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A tenant who has a fixed term agreement should continue to rent until the agreement expires. Sometimes, however, changes to life circumstances such as work transfers, marriage, divorce, pregnancy or departure of a joint tenant, mean that alternative accommodation must be found prior to the expiry of the existing agreement.
In this situation, the tenant should give as much notice as possible to the owner of their intended date of departure. The tenant may also assist the owner to find a replacement tenant, for example, by advertising.
If a tenant leaves before the expiry of a fixed term agreement, an owner may charge re-letting costs. Re-letting costs may include assessing applications from prospective tenants, showing the property to prospective tenants, and advertising. The amount charged should reflect the actual cost incurred.
The cost incurred by an owner or agent may be claimed from the tenant in proportion to the amount of time before the agreement would have expired. This is because the owner or agent would have had to undertake the same activities at that time anyway. (See also Mitigation of loss)
Example: The agreement is for a fixed term of 12 months. The tenant leaves after 9 months. The owner or agent incurs costs of $120.00 to re-let the property. The owner or agent may charge the tenant one quarter of this cost, being $30.00.
A property is abandoned if:
The owner may apply to the Magistrates Court of Tasmania for an order declaring that the property has been abandoned. If the court gives an order of abandonment, vacant possession is delivered to the owner from the date of the order and the tenant is liable to the owner for any loss arising from the abandonment. The owner is to take reasonable steps to limit the loss which might arise from abandonment and loss of rent. Rent is payable only until the time when the agreement could lawfully have been terminated.
If a tenant vacates early, or abandons the property, the tenant will be liable to the owner for any loss arising from their early departure. This will include rent until a suitable replacement tenant can be found , or until the expiry date of the agreement, whichever occurs sooner. It will usually also include some costs incurred in re-letting the property, such as advertising.
The owner is to take reasonable steps to limit loss arising from early vacation or abandonment. This will mean trying to re-let the property as soon as possible.
Disposal of goods
If goods are left on a premises and apparently abandoned after the agreement has been terminated, the owner may dispose of the goods if they appear to have no value. If the owner disposes of goods they must sign a Statutory Declaration stating the means of the disposal.
If the value of goods appears to be less than $300, the owner may sell the goods. The owner must sign a Statutory Declaration detailing the method of disposal.
If the value of the goods appears to be more than $300, the owner may apply to the Magistrates Court of Tasmania for an order to sell the goods. The goods must be sold for the best price reasonably obtainable.
Proceeds of sale
The proceeds from any goods which are sold can be used to pay any debts owed by the tenant to the owner and the costs of selling the goods. Any balance must be kept in an interest bearing account for a period of 6 months.
If the tenant does not claim the proceeds within 6 months, the balance must be paid to the Residential Tenancy Commissioner.
