and subletted it to others leading to 18 persons living in the unit instead.
After receiving a warning letter from HDB, Madam Goh terminated the contract and forfeited the deposit. However the unhappy PRC tenant sued her in court over the deposit and won!
Madam Goh added that her furniture were damaged by the tenants and her television set was stolen as well.
It is not uncommon to see 18 or more foreigners being squeezed into a HDB flat and there were cases where HDB repossed the units due to illegal subletting.
Madam Goh's case is most unusual as it is usually stipulated clearly in rental contracts that subletting is not allowed.
H,mmm.. Like tat also can... So even in contract.. also lost ! Then Landlord how ? no win le.. sure lost.. :doh:
A 28 year old PRC machinist sued his Singaporean landlord over his forfeited deposit and was awarded damages by the court, a Chinese tabloid reported lately.
38 year old Madam Goh initially rented her four-room flat in Ang Mo Kio to a group of six China nationals, but they breached the terms in the contract and subletted it to others leading to 18 persons living in the unit instead.
After receiving a warning letter from HDB, Madam Goh terminated the contract and forfeited the deposit. However the unhappy PRC tenant sued her in court over the deposit and won!
Madam Goh added that her furniture were damaged by the tenants and her television set was stolen as well.
It is not uncommon to see 18 or more foreigners being squeezed into a HDB flat and there were cases where HDB repossed the units due to illegal subletting.
Madam Goh's case is most unusual as it is usually stipulated clearly in rental contracts that subletting is not allowed.So has it been explained on what grounds did the PRC tenants win the case? It just doesn't make sense and in fact, its a mockery to the Singapore's law. :confused:
http://forum.channelnewsasia.com/viewtopic.php?p=4512551&sid=dd738ee6a6fa38ef08c9f98351bb1c49
PRC tenant who sublet flat illegally won case against Singaporean landlord
A 28 year old PRC machinist sued his Singaporean landlord over his forfeited deposit and was awarded damages by the court, a Chinese tabloid reported lately.
38 year old Madam Goh initially rented her four-room flat in Ang Mo Kio to a group of six China nationals, but they breached the terms in the contract and subletted it to others leading to 18 persons living in the unit instead.
After receiving a warning letter from HDB, Madam Goh terminated the contract and forfeited the deposit. However the unhappy PRC tenant sued her in court over the deposit and won!
Madam Goh added that her furniture were damaged by the tenants and her television set was stolen as well.
It is not uncommon to see 18 or more foreigners being squeezed into a HDB flat and there were cases where HDB repossed the units due to illegal subletting.
Madam Goh’s case is most unusual as it is usually stipulated clearly in rental contracts that subletting is not allowed.
The number of mainland Chinese working in Singapore has increased in recent years due to the PAP’s pro-China immigration policies.
According to UnionPay, there are almost one million mainland Chinese living in Singapore now and their numbers look set to increase in the foreseeable future under another 5 years of PAP rule.
proud owner
05-08-11, 08:26
questions to all
on taking over(after tenant moved out) ..how thorough do you check the house ?
do LL open all drawers ? fridge drawer ?
washing machine ..check inside /outside etc etc
i have heard of cases where LL found out more and more damages after handover ...
like rusted washing machines( 2 yr old) , rubber tubing turn moldy , fridge draw broken, etc ..
though LL still holding to deposit but have SIGNED take over ...
can LL still claim for those damages found AFTER signing the handover contract ?
......
i have heard of cases where LL found out more and more damages after handover ...
like rusted washing machines( 2 yr old) , rubber tubing turn moldy , fridge draw broken, etc ..
though LL still holding to deposit but have SIGNED take over ...
can LL still claim for those damages found AFTER signing the handover contract ?
isnt that considered fair wear and tear?
if have signed already, don't think can claim damages anymore.
proud owner
05-08-11, 09:53
isnt that considered fair wear and tear?
if have signed already, don't think can claim damages anymore.
does your washing machine rust after 2 yrs ?
does the rubber tubing, detergent tray turn moldy ?
dont you wipe dry the glass, rim etc after use ?
dont these fall under ..failure to maintain/exercise proper use ?
if you are the next tenant ..can u accept a rusty/moldy washing machine ?
does your washing machine rust after 2 yrs ?
does the rubber tubing, detergent tray turn moldy ?
dont you wipe dry the glass, rim etc after use ?
dont these fall under ..failure to maintain/exercise proper use ?
if you are the next tenant ..can u accept a rusty/moldy washing machine ?
grey area. see which party wins the argument
its common for rubber tubing to get mouldy quickly(could be due to SG's weather). but its unusual for the drum to get rusty so quickly. which brand? anybody ever wipe dry the drum after using?
i never have to wipe dry the interior drum of my washing machine and the drum is still in good condition after 3yrs. but rubber tubbing oredi got mould stains which cannot be removed. the tubbing still get mouldy even i always wipe it dry after every usage. hope this helps:)
proud owner
05-08-11, 10:32
grey area. see which party wins the argument
its common for rubber tubing to get mouldy quickly(could be due to SG's weather). but its unusual for the drum to get rusty so quickly. which brand? anybody ever wipe dry the drum after using?
i never have to wipe dry the interior drum of my washing machine and the drum is still in good condition after 3yrs. but rubber tubbing oredi got mould stains which cannot be removed. the tubbing still get mouldy even i always wipe it dry after every usage. hope this helps:)
not the drum
its a front load washer .. the front opening ..where the glass fits ...after washing..when one opens the glass door ..water usual drip on the rim ..also steam collected oin the glass will also flow onto the rim ..
in the instruction manual it does say to wipe dry glass and rim ..
for a 3 yr old washer to rust ... its obvious no proper care and maintenance was exercised ...for the whole tenancy period
not the drum
its a front load washer .. the front opening ..where the glass fits ...after washing..when one opens the glass door ..water usual drip on the rim ..also steam collected oin the glass will also flow onto the rim ..
in the instruction manual it does say to wipe dry glass and rim ..
for a 3 yr old washer to rust ... its obvious no proper care and maintenance was exercised ...for the whole tenancy period
may I know what is the brand of the washer? if you don't mind me saying, it sounds more like a defect. maybe you can take it up with the manfacturer.
proud owner
05-08-11, 13:31
may I know what is the brand of the washer? if you don't mind me saying, it sounds more like a defect. maybe you can take it up with the manfacturer.
my friend did take pic and sent to the brandt office and gotten a reply ..
saying that after use ... supposed to wipe off the water on the rim and the glass ...
i always thot that is the case ,,,cos my wife always wipe off the water / steam from the glass and the opening rim ...
and we have the same Brandt for the last 8 yrs ..
no rust, no mold ..
thats why we think its poor maintenance
my friend did take pic and sent to the brandt office and gotten a reply ..
saying that after use ... supposed to wipe off the water on the rim and the glass ...
i always thot that is the case ,,,cos my wife always wipe off the water / steam from the glass and the opening rim ...
and we have the same Brandt for the last 8 yrs ..
no rust, no mold ..
thats why we think its poor maintenance
.. for me I Sometime even forget to take clothes out of washer for few days:ashamed1: ... then have to redo the washing to clean the smell :banghead:
To me it looks like a washer defect ..not tenant :doh:
My Toshiba top-load washing machine in my rented condo is still running after 16 years. It was chosen by my first japanese tenant who wanted all the appliances made in Japan.
does your washing machine rust after 2 yrs ?
does the rubber tubing, detergent tray turn moldy ?
dont you wipe dry the glass, rim etc after use ?
dont these fall under ..failure to maintain/exercise proper use ?
if you are the next tenant ..can u accept a rusty/moldy washing machine ?
My Toshiba top-load washing machine in my rented condo is still running after 16 years. It was chosen by my first japanese tenant who wanted all the appliances made in Japan.
does your washing machine rust after 2 yrs ?
does the rubber tubing, detergent tray turn moldy ?
dont you wipe dry the glass, rim etc after use ?
dont these fall under ..failure to maintain/exercise proper use ?
if you are the next tenant ..can u accept a rusty/moldy washing machine ?
my friend did take pic and sent to the brandt office and gotten a reply ..
saying that after use ... supposed to wipe off the water on the rim and the glass ...
i always thot that is the case ,,,cos my wife always wipe off the water / steam from the glass and the opening rim ...
and we have the same Brandt for the last 8 yrs ..
no rust, no mold ..
thats why we think its poor maintenance
Ok, I see .......
Ok. Anything else besides holding the security deposit and the above that you mentioned?
I experienced this a few times before. My property agent will do the following for me:
1) Check the tenancy agreement. If there is no diplomatic clause, ask the tenant's company to pay the rent on the outstanding months. Usually, I don't insist on the fine if a replacement can be found before the handover date (which is almost always possible).
2) Tenant to pay back the pro-rata agent commission; otherwise, the agent will refund me from own pocket.
3) Agent will check the condition of the place (including furniture and appliances) and take pictures of damages except wear and tear. Agent will advise the amount to be deducted from the deposit (if any) and settle the amount on behalf of me not later than 14 days after the handover.
Hope this helps.
I experienced this a few times before. My property agent will do the following for me:
1) Check the tenancy agreement. If there is no diplomatic clause, ask the tenant's company to pay the rent on the outstanding months. Usually, I don't insist on the fine if a replacement can be found before the handover date (which is almost always possible).
2) Tenant to pay back the pro-rata agent commission; otherwise, the agent will refund me from own pocket.
3) Agent will check the condition of the place (including furniture and appliances) and take pictures of damages except wear and tear. Agent will advise the amount to be deducted from the deposit (if any) and settle the amount on behalf of me not later than 14 days after the handover.
Hope this helps.
Then what's the point of signing the TA with a diplomatic clause if you don't insist on a fine even if you can find a tenant to replace( which is likely not part of the TA).
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