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Tenant breaking contract - my options

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valleyman
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Tenant breaking contract - my options

Postby valleyman » Sun, 22 Oct 2017 7:25 am

My tenant(sad to say another sub-continental) is breaking the 2 year lease with 11 months remaining. He is not moving out of Singapore and is ready to forfeit his 2 month deposit. There has been no acrimony between us and the property is a brand new condo unit, so he can't complain of any defects/issues during his stay either.

My agent is getting him to fix & clean the place up properly, which he hasn't refused to do, yet. Apart from that, is there anything I can do ? There is no diplomatic clause in the contract.

Should I just let it go ? Or do I have any legal options.

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PNGMK
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Re: Tenant breaking contract - my options

Postby PNGMK » Sun, 22 Oct 2017 10:08 am

Depending on your TA he should be liable for rent between departure and when you (or he) can get a new tenant in. This should be enforceable via the SCT. The security deposit should not be part of this equation.
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Re: Tenant breaking contract - my options

Postby Max Headroom » Sun, 22 Oct 2017 10:33 am

With just one side of the story, it's a bit hard to give unbiased advise. One thing I can say, however, is that a brand new property isn't by definition without any flaws.

He's not leaving Singapore, so it's not a work termination issue. What did he tell is his reason for bailing out?

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Re: Tenant breaking contract - my options

Postby ecureilx » Sun, 22 Oct 2017 10:40 am

valleyman wrote:My tenant(sad to say another sub-continental) is breaking the 2 year lease with 11 months remaining. He is not moving out of Singapore and is ready to forfeit his 2 month deposit. There has been no acrimony between us and the property is a brand new condo unit, so he can't complain of any defects/issues during his stay either.

My agent is getting him to fix & clean the place up properly, which he hasn't refused to do, yet. Apart from that, is there anything I can do ? There is no diplomatic clause in the contract.

Should I just let it go ? Or do I have any legal options.
Question.

Why do you wanna go after him?

Not stating the obvious but when he hasn't tried to go Scot free, what are your intentions?

Just curious.

PS, what's with the sad to say thing?

FYI, I been nearly forced to hang myself by a landlord who insisted I pay up the 12 month rent or pay the difference as the next tenant was gonna come cheaper, even though I was jobless. Even though I had foregone the deposit.

Of course, I can sub rent it, no problem, even 8 people is fine, as long as I make sure his ROI is covered. Oh, maybe I can make some money there?

No, don't care about the clauses .. And he had a niece in legal trade so the guy was churning out legal threats.. After all, he need to protect his investment right?

Told him to fly a kite, and shove his legal letters where the sun don't shine, or I will forward it all to the relevant authorities .. As he broke too many laws in the rental, without going into more details

Oh, not that I am anti LL, but when you have a tenant who's down and out, what is the joy in making his life more miserable?

I know, you gotta protect your investment but to think of any business where you only have good times.. Never bad times... Utopia?

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Re: Tenant breaking contract - my options

Postby valleyman » Mon, 23 Oct 2017 7:36 am

Max Headroom wrote:With just one side of the story, it's a bit hard to give unbiased advise. One thing I can say, however, is that a brand new property isn't by definition without any flaws.

He's not leaving Singapore, so it's not a work termination issue. What did he tell is his reason for bailing out?

What I have heard from my agent is that he has purchased a property of his own. If he had any issues he should have complained, but I have never heard from him in the last 13 months.

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Re: Tenant breaking contract - my options

Postby valleyman » Mon, 23 Oct 2017 7:44 am

ecureilx wrote:
valleyman wrote:My tenant(sad to say another sub-continental) is breaking the 2 year lease with 11 months remaining. He is not moving out of Singapore and is ready to forfeit his 2 month deposit. There has been no acrimony between us and the property is a brand new condo unit, so he can't complain of any defects/issues during his stay either.

My agent is getting him to fix & clean the place up properly, which he hasn't refused to do, yet. Apart from that, is there anything I can do ? There is no diplomatic clause in the contract.

Should I just let it go ? Or do I have any legal options.
Question.

Why do you wanna go after him?

Not stating the obvious but when he hasn't tried to go Scot free, what are your intentions?

Just curious.

PS, what's with the sad to say thing?

FYI, I been nearly forced to hang myself by a landlord who insisted I pay up the 12 month rent or pay the difference as the next tenant was gonna come cheaper, even though I was jobless. Even though I had foregone the deposit.

Of course, I can sub rent it, no problem, even 8 people is fine, as long as I make sure his ROI is covered. Oh, maybe I can make some money there?

No, don't care about the clauses .. And he had a niece in legal trade so the guy was churning out legal threats.. After all, he need to protect his investment right?

Told him to fly a kite, and shove his legal letters where the sun don't shine, or I will forward it all to the relevant authorities .. As he broke too many laws in the rental, without going into more details

Oh, not that I am anti LL, but when you have a tenant who's down and out, what is the joy in making his life more miserable?

I know, you gotta protect your investment but to think of any business where you only have good times.. Never bad times... Utopia?


He works for a bank, so the "hard times" excuse is not relevant. Infact he has recently purchased a property of his own is what I have heard.

Secondly, whats the point of a contract if it cannot be enforced ? Can I go to the bank and use your phrase "go fly a kite" when they ask for the mortgage payment ? I had purchased things to put in the house as per his need, as the contract was for 2 years. I wouldn't have done any of that if I knew that he was bailing after a year.

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Re: Tenant breaking contract - my options

Postby valleyman » Mon, 23 Oct 2017 7:48 am

PNGMK wrote:Depending on your TA he should be liable for rent between departure and when you (or he) can get a new tenant in. This should be enforceable via the SCT. The security deposit should not be part of this equation.

Thanks PNGMK. I will consider this option, if I am within the 10K loss limit.

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Re: Tenant breaking contract - my options

Postby x9200 » Mon, 23 Oct 2017 8:53 am

valleyman wrote:My tenant(sad to say another sub-continental) is breaking the 2 year lease with 11 months remaining. He is not moving out of Singapore and is ready to forfeit his 2 month deposit. There has been no acrimony between us and the property is a brand new condo unit, so he can't complain of any defects/issues during his stay either.

My agent is getting him to fix & clean the place up properly, which he hasn't refused to do, yet. Apart from that, is there anything I can do ? There is no diplomatic clause in the contract.

Should I just let it go ? Or do I have any legal options.

You may look into recovering any tangible damages caused by your tenant as the result of him breaching the TA and any other damages related to the TA. You can use the security deposit to cover it (typically TA allows this) but you are not limited to that amount only.

The damages may typically include (at least):
1) the rent equivalent for the time you looked for a new tenant (the property stayed vacant)
2) any differences between the current rent and the new tenant's rent until the end of the current contract
3) Pro-rated agent's commission fees
4) and of course any damages to the property

So for example, if you needed 2 months (acting reasonably) to find a new tenant, and because of the current market situation your new rent is $300 lower, and remaining current contract period after you got the new tenant is 9 month, then you may easily request: 2 current rents + $2700 + 11/24 x (the commission paid).

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Re: Tenant breaking contract - my options

Postby PNGMK » Mon, 23 Oct 2017 11:51 am

To be clear this forum is a bit anti LL but after seeing the reason the tenant is breaking the lease I'd say go get him for every penny he has regardless of his tar brush genetic inclusion. What he should have done is negotiated a break clause or a shorter term (with a monthly or quarterly renewal) if that's what his plans were. That's what I did (I told the agent prior to the lease ending that I would be looking for a place to buy and we negotiated a more expensive monthly arrangement where I could give notice in 4 weeks).
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Re: Tenant breaking contract - my options

Postby Wd40 » Mon, 23 Oct 2017 2:51 pm

Valley man, did the tenant declare that he is going to break the lease or did he request you?

I am a subcontinental too and a tenant. I have rented a hdb continuously for 3 yearly renewals now and during last renewal I requested the owner for an option to break lease after 6 months, reason, my daughter will join P1 next year and I don't know where she will get a seat. She agreed verbally although we don't have anything in writing, the contract is still 1 year. I am not yet sure what will happen if and when I will break the lease but worst case I am assuming is I will lose my deposit.

Maybe your tenant thinks his worst case is also losing his deposit. Maybe you should remind him that it is not just deposit but any loss you incur, maybe he will then change his decision?

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Re: Tenant breaking contract - my options

Postby ecureilx » Mon, 23 Oct 2017 5:19 pm

valleyman wrote:
He works for a bank, so the "hard times" excuse is not relevant. Infact he has recently purchased a property of his own is what I have heard.

Secondly, whats the point of a contract if it cannot be enforced ? Can I go to the bank and use your phrase "go fly a kite" when they ask for the mortgage payment ? I had purchased things to put in the house as per his need, as the contract was for 2 years. I wouldn't have done any of that if I knew that he was bailing after a year.


So, not trying to rub it in .. did you buy the house for the guy :D

Since you bought things, you should put in a claim, but I won't egg you on to get every penny for the loss of rental etc !

valleyman wrote:
Max Headroom wrote:With just one side of the story, it's a bit hard to give unbiased advise. One thing I can say, however, is that a brand new property isn't by definition without any flaws.

He's not leaving Singapore, so it's not a work termination issue. What did he tell is his reason for bailing out?

What I have heard from my agent is that he has purchased a property of his own. If he had any issues he should have complained, but I have never heard from him in the last 13 months.


Maybe he just found a place cheaper to buy than pay rental ? Or like a guy I know, got a big boost in his work life, he decided he wont rent any more, and got a place for himself - purchase :)

But the reasons I moot I guess

PNGMK, not anti LL, but .. let's say .. tough to put it in words. When i have seen LLs trying to squeeze money out of me, money I didn't have .. though I have seen great LLs too. Like the current LL who lowered the rental without even asking.

Wd40 wrote:Valley man, did the tenant declare that he is going to break the lease or did he request you?

I am a subcontinental too and a tenant. I have rented a hdb continuously for 3 yearly renewals now and during last renewal I requested the owner for an option to break lease after 6 months, reason, my daughter will join P1 next year and I don't know where she will get a seat. She agreed verbally although we don't have anything in writing, the contract is still 1 year. I am not yet sure what will happen if and when I will break the lease but worst case I am assuming is I will lose my deposit.

Maybe your tenant thinks his worst case is also losing his deposit. Maybe you should remind him that it is not just deposit but any loss you incur, maybe he will then change his decision?

Sent from my Redmi Note 4 using Tapatalk


Did you miss the part about the tenant having bought a house ??

LL thinks the guy pre-planned to shaft the LL .. (sorry for the poor choice of words... )

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Re: Tenant breaking contract - my options

Postby valleyman » Tue, 24 Oct 2017 7:30 am

Wd40 wrote:Valley man, did the tenant declare that he is going to break the lease or did he request you?

I am a subcontinental too and a tenant. I have rented a hdb continuously for 3 yearly renewals now and during last renewal I requested the owner for an option to break lease after 6 months, reason, my daughter will join P1 next year and I don't know where she will get a seat. She agreed verbally although we don't have anything in writing, the contract is still 1 year. I am not yet sure what will happen if and when I will break the lease but worst case I am assuming is I will lose my deposit.

Maybe your tenant thinks his worst case is also losing his deposit. Maybe you should remind him that it is not just deposit but any loss you incur, maybe he will then change his decision?

Sent from my Redmi Note 4 using Tapatalk


He didn't request me, his agent told mine and they just left.

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Re: Tenant breaking contract - my options

Postby Wd40 » Tue, 24 Oct 2017 8:32 am

valleyman wrote:
Wd40 wrote:Valley man, did the tenant declare that he is going to break the lease or did he request you?

I am a subcontinental too and a tenant. I have rented a hdb continuously for 3 yearly renewals now and during last renewal I requested the owner for an option to break lease after 6 months, reason, my daughter will join P1 next year and I don't know where she will get a seat. She agreed verbally although we don't have anything in writing, the contract is still 1 year. I am not yet sure what will happen if and when I will break the lease but worst case I am assuming is I will lose my deposit.

Maybe your tenant thinks his worst case is also losing his deposit. Maybe you should remind him that it is not just deposit but any loss you incur, maybe he will then change his decision?

Sent from my Redmi Note 4 using Tapatalk


He didn't request me, his agent told mine and they just left.
Not a professional way of doing it, by him. I am guessing he has been advised by his agent. Ask your agent what are your legal options and try to put some pressure. I think the 2 months deposit should make good most of your loss, yet, you tell him that you will sue him if he doesn't pay up the difference in rent compared to your future tenancy. Ask your agent an estimate of the loss and then ask the tenant to pay it.

This tenant is moving to a new house and he should treat this as a closing off cost. Don't let him go away for cheap.

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