The rental market is a highly competitive space, and finding a suitable home is hard enough. So, we probably do not have to stress the importance of insisting on a written contract respectfully.
Going forward, if there’s a possibility you may have to move out of your rented apartment before the lapse of your lease period due to the nature of your job, you should request a posting clause. This will save you a lot of money, stress, and talk.
For fixed-term agreements, tenants are required to commit to a minimum of a 6-month lease and pay up the rent for the entire period. While you could just settle to pay the “Break Lease Fee,” simply letting your renter know you are a posted person while negotiating favourable terms will do you a lot of good.
So, going right into it, what is a posting clause, and who is a posted person?
What is the posting clause?
Schedule Two of the Residential Tenancies Act 1997 amended in 2016, discusses the “Additional Terms for Certain Residential Tenancy Agreements.” Here are the clauses or optional terms tenants, as well as landlords, can discuss while discussing contract terms. It sets the conditions that validate the several reasons for terminating residential tenancies. One of these clauses is the “posting clause.”
The posting clause, therefore, is the legal provision that allows tenants to terminate a fixed-term agreement early if their job posts them elsewhere/far away. More specifically, it absolves a tenant of their obligation and commitment to their fixed-term lease. However, the tenant must submit an 8-week notice accompanied by some evidence to the renter. This informs the landlord of the tenant’s intention to vacate the rented apartment.
A closely related alternative is the break-fee lease clause. While both are quite similar, they are not the same. Like the posting clause, the break lease fee clause allows tenants to terminate a rental agreement before time but after paying a specified fee. It is usually a small fraction of the remaining rent or a fixed amount as specified in the lease agreement.
Who Should Request a Posting Clause?
Straightaway, people working jobs that may require them to move to a different location have a right to request a posting clause and negotiate its terms. Examples of these set people include government workers, healthcare professionals, military personnel, teachers, etc. Also, corporate executives and other classes of employees who may be transferred for work purposes can benefit from having this clause in their tenancy agreements. It protects them from exploitation by renters who may insist on their commitment to the tenancy agreement.
Benefits of a posting clause
Since both parties are well aware of the possibility of early termination, it saves time and stress. Below are the benefits of a posting clause for tenants and renters.
For tenants
When entering a tenancy agreement, landlords mostly hold all the cards as they are out to maximise profit on their assets. So, insisting on clauses such as the posting clause significantly shifts the odds in favour of the tenant. Below are some benefits of a posting clause for tenants;
- It protects tenants from exploitation by landlords
- Tenants can terminate their tenancy agreement anytime they are posted
- They are not liable for any contract breach costs
- For landlord
First off, a landlord has the right to reject the inclusion of a posting clause in a tenancy agreement. However, once agreed and signed, it becomes legally binding. The clause mandates that a tenant issues a notice eight weeks beforehand. So;
- It allows for fair play and flexibility
- Landlords have a space of eight weeks to find new tenants
- It may lead to lower turnover rates and lesser vacancy period
People also ask
What is the purpose of a posting clause in a rental agreement?
The purpose of a posting clause in a rental agreement is mostly to inform a landlord of the possibility of an early fixed tenancy agreement termination. This protects tenants from incurring costs that come with breaching a tenancy contract.
What happens if my rental application is approved but I change my mind?
If you rental application is approved but you change your mind, speak with your landlord and weigh up the potential fallout. Chances are, they’ll be able to go with another applicant.
How can tenants protect their rights when it comes to the posting clause?
Firstly, it’s important for tenants to clearly discuss their needs with prospective landlords before signing a residential tenancy agreement. Secondly, ensure the renter understands your perspective and the nature of your job and agrees to include a posting clause in the contract. Once included, both parties can proceed to sign the contract, provided it is well understood. Also, here are some other parts of a lease agreement you shouldn’t miss.
Are there any tenant advocacy organisations that can assist in such matters?
Yes, the Civil and Administrative Tribunals across the states provide help in such matters as this. Also, several independent organisations/pressure groups like the Tenants Union ACT help fight for the rights of tenants. A simple Google search should help with that.
