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Need advice: fixed lease coming to an end

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  1. #1

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    Need advice: fixed lease coming to an end

    Hi All, my 2 year fixed lease is coming to an end. How early on do I need to inform my landlord if I’m not planning to extend it? I know that unlike breaking a lease there is no notice period but wanted to know what the common practice is. I am undecided so far but also want to make sure the landlord is given sufficient time to find a new tenant. Thanks in advance for all your help!


  2. #2

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    Communication is key. Whether you want to extend or not, or even if you don't know what you want to do yet, send a message to your landlord today and just tell them you are reviewing your options for the future now and still undecided (ie tell them the truth and no reason to withhold this). They will probably tell you to make a decision soon since they will need to re-advertise, renovate, maybe want to sell, etc.

    Anyway maybe the rental price is part of your decision making so at least ask the landlord if they are willing to drop the rent if you extend? Doesnt this help in your decision making?

    I am LL and thinking to sell my property in next 6 months. My tenants fixed contract expired last month, I told them already a few months before it expired that I am probably going to sell this year and cannot extend the contract long term, if they want to keep staying for now on month to month basis is fine, if they want to leave at end of contract is fine too. They chose to stay on month to month basis for now and either party can terminate at any time, but I have given them my word that if I do sell will give them a few months notice.


  3. #3

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    Thanks for your prompt reply. I’m thinking the same and will definitely start the communication process with the landlord. The worst thing to do would be to create any misunderstanding ☺️

    shri and Editor like this.

  4. #4

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    My contract does not state a notice period is required, maybe because it’s a fixed lease ?


  5. #5

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    Sorry I can’t see the document


  6. #6

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    No I don’t have a break clause in my contract as it was fixed lease for 2 years meaning that I could not terminate the lease any earlier than the 2 years


  7. #7

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    Original Post Deleted
    I will plan a few months ahead. When I decide to sell, I will tell the tenant that I'm going to sell in 2 months and please move out in 2 months. Or another option, now they are paying $26.5k in rent, I will drop the rent to $25k if they want to stay a bit longer and help show the property to potential buyers, help me do some of the paperwork with agents, etc, since I am out of HK. If they agree to this then win-win. I even asked the tenant directly if they want to buy the property and they are considering it. But anyway if they dont want any of this and just want to move out, thats fine, just dealing with agents from overseas that will probably be a pain for me.

  8. #8

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    My contract doesn’t have a break clause, it is a 2 year fixed contract with no option for early termination. It is coming to the end of the 2 years


  9. #9

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    Original Post Deleted
    Isn't that trespassing if you don't have a current contract?

    No clue who the OP's landlord is ... lets hope he's not a lawyer or pretends to be one on the interwebs.

    My suggestion is - if you think your landlord is not an arsehole - speak to them and figure it out. If you've been there for a while - you should know what sort of landlord they are.

    If they're an arsehole .. do what the internet folks suggest...
    bdw likes this.

  10. #10

    Check the terms of the lease. It should contain a clause specifying either:

    1. that there will be no occupation beyond the end of the fixed term; or

    2. that if the tenant remains in occupation beyond the end of the fixed term it will be a a specified rent (which may the same or different from the rent applicable during the term of the lease).

    There is no notice period required for a fixed term lease - it just comes to an end on the last day of the fixed term. If nothing else is said or done, you would be required to move out on or before the last day of the fixed term.

    Do not make the mistake of failing to pay rent over the last two months. If the landlord finds there is damage for which you are liable, there are many who are willing to obtain an order for damages and then send a debt collector after you. Even if you intend to leave HK, the judgement will still affect your credit score if you ever want to borrow money again. Also, if you ever find yourself in need of a reference from your current landlord, breaching the lease is a surefire way to ensure you don't get one.

    Once you've made a decision, just let the landlord know the date you are moving out on and how you will return the keys to him/her. He/she will appreciate being given an opportunity to advertise for a new tenant earlier and show the flat to prospective tenants before you depart - but unless there's a "show" clause in the lease you're under no obligation to assist on the last point.

    The lease will specify a time limit for returning your deposit. If you're on good terms with the landlord you can ask for it to be returned earlier (but don't expect it back until after you have moved out as they will need to inspect first and can't do that until you've moved all your stuff out).

    bdw likes this.

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