Let say the tenant would like to leave before the tenancy agreement of 1 year maturity, what will be the proper procedure on how to go about it?

forfeit the tenant deposit etc

what is the normal practice?
actually what is the purpose of the tenancy agreement?

what do u think?

This post has been edited by lowyat888: Aug 6 2009, 11:26 AM

Do you have a proper Tenancy Agreement drawn up ??

your deposit will be forfeited if you leave before the tenancy agreement mature

Look at your tenancy agreement.
Is the 1 year term a fixed tenure? If it is, then strictly, tenant is obliged to complete or pay for the full tenure ie 1 yr in yr case. Enforcing compliance is another matter..that takes time n $$...which many landlord find not feasible/worth pursuing

Many however has got an 'escape clause' where tenant can 'terminate' tenancy with forfeiture of deposit.

what if the tenant agree to give the full 1 year rental fee whereby the last 2 months using the deposit(2 1/2 months deposit) to knock off but the tenant will be going off 1 month before the 1 year contract, what about the utilities deposit will it be forfeited as well (1/2 month utilities deposit)?

Only forfeit 1 month rental.
Utility will return later after deducting what is own after the bill arrive.

ALWAYS get the full month's rental EVERY MONTH. NEVER deduct from deposit. Experience taught me that you will be thankful once you look at the conditions of the place when they move out. Tell them they will get back the deposit 2 weeks after you check the place and settle any outstanding utilities.

So do you deduct their deposit if they run down the place?

Isn't that the very purpose of deposit anyway? Unless it's wear and tear, and if both parties are reasonable then can always discuss. What I was refering to was the worst case, so you can use the deposit to deduct unpaid rental, unpaid utilities bull or damaged fixtures.

Hmm, same sentiments.
If normal wear and tear I won't charge them.

tenant agree to pay for full term...that's good
no offsetting of deposit ...deposit is to cover for any damage/lost items, save for 'fair wear and tear'
tenant wants to vacate premise 1 month prior to full term....since they are paying for full term, this is better for you.

It may be a case of tenant wants to settle matters prior to departure. To facilitate them, get ready deposit to return to them upon physical handing over of premise. Usage of utilities can be checked with authorities via telephone during hand over date...then can refund utilities deposit on same date